More than 40 years ago, a woman purchased a policy from a funeral home that intended to cover the expenses of her burial. According to the American Association of Retired Persons, the woman died in 2008. Unaware of the prepaid policy, her children paid the same funeral home more than $8,000 for the costs associated with the service. Upon finding the policy later, the children asked the funeral director to refund the costs, which he initially denied. While the woman’s children initially … [Read more...]
Do non-profit companies pay taxes?
Posted on October 15, 2014 //
Illinois companies designated as non-profit organizations, or charitable organizations, have successfully applied for and obtained the federal 501(c)(3) status. This means that these companies are not legally obligated to pay certain federal, state or local taxes. For this reason, they are often referred to as tax-exempt organizations. However, this delineation does not exempt these companies from all tax requirements. Understanding what taxes must be paid, how and when is important for … [Read more...]
How much money should property buyers set aside for a down payment?
Posted on September 30, 2014 //
When buyers in Illinois purchase a new home, they are typically required to provide their lender with a down payment. This, in addition to the purchaser’s credit score, annual income, total debt and credit history influence how much funding they qualify for. Typically, home buyers should plan on saving approximately five to 20 percent of the sale price of their home in cash to qualify for a conventional loan, but this specific amount varies depending on the purchaser’s individual … [Read more...]
Children and inheritance: Avoiding unnecessary battles
Posted on September 26, 2014 //
When their parents died, four children inherited the couple’s home. However, More magazine reports that outside of the property itself, there were few details given about how the siblings would divide the remaining assets and items. As a result, the children, all grown adults, wound up arguing about everything from wedding china to how, or whether or not, to sell the house. One of the children, a 42-year-old woman, said they were forced to make very tense decisions that pitted them against … [Read more...]
What is a testamentary trust?
Posted on September 24, 2014 //
Many people want to ensure that after their death, children or survivors will not suffer financially. However, according to a LexisNexis report, more than half of American adults do not have a will in place, which can lead to a lengthy and complicated probate process. There are a number of ways to set up financial plans to prevent family members from a messy court battle. When doing their estate planning, people in Illinois should consider a testamentary trust as a reliable option. … [Read more...]
