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Recent Blog Posts
Questions to answer when choosing a guardian
You're a young Illinois couple, in perfect health and having a baby. You're focused on fixing up the nursery, buying the safest car seat on the market and picking a name. But there's one more thing all expectant or new parents must add to their to-do list: Choose a guardian in case the unthinkable ever happens.
Many young people probably haven't thought about creating an estate plan but having a baby makes it an essential. If the parents unexpectedly pass away without naming a guardian, courts will decide who should raise your child.
That should be a parent's choice.
When considering who to name as a guardian for your child, think about the following:
- Who will raise your child the way you would have? Who shares your personal values – the ones you'd like your children to learn? Who would mimic your parenting style?
Can you pass the Illinois means test for Chapter 7 bankruptcy?
Chapter 7 bankruptcy is the most aggressive and fastest kind of bankruptcy available to individuals and married couples. It also gets called liquidation bankruptcy, as the courts can order the liquidation of assets as a means of repaying creditors during Chapter 7 proceedings.
Typically, those who successfully file for Chapter 7 bankruptcy can receive a discharge after the courts review their request, all without any requirement to repay their creditors. As a result, there are very strict limitations on who can file for Chapter 7 protection. In order to prevent abuse of this form of bankruptcy, it is necessary for individuals to pass a state-based means test prior to filing.
How does Illinois' means test work?
The basic premise of a means test involves comparing the individual's adjusted income to the state median income for their household size. The individual filing can make certain adjustments or reductions to their overall income for certain expenses, meaning that those who are quite close to or just over the income limit may still be able to pass the means test.
Types of trusts and their uses
A will is an important part of any estate plan — but it doesn't have to be the focal point. Trusts have become increasingly popular vehicles for preserving wealth and passing it on to the next generation as people increasingly try to avoid the complicated (and expensive) process of probate.
There are a lot of different kinds of trusts out there, each suitable for different goals. If you're just starting to consider the usefulness of a trust as part of your estate plans, it may help to have a passing familiarity with the following kinds.
Revocable trusts
Revocable trusts are pretty much exactly what they sound like: You retain control over them during your lifetime and can end them at any point. Their chief advantage is their flexibility — and the fact that the assets inside them are distributed according to the trust's terms without going through probate.
Irrevocable trusts
Irrevocable trusts can't be dissolved after they're established — but that makes them hardy vehicles that can protect your assets against dissipation or misuse. They're also particularly useful at reducing estate and gift taxes.
3 compelling reasons to start estate planning instead of waiting
The creation of an estate plan or last will is an important protection for both you and the people you love. Far too many people make the preventable mistake of delaying the creation of their estate plan indefinitely, which may mean that they died intestate or without a last will.
There are many different reasons why creating a last will sooner rather than later will benefit you, but there are three benefits that are nearly universal reasons to start estate planning now.
Your legacy may be how people remember you
You want to make a profound and lasting impression on people while still alive. Your legacy could include your professional, artistic or academic works, your family, or local community contributions, such as volunteerism or donating to charity.
While you can't control how people perceive you, you can control the legacy you leave behind when you die. The creation of an estate plan that considers the needs of the people you love and the change you like to make in the world can leave a lasting positive impression. From funding a trust to pay for your children's college to leaving money for a charity about which you are passionate, the options for your legacy are nearly endless.
Who handles the responsibilities for your estate?
Estate planning is never on anybody's list of “favorite things to do,” but it's really important to have those plans in place — just in case something happens. However, choosing the right people to manage those responsibilities can be complicated, especially if you don't know what each person is supposed to do.
Here's what each person involved in your estate will need to do:
The executor
Your executor is the person who acts as your personal representative. Their job is to secure your assets, pay your debts and follow the distribution guidelines of your will. While that sounds fairly simple, it can sometimes put them into conflict with family members (especially if they aren't happy about the will). A good executor is someone who lives close enough to be practical and well-trusted.
Is medical debt making you broke? (You aren't alone.)
Medical debt is a serious problem for many people — even those who have insurance and are relatively stable, financially. A 2016 survey found that more than one-quarter of people in the United States have experienced problems paying a medical bill.
Here are some of the most jaw-dropping statistics about medical debts in the modern era:
- As far back as 2007, medical problems and medical bills were contributing factors to two-thirds of all consumer bankruptcies — a figure that had increased dramatically since just 2001.
- Three-fourths of debtors who filed bankruptcy over medical debt have insurance. However, gaps in coverage, high deductibles, pricey medications, and uncovered procedures and tests leave them exposed to financial liabilities they can't cover.
- Many of the people who file bankruptcy over medical debt are middle-aged or approaching middle-age (with an average age of almost 45). About three-fifths have college degrees.
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We established this blog to share stories and information about topics relevant to our practice. Our intent is to regularly provide posts highlighting legal issues of local, state and national interest that we think you will find interesting. Check back later for updates.
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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