There are three significant tax issues that could affect an individual's estate plan. For Illinois residents thinking about estate planning, those issues include tax faux pas that could be financially costly in the long run. Not taking advantage of Family Limited Partnerships (FLPs) and Limited Liability Companies (LLCs), may thwart a person's ability to have control over investments and distributions of wealth.
People may spend time thinking about their loved ones being all right and taken care of after they have died. Illinois women, especially, may worry about their children, and who will look after matters when they are no longer around to do so. A leading health care organization in Illinois recently told a number of women who attended a talk that estate planning is conducive to positive mental and physical health.
Change occurs on a regular basis. The makeup of the Illinois family can change as the result of birth, death, marriage or divorce. Additionally, the financial situation that each family finds themselves in can change due to changes in income, investments, tax laws and a number of other factors. With this in mind, it is imperative that each individual also recognize the need to review his or her estate planning portfolio in order to analyze how these types of changes will impact the family and ultimate desires of the individual.
Business owners need to take extra precautions to safeguard their assets. Illinois entrepreneurs must be most mindful in their estate planning documents to take steps to ensure the protection of their businesses when they are no longer at the helm. Many business owners are so focused on running their businesses that they forget to take the time to draft important documents such as wills, financial powers of attorney or living trusts.
Individuals writing estate plans have much to think about when it comes to their assets and who should inherit what. Illinois residents who are in the throes of estate planning may be home owners, and leaving real estate to a loved one or loved ones takes some careful planning. There are some important things to know, too, for those who will be inheriting or who have already inherited a home.
The late fashion designer Karl Lagerfeld adored his beloved cat, Choupette. Like many Illinois pet owners, Lagerfeld likely included providing for the welfare of his furry family member in his estate planning. His cat was like a fashion accessory and he rarely went anywhere without her. In fact, the feline has her own Instagram account, does a bit of modeling and has a coffee table book. The fashion icon's death brings up the question of how pet owners should plan for the care of their pets should their pets outlive them.
Blended families are a way of life today. Illinois residents who are in second marriages might wish to consider these family members during their estate planning, so no one feels slighted. But it may not be that easy, since children and stepchildren often don't see eye-to-eye and there may be hard feelings no matter what.
Most people over the age of 50 want to invest in the futures of their children and grandchildren. But if Illinois residents of this ilk were to peg one thing that irks them about estate planning, it's how little their children pay attention to their own estate plans. Most Baby boomers had legacy building foist onto them from their Greatest Generation parents, and they wish their children would follow suit.
Individuals who want to keep their affairs private may want to think about what kinds of estate plans they're writing. Illinois residents in the throes of estate planning need to know that there are differences between will-based estate plans and those built around trusts. In a nutshell, information included in wills becomes public record once the testator dies. Trusts, on the other hand, remain private.
Not all people have children. Illinois residents who don't have kids still need to take the time for estate planning. People still need to stipulate how they would like their assets divided upon their deaths since dying intestate -- or without a will -- can cause all kinds of problems whether there are children in the picture or not.