Author: marcsherman

Marc is the President and Founder of Marc D Sherman & Colleagues PC in Lincolnwood, IL. For over 38 years, Marc has represented individuals and businesses in a variety of Estate Planning, Probate, Business transactional and civil litigation matters.
Real Estate, Real Estate Sales and Purchases

YOU CLOSED THE SALE OF YOUR HOME. NOW WHAT TO DO?

marcsherman

We are excited to have represented you for the closing of the home sale.

You have signed the Seller documents, including the Deed, Bill of Sale, and other materials, and completed the closing. What’s next?

Our office will send to you a scan of the closing documents for safekeeping, and we will provide you with any “hard” copies that you wish to have.

You will contact utilities (other than water department) to advise them that the property is sold and that as of midnight on the date of closing the utility account should be removed from your name, and tell them where to send your final billing (or perhaps you already have).

You will reach out to the property insurance company to advise them that you have sold the property and closed the sale. This way, if your insurance for the property has been prepaid for any period beyond the closing date, you will be able to request a refund of premiums for the insurance policy (your insurance agent should be able to do that without a concern).

You will put in a change of address with the US Postal Service and contact anyone who you know may be sending important packages or mail, so that they have the new or forwarding address.

You will confirm that any contracts for service (landscaping, snow removal, water softener supplies, HVAC maintenance) that have been in place for the property address are canceled (or perhaps transferred to the new owner). 

You will review, once more, the handling of the County real estate taxes post-closing. This includes taxes that will come due in the year or more following the closing for dates of your ownership pre-Closing. If the tax bill comes to you, as the Seller, it is not your bill to pay. Notify our office that you received this.

Finally, you will reach out to your accountant/tax preparer to find out what information they would like to see (usually only the Settlement Statement from the Closing). In this way, they can discuss with you the need to pay any capital gains taxes relating to the sale, or confirm with you that there will be no taxes to be paid.

Real Estate, Real Estate Sales and Purchases, Real Estate Tax

The Effect Of The 2026 Bump In The Illinois Homestead Exemption From $30,000 to $100,000 Per Couple?

marcsherman

The Homestead Exemption in Illinois has been a small but useful part of the many exemptions an Illinois resident may assert in the face of enforcement of a judgment or in a bankruptcy. In January 2026 the exemption was increased in a big way.

An Illinois homeowner facing a judgment creditor or a bankruptcy may be threatened with the loss of the equity in their home. Even if the debt or the bankruptcy involves only one of the married homeowners, this can be scary and financially crippling. Under the law, when the homeowner living in their Illinois personal residence has equity in the home, they can in most instances retain the Homestead Exemption amount created by Illinois law if the home is subject to sale to pay a debt or in a bankruptcy. 

Most recently, the amount of the exemption was $15,000, and each owner on title that is living in the home gets the same exemption. So spouses were able to claim a $30,000 exemption together.

Beginning January 1, 2026, the Homestead Exemption for Illinois was modified to increase the exemption to $50,000 for each title owner living in the home. Spouses on title are now able to claim an exemption of $100,000, which is a huge difference for those needing to protect equity in their Illinois home.

Who should be thinking about this change in the law?

Estate planners who focus on the intersection of asset protection planning and estate planning will consider the new exemption limits as well.

Estate planning clients often engage in their own planning. Looking to avoid probate costs by putting their children or others on title, or transferring their ownership altogether, is a private strategy often concerning to the estate planning attorney. This may seem useful to the client, but the strategy can backfire and considering the entire picture is essential — especially now with the enhanced Illinois Homestead Exemption.

Lenders and others making loans to homeowners and entering into contracts with homeowners will do well to consider the new exemption when determining whether to do business with a homeowner.

If you have questions about the change in the law, whether for debtor/creditor considerations or estate planning, the Attorneys at Marc D. Sherman & Colleagues PC can set up a consultation. Reach out here for contact information: https://mshermanlaw.com/contact/

Asset Protection, Estate and Probate, Estates Planning And Probate, Trusts

They Call It Estate “Planning” For A Reason!

marcsherman

Most of us need only basic estate planning. Those with larger estates or unique assets or situations usually need to focus not only on the basic tools, but also on integrating steps in and out of the estate planning documents.

This article is not intended to review all estate planning tools that can be helpful. Instead, it is a call to action — a call to the all-important first meeting or updating review with an Attorney who is experienced in this important area. There is indeed value in discussion, and paying a small fee for attorney consultation can pay dividends!

The basics almost always focus on Powers of Attorney, a Last Will and Testament, and the interplay between life insurance and your accounts that you wish to keep as they are, and a focus on avoiding probate court time and expense. This is fine, but still worth the attorney-client consultation. Add a few other considerations in to the mix, and the discussion may blossom into why a simple, but effective living trust, and other considerations for planning, provide advantages.

These considerations include:

>   The amount of money in your estate when you pass (think: estate tax considerations, how the beneficiaries will receive the value and your desire to control how they receive your bequest);

>   Issues that you may experience now (consider long-term care needs for yourself or your significant other, asset protection needs arising from your business or other activities);

>   Concerns for your beneficiaries, now and later (think: beneficiary special needs due to illness, beneficiary asset protection because of judgments, divorce expected, or other concerns);

>   How your traditional IRA and other plans are treated after you have passed away (consider that IRAs and other plans are protected from creditors in most cases during your life, but inherited IRAs and other plans do not afford your beneficiary the same protection after you have passed away); and

>   Having real estate interests in more than one State or in another country (consider the need to possibly have a probate court case opened in more than one jurisdiction, and how trust planning or other tools can avoid this concern and expense; and consider that some countries do not recognize U.S. estate planning documents).

These are just a few of the considerations. Every person and every situation is slightly different. Creating a plan is smart planning!

Your financial planner and your accountant are important persons to offer their input. But if they are not also attorneys, then blindly following the recommendations made to you, no matter how well-intentioned, is not smart.

If you would like to have an attorney review your current documents and discuss your personal considerations and expectations, reach out to the Attorneys at Marc D Sherman & Colleagues, PC here: https://mshermanlaw.com/contact/

Estate and Probate, Estates Planning And Probate, Trusts

How Do I Create A Charitable Trust?

marcsherman

The Charitable Trust is not for everyone. Our recommendation is not to use Artificial Intelligence or a late-night-television-sponsored company to direct you in this important project. It’s a reasonable place to start gathering ideas, but consult an Attorney for guidance.

Financial planners call the Charitable Trust a “split-interest vehicle” because it typically divides the gift into two parts. There is an income benefit and there is a remainder benefit.

Creating the Charitable Trust in this was allows the person creating the trust, the donor, to provide for provide income for themselves or their heirs now, or by leaving a legacy to heirs, and benefiting charity by interim or final gifts of money or property. There are several considerations, including practical concerns and gifting considerations, and there is no one, all-inclusive trust that fits all situations. Read on:

Technically, the two most often used types of charitable split-interest trusts are called the Charitable Remainder Trust (CRT) and the Charitable Lead Trust (CLT).

The CRT is used if you want income today while maintaining charitable gifting intent. You transfer cash, mutual funds or appreciated securities into the CRT. You arrange to receive income during your lifetime and avoid immediate capital gains taxes. The CRT is a contract, as is any other trust, and when you pass away the remaining assets go to the charity that you direct under the terms of the CRT.

The CLT, or Charitable Lead Trust, directs charitable giving at the time that the CLT is created and leaves a legacy for your family later. The CLT charity receives income first — typically for 10, 15 or 20 years — and then your heirs inherit the remainder. CLTs can also help reduce gift and estate taxes. There are different types of CLTs and the selection is based upon tax, financial and other considerations. Your accountant/tax consultant is an important contributor to this process.

Your goals initially drive the decision-making: Do you need or want steady income, the opportunity to maximize charitable giving, or to preserve wealth for future generations. 

This is not for everyone. Individuals and families with significant assets will look to use Charitable Trust to combine philanthropic interests and tax planning. Most people will consider donating directly to their charity of choice. But Charitable Trusts offer additional benefits beyond simply the charitable deduction.

Start with a discussion with your Attorney. If you have questions, it would be our pleasure to discuss the Charitable Trust concept with you. Reach out here: https://mshermanlaw.com/contact/

Asset Protection, Business Entities, Estate and Probate, Estates Planning And Probate, Trusts

Layer Up For Financial And Estate Protection!

marcsherman

We put on layers to stay warm in the winter time. We use entity layers to reduce risk and potential out-of-pocket liability for business matters, and we should consider using this same approach for our estate planning.

You may not believe that there are complicated issues in connection with your estate assets. If there are business interests owned by the family, or investment interest in real estate or other activities that may include potential liability, there is a good reason to review your current plan or discuss creating a new one for you and your family.

The focus of that planning discussion: asset protection strategies, wherever possible; distribution strategies for tax and other considerations; maintenance and operational considerations while we are alive but unable to manage our own affairs, so that guardianship, management structure and avoidance of unnecessary out-of-pocket expenses are all covered. 

Further review and discussion should include key man insurance, creation of family funding resources through available financial products, and tax advantaged strategies.

Scheduling an appointment can be done by contacting Attorney Marc Sherman, by phone or email: https://mshermanlaw.com/contact/

Consider registering for the next presentation sponsored by the Society For Financial Awareness, “THE CHANGING WORLD OF RETIREMENT PLANNING”™, Classroom Instruction for Adults – Ages 50 to 70. The Course is led by Financial Advisor Ron Mark, of the Chicago Investment Advisory Council, Inc., (312) 907-2481 http://www.ciacinc.com, at Oakton Community College Skokie Campus, Lincoln Avenue, during January and February, 2026. Marc Sherman will present on Estate Planning Concepts. Information is provided in a thoughtful, focused format and you will come away with more knowledge than you started with, for sure. No purchase requirements, no ‘hard sell’ investments, just good information for personal and investment strategies for retirement and estate planning. Registration information is available by contacting Susanna Jung at 312-264-4388.