FindLaw IM Template 2025-03-31T11:41:58Z https://www.lifkalaw.com/feed/atom/ WordPress /wp-content/uploads/sites/1100932/2019/07/cropped-favicon-32x32.png On Behalf of Lifka & Lifka, P.C., Attorneys at Law https://www.lifkalaw.com/?p=47581 2020-05-18T14:12:15Z 2020-05-20T14:10:43Z

When it comes to drafting a will, there always seems to be a good reason to do it later. Unfortunately, however, accidents and tragedies occur every day that cause unexpected deaths. This can result in your passing before you have had a chance to create a will or plan your estate.  We understand how estate planning works in Illinois and have helped many of our clients with their wills, trusts and other tools.  Dying without a will   In Illinois, if you die without a will in place then the courts determine how your assets will pass on. According to FindLaw, this is also known as dying intestate. Intestate succession refers to the order in which the courts will determine who is next in line to receive your belongings. This can be problematic if you want certain assets to go to certain people or charities, for example. Without a will in place, your properties will be subject to the default order of heirs established by the courts.  The order of heirs in intestate succession  The following list details how the courts will distribute your assets if you die without a will in place. 

• If you have a spouse but have no children, your estate will go to your spouse 
• If you have a spouse and have children, your spouse will get 50% of the estate, while the remaining 50% will split evenly between your children 
• If you are not married and you have children, your estate will be equally divided between your children 

Things may get complicated if you have no living spouse or children when you die. At that point, your estate will pass on to your parents and siblings. More information about this topic is available on our webpage. ]]> On Behalf of Lifka & Lifka, P.C., Attorneys at Law https://www.lifkalaw.com/?p=47578 2020-05-15T21:22:28Z 2020-05-19T21:20:57Z

minimize your tax liability at both levels. You can create special trusts or leave assets as gifts in some cases to lower the value of your estate and therefore reduce or eliminate your tax liability. However, to do that, you need to understand the tax laws and know if you are even subject to taxation at each level. Federal estate tax In most cases, you will not have to worry about the federal estate tax because it only applies to those with a value of $11.58 million or more. Most people have estates valued at less than that limit and avoid taxation. State estate tax Not every state has an estate tax, but Illinois happens to be one of them that does. The estate tax limit is much lower at the state level than it is at the federal level. In Illinois, you will face taxation if your estate is worth at least $4 million. Common changes Do note that estate tax laws often change. There was just a recent change in federal laws and the value limit will continue to change each year under the new law. States also may change their laws from year to year.]]> On Behalf of Lifka & Lifka, P.C., Attorneys at Law https://www.lifkalaw.com/?p=47541 2020-04-20T15:08:43Z 2020-04-17T19:48:59Z

On Behalf of Lifka & Lifka, P.C., Attorneys at Law https://www.lifkalaw.com/?p=47521 2020-04-20T15:08:06Z 2020-04-15T19:45:23Z

People in Illinois and elsewhere often overlook the importance of advance care planning, especially if they are young or otherwise healthy. However, those people would have no way to ensure they get the medical treatment they would want should they experience a serious medical crisis without having advance directives in place. According to the U.S. Department of Health and Human Services, advance directives are legal documents that specify people’s preferences regarding the various decisions that may need to be made in the event of a medical emergency. They go into effect only in the event of incapacitation that prevents people from speaking for themselves, like a coma. If you are concerned about losing your power to make decisions in the event of an emergency, it would be smart to consider advance directives. Depending on how you want decisions made on your behalf, you could create documents such as living wills and durable powers of attorney. In some cases, you could also create documents such as do-not-resuscitate orders, organ and tissue donation orders and life-sustaining treatment orders.  According to the Mayo Clinic, a living will is a document used to specify people’s preferences for medical treatment and other decisions that may have to be made should they suffer serious injury, go into a coma, be in the late stages of dementia, become terminally ill or otherwise be near the end of their lives. Through a living will, you could indicate the types of life-saving treatments you would or would not want, as well as the types of circumstances in which your decisions would apply.  Setting up a health care power of attorney would allow you to name another person to act as your health care agent and make decisions on your behalf. While the person given medical power of attorney would use the other advance directive documents to inform their decisions, not all situations can be anticipated, and health care agents may be called upon to make judgment calls. It is best to make all of these preparations with an experienced estate planning attorney, to be sure you'll get the right results.]]> On Behalf of Lifka & Lifka, P.C., Attorneys at Law https://www.lifkalaw.com/?p=47513 2020-04-20T15:07:33Z 2020-04-13T19:46:05Z

For many people, losing a parent proves monumentally difficult. If you are among those who have lost your mother or father in recent years, you may understand all too well just how much of a toll it takes on you. You may also have come to realize that a parent's death often brings financial hardships. For example, if your parent passed away and left significant debts behind, you may be trying to figure out what to do while also navigating intense emotions.  According to U.S. News & World Report, it is quite common for debt collectors to contact surviving children regarding a deceased parent's debt. When they do so, they may tell you that you have some type of ethical duty to take care of your parent’s debt, but is this actually true?  In many instances, you will not have to cover the debt your parent left behind. There are several important exceptions to this, however. Recognizing what these exceptions are should help you determine who is responsible for the debt.  You are going to have to ask yourself two things.

1. Did you and your deceased parent apply for a loan or credit card together?
2. Is your name on your parent's credit card account that has a past-due balance?

Unless you answered “yes” to either question, you are probably not going to have to cover the debts your parent left behind, regardless of what a debt collector may tell you. While this is good news, the best way to be sure you're not responsible for your parent's debt is by reaching out to an experienced professional. This information about your debt obligations following a parent’s death is educational in nature and not a replacement for legal advice. ]]> On Behalf of Lifka & Lifka, P.C., Attorneys at Law https://www.lifkalaw.com/?p=47516 2020-01-10T13:53:12Z 2020-01-03T23:34:12Z

False information was included in the trust accounting

The trust accounting indicated mismanagement of trust funds

Trust funds appear to have been stolen

Once you decide to file an objection, you must make sure you know how to file one. If there is an ongoing court case involving the trust, you would file your objection with the court. According to the Illinois State Bar Association, you may receive a more detailed description of certain specific transactions. If there is no ongoing court case involving the trust, then you would initiate a court case by filing a petition. Filing a trust accounting objection is easier to do with the help of an experienced estate planning attorney.]]> On Behalf of Lifka & Lifka, P.C., Attorneys at Law https://www.lifkalaw.com/?p=47505 2020-01-10T13:56:23Z 2019-12-13T01:31:30Z

A trust is a legal arrangement in Illinois under which you name someone else as a trustee and give them rights to operate your property on your behalf. A trust can be irrevocable or living. Either way, the beneficiaries of the trust will get to inherit the property after you die. The main idea behind creating a trust is to save your family from the stress of having to go through a probate court. But is that important in Illinois?  Yes, it is! The state of Illinois does not adhere to the uniform probate code which was intended to standardize the probate process; therefore, making a trust is a good idea. However, if your property is under $100,000, there is a simplified probate process that is relatively inexpensive and straightforward. You may, therefore, not need to have a trust.  Do you still need a will when you have a trust? Yes. Having a trust does not excuse you from having a will. Usually, trusts do not protect every single asset. All the assets that do not get into your trust can be covered if you have a will. Also, the will allows you to name someone that was left out of your trust. If you do not have a will, the courts will decide how unprotected assets are divided. This information is for educational purposes only. Do not consider it to be legal advice. ]]> On Behalf of Lifka & Lifka, P.C., Attorneys at Law https://www.lifkalaw.com/?p=47458 2020-01-09T16:24:11Z 2019-11-19T17:43:58Z

Residents of Illinois who have already drafted an estate plan may feel as though their job is done. Unfortunately, this isn't always the case. Life can change all the time, and your estate plan can become inaccurate.  Cobizmag.com lists a few different reasons to update an estate plan. Most of them have to do with changing circumstances. Generally speaking, it is advised that you update your estate plan regularly, even if nothing has changed. However, it is important to update your plan after some specific changes.  If the laws in your area change, you'll want to update your estate plan. This can include both tax laws and marital laws, which apply to estate plans in many situations. You don't want your estate plan to be based off of a law that is no longer in effect.  If you experience a big change in your life, you should check in on your estate plan. This can include changes to family dynamics, such as marriage, divorce or discovering that a loved one has a disability. It can also involve moving to another state or country, which can change the way the estate plan is handled by law.  Your estate plan should mirror changes in your finances. As the years go by, it's only natural for your financial state to fluctuate. Your estate plan should be updated to reflect any drastic financial changes. ]]> On Behalf of Lifka & Lifka, P.C., Attorneys at Law https://www.lifkalaw.com/?p=47407 2019-11-01T21:19:47Z 2019-11-01T21:19:46Z

Take stock of assets

According to CNN Money, the first step in estate planning involves taking stock of what one owns, including both tangible and intangible assets. A young adult may not yet have much in the way of property, but he or she may own a car, family heirlooms, life insurance and/or retirement accounts from a job, etc.

2. Choose one or more decision-makers

For a young adult with little property, a will may not be a top estate planning priority. More important at this point, as U.S. News and World Report explains, is appointing a health care proxy and durable power of attorney to handle decision-making responsibilities in the event of incapacitation. The same person can fill both roles if desired. It is advisable to assign these responsibilities to a family member. Once an individual has named decision-makers, it is a good time to start thinking about a will.

3. Consider beneficiaries and executors

Beneficiaries are people who inherit after somebody has died. Even those who do not have much in the way of property or assets should think about who receives what following their death and name beneficiaries in their wills. The will should also name an executor who acts as the agent of the person who has died and carries out his or her wishes to the extent possible.]]> On Behalf of Lifka & Lifka, P.C., Attorneys at Law https://www.lifkalaw.com/?p=47402 2019-10-30T21:38:47Z 2019-10-30T21:38:47Z

different types of trusts, although there can be some overlap between them. Trusts can be either revocable or irrevocable. It is possible to make changes to a revocable trust after its creation, but an irrevocable trust is not subject to change. A testamentary trust transfers its benefits to others after your death, while a living trust helps you to manage your property while you are still alive. There are three basic roles that parties to a trust have to play. There are several different names for the person who creates a trust, which include grantor, settlor or trustor. If you create a trust, that makes you the trustor, and you then have the ability to appoint someone to manage the trust. The name for this person is the trustee. You can be both the trustor and the trustee at the same time, but if you want the trust to continue after you have died, you must appoint another trustee to take over for you in the event of your death. Upon transfer of the property to the trustee, the trust becomes effective. There is also at least one person or entity who receives the benefits of the trust according to the terms that you set. This person is the beneficiary. The trustee has the responsibility to act in the beneficiary's interests when managing the trust. A trust can have more than one beneficiary, and it is possible to name yourself as one of the beneficiaries although, depending on the type of trust you create, it may not be necessary. The information in this article is not intended as legal advice but provided for educational purposes only.]]>