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Chicago estate planning attorney Don Thompson defines a Q-Tip Trust.

This is another form of marital trust. Q-tip refers to qualified terminal interest property – property that is not given anywhere near outright to the surviving spouse but still qualifies for the marital deduction. If this provision of the law is used the surviving spouse need only get all the income from the trust. He or she need not be given the right to say who gets the trust assets on his or her death, although he or she can be given that right. This is great if you don’t want your surviving spouse’s second spouse or their kids to get your property.

This type of trust also gives the executor of your estate additional flexibility for post mortem planning. Your executor is the person you name to establish the validity of your will, collect your assets, pay your bills and distribute the balance as you direct. He or she has the right to elect how much of the trust will be taxable and how much will be tax free due to the marital deduction.

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. Click here for more on

Call Chicago estate attorney Don Thompson at 312-201-1436 for all of your Chicago probate and estate planning needs.

Estate of Gracie Ellis, 236 Ill.2d 45, 337 Ill.Dec. 678, 923 N.E.2d 237 (2009). This unpublished opinion reversed 381 Ill.App.3d 427, 320 Ill.Dec. 323, 887 N.E.2d 467 (1st Dist., 2008) which held that the six month limitation period for filing will contests applies to claims for tortous interference with an inheritance expectancy filed in an estate if the success of the claim would involve invalidating the will.

In re Estate of Bitoy, 395 Ill.App.3d 262, 334 Ill.Dec. 477, 917 N.E.2d 74 (1st Dist., 2009). This case explains the considerations applicable to attorneys fee petitions in estates. There should be detailed contemporaneous time records. The time for each separate task should be recorded separately. Fees for opposing other fee petitions may be denied unless it can be shown that but for the opposition the court would have allowed more.

In re Estate of Max Feinberg, 235 Ill.2d 256 (2009). A power of appointment can validly designate as takers on the holder’s death those then living descendants who have not married outside a particular faith. The court noted that the provision had no prospective application to descendants who might so marry later.

In re Estate of Pellico,  394 Ill.App.3d 1052, 334 Ill.Dec. 12, 916 N.E.2d 45 (2nd Dist., 2009). A court in which a guardianship is pending has authority to approve temporary guardian and guardian ad litem fees after death of the ward.

This is a power of attorney that remains valid despite the disability of the principal. Such a power is created by a statute which sets forth the language to be used. There are two forms. One for health care and personal matters and one for property and financial matters. These can be used to avoid a guardianship for a disabled person if the person creates them before becoming disabled. In view of the cost and limitations of a guardianship this is a very useful device. The person appointed agent however, must be absolutely trustworthy because they will be acting without court supervision. While anyone can petition a court to open a guardianship and revoke the power, that may be done too late to protect the disabled person’s assets.

The powers of the agent under the basic durable power of attorney are limited and do not include powers to make gifts or transfers to trusts or certain other things that are often done in estate plans and when changing estate plans as circumstances change. However, these powers can be added to the power of attorney and often are.

Contact Don Thompson at 312-782-0844 for all of your Chicago Estate planning needs.

Glavinskas v. William L. Dawson Nursing Center, Inc., 392 Ill.App.3d 347, 332 Ill.Dec. 188, 912 N.E.2d 675 (1st. Dist., 2008). Settlement of  a claim for personal injuries to a disabled person must be approved by the court appointing the guardian according to court rules. (In Cook County the settlement must also be papproved in the court where the claim is filed.) If the settlement is not so approved the order approving it and dismissing the case can be vacated under Section 2-1401 of the Code Of Civil Procedure more that 30 days after its entry.

In re Estate of Lieberman, 391 Ill.App.3d 882, 330 Ill.Dec. 893, 909 N.E.2d 915 (2nd Dist., 2009). The prudent investor rule applies to trustees, but not to guardians, except to the extent they make decisions to invest in common trust funds and mutual funds. The prudent person standard applies to guardians. That standard can be violated by the investment of estate funds in short term fixed income investments when the ward does not need current income and would benefit from growth in value of the assets. The fact that the Act alows the short term fixed income investments does not insulate the guardian from liability. The guardian must still invest as a prudent person would.

Estate of Savio, 388 Ill.App3d 242, 327 Ill.Dec. 727, 902 N.E,2d 1113 (3rd Dist., 2009). A cause of action for wrongful death can constitute a newly discovered asset for purposes of reopening an estate if the facts and circumstances indicating the wrongfulness of the death were discovered after the estate was closed.

Pierre  v. Comm. , 133 T.C. 2 (2009). Merely because a single member LLC is disregarded for tax purposes does not mean that the value of its interests cannot be discounted upon transfer under the gift tax.