“Change You Had Better Believe In”   “The only constant is change, inevitable change, continuing change that is the dominant factor in society today.  No sensible decision can be made any longer without taking into account not only the world as it is but the world as it will be.”    No, this was not President Obama stating this, but rather this quote is attributed to Isaac Asimov who died in 1992.  This quote illustrates that as we live longer, as our family changes and our needs change, as the law changes, we too must take action to change.   All of our clients are now living in the present and the present has storm clouds on the horizon.  This requires our clients to think again.  The documents that you created for estate planning purposes when you were 65 may no longer serve the same purpose and worse yet could disadvantageous to you as you move on to possible long-term care.  SAMPLE CASE STUDY: A woman came into our office and her documents were created roughly 10 years ago by another attorney.  Her husband has recently died.  The couple back in 1999 created two revocable living trusts, one for each of them.  This was a good plan at the time and made perfect sense.  The goal at the time was to shelter their estate from estate taxes and avoid probate.  At that time, their combined estate was $1 million but the estate tax laws only allowed them to shelter $600,000.  So instead of paying estate taxes, they prepared a trust designed to allow each them to shelter $600,000 so that no estate taxes will be paid.  This was marvelous planning at that time, but now… 10 years later, the woman’s husband is deceased, and the surviving widow is now 9 years older and has chronic health issues.  Also, there have been tremendous changes in the estate tax laws since she originally did her documents.  Each U.S. citizen can now shelter $3.5 million in assets before any estate taxes are due.  So the same $1 million in assets are sheltered from estate taxes but over half of those assets (approximately $500,000) are in her husband’s trust.  The husband’s trust restricts how wife can use these assets!  She cannot change the beneficiaries and the trust not only does not serve her purpose but is now becoming a problem as we look at planning for long term care. The woman’s Powers of Attorney are no longer adequate.  They do not contain all of the tools that we routinely insert in the Powers of Attorney in order to make them effective for any situation involving Long Term Care. The Question for the Immediate Future:   Have you planned for the issues and costs that will arise in connection with long-term care, either in your own home or at a skilled facility? Please recall that the greatest threat to most Americans is the cost on long-term convalescent care.  Therefore, we urge you to get an update of your estate plan and take into consideration elder law issues and long-term care issues.  The Medicaid laws have changed in many states and will shortly be changing in Illinois.  It is best to obtain all of the tools necessary through an updated estate plan, long-term care plan and updated Power of Attorney while you are healthy and can deal with these issues. Our firm wants you to have the most updated and well written documents available so that you and your family can tackle every situation that will arise as more changes come.  And come they will! Never doubt it! This is a Positive Message I hope you will take this communication as a positive message.  In this update we are trying to inform you and the professionals that serve you that there are many steps that can be taken to protect you and your family as well as your assets.  If we provide for change we can create a better future for yourselves with more control and thereby provide you with greater peace of mind. You have our best wishes! P.S.      Also, don’t miss our workshop: “The Elder Care Journey – How to Get Financial Assistance for your Nursing Home Care…Without Selling your Home or Leaving your Family Without a Dime” set for the following dates.  Please contact our office at (847) 292-1220 to register. May 18, 2009 at 6:30 PM June 11, 2009 at 4:00 PM June 23, 2009 at 6:30 PM July 9, 2009 at 4:00 PM Call (847) 292 1220 to make a reservation in our training room. –       You don’t want to miss this workshop! Long Term Care Planning Attorneys The “3 Phase” Lawyers   Legal Counsel Assisting You in the 3 Phases of Your Life:   –           Maturing Years –          Will, Trust, Taxes, and Asset Protection –           Senior Years –             Long Term Care and Nursing Home Protection –           Post Death Years –       Estate, Probate, and Trust Administration     “Educate to Motivate”   Anthony B. Ferraro Attorney-CPA The Law Offices of Anthony B. Ferraro, LLC The Estate & Trust, Elder and Asset Protection Law Firm Columbia Centre I 5600 N. River Road, Suite 764  Rosemont, IL 60018 PH (847) 292-1220 FAX (847) 292-1221 Website:  abferrarolaw.com Email:  abferraro@abferrarolaw.com Much of what’s in this update is based on the work of a prominent Florida colleague.  Any tax advice contained in this communication was not intended to be used, and cannot be used, by you (or any other taxpayer) to avoid penalties under the Internal Revenue Code. The Illinois rules of Professional Conduct require attorneys to identify unsolicited communications to prospective clients as Advertising Material.  If the context requires, please consider this letter and the enclosed literature to be Advertising Materials. This document is for discussion purposes only and is not intended to be, nor should it be, considered as legal advice.  You should never attempt Medicaid planning, Estate Planning, Probate or Trust Administration without the advice of competent legal counsel.

IMPORTANT UPCOMING WORKSHOP ON ESTATE PLANNING IN THE NEW MILLENNIM FOR BOOMERS AND NEW RETIREES…   “How to Leave a Legacy for Your Family and Protect Your Hard Earned Money Legally and Effectively”   Presented by: Anthony B. Ferraro Attorney-CPA A Message from Anthony B. Ferraro…   43% of people over 65 will spend at least 408 days in a nursing home.  Even people with wealth may not have liquidity to pay privately.  Especially during these tough times, your estate plan should protect assets from long term care and nursing home costs.  Most clients that come into our office feel that their estate planning is complete because: 1) they are handling their own affairs today, and 2) they have prepared a will or trust that will enable them to distribute their assets on death.  But what happens in between?  Our clients inform us that the biggest problem is not what happens when they die, but rather what happens if they don’t die and live a long period of time while they are ill.  This, restated, is the “Gap,” in their planning. The “Gap” represents that phase of our life or those years where no Long Term Care Planning has been done and long term illness sets in. Long Term Care Planning is the process of putting together the correct documentation such as powers of attorney, asset transfers, and asset protection strategies, in order to create continuity in the management of your assets when you are no longer able to care for yourself and may require in-home care, assisted living or long term skilled or nursing home care.  So, don’t leave yourself vulnerable in the “Gap”.  Instead engage in the process of Long Term Care Planning where you bridge the Gap between your healthy years and death.  Don’t make the mistake in assuming that you will be healthy and then someday die, without intervening years of health crisis and long-term care. With our population continuing to age (the fastest growing population in United States is the 85+ age group) there is certainty that many of us will go from healthy years to disabled years in which we are alive but require a lot of long term care.  Provide for those years.  Contact a Long Term Care Planning attorney so you have the correct tools in place to bridge the “Gap.”  All of our clients tell us that the greatest threat to the financial security of middle Americans is the cost of long term convalescent care.  Don’t get slaughtered in the “Gap”.  Do Long Term Care Planning! Please join me as we explore these and other topics of interest: –          The most important legal document you must have and what it contains. –          Why your parents’ estate plan won’t work. –          How “gifting” can mess up your entire estate plan. –          How to protect your assets from long term care including nursing home costs. –          How paying for your grandchild’s preschool can disqualify you for Medicaid. –          The secrets to Veteran’s Benefits. –          Covering all bases: How to plan for your “non-traditional” family –          Planning for that large retirement plan without paying unnecessary income taxes. –          Why the new Medicaid laws require advanced planning. –          How to protect your children from their creditors, ex-spouses and themselves. –          How to protect and provide for an aging parent. Your attendance at this workshop is free but seating is limited.  Reservations are a must. Please call 847-292-1120   –       You don’t want to miss this workshop! Long Term Care Planning Attorneys The “3 Phase” Lawyers   Legal Counsel Assisting You in the 3 Phases of Your Life:   –           Maturing Years –          Will, Trust, Taxes, and Asset Protection –           Senior Years –             Long Term Care and Nursing Home Protection –           Post Death Years –       Estate, Probate, and Trust Administration     “Educate to Motivate”   Anthony B. Ferraro Attorney-CPA The Law Offices of Anthony B. Ferraro, LLC The Estate & Trust, Elder and Asset Protection Law Firm Columbia Centre I 5600 N. River Road, Suite 764 Rosemont, IL 60018 PH (847) 292-1220 FAX (847) 292-1221 Website:  abferrarolaw.com Email:  abferraro@abferrarolaw.com NOTE: The information contained in this message is confidential and may be protected by the attorney-client privilege and/or the work product doctrine.  If you have received this electronic message in error, please reply to the sender and destroy this message. Pursuant to federal regulations imposed on practitioners who render tax advice (“Circular 230”), we are required to advise you that any tax advice contained herein is not intended or written to be used for the purpose of avoiding tax penalties that may be imposed by the Internal Revenue Service. The Illinois rules of Professional Conduct require attorneys to identify unsolicited communications to prospective clients as Advertising Material.  If the context requires, please consider this letter and the enclosed literature to be Advertising Materials. To unsubscribe, please reply to this email.  In the subject line, please write your name and the word “unsubscribe.”  If you are responding on someone else’s behalf, please also include the email address that our message was sent to.  Thank you. This document is for discussion purposes only and is not intended to be, nor should it be, considered as legal advice.  You should never attempt Medicaid planning, Estate Planning, Probate, or Estate and Trust Administration without the advice of competent legal counsel.

Pending Medicaid Law Changes Pose Challenges to Nursing Homes and Residents   In prior issues we wrote about the new pending Medicaid law changes as they relate to gifts or asset transfers.  Illinois has not yet adopted the new law but may have to. You may recall that under the old law a gift created a period of ineligibility from the date of the transfer.  For instance, prior to February 8, 2006 a $30,000 gift in Illinois would create a 5 month penalty from the date the gift was made if the nursing home monthly cost is, for example, $6,000 a month.  So, if the gift was made 12 months ago, the penalty would have already expired. Under the new law, for gifts made after February 8, 2006 the penalty period will not begin until the person is in a nursing home and already spent down to $2,000 in Illinois.  Only at that time will the penalties start. In other words, if the same $30,000 gift was made after February 8 and then the person spent his or her assets down to $2,000 in Illinois, only at that time would the penalty period begin tolling.  In that case, the gifted funds would have to then be used for the cost of care to get through the penalty period.  But what if the funds are not longer available…for instance if they were paid for college tuition or given to charity or to an individual who simply no longer has them?  What will happen then? This is a major problem and one that nursing homes will have to face in the coming months.  Prior to this law minor asset transfers would not cause major problems for the nursing homes since the penalties would have expired by the time the applicant was spent down.  Under the new law, however, every transaction will have to be scrutinized.  Even small gifts or transfers will cause penalties which won’t even being to expire until the person is otherwise spent down.  It has been common practice to have the nursing home help the potential Medicaid applicant apply in the past.  This was probably not a huge risk under the previous laws.  The new laws, however, make this very risky from possibly a legal and cash flow perspective.  That’s because it will now be much more important to verify exactly what has been spent and given away because the law now has no “grace period” for asset transfers.  An example will suffice to show where the problem lies.  Let’s take the example with Mrs. Jones who is a resident of Shady Acres Nursing Home in Cook County Illinois.  Let’s say that a few months from now she is applying for Medicaid since she has now spent down.  But in March of 2010, assuming the new law was passed; let’s say she has made a gift to her granddaughter for tuition at Rockhurst College.  Assume that the amount of the tuition payment was $6,000.  Under the old law that would have meant there would be a penalty of 1 month (i.e. the $6,000 gift divided by $6,000, assuming 6,000 is the average cost of a nursing home in Illinois.)  Under the old law there would have been a 1 month penalty from the date of the transfer.  Under the new laws, however, the penalty won’t start until her assets are spent down to $2,000.  Now if the social worker at the nursing home fills out the application and doesn’t realize how the new law will affect these situations, then the application will be filed in anticipation of the receipt of Medicaid benefits.  Imagine the surprise of the nursing home administrator when he or she later finds out (usually some 30 to 45 days after filing the application) that the application was correctly denied according the new rules now in effect.  What will the nursing home do in this case?  Well their recourse is to file a request for a hardship waiver.  The new rule provides for this.  The problem is that in the past the granting of hardship waivers have been few and far between.  What’s more…the hardship is for the resident in that he or she will be denied needed care if the application is approved.  The hardship is not, however, for the nursing home to help their cash flow.  You can imagine the issue this will cause in the coming months when nursing homes begin to deal with the documentation required for their residents who may or may not have the ability to reconstruct their financial records to the extent called for by the new law.  In addition, the granting of hardship waivers is a process that has been very tedious and will certainly serve to slow down the approval of the Medicaid application.  All of these reasons have led some commentators to call the new law “The Nursing Home Bankruptcy Act of 2006.” While we’re not sure it’s that dire…we are sure that it will cause challenges for nursing homes and their residents.  That’s also why what were once simple Medicaid applications should no longer be viewed that way.  The services of an elder law attorney who thoroughly understands the new rules regarding the Medicaid changes as well as how to apply for hardship waivers is recommended.  P.S.      Also, don’t miss our workshop: “The Elder Care Journey – How to Get Benefits Coverage for your Nursing Home Care…Without Selling your Home or Leaving your Family Without a Dime” set for the following dates.  Please contact our office at (847) 292-1220 to register. May 12, 2009 at 4:00 PM May 18, 2009 at 6:30 PM June 11, 2009 at 4:00 PM June 23, 2009 at 6:30 PM Call (847) 292 1220 to make a reservation in our training room. –       You don’t want to miss this workshop! Long Term Care Planning Attorneys The “3 Phase” Lawyers   Legal Counsel Assisting You in the 3 Phases of Your Life:   –           Maturing Years – Will, Trust, Taxes, and Asset Protection –           Senior Years – Long Term Care and Nursing Home Protection –           Post Death Years – Estate, Probate, and Trust Administration     “Educate to Motivate”   Anthony B. Ferraro Attorney-CPA The Law Offices of Anthony B. Ferraro, LLC The Estate & Trust, Elder and Asset Protection Law Firm Columbia Centre I 5600 N. River Road, Suite 764  Rosemont, IL 60018 PH (847) 292-1220 FAX (847) 292-1221 Website:  abferrarolaw.com Email:  abferraro@abferrarolaw.com Any tax advice contained in this communication was not intended to be used, and cannot be used, by you (or any other taxpayer) to avoid penalties under the Internal Revenue Code. The Illinois rules of Professional Conduct require attorneys to identify unsolicited communications to prospective clients as Advertising Material.  If the context requires, please consider this letter and the enclosed literature to be Advertising Materials. This document is for discussion purposes only and is not intended to be, nor should it be, considered as legal advice.  You should never attempt Medicaid planning, Estate Planning, Probate or Trust Administration without the advice of competent legal counsel.

Do You Have a Loved One Who Is Having Memory Loss or Mobility Problems?    Understand The Basics of Medicaid and Long Term Care Coverage or…”What You Can and Cannot Keep” In order to understand Medicaid qualifications for Long Term Care, you first need to know how Medicaid treats your assets.  Basically, Medicaid breaks your assets down into two separate categories.  The first are those assets which are exempt and the second are those assets which are non-exempt or countable.  Exempt assets are those which Medicaid will not take into account (at least for the time being).  While the laws in Illinois differ in some respect, generally the following assets are exempt:

• The Home, (so long as the equity is not greater than $500,000.)  The home must be the principal place of residence.  The nursing home resident may be required to show some “intent to return home,” even if this never actually takes place.

 

• Household and personal belonging, such as furniture, appliances, jewelry and clothing.

 

• One vehicle, there may be some limitation on value

 

• Prepaid funeral plans and burial plots.

 

• Cash value of life insurance policies, as long as the face value of all policies added together does not exceed $1,500.  If it does exceed $1,500 in total face amount, then the cash value in these policies is countable.  Also, term life insurance is exempt. 

 

• Cash (e.g. a small checking or savings account) not to exceed $2,000 in Illinois.

  These are basically the assets which Medicaid will ignore, at least for now.  Keep in mind, however, that the estate recovery unit may come back to recoup payments made to a Medicaid recipient after the death of the recipient and the recipient’s spouse if they are married.  Most other assets which are not exempt (i.e. the ones not listed earlier) are countable.  This includes checking accounts, savings accounts, certificates of deposit, money market accounts, stocks, mutual funds, bonds, IRAs, pensions, second cars and so on.  While there are some minor exceptions to these rules for the most part, all money and property, as well as any item that can be valued and turned into cash is a countable asset, unless it is one of those listed earlier as exempt. While the Medicaid rules themselves are complicated and somewhat tricky, for a single person it’s safe to say that you will qualify for Medicaid so long as you have only exempt assets plus a small amount of cash, (i.e. $2,000 in Illinois). For a married couple the community spouse (i.e. the one not needing nursing home care) can receive the “Community Spouse Asset Allowance” (CSAA) which is the amount of non-exempt assets the “resident spouse” is permitted to transfer to the “community spouse” without affecting the resident spouse’s eligibility.  The current CSAA is $109,560.  Of course, this does not mean there are not things which can be done to protect assets beyond these levels.  Instead, this issue of the Elder Law Update is designed to review the basics in a way which a caseworker from the Department of Human Services in Illinois would do so.  P.S.      We have helped numerous local families successfully protect their home and savings.  As a courtesy to our existing clients we are offering for 30 days a no risk, no obligation free consultation.  Just call my office and make an appointment.  Again, for this month our initial consultations are at no charge. P.S.S.  Also, don’t miss our workshop: “The Elder Care Journey – How to Get Benefits Coverage for your Nursing Home Care…Without Selling your Home or Leaving your Family Without a Dime” set for the following dates.  Please contact our office at (847) 292-1220 to register. April 8, 2009 at 4:00 PM April 23, 2009 at 6:30 PM May 7, 2009 at 4:00 PM Call (847) 292 1220 to make a reservation in our training room. –       You don’t want to miss this workshop! Long Term Care Planning Attorneys The “3 Phase” Lawyers   Legal Counsel Assisting You in the 3 Phases of Your Life:   –           Maturing Years – Will, Trust, Taxes, and Asset Protection –           Senior Years – Long Term Care and Nursing Home Protection –           Post Death Years – Estate, Probate, and Trust Administration   “Educate to Motivate”   Anthony B. Ferraro Attorney-CPA The Law Offices of Anthony B. Ferraro, LLC The Estate & Trust, Elder and Asset Protection Law Firm Columbia Centre I 5600 N. River Road, Suite 764  Rosemont, IL 60018 PH (847) 292-1220 FAX (847) 292-1221 Website:  abferrarolaw.com Email:  abfcpalaw@aol.com Any tax advice contained in this communication was not intended to be used, and cannot be used, by you (or any other taxpayer) to avoid penalties under the Internal Revenue Code. The Illinois rules of Professional Conduct require attorneys to identify unsolicited communications to prospective clients as Advertising Material.  If the context requires, please consider this letter and the enclosed literature to be Advertising Materials. This document is for discussion purposes only and is not intended to be, nor should it be, considered as legal advice.  You should never attempt Medicaid planning, Estate Planning, Probate or Trust Administration without the advice of competent legal counsel.

Think You Don’t Need Long Term Care Planning? Think Again!! 1.         Alzheimer’s Projections.  Recently during a Senate Special Committee on Aging hearing, a couple of prominent politicians noted that there is no single effort that would do more to lower the cost of entitlement than preventing the onset of Alzheimer’s disease.  They noted that Alzheimer’s will cost Medicare and Medicaid a projected $19 trillion between the years 2010 and 2050.  It was noted that a five year delay of onset would save approximately $8.5 trillion over that same period.  It was further noted that the human pain and financial burden of Alzheimer’s is so great and the potential breakthroughs in science are so encouraging, that a Manhattan type project approach to Alzheimer’s is justified.  2.         More Coming.  A respected report says that 5.3 million people in the U.S. have Alzheimer’s.  An estimated 5.3 million Americans have Alzheimer’s and each patient on average costs Medicare three times more than patients without the disease.  3.         Kin Using Elders’ Funds in Downturn.  Recent studies show that family members are often inappropriately using an elder’s funds in economic down turn.  It has been noted recently by some long term care ombudsman that children don’t have the legal authority to make some decisions for parents.  Worse yet, some of the decisions that are made by children on behalf of their parents are purely economically motivated.  One case was noted where a nursing home resident was blocked from receiving antibiotics because her daughter cited a “do not resuscitate” clause in her mother’s Living Will.  The suspicion is that the daughter was trying to hasten her inheritance.  Seniors are advised to be cautious because sometimes the power of attorney given to a family member can give an unscrupulous person license to exploit.  This is not a reason not to have a power of attorney but rather should signal that caution and counseling are required in providing such power. 4.         Impact of Long Term Care.  A recent report indicates that nearly two-thirds of U.S. households are at risk of being unable to maintain their standards of living due to long term care costs.  5.         Avoid a Crisis…Talk to Mom & Dad. It is recommended that children sit down and have a heart to heart talk with mom and dad as their capabilities for maintaining independence in their household begin to dwindle.  Joint accounts are dangerous.  Adding a loved one to a bank account can affect Medicaid planning, as well as expose your account to the loved one’s creditors.  When a person applies for Medicaid for long term care coverage, the state looks at the applicant’s assets to see if the applicant qualifies for assistance.  If your name is on a joint account and you enter a nursing home, the state will assume the assets in the account belong to you unless you can prove that you did not contribute to the account.  Furthermore, if you are a joint owner of a bank account and you or the other owner transfers assets out of the account, this can be considered an improper transfer of assets for Medicaid purposes.  Another problem with joint accounts is that the account can become vulnerable to the joint account owner’s creditors.  Finally, be sure you can trust your joint account holder because he or she will have full access to the account.  In our opinion, there are better ways to conduct estate planning and planning for disability.  The power of attorney is a better approach and will provide your agent access under power of attorney to your finances in case of your disability.  If you are trying to avoid probate, a trust may be better than a joint tenancy account as well.  You need to discuss these issues with an elder law attorney.  6.         Ways To Pay For Long Term Care. Remember the possibilities of covering the cost of long term care.  The most common ways are:

1.  
   1. Paying out of pocket
   2. Carrying long term care insurance
   3. Qualifying for Medicaid by obtaining legal guidance and a legal spend down of your assets.  Strict compliance with state laws is necessary.
   4. Lastly, getting a reverse mortgage.

Note: for Veterans who qualify for nursing home care in a Vet Nursing Home, the closest facility of which we are aware is in Manteno, Illinois. 7.         Is It Time to Update Estate Plans?  Because of the uncertainty regarding estate plans and laws that may shift treatment, formula clauses in Wills and Trusts can become problematic.  The current Federal Estate Tax exemption amount of $3,500,000 creates this situation, but there are a number of solutions to this problem.  One is to put the full exemption amount into a family trust while making sure that your spouse is a major beneficiary of that trust and can receive distributions liberally and for broad purposes.  8.         Watch Your CDs.  Not all Certificates of Deposit are the same.  Recently, the SEC accused a former Texas financier of fraud.  The allegations are that the scheme revolved, in large part, around the sale of suspicious high yielding CDs.  The CDs were not insured by the FDIC, resulting in a lot of people being unable to protect their life savings.  Some CDs are covered by the FDIC, which currently offers insurance of up to $250,000 per person, per bank.  Additional coverage can be obtained depending on how you hold the CD. 9.         What you Need to Know About Estate Planning.  You need to have a Will and maybe a Trust.  You also need either a standard, enhanced, or comprehensive Power of Attorney for Property for Long Term Care Planning.  You need to have Living Wills and advanced medical directives to avoid a situation like Terry Schiavo.  Special Needs Trusts are often essential when there are family members who are physically or mentally challenged.  The estate tax right now is as favorable as it has been in a long while.  Each U.S. citizen is entitled to up to $3.5 million of assets before they have to pay estate tax.  For a couple, that adds up to $7 million, if planned properly.  Please remember that the federal exemption amount under current law is scheduled to go back to $1 million in 2011. 10.        Housing Bubble Impacts Elderly.  Because of the recent housing slump, many elderly are not obtaining the needed support and care which they would be afforded by moving into retirement communities or assisted living facilities.  Many are effectively stranded in their own homes.  Without the ability to sell their houses or condominiums, many cannot afford to buy into retirement homes that require substantial down payments just to move in.  So they are taking themselves off of waiting lists and staying at home.  The inability to sell their home or condo is isolating a lot of the elderly.  At present count, there are 4.2 million unsold homes in the United States, but it is unknown how many of those are occupied by people 65 years or older.  P.S.      Also, don’t miss our new workshop: “Don’t Go Broke in a Nursing Home” beginning in the fall. Call (847) 292 1220 to make a reservation in our training room.  You don’t want to miss this workshop! Long Term Care Planning Attorneys The “3 Phase” Lawyers   Legal Counsel Assisting You in the 3 Phases of Your Life:   –           Maturing Years – Will, Trust, Taxes, and Asset Protection –           Senior Years – Long Term Care and Nursing Home Protection –           Post Death Years – Estate, Probate, and Trust Administration     “Educate to Motivate”   Anthony B. Ferraro Attorney-CPA The Law Offices of Anthony B. Ferraro, LLC The Estate & Trust, Elder and Asset Protection Law Firm Columbia Centre I 5600 N. River Road, Suite 764  Rosemont, IL 60018 PH (847) 292-1220 FAX (847) 292-1221 Website:  abferrarolaw.com Email:  abferraro@abferrarolaw.com Any tax advice contained in this communication was not intended to be used, and cannot be used, by you (or any other taxpayer) to avoid penalties under the Internal Revenue Code. The Illinois rules of Professional Conduct require attorneys to identify unsolicited communications to prospective clients as Advertising Material.  If the context requires, please consider this letter and the enclosed literature to be Advertising Materials. This document is for discussion purposes only and is not intended to be, nor should it be, considered as legal advice.  You should never attempt Medicaid planning, Estate Planning, Probate or Trust Administration without the advice of competent legal counsel.  

Caring for A Veteran at Home VA Benefits May Cover the Cost As we discussed in a previous Elder Law Update, the Veteran’s Administration provides a wonderful pension benefit for those individuals who served at least one day during a period of wartime and are not disabled due to non-service connected reasons (aging related issues, Alzheimer’s, Parkinson’s, multiple sclerosis, and/or other physical disabilities). This pension, referred to as “Aid and Attendance Allowance”, will pay not only for the long term care provided in a nursing home or assisted living facility, but will also pay for care provided to the veteran in their own home. So, for those veterans and widows (widowers) who are eligible, these benefits will allow family members to be paid for the care they are providing a loved one, so long as certain criteria are being met. The “Aid and Attendance” (A and A) benefit is available to a veteran who is disabled and requires the aid of another person to perform the personal functions required in everyday living. A veteran can show they are eligible if they have a substantial need for assistance with the activities of daily living. Such activities include bathing, dressing, meal preparation, etc. A veteran would also qualify for this pension if they can show they need the attendance of another person in order to avoid the hazards of his other daily environment. The need for assistance does not have to be permanent. A family member can provide in-home care for a veteran who is applying for aid and attendance. In order to meet the disability criteria, the care services provided by an unlicensed relative must be prescribed by a health care professional (ex., doctor, RN, LPN or licensed physical therapist) and the professional must consult with the unlicensed relative caregiver at least once a month (in person or by telephone) to monitor the regimen. In addition, there must be a valid care contract in place and the caregiver must be receiving no more than fair market value for services he or she is providing. Simplified Example: Harry Smith is a 67 year old veteran and, due to his health needs, his doctor has stated he needs assistance with bathing, meal preparation, medication administration and other activities of daily living in order to remain at home. He and his daughter, Jane agrees that she will spend 5 hours a day with Harry, 7 days a week. The fair market value for her services is $12 per hour, and they enter into a contract reflecting those terms. Harry’s income is $1,800/ month, his medications are $200/month and he is paying his daughter $1,680/month. Rather than deplete his saving of $45,000, he applies for a service pension through the VA. The VA considers the $200/month for medications and the $1,680/month he is paying to his caregiver daughter unreimbursed medical expenses and “subtracts” the amount from his income. In other words, when calculating his pension, the VA considers his income to benegative $80. He applies for benefits and is eligible for $1,520/month to help cover the cost of his prescriptions and care contract! If you or someone you know is a Veteran receiving care in their home, please encourage them to file a claim for this benefit. It would be prudent to seek the guidance of an experienced elder law attorney who is familiar with veteran’s benefits. An attorney skilled in elder law can provide a veteran and the veteran’s family with pre-filing consultations to determine the appropriate steps that must be taken and to help determine if it would be right to apply for this VA benefit. P.S. Also, don’t miss our workshop: “The Elder Care Journey – How to Get Benefits Coverage for your Nursing Home Care…Without Selling your Home or Leaving your Family Without a Dime” set for the following dates. Please contact our office at (847) 563-4887 to register.

March 19, 2009 at 6:30 PM

April 8, 2009 at 4:00 PM

April 23, 2009 at 6:30 PM

Call (847) 292 1220 to make a reservation in our training room. •- You don’t want to miss this workshop!

Long Term Care Planning Attorneys

The “3 Phase” Lawyers

Legal Counsel Assisting You in the 3 Phases of Your Life:

– Maturing Years – Will, Trust, Taxes, and Asset Protection

– Senior Years – Long Term Care and Nursing Home Protection

– Post Death Years – Estate, Probate, and Trust Administration

“Educate to Motivate”

Anthony B. Ferraro Attorney-CPA The Law Offices of Anthony B. Ferraro, LLC The Estate & Trust, Elder and Asset Protection Law Firm Columbia Centre I 5600 N. River Road, Suite 764 Rosemont, IL 60018 PH (847) 563-4887 FAX (847) 292-1221 Website: https://abferrarolaw.com/ Email: abferrarolaw@abferrarolaw.com Any tax advice contained in this communication was not intended to be used, and cannot be used, by you (or any other taxpayer) to avoid penalties under the Internal Revenue Code. The Illinois rules of Professional Conduct require attorneys to identify unsolicited communications to prospective clients as Advertising Material. If the context requires, please consider this letter and the enclosed literature to be Advertising Materials. This document is for discussion purposes only and is not intended to be, nor should it be, considered as legal advice. You should never attempt Medicaid planning, Estate Planning, Probate or Trust Administration without the advice of competent legal counsel.

THE LAW OFFICES OF ANTHONY B. FERRARO ANTHONY B. FERRARO ATTORNEY-CPA

Estate Tax Relief. Some in Congress and have claimed to have repealed the estate tax. However, the new tax repeals the estate tax for only one year- 2010. Due to budgetary restrictions, the new law allows the current estate tax rules, rates and exemptions to come back in force in 2011. Thus, under the new law, estate taxes continue- but with an increasing exemption from $1 million to $3.5 million through 2009- until 2010 when it is repealed for only that one year. Planning Note: Estate tax repeal has now become estate tax complexity and uncertainty under this legislation. The prospect of the automatic reinstatement of 2001 estate tax rules in 2011 will force Congress to face the entire issue again, under perhaps entirely different political circumstances, and certainly a different President. This means that most Americans may face an even larger estate tax burden unless Congress takes further action. Phase-out schedule. The phase out of the estate tax will follow a slow timetable:

Year	Top Estate	Estate Tax	Gift Tax
	Tax Rate	Exemption Amount	Exemption Amount
2001	55%	$675,000	$675,000
2002	50%	$1 Million	$1 Million
2003	49%	$1 Million	$1 Million
2004	48%	$1.5 Million	$1 Million
2005	47%	$1.5 Million	$1 Million
2006	46%	$2 Million	$1 Million
2007	45%	$2 Million	$1 Million
2008	45%	$2 Million	$1 Million
2009	45%	$3.5 Million	$1 Million
2010	Repealed	n/a	$1 Million
2011	55%	$1,000,000	$1,000,000 *

Modified Carryover Basis. To complicate matters further, once estate taxes are fully repealed in 2010, a modified carryover basis rule immediately goes into effect. At that time, death becomes an income tax problem. The basis of assets received from a decedent will carry over from the decedent, rather than be stepped up to fair market value at the date of death or alternate valuation date as is now the law. With proper planning, two exemptions will save many estates: 6. $1.3 million of basis will be allowed to be added to certain assets; and 7. $3 million of basis will be permitted to be added to assets transferred to a surviving spouse. Not all property is eligible for an increase in basis. Property acquired by a decedent by gift from a non-spouse less than three years before death is excluded (to prevent “gifts” of low basis assets in anticipation of stepped-up bequests). Consider: Real estate or other assets that remain in the family for generations will require generations of accurate records of basis. But without accurate basis records kept over decades, the IRS will win on the burden of proof issue, thereby keeping basis low and taxing those assets “artificially” high. Gift tax remains in effect. To prevent significant use of gifts to transfer income-laden property from higher to lower rate taxpayers, the new law retains a modified gift tax. In 2002 the gift tax exemption becomes $1,000,000. Starting in 2010, gifts in excess of a lifetime $1 million exemption would be subject to a gift tax equal the top individual income tax rate at that time. copyright 2002, The Law Offices of Anthony B. Ferraro, LLC

On June 7, 2001, President Bush signed into law the new 2001 Tax Act.

copyright 2002, The Law Offices of Anthony B. Ferraro, LLC Since we understand the importance to prospective clients of being up-to-date about these changes we have attached our Summary of the New Estate Tax Law, showing changes in rates and exemptions. Because the new tax law was written with changes in exemption amounts and tax rates occurring almost annually over the next nine (9) years, we are faced with a new kind of complexity in planning to avoid estate tax. The sweeping changes to the tax laws will require almost everyone’s wills and trusts to be reviewed and revised. Specifically, the effect Estate and Gift Tax sections of this new Tax Act on you is summarized in the following five points: Also, due to changes made in the income tax, you should begin to keep all recordsconcerning the income tax basis (i.e. purchase price) of all assets purchased in order to minimize income taxes imposed on the beneficiaries in your estate plan. This is because in the year 2011 assets will no longer be inherited with an income tax basis equal to date of death value, but rather equal to the original purchase price paid by the deceased person. Thus, the need for you to keep good records. With these issues in mind, I suggest you contact Estate Counsel to discuss the ramifications of the new Act as pertaining to your existing wills and trusts to determine if they will still meet your goals or if immediate changes are needed. Since the changes that we discussed in this letter are now law and can change your tax and distribution provisions as early as December 31st of this year, you should contact Estate Counsel now to set a time when you can discuss these matters. As is customary, we bill hourly for consultation and also re-drafting of documents (if you conclude, based on our discussions with each other, that such re-drafting is needed). We handle all clients on a first come- first serve basis, except for emergencies. Please call our offices to set your appointment, if our firm can be of assistance. By: Anthony B. Ferraro Attorney – CPA **This document is for discussion purposes only and is not intended to be construed as legal advice. You should never attempt estate planning without the advice of competent legal counsel. Please feel free to contact our offices if we may assist you.** Copyright 2002 THE LAW OFFICES OF ANTHONY B. FERRARO, Rosemont, Il.

Note: In its original format, this article was published in January, 2000 in the Rosemont Chamber of Commerce Communique.

Things You Need To Know If You Are Named Executor Of A Will Or Trustee Of An Estate

copyright 2002, The Law Offices of Anthony B. Ferraro, LLC Overview. Quite often a good friend or a member of your family will have a will or trust drawn up and ask you to act as the executor or trustee. While this may make you feel you have been honored, people feel compelled to accept this office. This situation can also arise when someone has passed away and you must assume duties as executor or administrator of the estate. Quite often people wonder what the extent of their obligations will be and how to fulfill them. This article is intended to provided a very basic overview of the estate administration process dealing with responsibilities regarding the gathering of estate data, payment of debts, expenses, and taxes, and the distribution of the estate in accordance with the provisions left behind by the deceased. This is not intended to provide legal advice. It is hoped however that this information will enable one to understand what it is that they do not know and therefore seek professional advice. As the personal representative, you are primarily responsible for settling the affairs of the decedent.

1. Any property that the decedent held jointly with another person, such as a checking account, passed to the surviving joint tenant by operation of law upon the decedent’s death. Property that listed a beneficiary, such as the decedent’s life insurance contract, also passed automatically at death.
2. Jointly-held property and property that listed a beneficiary designation are “non-probate” property and passed automatically to you or the designated beneficiary upon the decedent’s death.
3. Any property that was titled solely in the decedent’s name is “probate” property and passed in accordance with the terms of the decedent’s will.

Terminology. Probate refers to a series of procedures by which a state or county government attempts to ensure that the debts, taxes and expenses of the deceased will be paid and that any remaining assets are distributed to those people that are legally entitled to such assets as heirs or legatees. Probate usually takes place in a Probate Court in the county in which the decedent resided. The term “executor” means one who performs or carries out some act. For example, a person named by a testator to carry out the provisions in a testator’s will. Administrator is defined as “a person appointed by the court to manage the assets and liabilities of an intestate decedent”. This means that the decedent died without a will. A trustee is one that, having legal title to property, holds it is trust for the benefit of another and has a fiduciary duty to that beneficiary. A successor trustee is a trustee that succeeds an earlier trustee, as provided in the trust agreement. Fiduciary is defined as “one who owes to another the duties of good faith, trust, confidence, and candor.” It is one who must exercise a high standard of care in managing another’s property. Probate Objectives. Having defined probate above, the purpose of post-death probate proceedings is to provide a judicial forum in which: (1) the rights of an estate’s beneficiaries are protected by a court; (2) claims against the decedent’s estate are barred if not timely filed; and (3) the right to contest the decedent’s will is barred if a will contest is not timely filed. Non-Probate Assets. Non-probate assets are those types of assets that generally pass to certain persons without the need to seek the assistance of the court. Examples of non-probate assets are as follows:

1. Trusts;
2. Pay-on-death accounts (POD);
3. Transfer-on-death accounts (TOD);
4. IRA’s;
5. 401(k)’s;
6. Joint tenancy property;
7. Life insurance policies;
8. Land trust agreements;
9. Annuities; and
10. Small Estate Affidavit (if less than $50,000 of personal property).

One exception to this broad statement is that if any of the assets described above are payable to the decedent’s estate, then probate will be necessary. Thus, it is necessary to make the above assets payable to someone other than the decedent’s estate in order to avoid probate. Probate Assets. Probate assets consist of those assets are subject to the probate court. Generally this means that someone who is deceased and in whose name an asset is titled, this will generally result in probate. More specifically, a decedent’s asset that by law is subject to the claims of creditors or legacies. A legacy is a promise in a will or a trust to distribute an asset to a person after the death of the decedent. Taxable Assets. Taxable assets are those that are determined to be taxable for federal estate tax purposes under the Internal Revenue Code. This is governed by federal tax law and not Illinois property law. Probate assets are determined by Illinois property law. Federally taxable assets are determined by federal tax law. Generally speaking, under the federal tax code, everything you own is taxable for federal estate tax purposes unless excluded under some specific provision of the Internal Revenue Code. First Meeting With Attorney. The following documents should be gathered prior to the first meeting with the attorney.

1. Copy of Will (and codicils);
2. Copies of Death Certificate;
3. Copy of funeral bill;
4. Documents concerning previous divorce or separation of decedent, if applicable;
5. Documents concerning armed services record of decedent, if applicable;
6. Copies of any will or trust agreement under which the decedent was a beneficiary;
7. Copies of any will or trust agreement under which the decedent was acting as a fiduciary; and
8. Copies of any trust agreements created by the decedent.

Opening the Estate. Assuming that probate is necessary, opening the estate consists of preparation of the following types of documentation for the probate court:

1. Filing the will with the Clerk of the Court;
2. Petition for Probate of Will and for Letters Testamentary;
3. Evidence to the effect that the facsimile of the will is a true and correct copy of the will;
4. Executor’s Oath and/or Bond;
5. Affidavit of Heirship;
6. Order Admitting Will to Probate and Appointing Personal Representative;
7. Order Declaring Heirship;
8. In Cook County, Designation Newspaper in which notices are to be published;
9. Notice to Heirs and Legatees and Unknown Heirs of Their Rights to Require Formal Proof of Will.

The estate is usually opened by filing the Petition for Probate of the Will with the Clerk of the Court and paying the clerk fees. Administration of the Estate Once Opened:

1. Create an inventory of assets;
2. Gather information;
3. Establish an estate checking account;
4. Discuss banking procedures;
5. Conduct a safety deposit box examination. Have access affidavit prepared beforehand;
6. Consider ancillary administration and local counsel if property exists outside of the State of Illinois;
7. Start a claims register and send notice to creditors in the register;
8. Obtain appraisals of property;
9. Make necessary tax elections if the estate is taxable;
10. Establish the surviving spouse’s award;
11. Consider disclaimers (This means considering the fact that somebody may wish not to receive what they are entitled to receive under the estate);
12. Consider the sale of assets if necessary and consider the usage of auctioneers and brokers;
13. File SS-4 to obtain FEI number;
14. File final 1040 and 1041’s.The decedent’s estate is a taxable entity from the date of his death until all estate assets are distributed. The income earned by the property during this period must be reported on Form 1041. Every domestic estate with gross income of $600 or more during a tax year must file a Form 1041. Gross income of an estate includes dividends, interest, rents, royalties, gain from the sale of property and income from businesses, partnerships, trusts, and other sources. If the estate’s accounting period is a calendar year, Form 1041 must be filed by April 15^th following the end of the tax year. You might want to consult an estate attorney on this matter.
15. Be aware of capital gain tax savings;
16. Obtain investment advice.

Closing the Estate.

1. Consider partial distributions.
2. Consider the requirement to file a full and complete accounting to all of the beneficiaries.
3. Obtain an estate tax closing letter, if necessary, from IRS;
4. Obtain the distributees refunding bonds;
5. Obtain Final Report of Independent Representative;
6. Obtain Discharge of the Executor on Delivery of Receipts and Final Report to presiding Judge.
7. Make final distributions.

Filing of the Estate Tax Form 706 (if assets are more than $1 million) Form 706 is used to determine the estate tax due on the decedent’s taxable estate. Form 706 must be filed within nine months of the date of death by the Personal Representative for the estate for every US citizen whose gross estate is greater than $1 million for deaths occurring in 1999. The decedent’s gross estate includes all property in which they had an interest, including:

1. property held in the decedent’s name only;
2. company and individual entities;
3. one-half of property held jointly with right of survivorship;
4. one-half of property held as tenants by the entirety;
5. life insurance death benefit of policies in which the decedent was owner and insured; and
6. life insurance cash value of policies in which the decedent was owner and someone else is the insured.

Proceed With the Proper Professional Advice! If you have not retained an attorney to assist you with the settlement of the decedent’s estate, you should consider doing so. An attorney who specializes in estate settlement will be able to assist you with your duties as Personal Representative and explain how to proceed. Because of the complexity of some tax situations, you should consider hiring a professional to prepare your tax returns. You should request that someone provide you with some investment planning information. Again, this article is intended to provided a very basic overview of the estate administration process dealing with responsibilities regarding the gathering of estate data, payment of debts, expenses, and taxes, and the distribution of the estate in accordance with the provisions left behind by the deceased. This is not intended to provide legal advice. It is hoped however that this information will enable one to understand what it is that they do not know and therefore seek professional advice. REMEMBER, YOU ARE A FIDUCIARY! This article was prepared by: Anthony B. Ferraro, Attorney/CPA The Law Offices of Anthony B. Ferraro, LLC 5600 N. River Road, Suite 764 Rosemont, IL 60018 PH (847) 563-4887 Mr. Ferraro, both an Attorney and CPA, has been in practice for over 20 years. Mr. Ferraro’s law practice is concentrated exclusively in Wills, Trusts, Estate Planning, Estate Taxation, Probate, Estate & Trust Administration, Medicaid and Elder Law. copyright 2002, The Law Offices of Anthony B. Ferraro, LLC

Note: In its original format, this article was published in January, 1999 in the Rosemount Chamber of Commerce Communique.

Summary Of Estate Planning Issues

copyright 2002, The Law Offices of Anthony B. Ferraro, LLC The purpose of this article is to provide a brief overview concerning both tax and non-tax issues that should be considered in doing estate planning. I. What is Estate Planning? Estate planning is the process of arranging one’s affairs so that the transfer of assets at the time of incapacity, illness or death is accomplished in a most efficient manner. In achieving this efficiency, one has to try to control both tax and non-tax factors. Non-tax factors consist of unnecessary expenses such as guardianship proceedings and probate proceedings. Tax factors consist of matters such as federal gift tax issues and federal estate tax issues. The easiest approach to estate planning is to sit down with a qualified professional for an initial interview and discuss matters pertaining to your objectives and your assets. A typical estate plan for most clients will consist of the following:

1. “Pour Over” type Will
2. Revocable Living Trust
3. Power of attorney Health Care
4. Power of Attorney for Property.

Depending on the circumstances, there are many other types of documents that may be required, such as insurance trusts, gift trusts, etc. II. Which is better: a Will or a Trust? In answering this question, one must understand the three phases that we as human beings go through:

1. The present phase, where we are able to manage our own affairs.
2. A phase in which we are alive but incapacitated due to illness, old age, or trauma.
3. Death.

In determining whether a will or a trust is better, one must understand that a will only deals with the death phase. The will does not even take effect until you are deceased. Thus, if you are looking to do estate planning for yourself you must consider all three phases. A revocable living trust is more suitable to caring for all three phases. During the present phase a revocable living trust is, for all practical purposes, transparent. It will not affect the way you use your assets. During phases two and three however the revocable living trust can be critical. During phase two in which you are alive but incapacitated, guardianship proceedings are often necessary in order to have a court appointed individual manage your assets for the rest of your life. This should be avoided if possible. You have no control over who will be selected as a guardian. In the final phase of death, the trust acts much like a will, however the assets will pass pursuant to the instructions set forth in your trust and avoid probate. A will on the other hand must be subject to probate in the probate court, thus incurring additional expenses, somewhat similar to those incurred in a guardianship proceeding. Thus for most clients a revocable living trust is preferable. However, it is not recommended for all clients. III. How are Estates Taxed? Estates are taxed once your assets exceed $1,000,000.00 under present law. However, you must understand that in computing whether or not you reach the threshold you must add everything that you own together, such as the value of your home, personal possessions, the face value of life insurance policies, the face value of your IRA’s and 401k’s, etc. Many people are surprised when they add these amounts together and they find themselves in a taxable estate position. Once the gross estate have been computed, you are allowed to subtract your $1 million free amount from this number. You are also entitled to subtract certain deductions such as charitable deductions, administrative expenses, and the marital deduction. The marital deduction represents anything that you leave to your spouse through a will, a trust, joint tenancy, etc. Once these subtractions are made, you are left with your taxable estate, and at that point you are taxed at rates beginning at 37½%, going all the way to 50%. These taxes must be paid within nine months of your death. IV. Estate Planning Strategies. There are two particular strategies that are employed to minimize estate taxes. First of all, we try to plan so that each spouse can fully utilize a $1 million (soon to be $1 million.00) free amount. If both spouses correctly use these free amounts then that means that they together can have $$2 million of assets free. But this is where most estate planning breaks down and most clients fail to seek the appropriate counsel concerning how to structure their assets so that these two free amounts may be used. The second estate planning strategy is to defer any taxes that cannot otherwise be avoided until the death of the second spouse, assuming there is marriage. This is done through the use of the marital deduction. Again however, this is where most clients make mistakes. If not used in an optimal manner, the marital deduction can be overused, thus causing more taxes to be paid at the death of the second spouse than would have otherwise been required to have been paid had both spouses prudently used the marital deduction. Again, this requires the advice of counsel. Other estate planning strategies consist of trust planning with life insurance, gifting to members of the family, and usage of other more sophisticated techniques. V. Advance Directives- Caring for an Ill or Incompetent Person. Advance directives represent the usage of documents that are prepared by yourself in advance of an illness or incompetence so that your wishes can be understood during such a period with incapacity. Specifically, powers of attorney for Healthcare and powers of attorney for property are advance directives. These are documents wherein you describe who you would like to manage your health or financial affairs during your period of incapacity. You also describe when this document is to take effect and under what circumstances it may be executed. This is a very important part of estate planning. Here you have the ability to choose who will handle certain of your affairs. VI. Types of Ownership. Assets can be held in many different forms of ownership. Many people readily recognize trust ownership, joint tenancy, and tenancy in common as the most readily used forms of ownership. However, there are many other forms of ownership. Many of these forms of ownership accomplish other objectives, such as creditor protection. Tenancy by the entirety, which is available for usage by a husband and wife and only with regard to their personal residence is a type of ownership form that can provide some insulation from creditor claims against the personal residence. This is not available at all times, but is available to spouses quite often. Again, the advice of counsel is required in order to determine whether this is available and appropriate for you. As mentioned above, joint tenancy is a readily recognized form of ownership. In this writer’s opinion however it is the most overused form of ownership in the United States. It can result in unintended tax and non-tax consequences that are very negative and harmful. Joint tenancy should be used sparingly. Again, the advice of counsel is necessary in titling assets. VII. Other Related Legal Considerations. In talking about estate planning, there are three other areas that must be taken into consideration. The first area is Medicaid planning. Medicaid planning is fraught with danger because certain transfers that are made in contemplation of a nursing home stay can result in more harm than good. If done early enough and with the appropriate advice, Medicaid planning however is a viable means of protecting one’s assets from being totally lost in an extended nursing home stay. Asset protection planning as briefly discussed above is another area of estate planning that must be addressed. Asset protection planning is the subject of another article. IRA and 401k usage is the yet another estate planning consideration. In doing estate planning, sometimes adjustments must be made to the beneficiary designations of your IRA’s and 401k’s so that the disbursement of these accounts is consistent with your overall estate plan. Quite often people assume that your IRA’s and 401k’s will pass pursuant to the terms set out in your will or your trust. This is not true. The beneficiary designations as stated in your IRA will control the disposition of such an account and therefore careful attention and advice must be obtained in the appropriate titling of such beneficiary designations. I hope that this article has served as an overview of what some of the issues are that you face in the estate planning process. Everyone’s estate planning is different. For some people it is very simple and for other people it is more complex. You will not know what your concerns and requirements are until you sit down and begin the process. I encourage you to do so. You have our best wishes for a happy and healthy and prosperous New Year. Note: This article is not intended to provide tax or legal advice, but rather should serve as a background for more in-depth discussion with your financial advisors and estate planning counsel. If you have any questions, or if we can be of any assistance, please contact us. Anthony B. Ferraro, Attorney/CPA, is the Principal of the Law Offices of Anthony B. Ferraro, concentrating in Wills, Trusts, Probate, Estate Planning, Elder Law and Business Taxation. Mr. Ferraro’s main office is located in Rosemont, Illinois. For more information, call 847.563.4887. Copyright 2002, The Law Offices of Anthony B. Ferraro, LLC