Under federal income tax laws, irrevocable, non-grantor trusts (such as Bypass Trusts and Dynasty Trusts) are subject to highly compressed income tax brackets. In 2014, the top 39.6% tax rate kicks in at only $12,500 of trust income. In addition, trusts in the top tax bracket are subject to the 20% long-term capital gains rate and a 3.8% surtax on …
What is a Farm Equipment Lease Agreement? A farm equipment lease is a long-term rental agreement between the owner of farm equipment (the lessor) and an individual or company that wishes to use the farm equipment (the lessee) in exchange for cash rent. Farm equipment leases are far from simple agreements. A properly drafted agreement will navigate the following five …
Trust protectors are a fairly new and commonly used protection in the United States. In short, a trust protector is someone who serves as an appointed authority over a trust that will be in effect for a long period of time. Trust protectors ensure that trustees: maintain the integrity of the trust, make solid distribution and investment decisions, and adapt …
Intellectual property law is confusing, to say the least. Trademarks, copyrights, patents, trade secrets – oftentimes attorneys themselves can hardly distinguish between these concepts. In an attempt to chip away at the mystery that is intellectual property, this blog answers six common questions about copyright law. What kind of work can be copyrighted? Copyright law protects works of authorship that …
When a spouse dies without a will, we call this dying “intestate” and the surviving spouse will have the right to an intestate share. Intestacy laws vary by state, but in Illinois, if the decedent has no other descendants, the surviving spouse will receive the entire estate after all just claims are fully paid. If the decedent has descendants, the …
Starting a small business entails significant risk. You forego the security of a steady paycheck to create economic opportunities for yourself. Business failure rates have remained steady over the years, but the statistics are pretty daunting: by the five-year mark, around half of small businesses have failed. While the reasons for small business failure vary, it almost always comes down …
While many wines get better with age, the same cannot be said for some irrevocable trusts. Maybe you’re the beneficiary of trust created by your great grandfather over seventy years ago and that trust no longer makes sense. Or, maybe you created an irrevocable trust over twenty years ago and it no longer makes sense. Wine connoisseurs may ask: Is …
We all need a “do over” from time to time. Life changes, the law changes, and professionals learn to do things in better ways. Change is a fact of life – and the law. Unfortunately, many folks think they’re stuck with an irrevocable trust. After all, if the trust can be revoked, why call it “irrevocable”? Good question. Fortunately, irrevocable …
Arbitration provisions, which allow legal disputes to be settled outside of the court system, are increasingly found in contracts of all kinds, including employment contracts. A series of court rulings over the years has spurred the increased use of arbitration clauses. Around one-half of American workers are now subject to mandatory arbitration, although a recently passed federal law makes them …
If you have a revocable living trust, you probably named yourself as the initial trustee so you can continue to manage your financial affairs. Eventually someone else will need to step in when you are no longer able to act due to incapacity or after your death, however. Your successor trustee plays an important role in the effective implementation of …
Illinois courts can reconsider a child support calculation once there has been a “substantial change in circumstances.” What’s new? As any parent would know, the cost of caring for your children can change throughout the years. The expenses of a toddler will surely differ from those of a teenager. At the same time, the income of one or both parents …
A common misconception is that estate planning equates to death planning. But planning for what happens after you die is only one piece of the estate planning puzzle. It is just as important to make a plan for what happens if you become mentally incapacitated. What Happens Without an Incapacity Plan? …