This post was contributed by a community member. The views expressed here are the author's own.

Health & Fitness

Notable Estate Planning Expert Advises Illinois & All Northshore Residents to Update Documents Due to Tax Law Changes and New Medicaid Regulations.

Great, MUST "News You Can Use" information that will effect all or most tax payers!

 

The State’s harsh new Medicaid laws as well changes to federal tax laws urges review and update of estate planning documents.

 

Find out what's happening in Glenviewwith free, real-time updates from Patch.

Riverwoods, IL (Chicago area), September 4, 2012 – Attorney Steven H. Peck, an expert on estate planning, reveals how cuts to the Illinois Medicaid program signed by Governor Quinn as well as changes to federal tax laws that reduce the tax-free gift limit to heirs may have significant financial consequences for Illinois residents if their estate plans are not structured properly.

 

Find out what's happening in Glenviewwith free, real-time updates from Patch.

As State and Federal austerity measures focus on new sources of income, estate planning becomes more complex. “These are not issues that just affect millionaires, this could be about whether you get to keep your house or not,” says Peck. If estate plans are not properly structured or updated, families can unknowingly lose assets in the event of the giver’s death or disability, as these new regulations take effect. Peck recommends a periodic, in-depth review of one’s assets and estate planning documents by someone with legal expertise in that practice area to avoid what could amount to catastrophic losses.

 

The consequences of Illinois’ new Medicaid regulations signed into law on June 12, 2012 are potentially severe for families. These are on top of changes that went into effect on January 1. Some of these changes include:  making the look-back period on transfers five years instead of three years, and; making the penalty period for these transfers start at the time of applying for Medicaid instead of the date of the actual transfer; the elimination of the ability to employ spousal refusal or use payback trusts, and:  a restriction on the amount of assets the community spouse can keep to live on. 

 

Additionally, changes to federal tax laws will reduce the tax-free limit on gifts to heirs from $5,120,000 to $1,000,000 on January 1, 2013. It is unknown what the estate tax limit will be but if a temporary extension isn't passed before year-end that limit will also revert to $1,000,000. That extension isn’t likely to happen before the election, if at all. Thus, for those families with several millions of dollars in estate value who are worried the exemption could drop either next year or even over the next few years because of the need for Washington to raise taxes, there is a short window of time left to use gifting strategies to lock-in this exemption amount.

 

In response to the number of changes to laws that can affect estate planning and taxes, Mr. Peck offers a program to clients which includes a yearly review and update of their estate planning documents for a flat annual fee. To see if your current estate plan needs to be reviewed, go to: http://www.pecktrust.com. Mr. Peck also offers a no-obligation initial consultation at his office.

 

###

About Steven H. Peck

Steven Peck is an attorney, speaker, and published author with 18 years experience assisting individuals and families with all matters of estate planning and tax planning. He is licensed to practice law in Illinois, New York, Massachusetts, Florida, and six federal jurisdictions, including the United States Supreme Court and the United States Tax Court. Steven Peck is a member of the Illinois/Wisconsin Forum of Estate Planning Attorneys, the Wealth Counsel, and the Elder Counsel, as well as being listed in the Nationwide Register of Who’s Who in Executives and Businesses. Mr. Peck graduated cum laude with a Bachelor of Arts degree in Economics from Harvard College and received his Juris Doctor degree from Boston College Law School. His primary office is located at 300 Saunders Road, Suite 100, Riverwoods, IL

We’ve removed the ability to reply as we work to make improvements. Learn more here

The views expressed in this post are the author's own. Want to post on Patch?