Former Bakery Owner Donates Millions to Hospital in Estate

Former Bakery Owner Donates Millions to Hospital in Estate

By Alan G. Orlowsky

The Silver Cross Foundation recently received a $1.8 million charitable donation from the estate of Jennie Mariner, a former foundation trustee and volunteer. Mrs. Mariner passed away in Arizona in June at the age of 91. Her generous donation will be used to help pay for the new $365 million hospital which recently opened in 2012 in New Lenox.

Mrs. Mariner co-owned and operated Rainbow Bakery. For decades, she helped as a volunteer and eventually as a trustee for the Silver Cross Foundation and Hospital in Joliet. She was a member of the Silver Cross Advisory Board, president of the Childerguild, and the first female to be elected to the Board of Trustees. Paul Pawlak, president and CEO of Silver Cross Hospital, said "Through her selfless acts of kindness, over the past fifty years she has touched thousands of lives in such a positive way. Her generous estate gift will allow us to help many more patients in the years to come."

Charitable Giving Options in Illinois

If you wish to leave part of your estate to a charitable cause or organization, there are many ways that it can be accomplished. Each has its own advantages and disadvantages in terms of taxes and estate planning.

Lifetime Gifts

Making donations during your lifetime comes with multiple benefits. First, you get to enjoy the fruits of your giving while you are still alive and feel the gratitude of those that you have helped. Second, giving gifts inter vivos, while still alive, has estate planning and tax advantages. You can give up to $14,000 away, tax free, under Illinois’ gift tax laws. If you gift more than that amount in any given year, the difference goes towards the lifetime exclusion of $5.34 million. Giving during your lifetime also takes away the added tax on estate after you are gone.  

Charitable Remainder Trust

A charitable remainder trust allows you to apportion your estate to your heirs as you see fit, and the remainder of the estate, or any gifts that you place into the trust during your lifetime, go to the charity. You get to retain the income of the trust during your lifetime, and you are permitted to take an income tax reduction for the year that you made a donation to the trust.

A charitable foundation is a growing trend for leaving money to worthy causes, where the account is set up in your name and the funds are distributed by you or your heirs. But there are significant regulatory and administrative requirements attached to foundations. In addition to being audited annually, charitable foundations must also file yearly forms with the IRS that provide detailed administrative and financial information. In addition, there are strict rules regarding self-dealing, conflicts of interest, political activities, and the like that must be adhered to by the members of the foundation. However, there are many tax and estate planning advantages to setting up your charitable endeavors through a foundation.

Donor-Advised Funds

A donor-advised fund is similar to a charitable foundation but negates many of the administrative hassles that come with it. This type of account is set up in your name, similar to a foundation, but the funds are handled by an organization instead of by you. The organization then decides how to administer the funds and makes distributions to charity.

Call an Illinois Estate Planning Attorney Today

If you wish to leave a piece of your estate to a worthy cause or have other questions regarding estate planning and live near Northbrook, Evanston, Skokie, Glenview, Glencoe, or Highland Park, the experienced estate planning attorneys at Orlowsky & Wilson, Ltd. can help. Call or contact the office today for a confidential consultation of your case.

Estate Litigation Problems - Lincolnshire IL

 Estate Litigation Problems - Lincolnshire IL

By Alan G. Orlowsky

 Every so often, things go wrong. No one likes it, especially if the problem could have been avoided.

In estate planning, there are a number of reasons why things might not go the way they were planned. In the worst cases, problems can grow into lawsuits. Most of the time, lawsuits are the result of a lack of planning or because a plan was drafted without a lot of thoughtful consideration. In some cases, this type of lawsuit says more about the people involved than the plan itself. Regardless of the cause, estate litigation will usually have far-reaching and long-lasting consequences for family relationships. Knowing about some of the problems may make the issues easier to avoid entirely.

The most common causes of estate litigation include the following:

• UNDUE INFLUENCE – This can arise when someone is pressured by a relative, friend, or other person to include certain provisions in the plan, or to make significant changes to an established plan. Changes often work to disinherit certain people, or to change the beneficiaries of the plan from family members to a charity, caretaker, or advisor. The best way to avoid this problem is to include only yourself and your spouse in the planning sessions. Having trusted advisors at your side can help overcome this type of problem. 

• LACK OF CAPACITY – A will or trust can be declared void if someone can prove that the testator lacked capacity to understand the financial makeup of his or her estate, and/or to understand how it is being distributed. Usually, incompetence is established through a prior medical diagnosis of dementia or some similar disease. As our society ages, this can become more and more of an issue in estate planning. Making sure that your wishes are not challenged means making sure that you take all necessary precautions. Nowadays, when attorneys and other advisors have any doubt about competency, they may suggest a medical examination and a letter from a doctor regarding competency. While this could be viewed as embarrassing or an invasion of privacy, it is done with good reason. It simply means that your advisors are watching out for you to make sure that your wishes are honored.

• IMPROPER EXECUTION OF DOCUMENTS OR FORGERY – In most states, proper execution of a last will and testament or trust requires that the will or trust is signed by the client and witnessed and signed by two unrelated parties. Some states also require affirmation from a notary public or attestation statements from the witnesses in addition to their signatures. A plan can be contested on the basis that it was not properly drafted, signed, witnessed, or notarized. Of course, if anyone suspects that the documents or the signatures are forged, that will bring a lawsuit. There are many examples of well-known people, including a US Supreme Court justice, who took unusual and sometimes ineffective steps to set out their wishes. An easy way to solve this problem is to make sure that your documents are drafted by a competent attorney well versed in estate planning.

• BREACH OF FIDUCIARY DUTY – Everyone has seen stories in the news about families fighting over a loved one (or their money). Recently the papers were filled with questions about the famous top 40’s radio announcer, Casey Kasem, whose family spent time and money fighting over his well-being (and his whereabouts.)

Executors, trustees, and guardians, all have a fiduciary relationship and responsibility. They are required to perform with loyalty, honesty, and prudence in the best interests of the beneficiaries. When those duties are not met, litigation can ensue. It is important to make your instructions clear and plain so that trustees and executors, and their legal advisors, can understand and follow your wishes. In addition, your estate planning instructions should include a way for the beneficiaries to remove and replace an executor or trustee who is not fulfilling his or her fiduciary duty, without going to court.

The best way to minimize the risk of litigation is to be thoughtful in creating your plan and then working with competent professionals to implement and maintain it. The collaborative approach will go miles towards making sure your wishes are respected.

If you have questions about Estate Litigation please contact Orlowsky & Wilson at 847-325-5559 or visit our website www.orlowskywilson.com for more information.