Even individuals with modest estates purchase life insurance which means that Estate Planning attorneys must understand the rules regarding taxation of life insurance. Retention of certain powers or certain transactions could cause negative income, gift, or estate tax consequences.  Read on to learn more. The post Application of the Transfer for Value Rule to the Sale of Life Insurance appeared first on Hedeker Law ..read more

Life insurance has long been part of Estate Plans, whether used to ensure liquidity for the estate on the death of the insured, or simply as income replacement on the death of the insured. Understanding the impact of life insurance on an estate plan has become critically important. A recent tax court case resulted in a big win for the taxpayer in a complex set of facts which could impact how you incorporate life insurance for your Estate Planning clients. Read on to learn more.  The post What Estate of Marion Levine Means for Life Insurance appeared first on Hedeker Law ..read more

Estate planning attorneys need to understand and explain taxation of trusts in order to properly advise clients. Individual clients need to understand the implications of the plan their attorney suggests in order to properly file their own taxes. Determining whether a trust qualifies as a grantor trust or a nongrantor trust is the first step in determining tax liability for a particular year. Read on to learn more The post Let’s Talk about Trusts…and Taxation appeared first on Hedeker Law ..read more

IRAs have become ubiquitous components of estate plans. The SECURE Act of 2019 altered the landscape for IRAs significantly by eliminating the stretch benefit for most designated beneficiaries and forcing all designated beneficiaries other than Eligible Designated Beneficiaries to use the 10-year rule for distributions. The 10-year rule was thought to operate much like the 5-year rule that existed before the passage of the SECURE Act. Recently issued proposed Treasury Regulations dispute that and instead require annual distributions for any beneficiary subject to the 10-year rule. Read on to l ..read more

It’s tempting to think that by taking the time to hand-write your Will or preparing a do-it-yourself plan, you can avoid many of the issues that arise with a Will. In fact, the opposite may be true. By handwriting your Will or preparing a do-it-yourself plan, you may be creating more issues for your family. Read on to learn more. The post Estate Planning – Something You Shouldn’t Do Yourself appeared first on Hedeker Law ..read more

A living trust is not far behind a Last Will and Testament in terms of popularity as an estate planning tool. If you are contemplating the inclusion of a living trust into your estate plan, or you find yourself to be the beneficiary of a living trust, you may have a number of questions about how the trust works. For example, you may want to know how the trust terminates. The Lincolnshire living trust attorneys at Hedeker Law, Ltd. explain when and how a living trust terminates. What Is a Living Trust? The person who creates a trust is referred to as the “Settlor”, “Trustor” or “Grantor.” The S ..read more

The federal gift and estate tax is effectively a tax on the transfer of wealth that is collected from your estate after you die. Every estate is potentially subject to federal gift and estate taxes. In addition, a handful of states, including Illinois, also impose a state-level estate tax. Collectively, gift and estate taxes can significantly diminish the value of the estate you pass down to loved ones which is why many people choose to incorporate tax avoidance tools and strategies into their overall estate plan. A Waukegan estate planning attorney at Hedeker Law, Ltd. explains how an AB trus ..read more

It’s important to have a plan. If you don’t have a plan, your state law dictates who gets your property and makes decisions for you. Read on to learn more about the prevalence of unexpected deaths and an example of what can happen without planning. Planning for the Unexpected The post Planning for the Unexpected appeared first on Hedeker Law ..read more

If you are someone who feels strongly about philanthropy, you probably make charitable gifting part of your everyday life. If so, why not carry on your charitable endeavors after you are gone as well. A Lincolnshire estate planning lawyer at Hedeker Law, Ltd. explains some common methods used to incorporate philanthropy into an existing estate plan. Is Philanthropy Important to You? If philanthropy is important to you now, why not make it part of the legacy you hand down to your loved ones when you are gone? Philanthropy can take many forms and can involve a wide range of beneficiaries. The ty ..read more

Typically, estate planning involves a variety of inter-related goals that go beyond just planning for the disposition of estate assets after your death. One of the most popular of those goals is probate avoidance. While there are numerous tools and strategies that can be used to help your estate avoid probate, a good starting point is to learn which assets actually have to go through probate. With that in mind, a Waukegan probate attorney at Hedeker Law, Ltd. explains which assets are subject to probate and which assets bypass the probate process. What Is Probate and What Function Does It Serv ..read more