Illinois Estate Planning and Elder Law Blog

New Tax Deduction for Charitable Gifts is Available to People Who Don’t Itemize

May 27, 2020 | by William S. Wilson

Over half of all Americans give money to charity, but many have not been able to take a tax deduction since a 2017 change in the tax laws. However, with the new CARES Act, most American taxpayers will be able to take a tax deduction for charitable giving again. The details are as follows:

Section 2204 of the CARES Act allows eligible individual taxpayers to deduct up to $300 of qualified charitable contributions made during the taxable year.

Only cash donations qualify, so donations such as clothing, stocks, automobiles, or other items cannot be counted toward this. This is also only for taxpayers who take the standard deduction, as the majority do. Those who itemize their deductions cannot take this new $300 deduction.

States Cannot Terminate Medicaid Benefits During the Coronavirus Pandemic

May 7, 2020 | by William S. Wilson

A provision in a recent coronavirus relief package prevents states from terminating Medicaid benefits during the pandemic.

The Families First Coronavirus Response Act (“CV Response Act”) was signed into law on March 18, 2020 and prevents states from terminating any Medicaid recipients who were enrolled in Medicaid on or after March 18, 2020, including in circumstances where there is a change that would normally cause their coverage to be terminated. Medicaid coverage for all recipients must continue through the end of the month during which the public health emergency declared by the Secretary of Health and Human Services for COVID-19 ends.

The state must make a good faith effort to contact recipients whose Medicaid benefits were terminated after March 18, 2020 and encourage him or her to reenroll. States are, however, able to terminate coverage for people who request to be terminated or who are no longer residents of that state.

One Vital Step A Doctor In A COVID-19 Unit Wishes Everyone Would Take

April 27, 2020 | by William S. Wilson

A 30-year-old patient with COVID-19 who was on a ventilator passed away last week. He hadn’t laid out his end-of-life wishes (referred to as advance directives). After seeing the numbers related to his son’s condition, his father was devastated and felt that further treatment was only painfully prolonging the inevitable. His mother wanted to try everything possible to save him. If the patient himself was able to speak, he could have expressed what his wishes were and saved his family from this heart-breaking conflict.

But he hadn’t planned to die.

This tragic situation is too common as families often fail to discuss emergencies and end-of-life wishes ahead of time. It’s even more stressful to make this kind of decision when the stakes are high, as they often are now amid the coronavirus pandemic. This is why it’s so important to learn about and make end-of-life treatment choices before a crisis occurs. None of us want to imagine the worst, but the worst is a callous reality.

State Laws Limit Americans’ Estate Planning Abilities During the Coronavirus

April 17, 2020 | by William S. Wilson

Although the coronavirus pandemic began only concentrated in large cities, there are cases now in all states both in cities as well as more rural areas. More and more people are considering what they want to do if they become infected, including thinking about estate planning.

“You start asking yourself, what happens if I become sick?” Jack Garniewski, president of the National Association of Estate Planners and Councils says. “Do I have the proper legal documents in place so that someone would be able to make decisions for me financially and from a medical standpoint?”

Garniewski says that more Americans are now making sure they have a durable power of attorney, which gives another person the power to make financial decisions for them if they become incapacitated. Many people are also planning how they want their property to be transferred if something happens to them.

Estate Planning in Illinois during the Current COVID-19 Crisis – the Power to Address All of Your “What Ifs” Now

April 7, 2020 | by Wilson & Wilson

During the COVID-19 pandemic, many of us in Illinois are complying with the governor’s stay-at-home order. We are hunkered down in our homes – making only necessary trips for essential matters such as medical treatment, supplies, or perhaps taking a walk to breathe in in some fresh air and soak in some sunshine while maintaining social distancing. We thank and applaud everyone who is doing their part in curbing the spread of this virus.

At this time, some of you may reflect on the “what ifs” of the future. What will happen if you become incapacitated, or worse, if you pass? What if your child has special needs and you wish to preserve assets for the benefit of your child? What if you have minor children? How or who will take care of them and assets for their benefit should you be unable to care for them, or worse, die? Are you able to make or coordinate health care and financial decisions for your spouse, parent or other elder loved one?

Illinois law provides defaults for distributions through probate court proceedings if you were to pass away and a legal process (namely, guardianship) should you become incapacitated. Depending on Illinois law could involve what could be costly court proceedings. Ultimately, the result of the Illinois laws may not reflect your wishes as to the disposition of your assets and/or who will be in charge. A properly executed estate plan sets out your wishes and names the trusted persons you want in charge of your affairs during life and afterward. Estate plan documents can and often include wills, powers of attorney, living wills, and trust documents – such as living trusts, special needs trusts, or asset protection trusts.

They Say Hold Your Loved Ones Close, But What Happens When You Can’t – Long Term Care Facilities’ Restrictive and Unclear Visitor Policies in the Wake of COVID-19

April 1, 2020 | by Wilson & Wilson

The Center for Disease Control and Prevention (“CDC”) and the Illinois Department of Health (“IDPH”) have set guidelines for healthcare facilities, including nursing homes, and other long-term care facilities amidst the current COVID-19 pandemic we are experiencing. These guidelines include visitor restrictions for the facilities. In a nutshell, if you are not considered an essential healthcare employee or a compassionate care visitor for end of life situations, you are not going to get near one of these facilities until…well we are not sure.

These guidelines have been put in place for the safety of the residents and employees, and understandably so. On the other hand, this guidance is missing clarity. The states (including Illinois) and, in-turn, the facilities are left to interpret what the definition of an essential healthcare employee and a compassionate care visitor means. Is a third-party caregiver an essential healthcare employee? Is being placed in hospice, in and of itself, considered an end of life situation? Based on experience over the past few weeks, the answer is no. It should be noted, though, that there is no real legal authority stating such. We are facing a time where loved ones could pass away alone because a facility did not interpret the guidelines to allow a visitor in such a situation. Seeking the courts guidance on the matter may be necessary. Until then, the facilities are given the freedom and flexibility to interpret the guidelines as they see fit.

What can you do until then? Often times, loved ones of the residents of nursing homes and long-term care facilities provide care, love, and encouragement to them. During this time, more than ever, this encouragement and love is essential to the resident’s well-being. If you have a loved one in a facility, what can you do during this critical time? Technology has allowed us to connect with people in ways we never could before. Calling and video chatting with loved ones can provide them with the emotional support they need. Just the sound of a loved one’s voice can bring a smile to a resident’s face. Online games can be played together as well. While we are getting back to the basics during this time, writing a good old fashioned letter is a great option as well.

COVID-19 Legal Advice: Get Your Business and Estate in Order Now

March 23, 2020 | by William S. Wilson

The stock market has been in a free fall, and Americans are experiencing a type of fear that hasn’t been seen since the polio epidemic in the 1940s and 1950s.

During those decades, polio outbreaks in the U.S. crippled more than 35,000 people yearly, on average. Parents were afraid to let their children go outside, travel and commerce were restricted, and homes and towns where polio cases were found needed to be quarantined. Similar fears are resurfacing for many people now, and estate planning attorneys are being asked many questions.

“Suddenly business owners — from mom and pop shops to CEOs of large corporations — are meeting with estate planning lawyers like no other time than I can recall,” says Bakersfield, California, estate lawyer Patrick Jennison. “Appointment books are getting filled.”

Estate Planning 101: Tackling Your Estate Plan

March 13, 2020 | by William S. Wilson

Creating an estate plan is an important and challenging decision for all families. Often, one of the biggest initial obstacles is discussing your own death or the death of a family member. Estate planning is complex and very emotional. Therefore, it’s helpful to understand basics of the estate planning process before approaching a professional.

There are a number of life events that are important times to create or update an estate plan for your family or business. While the timing is different for every person, one should consider what could happen in the event of a substantial life change. These life events include:

Getting married.

Pet Power of Attorney: More People are Planning Around Their Pet, Expert Says

March 2, 2020 | by William S. Wilson

It was recently National Love Your Pet Day, and although you might think of your pet as family, under the law, pets are regarded as property – so although you can’t leave them money in your will, there are other ways you can make sure they are protected in the event of your passing.

You may have heard stories of people who left their entire fortune to their dog, but that isn’t exactly how it works. You can leave all your money to ensure your pet will be taken care of after your death, but it needs to be done in a certain way.

Because pets are considered property, you won’t be able to name them as a normal benefactor in your will, says Peter Elikann, Boston 25 legal analyst.

“None of Your Business” Is No Longer An Appropriate Response

February 22, 2020 | by William S. Wilson

Let’s say a married couple indicates in their estate plan that on the first of their deaths, the predeceasing spouse’s assets will be held in a trust. During the surviving spouse’s lifetime, they are the beneficiary and trustee of the trust, and once the surviving spouse passes away, the remaining trust assets will then be passed along to the couple’s children. Under prior Illinois law, the surviving spouse was not required to give notice or accounting to the children during that spouse’s lifetime. Many surviving spouses would have responded to the children’s questions about the trust with something along the lines of, “It’s none of your business.” However, on Jan. 1, 2020, that changed.

The Illinois Trust Code

Beginning Jan. 1, 2020, the new Illinois Trust Code (ITC) replaced the previous Illinois Trusts and Trustees Act. Among the changes, the most important involve the rights of remainder beneficiaries to notices and accountings – but it also gives proactive clients new tools to customize trusts and modify or avoid some of the new notice and accounting requirements.