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Blended families were once considered “non-traditional” families, but today, blended families are becoming just as common as non-blended families. Currently, 52% of married couples (or unmarried couples who live together) have a step-kin relationship of some kind, and 4 in 10 new marriages involve remarriage. If you’re part of a blended family, you’ve probably recognized the extra layer of complexity that comes with planning for your family’s needs and accommodating the many relationships that exist between step-parents, step-kids, and step-siblings. Topics that might be straightforward for a “traditional” family - such as where to spend the holidays or who gets the old family car - are more complex. Feelings tend to be more sensitive, as the person in a “step” role may feel self-conscious about their place as the “outsider” of the family, whereas on the other hand, one parent’s children may feel put out by the addition of a new step-parent, step-sibling, or half-sibling when their mother or father remarries. In a blended family, you work hard to navigate these complexities to keep the family unified and happy. But what you might not know is that our laws for what happens if you become incapacitated or die are still very much based on the traditional family model, which means that your blended family will likely end up in court and conflict without planning for them in advance. What Estate Law Says About Blended Families Every state has different provisions for what happens when you become incapacitated or die, and the laws of the state where you become incapacitated or die may or may not match your wishes. What’s more, even though you may see your step-family members the same way as your blood relatives, the law does not. For example, in Illinois, if you are survived by a spouse, your surviving spouse would only receive half of your estate if you have living children, and your living children would receive the other half. In contrast, in California, all community property assets would go to your surviving spouse, and separate property assets would be distributed partially to a surviving spouse and partially to children, if living, in amounts depending on the number of surviving children. In Texas, it can get very complex, depending on whether your assets are separate or community, and whether you have children from the marriage, no children from the marriage or living parents or siblings. As you can see, what’s true for what happens when you die may not result in the outcome you want for your loved ones, especially in a blended family situation. That’s why it’s so important to create an estate plan for your blended family well in advance, and I encourage you to discuss your plan with the members of your family to avoid hurt feelings, confusion, or pain in the future. Avoid Conflict in Your Blended Family Through Open Communication Estate planning is often seen as a highly private affair, but it doesn’t have to be, and oftentimes, shouldn’t be. In the case of a blended family, having open conversations with your loved ones about your estate plan and your goals for the family can save them from hurt feelings and even court battles in the future. Like all families, how you plan for your blended family will depend entirely on your family dynamics, your family members' situations, and your own personal values for how an inheritance should (or shouldn’t) be received and what kind of legacy you want to leave behind. Maybe you have step-kids and biological kids but want all of your children to inherit an equal share from you and your spouse. Maybe there’s a large age gap between your step-kids and biological child, so you want to make sure that your youngest has the financial support they’ll need if something happens to you whereas the older children are able to support themselves. Maybe you have a step-parent or step-sibling that you would want to gift a special item of yours like a watch or necklace. Well, for better or worse, a person you have a step-relationship with has no right to inherit from you under the law, unless you put your plan in writing. You don’t need to give away every detail of your Will or Trust, or tell everyone who you named to make decisions for you if you’re incapacitated. Instead, start by having an open conversation about the general goal of your estate plan, such as wanting everyone to have an equal share, or that you want to provide more for your biological children because your step-children will already receive a full inheritance from their other parent. By taking the mystery out of your estate plan goals, your stepchildren will feel included in the discussion and feel like they are knowledgeable about your plan rather than feeling hoodwinked or hurt if they find out later that your plan doesn’t align with the expectations they created for it in their minds. Most importantly, let the people in your life know you value and love them, and that no matter how they’re related to you, you care about them and want them to inherit not just material things from you, but also your values, stories, and legacy. Create More Than a Plan, Create a Family Legacy To make sure your wishes for your blended family are followed in the event of your death or incapacity, it’s essential to have a well-crafted estate plan created by an attorney experienced in serving blended families. At Kaplan Estate Law LLC, we know all too well the importance of planning for blended families and can help you navigate your options and desires for your family’s plan. We know that your material possessions are only a small part of a successful estate plan. What will really matter to your family members, no matter how they became your family, is your legacy. Instead of leaving your family a mess to be battled over in court, leave your family an example of financial wellness, of a plan filled with personal values and family history. To do this, I include what I like to call a Family Legacy Interview with all of my estate plans. During this interview, I give you the opportunity to leave your most important assets - your values, stories, and heart - to your family in a meaningful way that they’ll cherish for years after you’re gone. And for a blended family, the Family Legacy Interview can be even more valuable, because it gives you the opportunity to really speak to your loved ones about the plan you created for them and how much you value the place they hold in your heart. If you want to protect your blended family from a court battle and emotional conflict, give me a call today to schedule a Family Wealth Planning Session. During the Session, I take the time to really get to know you and your family’s unique situation and educate you about what exactly will happen to your family under the law if something happened to you right now, so you can make confident decisions about what’s right for your family. Even more, I welcome you to invite the members of your blended family to be a part of the conversation. Click this link to schedule your session today. If you're not quite ready for the Family Wealth Planning Session, you can schedule an Initial Consult here, or email lauren@kaplanestatelaw.com.

Last week we started the discussion of why it’s so important for LGBTQ+ families to invest in custom estate planning. While major strides for LGBTQ+ rights have been made in recent years, estate planning law is still written with hetero, cisgender couples in mind, which means that your wishes and your rights may not be respected when you die or if you become incapacitated without proper planning in place. This week, I’m covering two more reasons why every LGBTQ+ family needs custom estate planning. And if you missed last week’s blog, make sure to read it here to get the full scoop. Let’s get started! 3. Custom Estate Planning for LGBTQ+ Families is Still New Territory for Many Lawyers Although same-gender and LGBTQ+ relationships are more publicly recognized now than ever, creating effective estate plans for LGBTQ+ clients is still new territory for many traditional lawyers. Some lawyers simply lack experience serving LGBTQ+ families because these families didn’t have the same rights as cisgender couples until just eight years ago. The same is true for many LGBTQ+ families. In addition to same-gender marriage being relatively new, many LGBTQ+ families haven’t pursued estate planning due to a lack of knowledge about its importance or its availability to them. After all, only about 30% of American adults have an estate plan, (yikes!), and only a small portion of that 30% are in a LGBTQ+ relationship. Because of this, it’s crucial to work with an attorney who isn’t just comfortable working with LGBTQ+ families, but is passionate about getting to know your family on a personal level and creating a plan that celebrates all that you’ve done and all that you hope for your family in the future. 4. Keep Your Kids with the Ones They Love If you’re in an LGBTQ+ relationship, you know that family isn’t just about bloodlines - it’s also about your chosen family and the bond and love you share for each other. And if you have children, you know that ensuring their well-being and protection is of the utmost importance. In the event that something happens to you, it's crucial to have a plan in place that addresses who will be your children’s legal guardian, and this is especially true if the children in your family aren’t biologically related to one of the parents, such as step-children or children born to same-sex parents who aren’t married. Not only can these situations create some unique legal planning, but LGBTQ+ parents may also face resistance from family members who may not support children living with a biologically unrelated guardian or an LGBTQ+ guardian, whether you and your partner were married or not. Similarly, if your family is resistant to certain lifestyle or parenting choices you have made - such as gender fluidity in how you raise your child or the topics you discuss within your family - it’s incredibly important to name guardians who align with your beliefs and who will honor your wishes for how you want your children to be raised. Legal Guardians Are Even More Important for LGBTQ+ Families To avoid potential disputes and ensure the continuity of care for your children, it’s essential to designate legal guardians for your children explicitly in your estate plan. By doing so, you can legally establish who you want to care for your children in your absence regardless of the guardian’s relationship to your children or their sexual orientation. By documenting who you would want to raise your children clearly and legally, you help ensure that your children will always be raised by the people you choose and the people your children love. Otherwise, you leave space for relatives who do not agree with your beliefs to try to take over the position of guardian and raise your children in a way you would not agree with - possibly even keeping them away from the other parent figures in their life. Choose a Lawyer Who Understands and Honors Your Unique Family Finding a lawyer who truly understands your unique situation is crucial in making sure your loved ones are taken care of by people who love and respect them, regardless of biology or sexual orientation. You deserve a plan that celebrates your love, family, and future. This Pride Month, celebrate all that you are by protecting everything you love. At Kaplan Estate Law LLC, we understand the unique challenges that LGBTQ+ families face. We put heart at the center of our practice - making sure to truly get to know you, your loved ones, and your needs so you can not only protect your family and document your wishes but create a legacy and a story for your loved ones that they’ll cherish for years to come. To learn more about how I serve LGBTQ+ families differently, schedule a free 15-minute discovery call at the link below. Happy Pride Month!

June is a time of celebration and reflection for the LGBTQ+ community as Pride Month shines a spotlight on the progress made in the fight for equal rights. While significant strides have been made, such as the legalization of same-gender marriage and increased recognition of LGBTQ+ families, there is still a large gap in estate planning for LGBTQ+ individuals that could leave your loved ones with a big mess. Estate planning laws are still written for hetero, cisgender individuals, and many lawyers aren’t well equipped to customize their estate plans to account for the unique family dynamics and wishes of LGBTQ+ clients. Sadly, if you have LGBTQ+ family members or are in a non-traditional family dynamic of any kind and don’t have a custom estate plan, the people you love most could find themselves accidentally disinherited from your estate or stuck in a lengthy and expensive court battle. To make sure your family is well-cared for no matter how the law defines you, keep reading to learn why customized estate planning is so crucial for LGBTQ+ and all non-traditional humans. Care for Your Family as You Define It The concept of family has expanded far beyond the confines of the traditional "nuclear family." Gratefully, we now celebrate the beautiful diversity of family structures, encompassing same-gender couples, unmarried partners, civil unions, polyamorous relationships, and an array of other unique family dynamics. However, when it comes to death or incapacity, the law still lags behind, often failing to accommodate non-traditional family units in ways that you would choose. If you die without an estate plan in place, the law will apply the state’s default estate plan to your unique situation. Under the law’s default plan, your possessions and money will pass to your next closest relatives by blood or marriage. If you aren’t legally married to your partner or partners, the people you love will be automatically disinherited in the event of your death. Likewise, if you have children that are unrelated to you genetically who you haven’t formally adopted, like a partner’s child or stepchild, those children will not receive anything from your estate after you die. Even if you’re married to the child’s parent, the law does not recognize a stepchild as a direct descendant and therefore doesn’t include them in its default plan. To make sure the people you love -- your chosen family - are taken care of, no matter how the law labels your family, it's important to create a custom estate plan that ensures your assets are distributed according to your wishes and that your partners, children, and chosen family members are protected and cared for if something happens to you, even if may not be recognized under default inheritance laws. Protect Your Financial and Health Care Rights If you ever wondered who would take care of you and your things if you become ill or incapacitated, your first thought is probably your partner. Right? After all, it seems like common sense that your partner of ten years (or 2 years, or 5 years, or 20!) should be the one to make healthcare decisions for you or pay your bills. But unfortunately, the law doesn’t operate based on what might seem like common sense when we look at our everyday lives and relationships. The law doesn’t assume that you’d want any particular person making decisions for you if you become incapacitated. Instead, your family members will need to go through a stressful court guardianship procedure to be granted decision-making power by a judge. If your family members can’t come to an agreement on who should be your decision-maker, the court may assign a professional guardian - a complete stranger - to make decisions for you instead! To avoid court involvement altogether, it’s vital to name your chosen decision-makers - your Powers of Attorney - long in advance of ever needing them. This is especially important if you want to choose a decision-maker who isn’t related to you by blood or if you want to make sure that any certain lifestyle choices or beliefs such as a special diet, style of dress, or hormone therapy are still carried out if you’re incapacitated. If you don’t put these wishes on paper and name someone you trust to uphold them, it’s likely a judge won’t appoint your chosen decision-maker. In this case, the person the judge chooses can make whatever decisions for you they feel is best, even if that means ignoring your chosen gender expression or identity. No one expects to become incapacitated due to an illness or injury, but sadly, it happens. Legally naming a decision maker in advance and talking about your wishes with them and your extended family helps safeguard your rights and ensures that your wishes for how you are cared for are honored while avoiding family conflict as much as possible. Work With a Lawyer Who Understands You Protecting your family and your wishes as an LGBTQ+ individual requires the guidance and expertise of a lawyer who understands your unique circumstances and desires for your family. That’s where we come in. While the law may still fall short in accommodating the diverse family structures and dynamics that exist today, we understand that every family is different, and we know how to craft a custom plan that not only protects your loved ones and ensures your wishes are honored, but also embodies the values, beliefs, and stories that make your family unique. If you want to make sure your LGBTQ+ family will be cared for and supported no matter what the future holds, schedule a free 15-minute discovery call at this link to learn more about how I serve LGBTQ+ families or e-mail Lauren at lauren@kaplanestatelaw.com. Then, check back next week when I cover part two of this blog. T

"I have this dream my daughter-in-law kills me for the money. She thinks I left them in the will. The family gathers 'round and reads it and then someone screams out 'she's laughing up at us from hell'." You may not have thought anything of these Taylor Swift lyrics when you first heard them, but they actually allude to the importance of proper estate planning to safeguard your legacy from unexpected and unsettling scenarios. What am I referring to? The Slayer Rule. At first glance, the Slayer Rule sounds like something out of a Stephen King novel, evoking images of dark forces and sinister plots. However, it's an essential legal concept that serves as a shield, protecting your assets and preventing those who commit acts of violence from benefiting from your estate. So, let's explore how the Slayer Rule can help you ward off potential anti-heroes and ensure your legacy remains intact. Understanding the Slayer Rule The Slayer Rule acts as a formidable barrier, preventing individuals who unlawfully cause the death of another person from receiving any financial benefits from the deceased's estate. In the scenario where your daughter-in-law is found guilty of a Bad Reputation, the Slayer Rule stands strong, denying her any share of your hard-earned assets. But How Does It Work? To activate the Slayer Rule, specific criteria must be met. Typically, a criminal conviction or a finding of guilt is required. If your daughter-in-law were to be found guilty of your murder, the Slayer Rule would automatically come into effect, ensuring that she does not inherit a single penny. It's like a legal superhero that swoops in to protect your assets from falling into the wrong hands. Your Best Defense: Proper Estate Planning While the Slayer Rule provides crucial protection, relying solely on its existence would be unwise. To strengthen your defense and protect your legacy from potential anti-heroes, proactive estate planning is essential. Here are a few steps you can take: 1. Work with an Estate Planning Attorney: Prevent any "Bad Blood," and work with an attorney who will keep your family out of court and out of conflict. Partnering with an experienced estate planning attorney will ensure that your wishes are clearly and legally documented, incorporating specific provisions related to the Slayer Rule. 2. Draft a Comprehensive Estate Plan: A comprehensive estate plan covers all aspects of your assets, including your will, trusts, and other legal instruments. By leaving no Blank Space, you can establish a roadmap for the distribution of your assets that aligns with your values and intentions, while ensuring the Slayer Rule acts as a guardian to prevent any undeserving individuals from benefiting. 3. Regularly Review and Update Your Estate Plan: We know All Too Well that circumstances change, relationships shift, and new family members may enter the picture. To ensure that your estate plan remains relevant and effective, it's crucial to review and update it periodically. This way, you can adapt to life's twists and turns and keep your legacy protected. Taylor’s allusion to the Slayer Rule in her song lyrics, even if unintentionally, emphasizes the importance of proper estate planning in protecting your assets from potential anti-heroes. By understanding the Slayer Rule, working with an estate planning attorney, and regularly reviewing and updating your plan, you can ensure that your legacy remains intact and that your assets are distributed according to your wishes. Otherwise, You’re on Your Own, Kid. If you have questions about the Slayer Rule or if you are ready to get started with your comprehensive Estate Plan, Speak Now with Lauren at lauren@kaplanestatelaw.com or schedule online here.

If you have a current estate plan, I'll bet you plan to leave your assets to your children outright and unprotected by age 35, or maybe a little later. Go take a look at your estate plan, and see what it does right now. And, if you don’t have an estate plan, and you have kids or other people you care about, contact us today and let’s get that handled for you. If you do have a plan and it distributes your assets outright to your kids -- even in stages, over time, some at 25, then half of what’s left at 30, and balance at 35 (or something along those lines), you’ve overlooked an incredibly valuable gift you can give your children (and the rest of your descendants for generations); a gift that only you can give them. And a gift that, once you’ve died and left them their inheritance outright, is lost and cannot be reclaimed. Leave your kids' inheritance protected from lawsuits, divorce, and estate taxes. While you may think to yourself, my kids’ inheritance doesn’t need to be protected. They aren’t going to get sued. You may be right, but you may also be overlooking one of the most common “lawsuits” that causes inheritances to be lost everyday, and that’s divorce. If you want to protect the money you are leaving to your children from their future divorces, even if you love their spouses nor or expect you will, in the future, you can easily do so using a protected trust. And, if your child is ever involved in a lawsuit, for example, a simple car accident, or if a business transaction goes bad, what you leave to your child can be protected from all future lawsuits or claims against them. The best part is that if your child has their own taxable estate when they die, your planning now could save your family 40 cents on every dollar (or more) handed down from one generation to the next. Save your family Up to 40 cents on every dollar -- currently -- at each generation. As of 2023, the current federal estate tax rate is 40% -- meaning that every dollar passed on over the estate tax exemption rate is taxed at 40%. And it has been as high as 55%. On top of that, many states have estate taxes as well, including Illinois. This all adds up fast, and can decimate your family’s financial legacy, over time For every million dollars you leave outright to your children, if your children have a taxable estate when they die, could result in your grandchildren receiving only $550,000, with $450,000 going to the government ... unnecessarily. So, if you want to know that everything you’ve worked so hard to create will stay in your family for generations to come and not be lost to outsiders, leaving your assets to your children protected in a trust we call a Lifetime Asset Protection Trust, instead of outright is the way to go. And, it can be easily built in to your existing estate plan or trust, you just need to ask us to help you get a Lifetime Asset Protection Trust added to your plan. But how will my kids get to use what I leave to them? Here’s the best part about leaving your assets to your children in a Lifetime Asset Protection Trust. Not only is what you leave protected, but your children control what you leave them when you decide they are ready. After your death, the assets you leave behind will pass to your children (and your grandchildren, great-grandchildren, and so on for successive generations) in a Trust that your child can control, as the Trustee of the Trust. You can decide when your child is mature enough to act as a Trustee. As the Trustee of the Trust, your child decides how what you’ve left is invested and what to do with the Trust assets. And your child will even be able to determine the amount of control vs. the amount of asset protection he or she wants based on his or her specific circumstances. Is this still important if I don’t have much money? If you only leave your children a small amount of money, this is still incredibly valuable for protection, if you are leaving assets that will be invested and grown, and not just spent right away on consumables. Some might say it’s even more important because your family has less to lose to taxes, lawsuits, and divorce each generation. And the impact of such losses is much greater. A mere $10,000 protected now can become millions for the people you love for generations to come. Imagine that you leave just $10,000 to your child in a Lifetime Asset Protection Trust, and instead of spending that $10,000 or losing it in a divorce, they invest that $10,000 in creating their own business inside their trust, and then grow that business into a million dollar or multi-million dollar venture because of how you chose to leave your child that $10,000 gift … and it’s fully protected for generations. Secure the future of your family today by speaking to us. We review estate plans and inherited funds with you, ensuring that all legalities are in place so generations can enjoy the benefits according to your wishes. Don't wait, get peace of mind now - contact us today at (312) 833-2199 or lauren@kaplanestatelaw.com to get started, or book an appointment now.

Last week, in part one, we looked at the different things having a will in place allows you to do. Here, in part two, we detail all of the things that your will does not do, along with identifying the specific estate planning tools and strategies that you should have in place to make up for the potential blind spots that exist in an estate plan that consists of only a will. If you have yet to create your will, or you haven’t reviewed your existing will recently, contact us to get this vital first step in your estate planning handled right away. WHAT A WILL WON’T DO While a will is a necessary part of most estate plans, your will is typically a very small part of a comprehensive estate plan. To demonstrate, here are the things you should not expect your will to accomplish: 01 | KEEP YOUR FAMILY OUT OF COURT Following your death, in order for assets in your will to be transferred to your beneficiaries, the will must pass through the court process known as probate. During probate, the court oversees the will’s administration, ensuring your assets are distributed according to your wishes, with automatic supervision to handle any disputes. Like most court proceedings, probate can be time-consuming, costly, and open to the public. Moreover, during probate, there’s also the chance that one of your family members might contest your will, especially if you have disinherited someone or plan to leave significantly more money to one relative than the others. Even if those contests don’t succeed, such court fights will only increase the time, expense, and strife your family has to endure. Bottom line: If your estate plan consists of a will alone, you are almost guaranteeing your family will have to go to court if you become incapacitated or when you die. Fortunately, it’s easy to ensure your loved ones can avoid probate using different types of trusts, which we will discuss in further detail. 02 | PASS ON CERTAIN TYPES OF ASSETS Since a will only covers assets solely owned in your name, there are several types of assets that your will has no effect on, including the following: Assets with a right of survivorship: Property held in joint tenancy, tenancy by the entirety, and property with the right of survivorship, bypass your will. These types of assets automatically pass to the surviving co-owner(s) when you die. Assets with a designated beneficiary: When you die, assets with a designated beneficiary pass directly to the individual, organization, or institution you designated as beneficiary, without the need for any additional planning. Common assets with beneficiary designations include retirement accounts, IRAs, 401(k)s, and pensions; life insurance or annuity proceeds; payable-on-death bank accounts; and transfer-on-death property, such as bonds, stocks, vehicles, and real estate. Assets held in a trust: Assets held by a trust automatically pass to the named beneficiary upon your death or incapacity, so these assets cannot be passed in your will. This includes assets held by both revocable living trusts and irrevocable trusts. 03 | PASS OWNERSHIP OF A PET AND MONEY FOR ITS CARE Because animals are considered personal property under the law, you cannot name a pet as a beneficiary in your will. If you do, whatever money you leave it would go to your residuary beneficiary, who would have no obligation to care for your pet. It’s also not a good idea to use your will to leave your pet and money for its care to a future caregiver. That’s because the person you name as beneficiary would have no legal obligation to use the funds to care for your pet. In fact, this person could legally keep all of the money and drop off your pet at a shelter. 04 | LEAVE FUNDS FOR THE CARE OF A PERSON WITH SPECIAL NEEDS There are a number of unique considerations that must be taken into account when planning for the care of an individual with special needs. In fact, you can easily disqualify someone with special needs for much-needed government benefits if you do not use the proper planning strategies. For this reason, a will should never be used to pass on money for the care of a person with special needs. If you want to provide for the care of your child or another loved one with special needs, you must create a special needs trust. However, such trusts are complicated, and the laws governing them can vary greatly between states. 05 | REDUCE ESTATE TAXES If your family has significant wealth, you may wish to use estate planning to reduce your estate tax liability. However a will is not the best vehicle for this purpose. To reduce or postpone your estate taxes, your best option is to set up special types of trusts. 06 | PROTECT YOU FROM INCAPACITY Because a will only goes into effect when you die, it offers no protection if you become incapacitated and are no longer able to make decisions about your financial, legal, and healthcare needs. If you do become incapacitated, your family will have to petition the court to appoint a guardian to handle your affairs, which can be costly, time-consuming, and traumatic for your loved ones. And there’s always the possibility that the court could appoint a relative as a guardian that you’d never want making such critical decisions on your behalf. Or the court might select a professional guardian, putting a total stranger in control of your life, which leaves you open to potential fraud and abuse by crooked guardians. However, using a trust, you can include provisions that appoint someone of your choosing—not the court’s—to handle your assets if you are unable to do so. When combined with a well-prepared medical power of attorney and living will, a trust can keep your family out of court and out of conflict in the event of your incapacity, while ensuring your wishes regarding your medical treatment and end-of-life care are carried out exactly as you intended. GET PROFESSIONAL SUPPORT WITH YOUR ESTATE PLANNING Although creating a will may seem fairly simple, you should always consult with an experienced estate planning lawyer like us to ensure the document is properly created, executed, and maintained. And as we’ve seen here, there are many scenarios in which a will will not be the right estate planning solution, nor would a will keep your family and assets out of court. Meet with us for a Family Wealth Planning Session, which is the first step in our Life & Legacy Planning process. During this process, we’ll walk you through an analysis of your assets, what’s most important to you, and what will happen to your loved ones when you die or if you become incapacitated. From there, we’ll work together to put in place the right combination of estate planning solutions to fit with your asset profile, family dynamics, budget, as well as your overall goals and desires. We see estate planning as far more than simply planning for your death and passing on your “estate” and assets to your loved ones—it’s about planning for a life you love and a legacy worth leaving by the choices you make today—and this is why we call our services Life & Legacy Planning. Contact us today to schedule your visit to ensure that your loved ones will be protected and provided for no matter what happens to you.

If you have already prepared your will, congratulations—too few Americans have taken this key first step in the estate planning process. In fact, a 2022 Wills and Estate Planning Study, from caring.com found that only 33% of Americans have created their will. Yet, while having a will is important—and all adults over age 18 should have this document in place—for all but a few people, creating a will is just one small part of an effective estate plan that works to keep your loved ones out of court and out of conflict. With this in mind, here we look at exactly what having a will in place will—and will not—do for you and your loved ones in terms of estate planning. If you have yet to create your will, or you haven’t reviewed your existing will recently, contact us, your Personal Family Lawyer® to get this vital first step in your estate planning handled right away. What A Will Does A will is a legal document that outlines your final wishes in regards to how your assets are distributed to your surviving family members. Here are some of the things having a will in place allows you to do: 1. Choose how assets are divided upon your death: A will's primary purpose is to allow you to designate how you want your assets divided among your surviving loved ones upon your death. If you die without a will, state law governs how your assets are distributed, which may or may not be in line with your wishes. However, as we’ll discuss more below, a will only allows you to provide for the distribution of certain types of assets—namely, a will only covers assets owned solely in your name. Other types of assets, such as those with a beneficiary designation and assets co-owned by you with others, are not affected by your will. 2. Name an executor: In your will, you can name the person, or persons, you want to serve as your executor, sometimes called a “personal representative.” Following your death, your executor is responsible for wrapping up your final affairs. This includes numerous responsibilities, including filing your will with the local probate court, locating and managing all of your assets, paying off any debts you have outstanding, filing and paying your final income taxes, and finally, distributing your remaining assets to your named beneficiaries. 3. Name guardians for your minor children: If you are the parent of minor children, it is possible to name legal guardians for them in your will. However, naming guardians for your children in your will alone is seriously risky, and doing so may even leave your kids vulnerable to being taken into the care of strangers if something happens to you. Fortunately, whether you’ve named guardians for your kids in your will or have yet to take any action at all, you’ve come to the right place. At Kaplan Estate Law LLC, we offer a comprehensive system known as the Kids Protection Plan®, which is included with every estate plan we prepare for families with young children. If you have already named long-term guardians in your will—either on your own or with a lawyer—we can review your existing legal documents to see whether you have made any of the six common mistakes that could leave your kids at risk. From there, we will revise your plan to ensure your children are fully protected. 4. Serve as a backup for a living trust: Because it can be difficult to transfer the legal title to every single one of your assets into a revocable living trust before your death, most trusts are combined with what’s known as a “pour-over” will. This type of will serves as a backup to a living trust, so all assets not held by the trust upon your death are transferred, or “poured,” into your trust through the probate process. A Small—But Important—First Step As you can see here, having a will in place only gives you a limited amount of power over the distribution of certain assets, but that doesn’t mean you should go without one. Without a will, you would have no say in who inherits your assets when you die, and everything you own could even go to the state. But worse than that, your surviving loved ones will be the ones who have to clean up the mess you’ve left behind. And they will have to handle all of this while grieving your death. Instead, you should see your will as an important first step in the estate planning process—one that works best when integrated with a variety of other legal vehicles, such as trusts, powers of attorney, and advance healthcare directives. Next week, in part two, we’ll detail all of the things that your will does not do, and then we’ll outline the different estate planning tools that you should have in place to make up for these potential blind spots in your estate plan. Until then, if you need to get your estate planning started or you would like us to review your existing estate plan (even one created by another lawyer) to see if you are missing anything, contact attorney Lauren Kaplan at lauren@kaplanestatelaw.com or (312) 833-2199. Or, if you are ready to get started, schedule a meeting here.

Vacations can be the perfect opportunity to relax, disconnect from work and responsibilities, and enjoy your spouse, partner, kids’ or friend’s company. But before you head off on your next getaway, there’s something else you should consider doing that might not sound quite as fun—creating an estate plan. While it may not sound like the most thrilling way to spend a day, here are some reasons why you need to think about your estate plans before you travel. An estate plan ensures any medical decisions needed while away from home will be handled according to your wishes, and with as much ease as possible, no matter what the rules are where something happens. If you fall ill or become injured and can’t make medical decisions for yourself, your estate plan will ensure that decisions will be made by the person you choose, and with your indicated desires for your care at the forefront. Without an estate plan in place, your family or friends could have a heavy lift to get you back home, locate your assets, keep your bills paid, and even ensure your children get taken care of by the right people in the right way. Lastly, an estate plan ensures that any debts or liabilities are taken care of properly in case something happens while on vacation. This can help prevent creditors from trying to collect from surviving family members after the fact — something no one wants to deal with during such a difficult time. Yes, Even Married Couples Need an Estate Plan You might think that because you are married, you don’t need an estate plan. Or you might even think your Will is enough and would just handle everything. But that’s generally not the case. Even if you are married, you still need medical powers of attorney, making it clear that you want your spouse making medical decisions for you, or even potentially adding in additional decision-makers. You still want a Living Will to give clarity on how you want medical decisions made for you. Finally, if you have dependent children, you want to ensure you’ve made it as easy as possible for their care needs to be continued by the people you want, in the way you want. Without a plan in place, decisions around their care could be tied up for months, including access to the financial assets their caregivers would need to ensure they have what they need along the way. The Benefits of Working With an Attorney While you can create an estate plan without legal assistance, there are serious risks to the people you love, if your plan is not completed, not updated after it’s been done once, or not completed properly. The only real guarantee for the people you love to have as much ease as possible, is if you work with an experienced attorney specializing in estate planning, and particularly Life & Legacy Planning. At Kaplan Estate Law LLC, we understand what needs to go into a thorough and complete estate plan — as well as the potential pitfalls or issues that could arise due to your unique personal and family dynamics — so you can rest assured knowing everything is being taken care of properly before you embark on your trip. We can advise you on other important documents such as Wills, Trusts, powers of attorney (POA), health care directives (HCD), and guardianship paperwork (for minor children) so you can make informed decisions based on what you want to have happen if you become incapacitated or die . All these items should be considered when creating an effective estate plan — especially when one or both parties will be traveling outside their home country at any point. Don't Let a Lack of Planning Dampen Your Vacation Spirits! Taking a few simple, yet critically important, steps now can save you and your family considerable headaches down the road if anything were ever to happen while on the road—not only do we want you to enjoy each moment spent together, but we want peace of mind knowing that whatever comes your way is handled according to your wishes! We can help put a plan together now so that you don’t forget about this important task before packing up for your next adventure. Making sure all your affairs are in order will ensure nothing stands in the way between you and enjoying time together! For more information, contact attorney Lauren Kaplan at (312) 833-2199 or lauren@kaplanestatelaw.com. Or, if you're ready to get started, schedule a meeting here.

At Kaplan Estate Law LLC, one of our primary goals is to educate you on the vital importance of not only preparing an estate plan, but also keeping your plan up-to-date. While you almost surely understand the importance of creating an estate plan, you may not know that keeping your plan current is every bit as important as creating a plan to begin with. In fact, outside of not creating any estate plan at all, outdated estate plans are one of the most common estate planning mistakes we encounter. We’ll get called by the loved ones of someone who has become incapacitated or died with a plan that no longer works because it was not properly updated. Unfortunately, once something happens, it’s too late to adjust your plan, and the loved ones you leave behind will be stuck with the mess you’ve left, or they could end up in a costly and traumatic court process that can drag out for months or even years. Estate planning is an ongoing process, not a one-and-done type of deal. To ensure your plan works properly, it should continuously evolve along with your life circumstances and other changing conditions. Regardless of who you are, your life will inevitably change: families change, assets change, laws change, and goals change. In the absence of any major life events, we recommend reviewing your estate plan annually. However, there are several common life events that require you to immediately update your plan—that is, if you want it to actually work and keep your family out of court and out of conflict. To this end, if any of the following events occur in your life, contact us, your Personal Family Lawyer® right away to amend your estate plan. LIFE EVENTS THAT NECESSITATE AN IMMEDIATE REVIEW OF YOUR ESTATE PLAN 1) You Get Married. 2) You Get Divorced. 3) You Give Birth Or Adopt. 4) You Have A Minor Child Reach Adulthood. 5) A Loved One Dies. 6) You Get Seriously Ill Or Injured. 7) You Move To A New State. 8) Your Assets Or Liabilities Change Significantly. 9) You Buy Or Sell A Business 10) The Federal Estate-Tax Exemption Or Your State’s Estate-Tax Exemption Changes Significantly. OUR SYSTEMS KEEP YOUR PLAN UPDATED—FOR LIFE Keeping your estate plan updated is so important that we’ve created proprietary systems designed to ensure your plan is revisited consistently, so you don’t need to worry about overlooking anything, as your family, the law, and your assets change over time. Be sure to ask us about these systems during our meeting. Furthermore, because your plan is designed to protect and provide for your loved ones in the event of your death or incapacity, us, as your local Personal Family Lawyer® isn’t just here to serve you—we’re here to serve your entire family. Over the years, we’ll take the time to get to know your family members and include them in the planning process, so everyone affected by your plan is well-aware of what your latest planning strategies are and why you made the choices you did, along with knowing exactly what they need to do if something happens to you. And if you are the parent of minor children, we will put safeguards in place to ensure that your kids are never placed into the care of strangers, even temporarily. LIFE & LEGACY PLANNING As a Personal Family Lawyer® firm, our estate planning services go far beyond simply creating documents and then never seeing you again. In fact, we will develop a relationship with you and your family that lasts not only for your lifetime, but for the lifetime of your children and their children, if that’s your wish. Unlike traditional estate plans, a Life & Legacy Plan is designed to grow and change with you. Us, as your local Personal Family Lawyer® makes that possible. We aren’t just a one-time document creator; we are your trusted, lifelong counsel and guide, who works with you to ensure your family stays out of court and out of conflict and grows even closer as a result of the legacy you’re creating. Ultimately, we’ve discovered that estate planning is about far more than planning for your death and passing on your “estate” to your loved ones—it’s about planning for a life you love and a legacy worth leaving by the choices you make today. And this is why we call our services Life & Legacy Planning. Call us, your Personal Family Lawyer® to get your plan started today. This article is a service of Lauren Kaplan, Personal Family Lawyer®. We do not just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Family Wealth Planning Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today at (312( 833-2199 to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.

People often come to us curious — or confused — about the role trusts play in saving on taxes. Given how frequently this issue comes up, here we’re going to explain the tax implications associated with different types of trusts in order to clarify this issue. Of course, if you need further clarification about trusts, taxes, or any other issue related to estate planning, meet with us for additional guidance. TWO TYPES OF TRUSTS There are two primary types of trusts — revocable living trusts and irrevocable trusts — and each one comes with different tax consequences. REVOCABLE LIVING TRUST A revocable living trust, also known simply as a living trust, is by far the most commonly used form of trust in estate planning. And as long as you are living, there is absolutely no tax impact of creating a living trust. A living trust uses your Social Security Number as its tax identifier, and this type of trust is not a separate entity from you for tax purposes. However, a living trust is a separate entity from you for the purpose of avoiding the court process called probate, and this is where the confusion regarding taxes often comes from. But before we explain the tax implications of a living trust, let's first describe how a living trust works. A living trust is simply an agreement between a person known as the grantor, who gives assets to a person or entity known as a trustee, to hold those assets for the benefit of a beneficiary(s). In the case of a revocable living trust, the reason there are no tax consequences is because you can revoke the trust agreement or take the assets back from the trustee at any time, for any reason. In fact, as long as you are living, you can change the terms of the trust, change the trustee, change the beneficiaries, or terminate the trust altogether. However, upon your death, a revocable living trust becomes irrevocable, and this is when tax consequences come into play. Following your death, the trustee you’ve named will step in and take over management of the trust assets, and one of the first things that your trustee will do is to apply for a tax ID number for the trust. At this point, the trust becomes a taxable entity, and any income earned inside of the trust that is not distributed in that year would be subject to income taxes, at the taxable rates of the trust (or at the tax rates of the beneficiaries, if income is distributed to the beneficiaries). IRREVOCABLE TRUSTS An irrevocable trust is created when you make a gift to a trustee to hold assets for the benefit of the beneficiary, and you cannot take back the gift you've made to that individual. When you create an irrevocable trust, either during your lifetime, or at death through a testamentary trust (a trust that arises at the time of your death through your will), or through a revocable living trust creating during your lifetime, the trust is a separate tax-paying entity, and it is either subject to income tax on the earnings of the trust at the rates of the trust or at the rates of the beneficiaries. Unlike a revocable living trust, an irrevocable trust is (as the name implies) irrevocable. This means that the trust’s terms cannot be changed, and the trust cannot be terminated once it’s been executed. When you transfer assets into an irrevocable trust, you relinquish all ownership of those assets, and your chosen trustee takes total control of the assets transferred into the name of the trust. Because you no longer own the assets held by the trust, those assets are no longer considered part of your estate, and as long as the trust has been properly maintained, the assets held by the trust are also protected from lawsuits, creditors, divorce, serious illness and accidents, and even bankruptcy. However, as mentioned earlier, irrevocable trusts also come with tax consequences. As of 2022, the income earned by an irrevocable trust is taxed at the highest individual tax bracket of 37% as soon as the undistributed taxable income reaches more than $13,450. To avoid this high tax rate, in some cases, an irrevocable trust can be prepared so that the tax consequences pass through to the beneficiary and are taxed at his or her rates, which are typically much lower. We often set up a trust in this way when creating a Lifetime Asset Protection Trust for a beneficiary. When set up like this, the trust can provide the beneficiary with protection from common life events, such as serious debt, divorce, debilitating illness, crippling accidents, lawsuits, and bankruptcy, without being taxed at such a high rate on such little income. If you have a trust set up, and would like us to review its income tax consequences for your loved ones upon your death, meet with us, your local Personal Family Lawyer. THE ESTATE TAX: WHAT IT IS & WHO PAYS IT The estate tax is a tax on the value of a person’s assets at the time of their death. Upon your death, if the total value of your estate is above a certain threshold amount, known as the federal estate tax exemption, the IRS requires your estate to pay a tax, known as the estate tax, before any assets can be passed to your beneficiaries. As of 2023, the federal estate tax exemption is $12.92 million for individuals ($25.84 million for married couples). Simply put, if you die in 2023, and your assets are worth $12.92 million or less, your estate won't owe any federal estate tax. However, if your estate is worth more than $12.92 million, the amount of your assets that are greater than $12.92 million will be taxed at a whopping 40% tax rate. In Illinois, the estate tax is exemption is $4 million, which means that if you die in 2023 and your assets are worth more than $4 million, the amount of your assets that are greater than $4 million will be taxes by the state at a rate of 40%. You can reduce your estate tax liability—or even eliminate it all together—by using various estate planning strategies. Most of these strategies are fairly complex and involve the use of irrevocable trusts, but such strategies are without question worth it, if you can save your family such a massive tax bill. To learn how to save your family from such a major tax burden, meet with schedule a meeting with us to discuss your options. THE FUTURE ESTATE TAX The current $12.92 million estate tax exemption is set to expire on Jan. 1, 2026, and return to its previous level of $5 million, which when adjusted for inflation is expected to be around $6.03 million. Here’s one thing we know for sure: We don’t know what the estate tax exemption will be at the time of your death, and we also don’t know what the value of your assets will be at the time of your death. Because of this, when you plan with us, we will ensure that we put in place planning strategies to protect your estate from estate taxes, regardless of the amount of the estate tax exemption or the size of your assets. WE’RE HERE FOR YOU If you are trying to decide whether a revocable living trust, irrevocable trust, Lifetime Asset Protection Trust, or some other estate planning vehicle is the right solution for you and your family, meet with us, as your Personal Family Lawyer. We will support you in making that decision, so your estate can provide the maximum benefit for the people you love most, while paying the least amount of taxes possible. Call us today to schedule your visit. This article is a service of Lauren Kaplan, Personal Family Lawyer. We do not just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Family Wealth Planning Session™, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.