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This is for persons who are charitably inclined and also want to make discounted gifts to their children or someone else. The gift to charity leads to an income tax deduction if the trust is structured properly. The remainder which is given to the kids is valued for gift tax purposes at its present value, which is less than the full value of the assets in the trust because of the prior charitable interest.

NOTE: There currently is no Federal or state estate tax or generation skipping tax. The gift tax is still in effect. Whether or not the estate and generation skipping taxes will be reinstated this year is not known. Many people expect that they will be reinstated, but what will happen is not known. What the rates and exemptions will be if the taxes are reinstated is also not known. More information here.

For further information about charitable trusts in Chicago contact IL trust attorney Don Thompson.

It’s exactly what it sounds like.

There are a variety of bank accounts which pass on death to a named survivor. During the life of the owner of the account the survivor has no rights. That is, the survivor cannot withdraw funds from the account like a joint tenant could. A will does not affect these accounts. They pass to the person designated in the bank records regardless of any will or probate court action. Whether or not such an account has been created depends on the agreement with the bank. Sometimes these accounts are called “Pay on death” accounts. Sometimes they are called “Totten Trusts”. Sometimes the account ownership designation merely says “X in trust for Y”, although there is no trust agreement.

For further information on pay on death accounts or to handle other matters related to your Illinois Estate contact Chicago Estate Planning Attorney Donald Thompson.

A trustee is someone who holds legal title to assets or property for the benefit of someone else. The trustee can be an individual or an entity such as a bank trust department. The trustee is responsible for managing the property and paying it out according to the terms of the trust. A trustee should be someone who has the requisite skill and time to manage the assets and investments. The trustee should also be trustworthy. It also helps if the trustee knows the beneficiaries. Professional trustees are often selected to act because of their ability to manage investments. Often an individual is appointed to act in conjunction with the professional to add insight into the beneficiaries.

Professional trustees charge for their services and this means the trust must be large enough to pay the fees.

Trustees are subject to the supervision of the courts and their duties can be enforced by legal action.

To learn more about estate planning in Illinois or to decide whether to use a professional trustee of someone you know contact Chicago estate planing attorney Don Thompson.

All property passing to a spouse is deductible – whether by lifetime gift or at death. This means that while the value of these transfers is in the estate, it is also deductible. Whatever is given to a spouse is not taxable. If you give your spouse $10 million during life or at death there is no tax. But when the spouse dies later there is no marital deduction unless the spouse has remarried. At this time the spouse could give your property to his or her second spouse, unless you take steps to avoid it.

To learn more about marital tax deductions in Illinois contact Chicago wills, trusts and estate planning attorney Donald Thompson.