Oak Brook, IL Estate Planning Lawyers
Irrevocable Life Insurance Trusts and Special Needs Trusts in DuPage County
If death and taxes are two of life's great certainties, it makes sense to set up a trust that handles both events gracefully. Enter the irrevocable life insurance trust (or ILIT). An ILIT can carry out your final wishes and reduce tax consequences for the designated beneficiaries.
Farooqi & Husain Law Office is a respected estate planning firm with proven experience helping clients set up and properly administer an ILIT. An ILIT is helpful when you have extensive assets and are concerned about how estate tax will impact your beneficiaries. Our detail-driven DuPage County estate planning attorneys have the knowledge and experience to help you protect the assets you wish to pass on to future generations.
Helping Clients Protect Assets Through Trusts
It is of utmost importance to work with a skilled estate planning lawyer. When families must grieve the loss of a loved one, it is imperative to have an enforceable trust to reduce further financial stress and heartache. ILITs may have several benefits such as providing funds through the death benefit to help pay federal, state, and estate taxes.
Since death benefits are generally considered nontaxable, an ILIT will provide your family with more options. Instead of having to rush to sell off items to pay the tax bill, they can make wise decisions about handling the fortune you have left to them. Not having to part with a treasured piece of jewelry or a family home to satisfy a tax debt can offer a measure of peace to your loved ones. Other benefits include:
- Assets owned by the ILIT may not be subject to estate tax;
- Life insurance premiums can be set up to be paid by the ILIT;
- Life insurance payout can be within the ILIT; and
- No income or capital gains tax liabilities from having to sell off estate items.
While there are hefty benefits to having an ILIT, it must be set up properly for your family to reap its benefits. An ILIT is a complex legal arrangement that requires an experienced DuPage estate planning lawyer and a trusted financial team. Remember, once the terms are in place, they cannot be changed. Farooqi & Husain Law Office can help you craft the right plan for your family.
Providing Help for the Disabled with a Special Needs Trust
If you have family members who are not able to care for themselves, you may want to consider a special needs trust. This type of trust provides care for the family member without compromising benefits available from the government such as Medicaid, Medicare, and Supplemental Security Income (SSI). Some common special needs trusts include:
- Children's Trust
- OBRA Trust
- Third-Party Special Needs Trust
These trusts make it possible to provide for daily expenses without draining its funds for medical care that can be provided through government programs. If you want to ensure that your elderly parent or special needs child is cared for now and in the future, we can help you find the right setup to serve your family's needs.
Knowledgeable Oakbrook Terrace Estate Planning Lawyers
If you wish to create an ILIT or special needs trust, please contact one of our skilled estate planning lawyers today. Call 630-909-9114 to set up an initial consultation. We can help you protect those you care for the most. We serve DuPage County, Cook County, and throughout the Northern Illinois suburbs.