2000 McDonald Road, Suite 200 | South Elgin, IL 60177

Pay Your Bill
Client Login
Ariano Hardy Ritt Nyuli Richmond Lytle & Goettel P.C.

847-695-2400

Elgin trust administration attorneyThere are a variety of estate planning tools that a person can use to protect their assets and pass them on to beneficiaries. Trusts are some of the most powerful and flexible of these tools, allowing a trustmaker (also known as a “settlor”) to place assets in the control of a trustee, who will then distribute the assets to the beneficiaries according to the terms of the trust. There are certain requirements that must be met during the trust administration process, and trustees and beneficiaries should be sure to understand how recent changes to Illinois law will affect their rights and responsibilities.

The Illinois Trust Code

In 2019, the Illinois legislature passed the Illinois Trust Code (ITC), which took effect on January 1, 2020, replacing the Illinois Trusts and Trustees Act. This new law addresses the rights of trust beneficiaries in a number of ways, including:

  • For trusts that become irrevocable on or after January 1, 2020, the trustee must provide an annual accounting of the trust’s inventory, receipts, and disbursements to ALL beneficiaries. These include beneficiaries who are currently receiving or could receive a distribution from the trust, as well as presumptive remainder beneficiaries who would be eligible to receive a distribution if the trust was terminated or if the interests of other beneficiaries ended. In the case of married couples, it is typical for one spouse to create a trust for the benefit of the surviving spouse during the surviving spouse’s lifetime, and then, upon the death of the surviving spouse, the trust would distribute the trust assets to their children. This new law REQUIRES the children to receive annual accountings during the surviving spouse’s lifetime, which may or may not be desire of the creator of the trust. If not desired, the creator of the trust can “opt-out” of this requirement.   
  • A settlor may create a “silent trust” that waives the requirement for the trustee to provide an accounting of the trust to beneficiaries under the age of 30. However, the trustee will be required to make an annual account to a “designated representative” nominated or authorized by the settlor, and the beneficiary will have the right to receive an annual accounting upon reaching the age of 30.
  • Trustees are not required to provide beneficiaries with advance notice of transactions involving property owned by the trust.
  • A beneficiary of a trust can serve as the designated representative of other beneficiaries, including minors, unborn children, or beneficiaries who have not been located.
  • A beneficiary can serve as the sole trustee of a trust, but in these cases, they will only be able to make distributions to themselves based on an “ascertainable standard.” This means that distributions should be used to provide for needs such as healthcare, living expenses, or education, rather than to pay off personal obligations or debts.

Contact a Kane County Trusts Attorney

If you are the beneficiary of a trust, you should be sure to understand how your rights will change under the ITC. At Ariano Hardy Ritt Nyuli Richmond Lytle & Goettel, P.C., our experienced Elgin estate planning lawyers can answer your questions about trusts, and we can assist you in any matters involving trust administration. To arrange a free consultation, contact us today at 847-695-2400.

...

Elgin special needs trust lawyersOver the course of your life, you are likely to save money and acquire assets, and you will probably want to use these resources to provide for the needs of your loved ones. This is particularly true if you have any family members who are disabled or have special needs, since you will want to do everything you can to ensure that they will always be taken care of. However, simply gifting funds to a person or naming them as a beneficiary in your will can actually have some negative effects. To ensure that a beneficiary will continue to have the resources they need, you should consider passing your assets to them through a special needs trust. In some cases, you may also want to use this type of trust to provide for your own needs, especially as you reach an advanced age.

Public Benefits and Special Needs Trusts

A person with a disability will often be eligible to receive certain types of public aid, such as Medicare, Medicaid, public housing, Social Security Disability Insurance (SSDI), or Supplemental Security Income (SSI). However, this type of aid is only available if a person meets certain requirements. Typically, the total value of the assets they own must fall below a certain threshold, and they will be limited to a certain amount of income earned per month. If a person who receives any of these benefits is named as the beneficiary of significant assets, this could make them ineligible for one or more types of public benefits.

To ensure that a beneficiary will continue to be able to receive public aid, a special needs trust or supplemental needs trust can be created. The assets in this type of trust will be in the control of a trustee, so they will not be considered part of the total assets owned by the person with special needs. The beneficiary can then receive regular payments from the trust that will be used to provide for needs that are not covered by public benefits. Since public aid is intended to pay for a person’s daily needs, including food, housing, and clothing, payments from the trust can be used for other purposes, such as transportation, furniture and household items, education, entertainment, and cell phone or internet service.

...

Elgin tax planning lawyerThe federal government recently passed the Tax Cuts and Jobs Act (TCJA), which has ushered in major changes to tax laws that will affect nearly every business and individual taxpayer. It is critical to understand these sweeping changes so that you can anticipate your tax burden each year.

According to the Tax Policy Center, under the TCJA, approximately 67% of taxpayers will owe less taxes, 25% will have no change in their taxes, and 7% percent will owe more taxes. However, this may not mean that taxpayers will receive a refund next April.

For most, whether a refund is issued depends on how much tax one pays through income withholding. Experts predict that because the government has reduced the withholding amounts to reflect the reduced taxes, between one third and one half of taxpayers may have a balance due with their next tax return.

...
Protecting Your Assets Through Sound Estate Planning

Elgin estate planning and asset protection lawyerThe start of a new year is an appropriate time to devote focus to ensuring that your finances are in order for both the short and long term. This due diligence requires that you give adequate consideration to every resource capable of aiding you and your family in the protection of your assets. Besides savings accounts, IRAs, 401(k)s, and investments in the stock market, estate planning is a tremendous resource in matters of asset protection. Devoting time now to careful estate planning focused on finances related to your business, health, and family can make all the difference in the future, allowing your intentions with regard to your assets to be followed correctly.

How Assets May Be at Risk

Three primary risks faced by assets are:

  • Government taxation
  • Commingling of business and personal assets
  • Capacity-related issues

As you may be aware from following recent political and legislative news, estate taxes are a subject of ongoing debate. Until recently, the federal exemption limit for estate taxes was roughly $5.6 million. This limit has been doubled under the Tax Cut and Jobs Act, thereby prompting appropriate adjustments in individual estate planning. Importantly, however, the Tax Cut and Jobs Act concerns the federal exemption. Sound planning also requires that one account for the Illinois state level estate tax exemption, which is currently limited to approximately $4.0 million.

...
Using a Special Needs Trust to Benefit Heirs With Disabilities

Elgin special needs trust lawyerThe holiday season is a time to think of giving – of summoning the charitable impulses and good intentions that bring out the very best version of oneself. It is a time to be grateful for life’s blessings and to reach out and help those who are less fortunate. In doing so, estate planning is a powerful resource in helping others, whether they be family, friends, charities, or individuals in need in a local, regional, national, or global community. 

Estate planning is synonymous with wills and trusts. With regard to the latter, it is possible to create a special needs trust to benefit a disabled individual in your life.

A Trust is a Powerful and Flexible Asset Management Tool 

A trust is a legal agreement that designates both an individual to assume the role of “trustee” and one or more individuals as “beneficiaries.” A trustee will manage your property on behalf of designated beneficiaries at the time of your death or, if you become incapacitated, while you are still living but are no longer able to manage your property on your own. 

...
Illinois State Bar Association DuPage County Bar Association Kane County Bar Association DeKalb Bar Association
Waiting for Resize
Back to Top
Client Login
x