Monahan Law Group, LLCMonahan Law Group, LLC2026-10-01T11:13:37Zhttps://www.monahanlawllc.com/feed/atom/WordPress/wp-content/uploads/sites/1402044/2020/01/cropped-SiteIcon_Monahan-32x32.pngOn Behalf of Monahan Law Group, LLC<![CDATA[What makes special needs trusts different from other types of trusts?]]>https://www.monahanlawllc.com/?p=529842026-09-29T17:00:23Z2026-09-29T17:00:23ZFor families caring for a loved one with a disability, estate planning often involves more than just deciding who will inherit what. If that person receives government benefits, an inheritance could potentially affect their eligibility for those benefits.
A special needs trust addresses that concern by allowing assets to be held for a person with a disability while helping preserve eligibility for certain government programs. But what makes a special needs trust different from other types of trusts?
What is a special needs trust?
A special needs trust is a trust established to benefit a person with a disability while still allowing them to qualify for certain means-tested government benefits. Rather than replace government benefits, the trust can provide additional resources to improve the beneficiary’s quality of life while still preserving access to essential programs.Special needs trusts can help pay for expenses that government benefits may not cover, such as:
Transportation
Education
Recreation
Assistive technology
Clothing and personal items
Personal care
Trusts are valuable estate planning tools that may be created for tax planning, asset management, charitable giving or protecting assets for beneficiaries. The primary goal of a special needs trust is to protect access to needs-based government benefits while providing supplemental financial support.However, simply putting a person’s inheritance into a document labeled “special needs trust” doesn’t automatically make the assets exempt from government-benefit programs. It must be carefully drafted and administered to meet requirements set by the Social Security Administration.One important distinction involves control of the trust assets. A properly structured needs trust can allow someone other than the beneficiary to manage the assets for the beneficiary’s supplemental needs.Trust distributions can also affect benefits. Money paid directly to an SSI recipient can reduce SSI benefits, while benefits made to third parties for goods and services may be treated differently.A mistake in a special needs trust document or in the way the money is distributed could have unintended consequences. Working with a legal professional is essential to helping ensure the long-term support of a loved one with a disability without unnecessarily jeopardizing important benefits.]]>On Behalf of Monahan Law Group, LLC<![CDATA[Who qualifies for an Illinois ABLE account under the new rules?]]>https://www.monahanlawllc.com/?p=529812026-09-17T23:59:44Z2026-09-17T23:59:44ZAn Illinois ABLE account offers a way to set money aside for their needs without endangering their other benefits. As of January 1, 2026, more people qualify for these accounts than ever before.
Understanding ABLE accounts and their eligibility
An ABLE account is a tax-advantaged savings and investment account that allows an eligible person with a disability to pay for qualified expenses without jeopardizing certain government benefits. The money can cover needs such as housing, health care, transportation, education and assistive technology.
Previously, a person’s disability generally had to begin before age 26. The expanded rules raise that age to 46, opening the program to people whose disabilities developed later in life. They must also meet one of the disability-related requirements. Generally, that means they:
Are entitled to SSI or Social Security Disability Insurance (SSDI) based on their disability
Have a qualifying disability certification from a licensed physician that describes the condition and age of onset
Have a condition that is listed on the Social Security Administration’s List of Compassionate Allowances
Earnings generally grow tax-free and withdrawals are federally tax-free when spent on qualified expenses. Family members and others can contribute to the account. Illinois taxpayers may also qualify for a state income tax deduction for their contributions, subject to applicable limits.
An ABLE account can offer your loved one useful financial independence, but it is not necessarily a substitute for a special needs trust. Contribution and account balance rules limit how much an ABLE account can hold without affecting certain benefits, so a special needs trust may be better suited to holding a substantial inheritance. The trust and ABLE account can also be arranged to work together.
If you’re interested in special needs planning for a loved one as part of your estate planning goals, seeking an attorney’s guidance is essential.]]>On Behalf of Monahan Law Group, LLC<![CDATA[When should you consider an irrevocable trust?]]>https://www.monahanlawllc.com/?p=529772026-09-03T21:22:16Z2026-09-03T21:22:16ZRevocable versus irrevocable trust
The difference between the two types of trust comes down to flexibility. A revocable trust generally allows the person who created it to retain control and make changes during their lifetime.
A properly structured irrevocable trust limits the grantor’s ability to revoke or change the trust. This doesn’t necessarily mean that an irrevocable trust can never be modified. The law provides mechanisms to modify or terminate certain irrevocable trusts. An irrevocable trust should be viewed as a long-term planning tool rather than something that can easily be undone.
There are situations in which an irrevocable trust may be worth considering. For example:
You want to protect assets for your beneficiaries: Instead of giving assets directly to beneficiaries, you can establish an irrevocable trust that protects the inheritance from creditors, lawsuits or financial difficulties.
You have a large estate and are concerned about estate taxes: Illinois is one of the states that imposes an estate tax. If you have substantial assets, an irrevocable trust may be part of your overall estate planning strategy to reduce the portion of the estate subject to estate tax.
You want to provide for a loved one who needs ongoing support: An irrevocable trust may be appropriate when a beneficiary has special financial or personal needs. Instead of giving them a large inheritance outright, a carefully crafted trust can allow a trustee to manage assets and make distributions according to the trust’s terms.
An irrevocable trust can have long-lasting consequences. Therefore, estate planning guidance is critical if you’re considering one. An experienced professional can review your financial situation and estate planning goals and determine whether an irrevocable trust makes sense as part of your overall estate plan.]]>On Behalf of Monahan Law Group, LLC<![CDATA[3 life events that trigger a need to update your estate plan]]>https://www.monahanlawllc.com/?p=529752026-08-28T17:59:36Z2026-08-28T17:59:36Z together an estate plan is an important step towards caring for your loved ones. In addition to designating the distribution of assets, the conversations that come with putting together your plan can also lead to a better understanding of your financial situation. This can lead to adjusting investment strategies and making use of tax saving tools – ultimately helping you to make the most of your wealth.
Once you have a plan in place, it is common to ignore it. Although it does not require regular maintenance like other parts of your portfolio, there are times that warrant a review and update. Three of the most common include the following.
#1: Changes in the family
Welcoming a new family member through birth, adoption or marriage or losing a loved one through death or divorce can directly impact your estate plan. Use any of these life events as a reminder to review who you have listed as heirs and on power of attorney documents. These changes to your family structure may mean you need to update who is listed on these documents.
#2: Changes in wealth
A new job, business opportunity or inheritance that significantly impacts your assets can shift how your plan works. Review the language used on these documents and see if it still meets your wishes.
#3: Changes to the law
The law is always evolving. Changes to tax law can directly impact your estate and may warrant a need to make adjustments to your estate plan. Keep current on changes and reach out to your estate planning team if you are concerned the change impacts your plan.
Making sure you update your plan wisely
These changes require more than just a review of your will. Those who have trusts may need to make sure the provisions within the trust are still in line with their goals. It is also important to review and update beneficiary designations. This is something that is often missed and can lead to unintended individuals getting assets that you would prefer to go elsewhere. ]]>On Behalf of Monahan Law Group, LLC<![CDATA[Reasons most people do not have an estate plan]]>https://www.monahanlawllc.com/?p=529732026-08-14T13:02:52Z2026-08-14T13:02:52ZHaving an estate plan in place is not nearly as common as many people imagine. According to some reports, roughly 1/3 of Americans have made an estate plan, while the other 2/3 have not. This means that, on average, most Americans do not have a plan at all.The specific reasons vary from case to case. Below are a few of the examples that people provide, demonstrating how they think about estate planning.
They have not gotten around to it
Many people indicate that estate planning is something they hope to do in the future. They just have not gotten around to it yet, or they are procrastinating. A lot of young people do not think they will need an estate plan until they are closer to retirement age, for example.
They do not have very many assets
One common misconception about estate planning is that you need to have a lot of assets or that only wealthy people make estate plans. To counter this misconception, it is important for people to think about how an estate plan can address future medical decisions or how it can distribute low-value family heirlooms.
They do not know how to do it
Finally, there are many people who will say that they know it is important to write a will, set up a trust or use advance directives like a medical power of attorney. The issue is simply that they do not know where to get the documents or where to start.In all of these cases, but especially in the third case, it can be very helpful for those who do not have an estate plan to work closely with an experienced estate planning attorney so that they can explore all of their options.
]]>On Behalf of Monahan Law Group, LLC<![CDATA[Can someone make a will after mental incapacity is declared?]]>https://www.monahanlawllc.com/?p=529712026-08-07T15:26:51Z2026-08-07T15:26:51ZA diagnosis of dementia, Alzheimer’s disease or another condition affecting a person’s mental abilities does not necessarily mean that an Illinois resident can no longer make a will. What matters is whether the person still has the mental capacity required to understand what a will does, what property they own and who will receive that property after their death.
However, waiting too long can have serious consequences. If a person becomes incapacitated and a court appoints a plenary guardian for the person’s estate, Illinois law creates a rebuttable presumption that the person lacks the capacity to make or change a will. A guardian cannot simply step in and create a will on the incapacitated person’s behalf.
Guardians cannot make a will for an incapacitated person
A guardian may have broad authority to manage an incapacitated person’s property and financial affairs, but that authority does not include the ability to make a will for the person.That distinction can become extremely important when someone develops dementia or another condition that progressively affects cognition. There may be a period during which the person has received a diagnosis but still understands their property, family relationships and the consequences of making a will. During that time, the person may still have testamentary capacity and may be able to put an estate plan in place.Once the person no longer has the necessary capacity, however, the opportunity may be lost. Family members cannot create a will for them based on what they believe the person would have wanted, and a guardian cannot sign one on their behalf.If the person dies without having made a valid will, their probate property generally passes according to Illinois intestacy laws. Those laws determine which relatives inherit and in what proportions, regardless of whether that distribution reflects what the person would have chosen.This is one reason estate planning should be completed while a person can still make their own decisions. A will is not something that family members or a court-appointed guardian can simply put in place later if incapacity occurs. Legal guidance can help you and your loved ones prepare ahead or learn more.]]>On Behalf of Monahan Law Group, LLC<![CDATA[Do you need a will?]]>https://www.monahanlawllc.com/?p=529622026-07-22T07:07:43Z2026-07-22T07:07:43ZWhat happens to your estate after you pass away? The outcome of your estate can be determined by your will. However, you may not want to draft a will. This can lead to issues for your loved ones.
Dying without a will is called dying intestate. Here is what you should know about it:
What happens if you die without one?
Typically, an estate is managed by an executor. An executor is named in a will. The role of the executor is to disperse assets to beneficiaries according to the instructions left in a will. When you have no will and you die intestate, your loved ones do not know how you want your estate to be handled. As a result, the state may be responsible for managing your assets during probate court.The state does not know how you want your assets to be distributed. The state can appoint an administrator of your estate. The administrator is responsible for distributing assets to heirs according to Illinois’s intestate succession laws. An heir is often your closest living relative, including a spouse, children, siblings or parents.In Illinois, a spouse may inherit everything if there are no children. However, a spouse may only inherit half of the estate if there are children and the descendants can inherit the other half of the estate. There are several other ways assets may be distributed during intestacy. Intestacy can create issues for loved ones during the distribution process. They may not inherit the entire estate during intestacy. Your estate may be subject to debt collection and estate taxes without a will. You can learn more about the dangers of intestate and how to draft a will by reaching out to professional legal guidance.
]]>On Behalf of Monahan Law Group, LLC<![CDATA[Strategies for managing estate taxes in Illinois]]>https://www.monahanlawllc.com/?p=529552026-07-09T16:24:21Z2026-07-09T16:24:21ZEstate planning is about more than deciding who receives your assets. If you live in Illinois, it should also include careful planning to reduce unnecessary estate taxes and preserve more of your wealth for your family.
Because Illinois has its own estate tax rules, planning early can make a meaningful difference. Reviewing your financial situation before your estate grows larger gives you more options and allows your plan to adapt as your goals change.
Understand your potential estate tax exposure
A good starting point is understanding the value of your estate. Real estate, retirement accounts, investments, business interests and life insurance may all contribute to your taxable estate. Illinois estate tax planning often begins with determining whether your estate could exceed the state exemption and whether additional planning is appropriate. Reviewing your estate regularly also helps account for changing asset values and new financial circumstances.
Consider lifetime gifting
Making gifts during your lifetime may reduce the size of your taxable estate while allowing loved ones to benefit sooner. Depending on the amount and timing of the gifts, this strategy may help lower future estate tax exposure while supporting your long-term family goals. Because gifting can also affect other tax considerations, it should be coordinated with your broader estate plan.
Use trusts to support your estate plan
Certain trusts may help preserve assets while providing greater control over how wealth is transferred. Depending on your objectives, trusts may protect appreciating assets, manage life insurance proceeds or help provide for future generations. Estate tax planning strategies should always reflect your financial circumstances rather than relying on a single approach for every family.
Plan ahead if you are married
Married couples should remember that Illinois estate tax rules differ from federal law. Without proper planning, one spouse's available exemption may not automatically carry over after death. Reviewing your estate plan together allows both spouses to consider strategies that may preserve more family wealth over time.Illinois estate tax planning works best when it is reviewed regularly instead of only once. Changes in your assets, family circumstances or tax laws may require updates to your plan. Seeking legal guidance can help you evaluate estate tax planning strategies and create an estate plan that protects your legacy while reflecting your long term wishes.]]>On Behalf of Monahan Law Group, LLC<![CDATA[Do you need a trust in your estate plan?]]>https://www.monahanlawllc.com/?p=529532026-07-01T03:13:55Z2026-07-01T03:13:55ZWhat is a trust in estate planning?
A trust is a legal arrangement in which you transfer assets to a trustee who manages them on your behalf or your beneficiaries. Many people use a revocable living trust, which allows them to keep control of their assets during their lifetime while avoiding probate after death.
Unlike a simple will, a trust can take effect during your lifetime and continue managing assets after you pass away or become incapacitated.
When a trust may be helpful
A trust can provide significant advantages in certain situations. You may want to consider one if you:
Own real estate in multiple states.
Want to avoid probate in Illinois court.
Have minor children or dependents with special needs.
Want to maintain privacy in your estate distribution.
Expect a more complex or high-value estate.
Want to plan for incapacity and avoid court-appointed guardianship.
In Illinois, probate can take time and become public record. A properly funded trust can help your beneficiaries avoid that process and receive assets more efficiently.
When you may not need a trust
Not every estate requires a trust. A simple estate plan may be enough if you:
Have limited assets.
Own most property jointly with rights of survivorship.
Name beneficiaries on retirement accounts and life insurance policies.
Want a straightforward distribution plan through a will.
For many individuals, a will combined with beneficiary designations can effectively transfer assets without the added complexity of a trust.
Do trusts replace a will?
A trust does not always replace a will. Most comprehensive estate plans include both. A will can cover assets not placed in the trust and allow you to name guardians for minor children. Without a will, those decisions may fall to the court under Illinois law.
Why legal guidance matters
Choosing between a trust and a will depends on your financial situation, family needs and long-term goals. Small differences in how you structure your estate plan can have significant legal and tax consequences.
An experienced Chicago estate planning attorney can review your assets, explain your options and help you decide whether a trust fits your needs. With the right plan in place, you can protect your assets, reduce complications for your family and ensure your wishes are carried out effectively.
]]>On Behalf of Monahan Law Group, LLC<![CDATA[Preserving benefit eligibility and special needs trust assets]]>https://www.monahanlawllc.com/?p=529512026-06-24T18:32:49Z2026-06-24T18:32:49ZPlan for benefit eligibility
There are strict rules that govern eligibility for Medicaid, housing benefits and other forms of support often available to those with debilitating medical conditions. For Medicaid in Illinois, for example, applicants generally cannot have income that exceeds 350% of the federal poverty level for their household size.
Moving assets to a trust can help a person with special needs ensure that they are eligible for benefits by limiting their countable resources. Controlling distributions helps ensure that their income from the trust does not negatively affect their eligibility.
Consider the need for lifetime support
Distribution restrictions help preserve key resources within the trust, which is important for the long-term financial support of the beneficiary. For example, transferring the family home to the trust can help ensure that the beneficiary stays in the same home for their whole life. The grantor can then arrange for another party to inherit or assume control over the home.
Working with an experienced estate planning attorney when creating a special needs trust can help people address common concerns. A well-funded and structured trust can provide a lifetime of supplemental support without impacting eligibility for critical benefits, if it is constructed properly.]]>