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Recent Blog Posts
What do I have to disclose when selling a home?
You may be ready to move somewhere new right now, but you have a fair amount of work ahead of you if you intend to sell your home. Of course, you will probably have to do a lot of cleaning and a fair amount of repair work to make your lived-in home look appealing to buyers. You may even have to stage the home with temporary furnishings so it seems welcoming to a wide variety of potential buyers. You will probably want an agent to help you secure buyers and arrange showings.
And after you have got through all these steps, once you get into the actual transaction of selling you home, you have more paperwork to do. One of the most important tasks you have is to make legally required disclosures of issues with the property.
Federal and state disclosures
Disclosure requirements are designed to protect homebuyers from dishonest sellers who would try to sell them hazardous properties. The requirements come from both federal and Illinois law. For instance, the Residential Lead-Based Paint Hazard Reduction Act of 1992 is a federal law that requires sellers to inform buyers of any lead-based paint or chipped paint in any home built before 1978.
A power of attorney is a useful planning tool
Many people are aware that estate planning may include completing a will or trust, but sometimes overlook the usefulness of a power of attorney.
A power of attorney for finances and a power of attorney for healthcare allow a person to designate someone to act on their behalf. The person who creates a power of attorney is called the principal and the person he or she appoints to act is called an agent.
Finances
A power of attorney for finances allows the agent to make financial decisions for the principal, which may include managing the principal's money. It can also include acting on behalf of the principal for insurance and tax matters, claims and other transactions.
The principal can choose which powers to grant the agent and the agent must act in accordance with the powers allowed by the principal.
Unless it states otherwise, it will apply throughout the principal's lifetime.
Healthcare
A power of attorney for healthcare allows the agent to make healthcare decisions for the principal. These powers may include deciding to accept or decline medical treatment, admitting the principal to a hospital and accessing and disclosing medical records.
Pro hockey player files for Chapter 7 bankruptcy
In Illinois and across the United States, people are experiencing a range of financial worries because of the ongoing health crisis still engulfing the nation. That has led to major medical expenses, lost income, the inability to pay debts, the need to use credit cards for everyday necessities and more. When the bills reach a level where they cannot be paid, people are frequently unsure of what to do. There may be a reluctance to file for Chapter 7 bankruptcy because of fears about the process, how it could negatively impact the future, and the perceived stigma surrounding it. In truth, Chapter 7 is a perfectly legal and reasonable way to get into a stronger financial situation and move forward.
Even people with significant income may need Chapter 7
For those who are fearful, it might be beneficial to know there are people who have substantial assets and major income whose debts become so onerous that they need to file for Chapter 7 to get into a better position. A National Hockey League player, Evander Kane, has filed for Chapter 7 bankruptcy in California where he is under contract with the San Jose Sharks. Mr. Kane, 29, owes almost $27 million and is facing legal claims for his debts.
Is estate planning too expensive?
The year 2020 made everyone think about their own mortality, which made estate planning a hot topic last year. And, as this year has started off much like last year has ended, estate planning is still a hot topic. However, many worry about the expense.
Who needs an estate plan?
In a word, everyone. Remember, estate plans include living wills (advance directive), powers of attorney, traditional wills, etc. It is not just about property division; it is about how one wants to be treated when they cannot make their own medical decision and even what one wants to happen to their body once they pass. This is why everyone needs an estate plan.
However, even though it is so important and has been such a hot topic last year and this year, less than a third of us have even drafted one such document, according to a survey by Caring.com and YouGov at least. Unfortunately, cost may be a factor in this.
Property that creditors can take in bankruptcy
Filing for bankruptcy helps protect assets if debt becomes overwhelming. While Chapter 7 may provide a fresh financial start, bankruptcy law does not protect all debtor property from creditors.
Chapter 7
A Chapter 7 bankruptcy allows the discharge, or remove liability, of most debt owed on the date the bankruptcy is filed. It is typically a three-month process.
Some property may be lost in this bankruptcy. Property transferred before the bankruptcy filing may be reversed to the debtor.
Bankruptcy does not protect certain debts. These include spousal or child support and criminal fines or restitution. It is also difficult to exempt personal income taxes, student loan debt, and liability for passing bad checks or using fraudulent credit cards.
Bankruptcy estate
A bankruptcy estate is comprised of the debtor's property and income that is accessible to creditors. It includes all property owned by the debtor when the bankruptcy is filed and any income that was earned even if it was not received.
Estate planning and trusts in Illinois
Everyone should have an estate plan, no matter how healthy, young, or old they are. Planning what will happen to assets after death can help people ensure that their property is distributed according to their wishes. There are many options in the state of Illinois to legally bind what happens to property after death.
Types of trusts
There are two types of trusts in Illinois: revocable and irrevocable. A revocable living trust is a trust account that is set up by a person while he or she is still alive that can be changed or completely revoked (cancelled) at any time. An irrevocable living trust cannot be modified or revoked after its creation.
Creating a trust
Creating a trust is done by drafting a trust document that states the property to be put into the trust, who the trustee is (the person put in charge of day to day management of property in a trust – can be an individual or a bank, or both) and who the beneficiaries are. The trust document also spells out how to distribute the property that has been placed in the trust.
Trusts are an effective estate-planning tool
Estate planning is typically focused on passing assets after you die. But planning may include both wills and trusts to help preserve your income when you are still alive. There are some general features you should know about trusts.
General description
A trust is a legal agreement with at least three people who can serve different roles. More than one person can serve in these roles at the same time.
A trust agreement contains terms governing the trust. A trust cannot fully operate until it is funded through the transfer of property.
The person who created the trust is the trustor, grantor, settlor, or creator. The second person, the trustee, has legal title to the property and manages it according to the trust agreement and Colorado law. The trustee has the fiduciary duty of managing the trust property only in the beneficiaries' interests and in accordance with the trust agreement and state law.
Will I lose everything if I file for Chapter 7 bankruptcy?
People in Geneva facing financial difficulties in these uncertain times may wonder if filing for bankruptcy is right for them. One fear they may have regarding bankruptcy, though is that they will lose everything in the process and be destitute. However, this fear is unfounded as there are a variety of exemptions that allow people filing for Chapter 7 bankruptcy to keep certain assets so they can move forward on solid financial footing.
What are some unlimited Chapter 7 bankruptcy exemptions?
In a Chapter 7 bankruptcy, your assets will be sold, and the proceeds used to pay you're your creditors. This is why it is referred to as “liquidation bankruptcy.” However, when you file for Chapter 7 bankruptcy, you are allowed to keep any property that is “exempt” under state or federal law. Some examples of exempt assets in which a person can keep no matter what the value of the asset include:
- Family photographs
Considering bankruptcy? Get real information about your options.
Americans are facing a lot of hardship right now. The pandemic spurred a recession which may hamper the U.S. economy for years. If you've lost a job, seen a reduction in hours, accrued steep medical bills or suffered any other pandemic-related misfortune, you may be wondering if bankruptcy is something you can even consider, much less take advantage of.
Before you decide, though, why not discuss your case with an experienced bankruptcy attorney? You may be surprised by what you learn when you hear the facts and receive case-specific advice.
Are you making decisions based on facts of fiction?
Unless you've really done your research, chances are good that what you know about bankruptcy was probably pieced together by things you've heard or overheard throughout your lifetime. As such, the assumptions you make about bankruptcy may be partially or completely false. That's not a very effective way to make such an important decision. Here are some of the myths about bankruptcy you may have heard or may assume are true:
Tips on how not to mess up a solid estate plan
We are in a historic time of uncertainty and death. Every day, we are faced with news reports of the national crises and accompanying death toll that seems to never stop increasing. Naturally, as a result, many of us are now looking to create or update our estate plans to ensure that, if the unthinkable happens, our families are protected. This may be one of the only bright sides of 2020, though, we must be mindful of the estate planning process to ensure that we do not cause more harm than good.
Tip 1: retitle trust assets immediately
Estate plans often include revocable living trusts. These are used because they avoid probate and some taxes, which ensures that one's beneficiaries have less burdens after one's death and the estate value is maximized. However, this also means that title to one's assets must be put into the name of trust. If one forgets to do this, and they subsequently die or become incapacitated, all the assets not in the trust (i.e., all the assets not retitled into the trust's name) will likely need to go through probate. This, of course, defeated the entire point of the estate plan.
From our office in Geneva, Illinois, we serve clients throughout the region, including the communities of St. Charles, Batavia, Aurora, Elgin, Elburn, Sugar Grove, North Aurora, South Elgin, West Chicago, Fox Valley, Winfield, Wayne, Big Rock, Naperville, Wheaton, and Downers Grove, as well as other municipalities in Kane County and DuPage County.
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