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This is a written agreement entered before a marriage that usually deals with what happens to the parties’ assets and income in the event of divorce or death. For instance, it can specify what a surviving spouse gets on the death of the other spouse. It can increase or decrease inheritance rights. To be enforceable each party should have separate legal counsel, each party should make full disclosure of all income, assets and other material facts, and no duress should be involved. This is also called a antenuptial agreement.

To learn more contact Chicago Estate Planning Attorney Don Thompson.

The Federal estate tax used to allow a credit for state death taxes. The Illinois estate tax was the amount of the credit allowed under Federal law. Under this scheme the total Illinois and Federal tax was the same as the total Federal tax before the credit.

The Federal law has been changed and the credit for the state death taxes is being phased out beginning in 2002. Because of this, as of January 1, 2003 Illinois has a new estate tax law. This provides that the Illinois estate tax is the amount that would have been allowed as a credit for state death taxes under the Federal tax before 2002. The net effect is a substantial increase in the total of Illinois and Federal estate taxes.

The pre-2002 Federal credit was based on the adjusted taxable estate which is the taxable estate less $60,000. The Federal state death tax credit schedule was (and thus the Illinois estate tax schedule is):

The Illinois tax is based on the Federal adjusted taxable estate and Illinois adopts the same exclusion amounts as Federal law. These exclusion amounts are scheduled to rise as follows:

The Illinois Estate Tax is thus based on amounts over the Federal exclusion amounts.

The Federal exclusion amount rises to $3,500,000 in 2009, but Illinois limits the amount to $2,000,000.

The Illinois Estate Tax is computed with respect to the Federal Taxable estate. However, the Illinois Estate Tax is a deduction in computing the Federal Taxable Estate. Thus you have interrelated computations. The Illinois Attorney General’s office has software to make the calculation which you can find on their site at www.illinoisattorneygeneral.gov.

Many estate plans avoid federal estate tax by saying the marital deduction gift is the least amount that will result in no federal tax. Thus the marital gift is everything over the exclusion amount. In 2009 the federal and Illinois exclusion amounts will be different so this type of estate plan will result in no federal tax, but some Illinois tax. This could be avoided by increasing the amount of the marital deduction gift to the least amount that will result in no federal or Illinois tax.

In 2010 the Federal tax expires and so does the Illinois tax. If Congress passes no further legislation the Federal estate tax then comes back into effect in 2011 as it was in 2001 with the same tax rates and $1,000,000 exclusion amount applicable to that year. If that happens, the Illinois law provides that it reverts to what it was then when it was the amount of the federal credit for state death taxes.

Unlike the Federal tax, the Illinois tax does not apply to lifetime gifts.

Contact Chicago Probate Lawyer Don Thompson for further information.

What if you forget minor items of property or it is not convenient to transfer all your property such as your checking account or car? $100,000 or less of personal property can be transferred to your heirs or the beneficiaries of your will without probate by means of a small estate affidavit.

This is an affidavit by a survivor which states what property is in your estate (outside the trust or without beneficiary designation), what debts still must be paid, and who is entitled to the property. This authorizes banks and others to release the property to the persons indicated in the affidavit without court intervention.

Contact Don Thompson for all you Chicago Estate Planning Needs. Call 312-782-0844 today.

These do not dispose of property. Instead they tell your doctor or hospital not to keep you alive artificially. They must be signed with witnesses and all the formality of wills. To be effective you must give them to your doctor and to whoever will have charge of your care.

Do you have a will prepared? If not, add it to your to-do list!

Don Thompson is an expert in the field of Estate Planning and Probate. Don can be reached at 312-782-0844.

      Hopper v. Beavers, 362 Ill.App, 3d 913, 299 Ill. Dec. 287, 841 N. E.2d 1019 (5th Dist., 2005). When a spouse renounces a will the spouse’s 1/3 share is to be paid from the residue of the testamentary estate, even though it is 1/3 of the entire testamentary estate. When the residue is disposed of in parts or fractions it is necessary to determine whether the testator intends the respective parts or fractions to constitute subdivisions of the entire residue or to constitiute preliminary parts after which the true residue, meaning all the rest, is disposed of.

     In Re Estate of Rex B. Lower, 365 Ill.App.3d 469, 302 Ill.Dec. 346, 848 N.E.2d 645, (2nd Dist., 2006). 755 ILCS 5/18-1.1 provides that a spouse, parent, brother, sister or child of a diabled person who dedicates him or herself to the care of the disabled person by living with and personally caring for the disabled person for at least 3 years shall be entitled to a claim against the estate upon the death of the disabled person. The claimant does not have to physically provide the care or be physically capable of doing so. it is sufficient if the claimant superivises the care.

Welcome to the Chicago Estate Planning Law Blog. This estate planning blog is brought to you by the Law Offices of Donald Thompson. Mr. Thompson is an estate planning attorney located in downtown Chicago. Visit the Wills, Trusts and Estate Planning website for more information.