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Executor Responsibilities during a Probate Proceeding
Kendall County Probate Lawyers
A person appointed to the role of Executor during a probate proceeding has the responsibility of dividing and distributing a person’s assets when that person passes away. There is a lot of legal jargon involved and it may be an intimidating task. It is important to understand what goes into the role of Executor and what the process looks like. This makes the process much easier and smoother for the Executor.
Cost
The Executor does not pay for the cost of the probate process. It is paid by the assets of the estate. Costs typically come in the form of attorney fees, court filing fees, and any appraisal needed.
Kendall County and Oswego Probate Procedures
What is Included in the Probate Process?
The first thing to understand is what a probate is and how the process works. Probate is the term used for the legal process in which a deceased person’s Will or Estate (without a Will) is administered. The process looks different depending on whether the person who is deceased had a Will made while they were alive or if they did not. In the event the deceased person did not have a Will made, a person is selected to be an administrator of the Estate. The Executor, among other things, has the task of compiling a list or inventory of the assets of the Estate. The Executor also must make sure any claims that are made against the Estate are paid, and finally, the Executor must distribute whatever is left of the Estate to the appropriate heirs of the deceased.
Only Two of You? Estate Planning Tips For Childless Couples.
What if you don't have children yet, is estate planning still necessary for you and your spouse? Frankly, death or a terminal sickness can come knocking anytime even before you both decide to have children. So, you ask yourself, "is estate planning ideal for childless and infertile couples?" The answer is yes.
Estate planning is not only for couples with children. In fact, many estate planning documents do not contain children as beneficiaries alone. Other like pets, extended family members, and even distant relatives as beneficiaries are also included.
Coordinating Landlord’s Estate Planning With Asset Protection
Owning rental property can be a great benefit to a landlord, as well as a way for an individual to generate additional income. But there are substantial risks that an individual assumes when taking on the role of a landlord. The risk of a lawsuit against a landlord is high, as there can be claims brought based a lease dispute or an injury that occurred on the property. If a tenant brings a claim against a landlord, judgment creditors will be able to access the landlord’s personal assets to pay off the judgment. In order to protect personal assets, it is crucial to include rental property in an estate plan as a way to structure a workable asset protection plan.
The best way for landlords to eliminate the risk of creditors reaching personal assets is to take the rental property out of the landlord’s individual name and place it into an entity. There are two ways that are most effective at doing so, establishing an LLC, or putting the property into a land trust.
Why A Certificate of Trust Is Necessary In Estate Planning
Implementing a Trust into your estate has many advantages. Along with being a less costly alternative than going through Probate and being more time-efficient, A Trust has the added benefit of being private. However, when a Trust has been implemented, you need to provide documentation of the Trust when opening new accounts or purchasing real estate. That is where a Certificate of Trust comes in handy.
Privacy of a Trust
While a Will must go through Probate and will become a public document, a Trust Agreement has the benefit of remaining private, meaning that only those that have seen the Trust know the contents of it. Mainly, the people who are aware of the contents of the Trust are the Trustees and Successor Trustees.
Role of Trustees
The Trustee has the power to manage the Trust. Typically, while the Trustor (the person who created the trust) is alive, they will serve as Trustee. Doing so gives the Trustee full ability to add assets to the trust, make payments on behalf of the trust, and remove items from the trust as necessary to benefit the Trustor during their lifetime.
Dobbs v. Jackson Women’s Health Organization: The Case that Overturned Roe v. Wade Could Impact Estate Planning for Same-Sex Couples
What Happened in Dobbs v. Jackson?
On June 24, 2022, the Supreme Court released its decision in Dobbs. This decision overturned the long-standing precedent set by Roe v. Wade that women have a right to have an abortion under the Constitution. The justification used by the majority of the Justices in the Dobbs ruling could have devastating impacts on other previously held constitutional rights, including the rights of same-sex couples.
Before the Dobbs ruling, the Supreme Court in Roe held that women did have a right to seek an abortion (up to a certain point in the pregnancy) because it was protected by the constitutional right to privacy. This meant that an individual state could not ban women from seeking an abortion nor could a state place any undue obstacles in the way of a woman seeking an abortion. However, by a 5 to 4 vote in Dobbs, the majority held that the U.S. Constitution does not explicitly give women the right to seek an abortion and thus, there is none. Consequently, this decision gave individual states complete power to regulate any aspect of abortion not preempted by federal law. Thus, the Dobbs decision paved a path for the Court to allow states to regulate other constitutional rights that were previously held as constitutional under the right to privacy.
What is the Difference Between a Limited Partnership and LLC?
A Limited Partnership company and LLC have similarities in operation, but they are quite different from each other. They are the two most common business entities in the US.
For example, when it comes to taxation, LPs and LLCs have the freedom to incur pass-through taxation treatment. This means that each member (LLC) or partner (LP) is taxed on the personal profit gained from the company. LPs and LLCs are both exempt from federal income tax.
Also, LPs and LLCs have similarities in defining the rights and roles of partners and members. This is in the aspect of Limited Partnership Agreement for LP and Operating Agreement for LLC. These are two similar internal documents that contain how the company is to operate, internal agreements among members or partners, and firm rules and regulations to be followed by all members or partners.
Business Acquisitions - Considerations for Buying or Selling a Business
Purchasing or selling a business can be a complex and often overwhelming experience, both for the buyer and seller. There are various aspects that need to be considered, as well as careful consideration and disclosure of all potential liabilities that may surface. When buying or selling a business, there are different ways to go about the sale, but the three most common ways of acquiring a business are through either a stock purchase, an asset purchase, or a merger. It is important to know what each option entails to ensure the correct procedure is chosen to benefit both the buyer and seller in the sale of a business.
Stock Purchase Agreement
A stock purchase takes place when the buyer purchases either all or a controlling majority of the selling company’s voting shares. Under a stock purchase, the legalities of the selling company, such as the name, managing operations, and procedures will remain the same unless these legalities were previously discussed in the Stock Purchase Agreement. This means there are significant advantages for both the seller and the buyer. By releasing the controlling majority of voting shares to the buying company, the selling company is released from the liabilities that may occur. The buyer benefits from a stock purchase because the legalities remain the same, which results in less disruption to the business and a more efficient transfer of control.
Estate Planning: Retirement Plan Trusts
What is a Retirement Plan Trust?
A retirement trust is a method used in estate planning that provides not only the basic benefits of a trust, but also the tax benefits of an IRA (individual retirement account).
A retirement trust works by establishing the trust and naming the trust as the beneficiary of your retirement accounts upon your death. Your retirement trust will not include your IRA until you pass away. At this point, the person you have selected as trustee of the trust will distribute the funds to your named beneficiaries according to the terms you included in your trust.
Retirement Plan Trust Lawyers in Plainfield and Kendall County, Illinois
What are the Benefits of a Retirement Plan Trust?
First, the major benefit of a retirement plan trust is reducing taxes taken on your retirement accounts and taxes taken on the distributions of those funds once they are in the trust. A retirement plan trust does this because it allows you to distribute money to your heirs in smaller amounts. Your trust will have language about distributing the funds to your beneficiaries in the RMD (required minimum distribution). Paying out funds in the RMD amount results in less taxes being taken out on those funds.
Estate Planning to Avoid Adult Guardianships
What is an Adult Guardianship?
If a judge determines that an adult (over 18 years of age) cannot make basic life decisions or manage their own property or money, they have the power to place them under an adult guardianship. Under an adult guardianship, another person (that meets the legal requirements to be a guardian) is assigned to take care of the adult and act in their best interests. Common causes of adult guardianships include Alzheimer’s disease (or other mental decline due to aging), certain mental illnesses, developmental disabilities that the adult has had since birth or childhood, and certain physical disabilities.
In Illinois there are two different types of adult guardianships. A person designated as the guardian can be assigned just one or both, depending on the circumstances. First, there is a guardianship of the person. A guardianship of the person allows the assigned guardian to make decisions regarding all personal care, for example, making medical decisions for treatment plans. The second type of guardianship is a guardianship of the estate. This guardianship gives the guardian control over the adult’s finances and property.
Estate Planning and Avoiding Family Conflicts
Yorkville and Kendall County Estate Planning Law Firm
An estate planning is a legal concentration helping people bypass or minimize family conflicts involved in the incapacity and death process. Estate planning is the process of setting up one’s affairs in a manner that minimizes and avoids potential family conflicts. Proper estate planning is an investment and wise decision to anticipate future family conflicts.
The use of an estate planning attorney is a tool to assist your family avoid the inherit conflicts involved in the death and incapacity process. The causes of family conflicts range from the following:
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