Katrina Cox Law

05/05/2026

Recycling some old Tuesday Tip videos while creating more. It's been a couple years since I have done this, but wills tart providing more valuable informational video tip son Tuesdays again.

Today's tip - make sure your real estate is recorded in your living trust.

04/14/2026

WANT TO KNOW MORE ABOUT RETIREMENT ACCOUNTS IN A TRUST - READ ON !!!!

You may have heard that naming a trust as beneficiary of a retirement account automatically creates problems or makes taxes worse. That's not accurate. The reality is that any planning for retirement accounts requires attention to detail, whether you're using a will, a trust, or simply naming beneficiaries directly.

The advantage of using a trust is that it can solve problems that direct beneficiary designations can't. Direct designations offer no protection if your beneficiary is going through a divorce, has creditor issues, or struggles with money management. They provide no control over when or how your beneficiary receives the money. And they give you no say in where the funds go if your beneficiary dies before fully withdrawing the account.

A properly designed trust addresses all these concerns while still preserving favorable tax treatment. The key is understanding that different trust designs serve different purposes, and the right choice depends on your specific family and financial situation.

Some trusts are designed to distribute retirement account withdrawals immediately to your beneficiary. This approach keeps the money taxed at your beneficiary's personal tax rate rather than the trust's tax rate, which matters because trusts reach the highest federal tax bracket at very low income levels. These trusts still provide some control; they can limit how much beyond the required minimum your beneficiary can access each year, and they control where remaining funds go if your beneficiary dies.

Other trusts are designed to hold withdrawn funds and distribute them according to standards you set, such as for health, education, or general support. These trusts provide the strongest protection from creditors, divorce, and poor spending decisions. The trade-off is that any income kept in the trust faces higher tax rates. For some families, particularly those with beneficiaries who have significant protection needs, this tax cost is worth paying for the security the trust provides.

What matters most is that your trust is specifically designed to work with retirement accounts. Generic trusts drafted without considering retirement account rules can create serious problems, forcing rapid withdrawals or losing favorable tax treatment entirely.

Call today to schedule your free estate planning consultation - zoom or in person!! We are already booking into May! 708-942-5261

04/07/2026

An Inherited IRA and the 10 year rule -

* 10-Year Withdrawal Requirement: You must withdraw all inherited IRA funds by the end of the 10th year after the account owner's death. Withdrawals can be taken anytime within the 10 years, either in a lump sum or gradually.

* Exceptions & Options: Spouses and eligible designated beneficiaries (spouse, minor child, disabled, chronically ill, or within 10 years younger than the owner) may defer withdrawals using life expectancy calculations instead of the strict 10-year rule.

* Tax Considerations: Withdrawals from a traditional IRA may incur a large tax bill if taken all at once, while Roth IRAs are tax-free on contributions but may miss potential investment growth if withdrawn early.

* If you do not want you children age 18 and up to have the funds until a certain age or are trying to protect them from a creditor (bankruptcy or lawsuit) from taking the funds once they receive them, or have a judge award the money to an ex in a divorce, then you need to contact me to set up the proper trust document and have these funds payable to the trust instead. We can prevent all that from happening. You can decide what age and when and how the funds are disbursed. a financial advisor usually tells people not to do this, but they don't always know the benefits of doing this and it is a personal choice based on each family's situation. It will cost your family more in the long run because a trust as a beneficiary is taxed at a higher rate than an individual beneficiary; however, sometimes protecting an alcoholic child, or financially irresponsible child, or keeping your funds out-of-reach from an in-law you don't trust is worth it and gives peace of mind your assets go where you really want them to go. I will advise you to speak to your financial advisor and accountant after speaking with me to make the best choice for you. I will even refer you to someone if you don't have someone helping you and we can all have a meeting together.

03/16/2026

So my daughter is apparently telling everyone her mom works with dead people. 🤔 I guess she hears me talk about death a lot with clients since I work from home and that's her take away. Let's not spread her rumor. 😂

03/10/2026

The Cook County 2025 property tax exemption application period is officially open. Homeowners can file online or download an application to apply. Same for first time senior exemptions, disability and veterans and certificate of error.

03/04/2026

PUBLIC SERVICE ANNOUNCEMENT - please please please DO NOT, I repeat DO NOT....❌❌❌🚫🚫🚫 write on your original will or trust. Once you receive it from your attorney after signing, it should be kept in a safe place. If you ever want to make changes, write them on a SEPARATE piece of paper and bring to your attorney's attention so that proper and legally binding amendments can be made to said documents.
I can't tell you how many times people die and the adult children bring me the documents and show me changes mom/dad made and they are upset that we cannot acknowledge those and the will is declared void in probate court.

03/01/2026

02/13/2026

REAL ESTATE AGENTS - I have a referral for someone for 3 properties my client inherited through a TODI last month and all located on the south and west sides of Chicago. So not the best areas, but client wants to sell all three ASAP. Chicago Title referred him to me so I need an agent that is not with a company that makes me use their title company for these deals. Sorry to those agents, I love you, but I stay loyal to people who refer and I have to keep the business with Chicago Title on this one since they sent me the deal. Another note, two of the properties have tenants in them and the one is vacant. Email me ASAP if interested. [email protected]

02/02/2026

NEVER add your adult children to your bank accounts as a joint owner, thinking it will make things easier. I can't tell you how many clients come in telling me they did that. DON'T!!!!
A prior client did not listen to me and her daughter is getting a divorce and the judge granted 25% of that bank account to the soon to be ex-husband.
By adding your adult child it opens up liability to their creditors and lawsuits.
This also ignites family feuds. What if they don't get along with their siblings (and you think they do), will they really give your other children their inheritance you trust they will leave them?
If there is a significant amount in the bank accounts it could lead to gift tax implications.
Instead have a Power of Attorney drafted and name that child your POA. Then have a trust drawn up, and name the trust as the beneficiary of said bank account and the trust will have specific instructions as what is supposed to happen to that bank account upon your death.

01/14/2026

Free estate planning event! Let's get you and your family protected! See below and RSVP.

01/12/2026

The new Illinois law signed by Governor JB Pritzker expands property tax relief for seniors, specifically the Senior Citizens Real Estate Tax Deferral Program. Key changes include:

****Increased Income Threshold: The income limit for eligibility has been raised from $65,000 to $75,000 in fiscal year 2026, then to $77,000 and $79,000 in 2027 and 2028, respectively.

****Three-Year Occupancy Requirement: New property owners cannot claim the tax benefit, and existing homeowners must meet specific residency requirements.

****Payment Plans: The law introduces payment plans for seniors who are behind on their taxes, providing additional financial relief.

This legislation aims to support seniors facing rising housing costs and ensures more residents can benefit from property tax relief.