Proper estate planning involving living trusts can help avoid the necessity of probate. "Probate" is a legal procedure in which a deceased person's will (if they have one) is validated and his estate is administered. In Illinois, probate is generally required by law when the deceased person owned real estate in his or her own name and/or had assets valued in excess of $100,000. These parameters cover a lot of people! The probate process takes at least six months and is often significantly longer. Since the probate process is overseen by the courts, all documents filed in probate proceedings are public record. Probate can also be quite costly, especially if it involves contested matters. By establishing a living trust and titling your assets in the name of the trust, the trust technically "owns" your property and you retain control over it. Since the trust (not you) owns the property, probate can often be avoided. It is crucial to have the assistance of a qualified attorney when establishing a living trust.
The trust must be first be properly drafted. Once the trust is established, the trust must be "funded". This means that actual title to the assets is transferred into the name of the trust. In most cases, you would be named as the trustee of the trust with the power to deal with the trust assets. There are potential pitfalls to relying on internet documents or non-lawyers to draft a trust for you. A trust that is not carefully tailored to your specific situation can result in your estate being probated anyway, despite your efforts to avoid it.
One of the primary reasons to engage in estate planning is to preserve your assets for your heirs. It can be emotionally and financially damaging for the heirs of people who worked hard to build up their assets for the benefit of their families to have those assets significantly depleted at death by federal and state estate tax obligations. The remainder of this article will discuss the current status of the Illinois and federal estate tax, planning techniques to take advantage of the current and possible future estate tax exemption levels, and what the future may hold.
Unfortunately, estate planning for married couples has been in a state of uncertainty over the past few years. The current federal estate tax exclusion level is $5 million for the years 2011 and 2012. The Illinois estate tax exclusion level is $2 million, which presents some planning difficulties when considered with the federal exemption level. Without further action by Congress, the federal estate tax exclusion will revert back to $1 million in the year 2013. You should contact your attorney to seek assistance with planning your estate to avoid and/or minimize the effect of federal and Illinois estate taxes upon your death.
This article is intended to present general information for educational purposes, is not legal advice and should not be relied upon in connection with any particular matter. The reader is advised to immediately retain their own separate legal counsel with respect to any specific legal issue. Rights to bring a claim will expire through the passage of time by the applicable statute of limitations.
The trust must be first be properly drafted. Once the trust is established, the trust must be "funded". This means that actual title to the assets is transferred into the name of the trust. In most cases, you would be named as the trustee of the trust with the power to deal with the trust assets. There are potential pitfalls to relying on internet documents or non-lawyers to draft a trust for you. A trust that is not carefully tailored to your specific situation can result in your estate being probated anyway, despite your efforts to avoid it.
One of the primary reasons to engage in estate planning is to preserve your assets for your heirs. It can be emotionally and financially damaging for the heirs of people who worked hard to build up their assets for the benefit of their families to have those assets significantly depleted at death by federal and state estate tax obligations. The remainder of this article will discuss the current status of the Illinois and federal estate tax, planning techniques to take advantage of the current and possible future estate tax exemption levels, and what the future may hold.
Unfortunately, estate planning for married couples has been in a state of uncertainty over the past few years. The current federal estate tax exclusion level is $5 million for the years 2011 and 2012. The Illinois estate tax exclusion level is $2 million, which presents some planning difficulties when considered with the federal exemption level. Without further action by Congress, the federal estate tax exclusion will revert back to $1 million in the year 2013. You should contact your attorney to seek assistance with planning your estate to avoid and/or minimize the effect of federal and Illinois estate taxes upon your death.
This article is intended to present general information for educational purposes, is not legal advice and should not be relied upon in connection with any particular matter. The reader is advised to immediately retain their own separate legal counsel with respect to any specific legal issue. Rights to bring a claim will expire through the passage of time by the applicable statute of limitations.
Ralph E. Elliott practices law at Law Offices of Ralph E. Elliott, A Professional Corporation which is comprised of Lawyers in Freeport Illinois who have over 34 years of experience including an Estate Planning and an Estate and Trust Administration practice. The firm is situated at 1005 W. Loras Drive, Freeport, IL 61032 which serves business, individuals and the agriculture community in Northwest Illinois.
http://tourism9.cm/ http://vkins.com/
没有评论:
发表评论