Estate Planning News + Trends
Commonly asked questions and trending topics of discussion. Search previous topics of discussion below.
Definition of the Month: Present Interest Gift
In order for a gift to qualify for the annual ($13,000) or lifetime ($1 million) Gift Tax exemptions, it must be a present interest gift. A present interest gift is one in which the beneficiary has an immediate, unrestricted right to the use, benefit, and enjoyment...
The Notice Requirement for Gifts in Trust
One of the primary techniques used to reduce a person’s taxable estate is for him or her to make gifts during life to other individuals, usually children or grandchildren, using the annual gift tax exemption ($14,000 in 2014). An individual can make a gift of up to...
Fisher II: Bona Fide Business
As reported in Newsletter #1, in John W. Fisher and Janice B. Fisher v. United States of America (March 11, 2010), the U.S. District Court of Indiana held that the interests in Good Harbor Partners, LLC, the Fisher’s limited liability company, gifted by the Fishers to...
Insurance Proceeds Payable to Decedent’s Brother, Not Son
A recent decision emphasizes the importance of recognizing the named beneficiaries of your accounts and policies and updating them as necessary in a timely manner. In Northwestern Mutual Life Insurance Co. v. Rafi (October 19, 2010), a father had purchased two life...
Protecting Inheritances from Divorce
Divorce is a reality that is difficult to anticipate, but one that can be planned for through proper Estate Planning. The Illinois Marriage and Dissolution of Marriage Act (the “Act”) provides that although property acquired by gift, legacy or descent is considered...
Estate Tax Update – October 2010
The latest buzz from Washington does not include any resolution on the Estate Tax uncertainty for 2010 and beyond, but does suggest that two things appear to be likely: first, that the Estate Tax dilemma will not be resolved until after the November Congressional...
Reviewing Your Existing Estate Planning Documents
A common question from clients is whether and when their existing Estate Planning documents should be reviewed. In the past, the answer was simple—documents should be reviewed when there is a significant change in your family or financial situation, but at least...
Definition of the Month: Crummey Notice
The Crummey Notice takes its name from the 1968 decision in Crummey v. Commissioner, 397 F.2d 82, 88 (9th Cir. 1968) in which it was established that a gift in trust qualifies for the annual Gift Tax exclusion as long as the trust’s beneficiaries have the power to...
The Importance of Planned Giving
As the end of the year quickly approaches, it is essential to recognize the importance of planned giving and its benefits for those with taxable or rapidly growing estates. This newsletter will discuss the opportunities available to reduce your taxable estate while...
Definition of the Month: Intestate
An individual who dies without a Will is referred to as dying intestate. Each state provides its own intestate succession law, which determines how the assets of a decedent who dies intestate will be distributed. Under Illinois’ intestate succession law (“Descent and...