Posted on October 28,2022 in Estate Planning

What is a Living Trust and What Does it Do?

A "living" trust (sometimes called an "inter vivos" trust) is a trust you create while you are alive. A trust is a fiduciary (legal) arrangement that allows a third party (called the trustee) to hold title to assets (property) on behalf of certain beneficiaries. As holder of the title, the trustee is subject to the condition of keeping or using the trust property for the benefit of the beneficiary. The creator of the trust selects the beneficiaries of the trust property. Those who were selected as beneficiaries will receive the trust property when the creator of the trust dies.  

Probate Court

A trust has a similar function to a will but is often a much better choice for a person looking to control what happens to their property after they pass because a trust avoids probate, where a will is always subject to probate. Probate is the legal process that a person’s estate must go through when they die either with a last will and testament or when they have no legal estate planning documents stating how they wish their estate to be distributed (this is called intestate). Probate court oversees the transfer of the estate’s property to the deceased person’s heirs, according to state law. Probate court is often time-consuming and costly because of court costs and attorney’s fees. Attorney’s fees for a probate case vary drastically depending on several factors, however, the average amount for attorney’s fees in probate cases in Illinois is anywhere from $2,500-$5,000. This amount does not include court costs, filing fees, or other fees associated with the court itself. 

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 Posted on October 21,2022 in Estate Planning

What is Spendthrift Protection?

Spendthrift protection is the benefit provided to a trust that protects a beneficiary’s inheritance from a beneficiary’s creditors such as a divorcing spouse or a creditor such as a credit card provider or a business lawsuit or a mortgage foreclosure among other creditor issues.

One of the primary benefits of a spendthrift provision is to protect a beneficiary from their themselves. Spendthrift also is putting restrictions on a person’s inheritance with the primary intent to protect their child or children from their immaturity or lack of fiscal management skills. 

Spendthrift language in a trust is required to protect a beneficiary’s inheritance from their creditors. This type of language is called a “Spendthrift Trust” or “Spendthrift Provision.”  Parents often desire to protect young adults (21 to 25 years of age) or with serious disability issues from themselves. A beneficiary may not be technically disabled, but parents desire to protect their loved ones from themselves. Spendthrift language provides asset protection for a trust beneficiary because their inheritance may not be assigned, encumbered and/or alienated in any way (or similar language). 

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 Posted on October 21,2022 in Business Law

Naperville and Yorkville Letter of Intent Attorneys

A letter of intent is an initial letter expressing interest in purchasing a business or franchise. The letter of intent summarizes the buyer’s intention to purchase the seller’s business (or franchise). The letter of intent contains key terms and conditions for the proposed business sale.

Benefits of Letter of Intent

The Letter of intent provides a detailed description of the proposed business deal. The letter of intent provides a specific description of the timeframe proposed for completing the proposed deal. The letter of intent should summarize the following information:

• Prices and Terms such as the business to be acquired

• Outline of the payment and financing terms (if applicable) including the down payment of earnest money

• Conduct in the ordinary course such as the seller continuing the status quo of their business

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 Posted on October 17,2022 in Estate Planning

A special needs provision should be included in every person’s Will or Trust. Not only does it protect loved one that has special needs at the time your Will or Trust is executed, but it also is effective in the event a loved one who was not disabled at the time but becomes disabled after the execution of the Will or Trust. 

What Is a Special Needs Trust? 

A special needs trust provides financial support for your loved one with special needs, while at the same time, does not disqualify them from receiving or continuing to receive any government benefits. This includes benefits like Medicaid and Social Security, which are often on an income contingency, meaning if you make over a certain amount of money, you can be disqualified from receiving those benefits.

How Do You Set Up a Special Needs Trust? 

A special needs trust is included in your overall Trust document or in your Will. It is helpful to have an experienced and specialized attorney assist you with setting one up. This way, you can be sure that any personalization is tailored to your specific circumstances. The purpose of a Trust, in simple terms, is to assign someone (called the trustee or executor) to manage what you have decided to put in it, upon your passing. The person you decide to assign is legally bound to the terms you specify in your Trust and must carry it out exactly as it has been written by you. 

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 Posted on October 17,2022 in Business Law

What is a Limited Liability Company (LLC)?

We’ve all heard the term LLC before but, do you know what it means and what it does? LLC stands for Limited Liability Company, which is a popular structure used to form a business. 

An LLC is essentially a mixture of the best parts of a Partnership business structure (including the tax benefits) and the best parts of a Corporation business structure (including the protection from personal liability). 

Partnership Business Structure

There are different types of Partnership business structures. A General Partnership requires no formal formation process, while others simply require a filing with the State. Those that own a Partnership are called Partners. A Partnership business structure offers no personal liability protection in the event that the Partnership or another Partner were to be sued. Simply by the nature of being a Partner in a Partnership, they are subject to liability personally (this includes their own personal assets that have no connection to the business), even if they had nothing to do with the event giving rise to the lawsuit. 

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 Posted on October 11,2022 in Estate Planning

Trusts are not simply for the ultra-wealthy. Trusts are a great tool for those with modest assets that wish to protect those assets and save unnecessary expenses and arguments between loved ones after their death. 

What is a Living Trust and What Does it Do?

A Trust is a fiduciary arrangement that allows a third party (the trustee) to hold title to assets (property) on behalf of certain beneficiaries. The creator of the Trust selects the beneficiaries of the Trust property. As holder of the title, the trustee is subject to the condition of keeping or using the property for the benefit of the beneficiary. A "Living" Trust (sometimes called an "inter vivos" Trust) is a Trust you create while you are alive.

Inter Vivos Trust Attorney in Yorkville and Kendall County

A Trust has a similar function to a will but is often a much better choice for a person looking to control what happens to their property after they pass. The creator of a Trust selects who will be the beneficiaries. Then, those who were selected will receive the Trust property when that person dies. When two people are married, they have the option of setting up a joint Trust.

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 Posted on October 10,2022 in Estate Planning

Yorkville and Oswego IL Estate Planning Attorneys

What is a Last Will and Testament?

A Last Will and Testament is a written, legal document that expresses a person’s wishes as to how their property (known as their estate) should be distributed after they pass. A Last Will and Testament also designates a person (known as the Executor) to manage the estate until it is fully distributed. When the creator of the Will dies, the Will must then go through a time-consuming and often costly process called probate court.

What is Probate Court?

Probate is the legal process that a person’s estate must go through when they die either with a Last Will and Testament or when they have no legal estate planning documents stating how they wish their estate to be distributed (this is called intestate). Probate court oversees the transfer of the estate’s property to the deceased person’s heirs, according to state law. When a deceased person does have a Will, the court must first authenticate the Will and then authorize the Executor of the Will to pay any leftover expenses from the estate and then distribute remaining estate property according to the terms of the Will. 

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 Posted on October 07,2022 in Estate Planning

What is a Trust?

A Trust is a legal instrument, which holds title to property, subject to certain obligations, rights, and restrictions placed on the property. A Trust is fiduciary relationship in which a party (Trust Maker) establishes a Trust that gives another party (Trustee) the right to manage property that the Trust owns.

What is a Trustee?

A Trustee is a person or entity that is appointed by the Trust Maker (the person or couple that created the Trust) to manage their assets and property. Generally, the Trustee is the same person(s) that creates the Trust for their benefit for estate planning purposes. The Trust instrument or otherwise known as the “Trust Agreement” creates the Trust until they (the creators of the Trust and Trustees of the Trust) are unable to fulfill the role of Trustee. The Trust Agreement will typically pass trust administration to a person(s) or entity upon the Trust Maker’s incapacity or death.

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 Posted on October 07,2022 in Business Law

A real estate investor asked whether it was acceptable to purchase property through an LLC. The answer is “Yes”. The mortgage will be personally guaranteed by the members of the LLC (or owners of the LLC). The property deed can be titled in the LLC or otherwise known as the Limited Liability Company. Members of an LLC are the owners of the LLC. The owners of a corporation are shareholders. LLC members appoint managers to run the rental property business.

The LLC members pledge their personal assets as collateral to back the lender’s debt. Mortgage companies lend to individual owners of the LLC. The LLC may appear on the title to the rental property. However, the LLC members personally guarantee the mortgage and note. 

Benefits of Setting Up an LLC for Real Estate Investors or Landlords?

There are three major benefits of setting up LLCs for rental property. The three benefits are the following:

• Personal Liability Protection from rental property debts (other than the mortgage and note done by the lender)

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 Posted on October 06,2022 in Real Estate

The purchase or sale of a vacant lot contrasts with a normal residential real estate transaction in Kendall County and surrounding areas of Oswego, Yorkville, Plano, Sandwich, and Somonauk. The “Vacant Lot Sales Contract” is the standard real estate contract used for the purchase and sale of a vacant lot. 

A vacant lot is a parcel of property or land that has no houses or buildings on it. Many people purchasing a vacant lot have the intention of building a new construction or customized home on the vacant lot. In my experience, most buyers of a vacant lot have the goal of building a new construction property within the next two to three years or earlier. Illegal dumping of waste and litter is a major issue involving vacant lot owners.

SIGN VACANT LOT SALES CONTRACT

The first step in selling a Vacant Lot is the filling out and acceptance of a contract. At Gateville Law Firm, we assist sellers and buyers with the completion of the Vacant Lot Sales Contract. The Vacant Lot Sales Contract involves twenty (20) provisions, which consist of the Vacant Lot Sales Contract.

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