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Posts tagged ‘Holly A. Reese’

Estate Planning in a Digital World

Posted on October 10th, 2011 by Holly A. Reese, Teri Havron

Historically, estate plans contained two types of property—personal property and real property. As we continue to move more of our lives to the internet, we are quickly learning our online presence can outlive our physical presence. Our computers and online accounts contain a wealth of our personal information and it is increasingly becoming important to address how to handle these “digital assets” in your estate plans.

“Digital assets” are considered to be any online account that you store on your computer or server. Today, nearly everyone has some type of online account including, but not limited to: multiple email accounts; social media networks like Facebook, Twitter, LinkedIn; photos on Flickr or Shutterfly; videos on YouTube; music libraries; documents on Google docs; medical records; online bank and investment accounts, online bill pay accounts; online shopping accounts like Amazon; and blogs or websites.

Without the proper planning, these digital assets can be very difficult and overwhelming to manage and access after a person dies. Three main questions come to mind: Who do you want to leave in charge—spouse, family member, or third party? How will they locate all of the accounts? And, how will they gain access to each account?

The first step is to create an inventory of all your digital assets. From there, an attorney can help advise you as to whether a will, separate document, trust, or online afterlife company is right for your planning needs.

There are many benefits of planning for digital assets, including: making things easier on executors and family members; preventing identity and content theft; and preventing losses to the estate. Take a few moments and start on your digital estate plan today. As the old saying goes: “failing to plan is planning to fail”.

Should you have a question or would like to discuss your estate plan, please contact Holly A. Reese or Teri L. Havron.

The Enforceable Illinois Junk Fax Statue

Posted on August 1st, 2011 by Holly A. Reese

Do you have a fax machine? Then chances are, you’re familiar with junk faxes – advertising discount travel, auto deals or IT services. The Telephone Consumer Protection Act of 1991 (TCPA) makes it unlawful to send unsolicited advertisements to a telephone facsimile machine.

A recent Illinois Supreme Court decision (Italia Foods, Inc. v Sun Tours, Inc.) makes the Federal junk fax statute enforceable by private lawsuit in Illinois state courts.

TCPA provides a private right of action for enforcement purposes, and allows for the following:
A) An action based on a violation of that subsection of the TCPA or the regulations prescribed under that subsection to enjoin such violation,

(B) An action to recover actual monetary loss from such a violation, or to receive $500 in damages for each such violation, whichever is greater, or

(C) Both such actions.

If it is determined that the violation was willful or knowing, treble damages may be awarded.

Italia alleged that during a two year period, the defendants violated TCPA by faxing it 28 unsolicited advertisements for discount travel, and faxed similar advertisements to more than 39 other recipients without prior permission.

The IL Supreme Court determined that no enabling legislation was necessary from the General Assembly, but did not decide if the Illinois two year statute of limitations should apply, or the four year federal statute of limitations. That determination will be made by the appellate court as the case moves forward.

If you have a question about this subject or any Business and Commercial Law topic, contact Holly A. Reese.

A Look at the New Illinois Civil Union Law

Posted on June 16th, 2011 by Holly A. Reese

The recently enacted Illinois Religious Freedom Protection and Civil Union Act (Illinois Civil Union Act) creates a separate status – what’s called a “civil union” – that is analogous to marriage. Under the Illinois Civil Union Act, two persons – either the same or opposite gender and both at least 18 years of age – may elect to enter into a civil union rather than a marriage.

The primary intent of the Illinois Civil Union Act is to provide same sex couples with the full protection of Illinois law – currently available to married spouses under the existing Illinois Marriage and Dissolution Act (MDA). The Illinois Civil Union Act will, in effect, enable parties to a civil union to claim a right or interest wherever the word “spouse” or similar marital partner designation appears in Illinois law. Accordingly, a civil union is equal to marriage in all but two respects:

1. The act does not provide for marriage, which will remain available under Illinois law solely to individuals of the opposite sex.
2. The law is subject to the restrictions of the Defense of Marriage Act.

The Defense of Marriage Act (DOMA) is the first substantive federal law pertaining to marriage. It may be important to note that marriage has, and continues to be, a matter of state law. DOMA contains two provisions. The first prohibits the recognition of same-sex relationships under federal law. The provision expressly provides that the word “marriage” means only a legal union between one man and one woman as husband and wife and the word “spouse” refers only to a person of the opposite sex who is a husband or a wife. The second permits states to refuse to recognize same-sex relationships authorized by other states.

What’s the Impact of DOMA on Illinois Law?
DOMA will limit the Illinois Civil Union Act by restricting the use and definition of “spouse” under federal law to two individuals of the opposite sex. In cases where the fundamental definition of “spouse” under Illinois law conflicts with the definition of “spouse” under federal law, the rights and interests of parties to federal benefits may be limited based solely upon gender. DOMA will also limit the Illinois Civil Union Act by permitting states to refuse to recognize same-sex marriages from other states. However, the Illinois Civil Union Act will expressly provide that any person who enters into a civil union in Illinois consents to the jurisdiction of the courts of Illinois for the purpose of any action relating to the civil union—even if one or both parties cease to reside in the state. Meaning, parties will have access to Illinois courts for dissolving their civil unions if they live in a jurisdiction where they could not otherwise do so.

Unfortunately, beyond this, the Illinois Civil Union Act does not address the refusal of other jurisdictions—specifically the federal government—to recognize a civil union granted in Illinois. Accordingly, federal law will have a direct and strong impact on the Illinois Civil Union Act. For example: Federal law governs tax filing status which includes calculation of tax rates and amounts, where state tax filings are derivative of federal return. Federal employees are also not entitled to spousal benefits where the spouse does not meet the definition of DOMA. The provision of domestic partner or spousal benefits not recognized under federal law results in taxation to the employee, which is not taxable to employees who have opposite sex spouses.

What’s the Impact of Federal Law on Illinois Law regarding Estate Planning?
As noted in section 1(d), the Illinois Civil Union Act will enable parties to a civil union to claim rights or interests where the word “spouse” or similar marital partner designation appears in Illinois law. These rights and interests will, for example, include the right to acquire and own property jointly—including tenancy by the entireties—and the right to automatic inheritance.

Unfortunately, however, parties to Civil Unions cannot receive federal benefits limited to “spouses” under federal law. This will have an important impact, for example, on the long-established rule that the division of the marital estate incident to a divorce is not taxable to either party—DOMA will not allow such a benefit to same sex couples upon dissolution.

Accordingly, for clients to be protected, they need to continue to secure rights to inheritance through powers of attorney, wills, and trusts and to property by title. The piecemeal pursuit of securing of rights must continue unless uniform recognition is enacted.

In conclusion, where federal law expressly limits recognition and provision of benefits as a matter of federal law to “spouses”, these benefits are not available to same-sex “spouses” under the Illinois Civil Union Law. Additionally, such federal benefits would not be available to same-sex spouses legally married or in valid, recognized same-sex relationships under any other state law or the laws of other jurisdictions.

To learn more, or to discuss your estate plan, contact Holly A. Reese.

The 2011 Estate Tax Band-aid

Posted on January 3rd, 2011 by Holly A. Reese

Also known as the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, the new law signed by President Obama on December 17, 2010 provides little in the way of certainty for those involved in Estate Planning.

During 2010, the year of the estate tax repeal, the estates of several billionaires were able to slip though the loophole untaxed, including the estate of famed Yankees owner, George Steinbrenner. All told, it is estimated that this loophole resulted in several billion in lost revenue. What a year!

So as we look ahead to 2011, what can we expect from the new estate tax laws?

First, we can expect that the new laws will be temporary, as they are scheduled to sunset on December 31, 2012. That doesn’t give estate planners a lot to work with considering we have no idea where things will be in just two short years.

Second, we will see an estate tax exemption of $5 million per person, and a maximum estate tax rate of 35%. This is a significant change from 2009, where the per person exemption was $3.5 million, and the maximum tax rate was 45%.

Third, we will see an elimination of the modified carryover basis that was previously in place (which allowed for only $1.3 million of stepped-up basis), and a new stepped-up basis rule in its place. The new stepped-up basis rule provides that property will receive a basis equal to the property’s fair market value on the date of the decedent’s death.

For the estates of those who died in 2010, the new law allows for an option of applying the 2010 rules of no estate tax, but limited stepped-up basis, or the 2011 rules of $5 million exemption and unlimited stepped-up basis.

The fourth item we can expect under the new law is spousal portability. Spousal portability allows the surviving spouse to take advantage of the unused portion of the deceased spouse’s estate tax exemption. This effectively gives each married couple a $10 million exemption. It would appear, however, that to take advantage of the portability option, both spouses must die before December 31, 2012.

Only time will tell what will come in 2013. All of this uncertainty further increases the need to have your estate plan reviewed by an attorney in light of the current band-aid situation.

To learn more, or to discuss your estate plan, contact Holly A. Reese.

Why I Relay For Life

Posted on May 17th, 2010 by Holly A. Reese

Last year was my first year participating in Relay for Life, an annual event which celebrates the lives of those who have battled cancer, to memorialize those who have lost their battle, and to raise money so that future battles can be won!

Arriving at Tri Township Park just after work on Friday, we set up our camp site, including a tent, snacks and decorations, and prepare for the events that will take place over the next several hours. During the set-up there are many friends getting re-acquainted from another year gone by and the excitement builds as new friendships are begun.  Everyone here is about to experience something they will not soon forget.

The walking starts with an emotional survivor’s lap, and everyone grows quiet as those who are battling cancer or who have won the battle take their turn to be recognized and celebrated.  Following the somber survivor’s lap, the teams begin their Relay. The goal is for one member of each team to be on the track at all times throughout the night and early morning. The feeling of unity is indescribable as the hours pass and sleep deprivation sinks in.  While the relay can get difficult, your sense of purpose is exaggerated because you are surrounded by the most inspiring fighters you have ever met.

Throughout the night, there are activities, games, and other forms of entertainment to keep the participants’ eyes open and hearts filled with hope for a cure.  It’s during this time that you hear stories shared of both progress and despair, and it helps everyone to keep going in their personal fight against cancer.

I Relay for those close to me who have battled cancer, who are battling cancer, and those who have lost the battle. Working in a firm that handles asbestos cases certainly introduces us to many people who suffer from cancer, and it certainly increases our awareness of the difficulties and suffering associated with cancer in its various forms.

My experience with Relay for Life has been eye opening and heartbreaking at times, but most of all it gives me hope for a cure.  If you would like to donate to Relay for Life and the American Cancer Society, or would just like more information, you can visit my personal Relay For Life page.

Please contact Holly Reese to discuss Relay for Life or any legal issue facing you or your family.

Wills, Trusts and Estate Planning – The Gift that Keeps on Giving

Posted on December 16th, 2009 by Holly A. Reese

Since the holiday season is upon us, it seems only natural that we take some time to slow down and reconnect with our family. Spending time with the generations in your family may have you thinking about future generations, and specifically, how to make sure they are taken care of if something should happen to you.

This is an unpleasant topic that many of us want to ignore, put off, or just pretend won’t happen to us. Far be it from me to tell you that you are wrong – but you are wrong. The unfortunate truth is that we all need to think about our future generations, and to ensure that they are provided for, and we need to do it today – not tomorrow, not next month, not next year.

I would propose that you think of an estate plan much like you think of insurance – something that is vitally important and necessary, but that you hope never to use. Think about not only the tangible items that you want to leave to your loved ones, but also what you don’t want to leave them – the burden of probating an estate without a will, trust, or any direction from you.

Consider an appropriate estate plan your gift to those you may one day leave behind. It may not be a partridge in a pear tree, but it is better than a lump of coal. Happy Holidays to all!

To learn more or contact this author, Holly Reese, click here.