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Recent Blog Posts
When Celebrities Die Without a Will, Americans Get Serious About Estate Planning
Estimates indicate that just 64 percent of all Americans have a will. That number drops significantly, falling to 22 percent, in the 55 and younger population. Yet, when the fortunes of big celebrities are thrown into limbo because they failed to make an estate plan, Americans start to get serious about their own fortunes. Of course, not everyone has an actual fortune, but that does not mean you do not need an estate plan. The following covers some important lessons learned from celebrities who died without a will, and will hopefully help you understand the importance of having one in place for your estate.
Probate Costs and Taxes Can Significantly Reduce the Value of Your Estate
Whether you are a multibillionaire, a pop music idol, or just your average American, your estate may be subject to probate if you pass away without a will in place. This can get expensive, and fast. As an example, Prince's estate, which is currently valued at about $300 million has already racked up more than two million in attorney's fees. On top of that, there will be state and federal taxes to pay, which are often higher when you fail to create an estate plan. If you have even a meager estate, reduce the risk of its depletion in probate with an estate plan.
Tips for Protecting Your Children with a Carefully Crafted Will
No parent wants to think about dying before their children reach adulthood. Sadly, it does happen, and often before the parents have had the chance to create a will. This can leave children in limbo, create problems for their financial future, and ultimately impact their quality of life. Know how to protect your child with a carefully crafted will.
Designate First Responders
While most parents know who they would want to serve as a long-term guardian for their children, and may have even already discussed the idea with the selected person, many fail to consider what will happen in the minutes, hours, and days immediately after their death. For example, consider the following scenario: You are on your way to pick up your children from school but are killed in an accident. What happens next? Who will pick up your children and ensure they are cared for?
What the Estate of Prince Can Teach Everyone About the Importance of Wills
Prince Rogers Nelson, one of the most beloved pop icons in history, spent his life fighting to maintain creative and legal control over his career. Yet, in the months that followed his death, it became evident that he had not been quite as vigilant when it came to legally documenting what would happen to those assets after he died. In other words, Prince died without a will. As a result, his substantial estate - his alleged vault of unreleased music, his roughly $300 million in various assets - have become a cautionary tale that everyone can learn from.
What Happens in the Absence of a Will?
Prince's estate is being handled by the state. This means that the state appoints an administrator (who may not be a person you would approve of), and your assets will be distributed to the next of kin. This can be problematic for a number of reasons. First, the state must establish who your true heirs are. Second, the distribution to those heirs may not resemble your wishes.
Finding Ways to Save for Retirement
According to the several financial studies, between 40 to 60 percent of Americans live paycheck to paycheck, meaning that they earn just enough to get by. For many, the thought of an early retirement—or any retirement—is not a current achievable goal because there are no funds left over each week to put into retirement savings.
Financial advisors have discovered ways that can free debt committed paycheck funds and can therefore be redirected into a retirement savings nest egg. For example, only one in three households in this country prepare and follow a monthly budget as a way to track their spending. This can lead to a lot of wasteful spending. By following the trail of where those paycheck funds go, you may be surprised at how much is actually coming in and going out.
Tips for Purchasing Your First Home
One of the most exciting experiences for a person or for a couple is the purchase of a first home. After years of working hard and saving towards that down payment, it can feel very rewarding to actually sign on the dotted line and become a homeowner. However, the process is not without the occasional hiccup—and headaches. Therefore, following a few tips can help the purchase go smoother.
What is Your Credit Score?
One of the first steps a potential home buyer should take is to check his or her credit. Financial institutions put a heavy weight on a person's credit score when it comes to deciding how much—or if—they will approve a mortgage.
To begin, request a copy of your credit report from the three major credit reporting agencies and look over these reports carefully. Examine your credit reports for any errors. Look for any unpaid accounts or accounts sent to collections. It is not uncommon for a person to apply for a mortgage and then discover that they have an unpaid credit card or utility bill from years ago. You may have forgotten the debt, but the mortgage company will look at those types of entries unfavorably.
How to Stop a Zombie Bank Account
Millions of people take advantage of the convenience of online banking and bill paying, including setting up automatic withdrawals from their checking accounts each month. In many cases, it is done out of convenience. However, with some creditors, automatic payments may also be part of the stipulation for repayment, as in a loan repayment plan. When a person dies, and his or her bank accounts are closed, one would think that these automatic payments stop. Yet this is not always the case. Many families find that months later, they are dealing with "zombie bank accounts."
When a person opens up a checking account, he or she is given disclosure paperwork by the bank. Often included in those disclosures is the bank's right to reopen a closed account if a debit or credit arises. Banks do not have to decline the transaction. Moreover, they are also not required to notify the customer that an account has been reopened.
What Happens to an Illinois Estate When There is No Will?
Drawing up a will is something that most people know they should do. However, for one reason or another, many never get around to doing it. Moreover, when they die, it often leaves major legal issues for their loved ones to sort out.
When a person dies without a will, it is referred to as intestate. We hear story after story about families locked in major battles over a family member's estate, which often results in a manner that the deceased person would not have wanted. The only legal choice, however, is the one made by the court because there was no will.
This is the case with the estate of the late granddaughter of actor Morgan Freeman. Last August, the 33-year-old woman was stabbed to death. Her estate included a condo, worth approximately $800,000, that Freeman had purchased. When the young woman was murdered, she was not married, nor did she have any children or siblings. She also died intestate. According to New York law, where the young woman lived, her estate will go to her mother and father because she did not have a will.
The Illinois Mechanic's Lien Act
It is an all too common scenario for contractors and suppliers: work is performed and/or materials are supplied for construction on a piece of property, yet the work or materials are not reimbursed. As a result, contractors and suppliers feel that they will never see the funds owed them. However, under Illinois law, contractors and suppliers may file a mechanic's lien against the property owner.
Under the Illinois Mechanic's Lien Act, a contractor, subcontractor, or supplier can place a lien on a property if he or she has not received payment. The Act offers an additional source of protection for the contractor because it guarantees that filers of mechanic's liens will be paid before anyone else who may also have a lien on the property—the assumption is that the work done on the property (for which the funds are owed) improved the property, which increased its value.
Under the statute, there are strict criteria regarding the circumstances under which a mechanic's lien can be filed, as well as the time period in which it must be filed. The lien must also be filed in the county where the property is located.
How Will New Social Security Rules Affect Your Retirement Plans?
The Bipartisan Budget Act of 2015, which the President signed on November 2, 2015, contains multiple changes to payment strategies that many people utilized in determining when and how they would collect their Social Security retirement benefits. These changes eliminate "unintended loopholes" which ultimately financially benefited many claimants, and will particularly affect those who turn 62 years of age after 2015.
The first major change will be the elimination of double claiming. Many married couples—aged 66 years or older—have had the option of first claiming spousal payments (if the spouse was a higher earner) and then are able to switch to their own benefit amounts, which are now higher because they delayed in claiming. The longer one waits to claim his or her Social Security benefits, the higher monthly benefit amount will be.
Lawmakers Revise Illinois Condominium Laws
The new year brought with it the enactment of many new laws in the state of Illinois. Included in that batch of statutes were changes to the Illinois Condominium Property Act. Some of these changes have already become effective; however, some will not go into effect until June or July of this year.
Owners of condominiums own the unit they have purchased and, depending on the type of unit, may own a small portion of land around the unit. Ownership of the common areas and amenities of the development is shared by all the owners and is governed by a condominium association. All owners are members of the association, and they typically elect a board to oversee the policies and expenses of the development. Expenses are paid using funds collected for association fees all owners are required to pay.
When a buyer purchases a condo, they are required to sign a contract agreeing to abide by the association's rules and regulations. The Illinois Condominium Property Act establishes what rules and regulations the association can require.
