Monahan Law Group, LLC Monahan Law Group, LLC 2026-06-08T00:04:15Z https://www.monahanlawllc.com/feed/atom/ WordPress /wp-content/uploads/sites/1402044/2020/01/cropped-SiteIcon_Monahan-32x32.png On Behalf of Monahan Law Group, LLC <![CDATA[What does it mean when a trustee decants a trust?]]> https://www.monahanlawllc.com/?p=52949 2026-06-08T00:04:15Z 2026-06-08T00:04:15Z Decanting allows for changes An irrevocable trust is not modifiable the same way that a revocable trust usually is. The decanting process is a much more complex way of achieving what grantors can readily do with a revocable trust. After a significant change in circumstances, the trust as established may not function as the grantor intended. Perhaps a beneficiary died, or market conditions drastically altered the value of key assets. The trust may need to evolve to properly serve its intended purpose. The trustee creates a new trust with slightly modified terms and transfers current trust assets to the new trust. The process is subject to numerous restrictions and is highly technical. Trustees intending to decant a trust, possibly at the request of the original grantor, may need legal guidance to ensure they meet all necessary legal standards. Reviewing initial trust paperwork with a skilled legal team is often the first step toward a successful decanting process. An attorney can provide insight into the most effective means of altering an irrevocable trust to better protect the beneficiaries and achieve the intention of the grantor.]]> On Behalf of Monahan Law Group, LLC <![CDATA[When do Illinois estates owe estate taxes?]]> https://www.monahanlawllc.com/?p=52943 2026-06-03T10:56:35Z 2026-06-03T10:56:35Z The Illinois threshold is lower Most states have abolished their state-level estate taxes, but Illinois has not. The Illinois state exemption threshold is substantially lower than the federal threshold for estate taxes. People who live in Illinois could owe estate taxes after they die if the total value of their personal holdings is $4 million or more. The Illinois tax rate for estate taxes can be as high as 16%. People may need to plan in advance to diminish how much property they directly own to avoid paying Illinois estate taxes. The federal threshold is substantially higher. As of 2026, only those with $15 million or more in assets are vulnerable to federal estate taxes. However, the federal estate tax rate is also substantially higher than the state tax rate. An estate may need to pay anywhere from 18 to 40% of its total value to the federal government. Trusts, changes in ownership and strategic gifts are among the strategies used by those who want to minimize or avoid estate taxes. Working with an estate planning attorney can help people identify and minimize estate tax liability, which can allow their loved ones to inherit as much as possible from their estates.]]> On Behalf of Monahan Law Group, LLC <![CDATA[Guardianship and estate planning: Why families need both]]> https://www.monahanlawllc.com/?p=52928 2026-05-19T20:42:33Z 2026-05-19T20:42:33Z How guardianship can affect government assistance Many people with disabilities depend on public benefits to maintain financial stability and access health care. However, programs such as Medicaid and Supplemental Security Income have strict income and asset limits. Certain financial decisions by a guardian can unintentionally disqualify someone from receiving benefits.
  • For example, a guardian can affect SSI benefits if:
  • They deposit excessive funds into the individual's bank account.
  • Gifts or inheritances are handled improperly.
  • They fail to report financial changes.
  • They use the income in ways that violate SSI regulations.
Families often assume that a guardian can freely manage their loved one's affairs. In reality, guardians must carefully comply with federal benefit rules and Illinois requirements. Medicaid is another critical benefit for people with disabilities. It can help cover:
  • Medical treatment
  • Therapies
  • In-home support services
  • Residential programs
  • Long-term care
Like SSI, there are strict financial limitations for Medicaid eligibility. If a guardian sells property, transfers assets or distributes funds incorrectly, they may trigger penalties or loss of coverage. This frequently arises after a parent or grandparent dies and leaves assets directly to a person with disabilities instead of using proper estate planning tools. Losing eligibility can create devastating financial consequences, especially for those already facing high medical and caregiving costs. One of the most effective ways to protect government benefits is through a special needs trust. It can allow assets to be used for the benefit of a person without disabilities without counting against SSI or Medicaid eligibility limits. When guardianship, government benefits and estate planning intersect, things can quickly become complicated. Families often assume they can navigate the process on their own, only to discover later that a simple financial decision has caused major eligibility problems. An experienced legal professional can make a significant difference in preserving both legal protections and access to critical government assistance programs.]]> On Behalf of Monahan Law Group, LLC <![CDATA[How can blended families approach estate planning?]]> https://www.monahanlawllc.com/?p=52926 2026-05-14T09:42:40Z 2026-05-14T09:42:40Z Why does your family structure matter? Your blended family has unique needs that differ from traditional family structures. You might want to provide for your current spouse while also ensuring your children from a previous marriage receive their inheritance. Consider this: if you pass away without a will, your spouse might receive everything, potentially leaving your children from a previous relationship with nothing. Or the opposite could happen, creating financial hardship for your surviving spouse. You may need to be intentional in dividing your assets to reflect your wishes and maintain family harmony.

What tools might help protect everyone's interests?

Several estate planning options could work well for blended families. You might consider setting up a trust that gives income to your surviving spouse during their lifetime, with the remaining money and property going to your children after your spouse's death. This approach can help balance everyone's needs. Life insurance policies can also be useful tools. You could name your children to receive money from certain policies while choosing your spouse to receive money from others. This could create a clear split of assets that does not depend on probate court decisions. Prenuptial or postnuptial agreements might seem unromantic, but they can actually reduce conflict by clearly spelling out financial expectations. These agreements can say what happens to certain assets and help protect inheritances you want to save for your children. You might also need to update who receives your retirement accounts, insurance policies and other financial accounts. These choices typically override what is in your will, so keeping them current is essential. Regular family discussions about your plans can also prevent surprises and hurt feelings later. While these conversations might feel uncomfortable, openness often reduces conflict after you are gone. Working with experienced professionals who understand blended family dynamics can help you create a comprehensive plan that addresses your specific situation and protects everyone you love.  ]]> On Behalf of Monahan Law Group, LLC <![CDATA[What happens if a will and a life insurance policy conflict?]]> https://www.monahanlawllc.com/?p=52924 2026-05-05T08:08:11Z 2026-05-05T08:08:11Z When a will and a life insurance policy give different instructions regarding beneficiaries, it is generally the life insurance policy that takes precedence and will be followed. For example, say that a person purchases a life insurance policy when they have two children, and they name them both as equal beneficiaries. The life insurance company is instructed to give them each 50% of the payout. But in the years after they buy the policy, that person has a third child. In their will, they stipulate that all three children should split the policy equally. In a case like that, the life insurance company is still going to pay the two initial beneficiaries as instructed and would not be legally required to pay the third beneficiary.

How can you avoid these issues?

Differing instructions like this can lead to significant disputes between beneficiaries, and the best way to avoid them is simply to ensure that you always update your estate planning documentation. Any time that life changes significantly—such as when another child is born—update your will and your life insurance policy to make sure they match and include any new beneficiaries. Additionally, you can set up other means of transferring the assets. One example would be to instruct the life insurance policy to pay out into a trust. The trust can then distribute the money between any beneficiaries that you choose, allowing for a smoother transfer of assets. At the end of the day, it is important to make sure that all parts of your estate plan work together correctly, so it is very important to pay attention to the legal details when drafting a will, establishing a trust and taking other such steps.  ]]> On Behalf of Monahan Law Group, LLC <![CDATA[Does your child with a disability need a guardian at 18?]]> https://www.monahanlawllc.com/?p=52922 2026-04-21T11:36:07Z 2026-04-21T11:36:07Z Recognizing what changes when your child turns 18 in Illinois In Illinois, every person is considered a competent adult at age 18. This is known as the age of majority. Even if your child has a significant developmental or intellectual disability, they gain the right to make their own medical, financial and legal decisions. Without a formal arrangement in place, doctors and banks may stop sharing information with you. This transition can be jarring because the law views them as independent, regardless of the support your child actually needs in their daily life.

Evaluating "least restrictive alternatives" to guardianship

Before considering a full plenary guardianship, Illinois law requires exploring options that allow your child to keep as much independence as possible. The Illinois Guardianship and Advocacy Commission emphasizes that guardianship should only be used as a last resort. You might look into a power of attorney for healthcare or property if your child can understand and sign these documents. Another path is the Supported Decision-Making Agreement Act, which lets your child choose "supporters" to help them understand choices without taking away their right to decide.

Understanding the Illinois probate court process

If guardianship is the right fit, you must go through the Illinois Probate Court. This starts with a petition and a medical report signed by a licensed physician within the last three months. A judge will then appoint a Guardian ad Litem to visit your child and report back to the court. The goal of this process is not to take away rights, but to ensure that your child is protected by someone who has their best interests at heart.

Planning for your child’s long-term support in Illinois

Setting up a support system is about more than just legal paperwork. It is about building a safety net that respects your child’s dignity while keeping them safe from harm. Whether you choose a limited guardianship or a simple power of attorney, the key is to start these conversations early. By understanding the tools available in Illinois, your child can have the support they need to thrive in adulthood.  ]]> On Behalf of Monahan Law Group, LLC <![CDATA[What to expect during an Illinois guardianship hearing]]> https://www.monahanlawllc.com/?p=52920 2026-04-08T15:52:06Z 2026-04-08T15:52:06Z Your parent can no longer manage their finances. Your adult child with a disability needs someone to make medical decisions on their behalf. You have filed a petition for guardianship, and now the court has scheduled a hearing. If you have never been through this process before, not knowing what will happen in that courtroom can feel overwhelming. Understanding the steps involved can help you prepare and feel more confident walking in.

What happens before you get to court

Before the hearing takes place, several things must already be in order. The petition must include a physician's report based on an evaluation conducted within three months of filing, describing the respondent's disability and how it affects their ability to make decisions. The court will typically appoint a guardian ad litem, an attorney or qualified individual who meets with the respondent, explains the proceedings and reports back to the judge. Under Illinois law, the court sets a hearing date upon the filing of the petition, so the timeline moves quickly once the case begins.

Who is in the courtroom

The hearing takes place in the probate division of your local circuit court. You can expect to see the judge, the petitioner and their attorney, the guardian ad litem and, in most cases, the respondent. Illinois law gives the respondent the right to attend the hearing, and the court encourages it. The respondent also has the right to their own attorney. If they cannot afford one, the court may appoint counsel. Family members who received notice of the hearing may also attend, and in contested guardianship cases, they may present their own testimony or objections.

What the judge considers

The judge's role is to determine whether the respondent meets the legal definition of a person with a disability under the Illinois Probate Act and whether guardianship is necessary. The guardian ad litem's report carries significant weight. It addresses whether the respondent understands the proceedings, how they feel about the proposed guardian and whether less restrictive alternatives, such as a power of attorney or a supportive decision-making arrangement, might serve the respondent's needs instead. The judge will also consider the physician's report and any testimony presented. If the court finds that guardianship is appropriate, it will decide whether to appoint a plenary guardian with broad authority or a limited guardian whose powers are restricted to specific areas.

What comes after the order is entered

Once the judge appoints a guardian, the guardian must file an oath and, in estate guardianships, post a bond. In an estate guardianship, an inventory of assets is typically due within 60 days. From that point forward, the guardian is accountable to the court and must file regular reports on the ward's condition and finances. The first report on the ward's person is generally due annually, with annual reports required after that. Understanding these ongoing obligations before the hearing helps you prepare for the responsibility ahead.]]> On Behalf of Monahan Law Group, LLC <![CDATA[How guardianship ends in Illinois]]> https://www.monahanlawllc.com/?p=52916 2026-03-24T11:44:29Z 2026-03-24T11:43:41Z When might guardianship no longer be needed? Under Illinois law, guardianship usually ends in a few situations:
  • Restoration of capacity: Your loved one's ability to make decisions improves, rendering the guardianship unnecessary. This often requires new medical or psychological evaluations.
  • Death of the ward: Guardianship ends upon the individual's passing.
  • Change in guardian: If you become unable or unwilling to serve, the court will revoke your appointment and name a successor. The guardianship itself continues under the new guardian unless the court separately determines the ward no longer needs one.
  • Guardianship no longer needed: If your loved one can manage with less support, or if the main reason for guardianship no longer applies.
These situations show that guardianship can change over time.

Your path through the Illinois termination process

Ending a guardianship in Illinois is a formal proceeding. You, the ward or an interested party must file a petition to terminate the adjudication of disability (often called a Petition for Restoration) in the original court. The Illinois Probate Act strictly governs this process. Your petition generally requires a detailed written evaluation from a licensed physician verifying the change in capacity. The court will then hold a hearing to review this evidence and determine if restoring their legal capacity is appropriate.

Exploring less restrictive support options

Guardianship law always favors the "least restrictive alternative." If your loved one's guardianship ends, it doesn't mean they will be without help. Instead, the focus shifts to finding ways to give them more control while still providing necessary support. These options can include:
  • Powers of attorney: Your loved one can choose a trusted agent for financial or healthcare decisions.
  • Supported decision-making agreements: An individual can pick trusted people to help them understand, think about and share their own choices.
  • Advance directives: Like living wills, these documents clearly state their healthcare wishes for the future.
These alternatives help ensure your loved one can live with as much independence and dignity as possible.

Important considerations for your family

Terminating a guardianship is a significant and emotional decision for your family. Handling Illinois' complex court system requires careful planning and experienced legal counsel to ensure compliance and advocate for your loved one's evolving needs.]]> On Behalf of Monahan Law Group, LLC <![CDATA[Spendthrift trust: Protecting your family’s inheritance]]> https://www.monahanlawllc.com/?p=52913 2026-03-05T11:56:05Z 2026-03-05T11:56:05Z How spendthrift language creates a protective shield A spendthrift trust adds special language to your estate plan that restricts how beneficiaries access their inheritance. Instead of receiving a lump sum, your children receive distributions through a trustee you can depend on. Because this trustee controls when and how much money goes to each beneficiary, the trust creates a barrier between the inheritance and outside threats. Illinois law (specifically the Illinois Trust Code) recognizes this protection and prevents creditors from seizing trust assets before your beneficiary receives them.

Real-world scenarios where this protection matters

Think about common situations that could drain an inheritance quickly:
  • Lawsuits: Your daughter faces a lawsuit from a car accident, and creditors try to claim her trust funds
  • Divorce: Your son goes through a difficult divorce, and his spouse seeks a portion of his inheritance
  • Debt: Your child racks up credit card debt, and collection agencies come calling
  • Pressure: Friends pressure your beneficiary to invest in risky business ventures
In each case, the spendthrift provision stops outside parties from touching the money while it remains in the trust. The inheritance stays safe because creditors cannot force the trustee to distribute funds early.

What spendthrift trusts cannot do

While powerful, these trusts have limits you should know about. First, the protection disappears once the trustee distributes money to your beneficiary. After funds land in their bank account, creditors can pursue those assets. Additionally, certain obligations override these protections. In Illinois, child support claims and some tax debts can still reach trust assets. Finally, the trust will not protect beneficiaries from their own poor choices once they control the money.

How trustee oversight prevents impulsive spending

Beyond creditor protection, spendthrift trusts discourage reckless financial behavior. Your chosen trustee evaluates each distribution request carefully. Consequently, they can say no to frivolous purchases while approving money for legitimate needs like housing, education, or medical care. This structure provides ongoing financial guidance even when you cannot offer it yourself.

Securing your legacy with love and wisdom

A spendthrift trust demonstrates deep care for your family's future. You are not controlling them from beyond the grave; rather, you are ensuring your hard-earned legacy truly benefits them for years to come. This protection reflects the same love and support you provided throughout your life.]]> On Behalf of Monahan Law Group, LLC <![CDATA[What is a pooled trust and how does it work?]]> https://www.monahanlawllc.com/?p=52883 2026-01-26T14:09:21Z 2026-02-24T14:05:56Z In Chicago and across Illinois, pooled trusts let people with disabilities save money without losing eligibility for benefits like Medicaid or Supplemental Security Income (SSI). A nonprofit runs the trust, pools funds for investment and keeps a separate account for each beneficiary to pay for items benefits do not cover. Families can place money into a pooled trust as an affordable way to protect benefits and pay for extra care.

State-specific pooling rules

Here are the key rules you should know about pooled trusts in Illinois:
  • 65+ rule: Moving your own money into a pooled trust after age 65 can trigger a Medicaid penalty period for long‑term care.
  • First‑party vs third‑party language use: First‑party means the person’s own money while third‑party means money from someone else.
  • Medicaid payback: Illinois lets the state recover Medicaid costs from any remaining first‑party funds when the beneficiary dies.
  • Leftover money: After the state recovers funds, the pooled‑trust nonprofit distributes or keeps leftover money according to the trust’s rules.
If you are unsure how these rules apply to your situation or if there are exceptions, speak with an estate planning lawyer or a pooled‑trust manager for clarification.

Reminder for pooled trusts

A pooled trust is permanent and irrevocable. This means once you put money in, you cannot take it back out for regular expenses. The nonprofit reviews and approves every withdrawal and pays only for things that directly help the person with the disability. It is also crucial to mention that the withdrawal has to benefit that person alone.

Is a pooled trust for you?

Consider a pooled trust if you want to protect a loved one’s benefits and still save for extras. They work well for families with limited savings or caregivers who feel overwhelmed. Speak with a lawyer who handles disability planning to gain peace of mind.]]>