Guardianships: Someone to Watch Over Them

Michele Morgan, Vice President/Trust Officer MorganM_BUS003xqc

The one thing you should know about guardianships—also known as conservatorships—is that they protect individuals who are unable to make sound decisions for themselves. As court-ordered arrangements, they result in the appointment of an individual or corporation to handle that person’s care and/or financial matters.

The arrangement lasts as long as necessary. In the case of a minor, that may be until they reach the age of 18. For an adult, it could be a lifelong appointment or just until they sufficiently recover from a health issue.

Circumstances That Lead to the Need

Guardianships are subject to state laws, and established by a court proceeding in the individual’s home county. Where children are involved, there is typically a large sum of money—either an unexpected inheritance or a personal injury settlement. Adult guardianships generally arise due to a temporary or permanent disability or an injury.

When the need arises, there are two different roles created in a guardianship: one involving the “Guardian of the Person” where the named individual or corporation is appointed to oversee the needs and care of the individual. The second role is the “Guardian of the Estate” to oversee the individual’s financial matters.

Guardians can be family members, unrelated individuals or, as mentioned above, corporations. Where large sums are involved, judges often prefer to see a bank serve as the guardian of the estate or, at the very least, as a co-guardian to ensure the assets will remain in place to support the individual throughout their life. Regardless of who is appointed the court requires an annual report to ensure the current arrangements continue to serve the needs and best interests of the individual.

Guardianships for children end at the age of 18 with a proceeding that determines the individual is now capable of making rational and prompt decisions about their own care and finances. For adults, a physician typically supplies a statement verifying they’ve regained the capacity to assume responsibility for their own care and finances.

Guardianships versus Powers of Attorney or Estate Plans

The need for a guardianship arises from the lack of other legal documents, such as powers of attorney or an estate plan. Sometimes, family members are overwhelmed by the medical side of caring for a loved one or have trouble agreeing on a course of action. In such cases, they may petition the court to appoint an impartial corporate guardian, especially to oversee financial matters. This saves family members from having to account to the court for how money is spent and from having to reimburse the estate if any charges are deemed inappropriate later.

Compassion Is Part of the Arrangement

While having the court involved in the care and financial matters of a loved one may seem invasive, judges involved with cases like these typically act as extended family members, especially where juveniles are involved. They take a genuine interest in ensuring each person gets what they need to be the best they can be. Compassion carries the day.

To learn more about guardianships and how Old Second can be of assistance in this area, please call me at 630-844-3222. I’m here to help get you the answers you need as you consider your family’s options.

Land Trusts: An Estate Planning Tool

Carolyn Swafford, CTFA, Vice President/Trust OfficerSwaffordC_BUS014qc

Land trusts are a versatile legal tool for holding title to real estate. Individuals, investors, businesses and families all use land trusts to accomplish specific goals regarding the acquisition, ownership and transfer of property.

Land of Lincoln…and Trusts

Illinois is among only a handful of states that allows the creation of land trusts. Although the legal precedent originated in England, land trusts also began popping up in the United States. They first appeared in Illinois in the late 19th century and were used by real estate developers to acquire multiple parcels of land needed to build large-scale developments.

Using Land Trusts

Privacy is a popular reason to establish a land trust. Property can be deeded into a land trust either at the time of purchase or anytime afterwards. The trust becomes the owner of the property. The individual then becomes the beneficiary with all the rights, avails and proceeds to the property. Since the trust is the owner of the property, the beneficiary is able to keep their name off all public records.

As a legal tool, therefore, a land trust can be used to accomplish very specific goals. Here are three of the most common uses.

Protecting Business Interests

Land trusts are a great way to add a layer of protection between the beneficiary and the property that is contained in the trust. This protection ensures judgment claims against a beneficiary do not automatically become a lien on the real estate or otherwise cloud the title.

Bypassing Probate

If an individual or individuals are named to inherit the beneficiary’s interest after their death, the land trust is not subject to the probate process. This allows the remainder beneficiaries to manage or sell the real estate much faster.

Transferring Interests

When there are multiple beneficiaries in a land trust, there may be a time when one beneficiary buys another out. Individuals may also want to gift their share to another person. Transferring interests within a land trust is accomplished easily and quickly without the need to record public documents.

Flexible and Easy to Establish

Since a land trust is a legal entity, you will want your attorney to prepare the Land Trust Agreement and Deed in Trust. In cases where Old Second is named as the trustee, the necessary forms are downloadable from our website.

For more information on land trusts, click here or contact me directly at 630-906-5470 to discuss how this legal tool might benefit you.

 

 

Career Tips for the Class of 2017

Chris Lasse, First Vice President/Human Resource DirectorLasseC_IN097qc

With graduation comes a deluge of well-intended career advice from family, friends…and total strangers. Some of it will transcend the ages, while some may reflect a different time and employment environment. Other advice may simply not be right for you and what you want to accomplish.

As you sort through it all, here are six tips to help you make the most of your first career move and the opportunities that follow. They’re based on what we see as we pour through resumes, interview candidates and make hiring decisions.

  1. Choose passion over money. When you are excited about what you do, you tend to do it well. That passion will eventually lead to a higher paycheck over the long haul. Taking a job that holds little interest but offers a higher salary may seem like the responsible thing to do. However, it can lead to being stuck in a career path you can’t afford to exit. It can also leave you without the skills and experience needed to transition into the profession you aspired to in the first place.
  2. Know the tradeoffs of working for a large or small company. Large companies can be well-oiled recruiting and training machines. Often, however, in exchange for a company that looks good on your resume, you give up some control over the skills you acquire, what you get to do with them, the breadth of experience you gain and the positions open to you. Working for a smaller company can expose you to a wider variety of job duties. Many times, this means gaining exposure to senior-level executives and the work that they perform—things that can be off limits at bigger companies.
  3. Be realistic about the market value of your degree. As an English major, for example, your starting salary might be less than half of that of an engineering graduate. Realize your value as an entry-level candidate—don’t shortchange yourself, but be pragmatic. Factor in the long-term value of building skills and gaining experience. And, if you need a tie-breaker, always take the job with the better boss.
  4. Look beyond the title. Good entry-level jobs help train you for long-term success. For instance, we often have openings for Credit Analysts. These positions are vital to the lending process. More importantly, they can lead to any number of lucrative career paths since they offer employees the chance to build very marketable experience and skills that are currently in short supply. Consider these types of jobs, they are stepping stones to greater responsibility.
  5. Find a way to stand out. The numerous job sites—from Indeed to LinkedIn—make it easy to find and apply for positions. With one click, you and several hundred other new graduates with your same degree and level of experience can go after the same job. Find ways to be different.

When you are one in 400, make sure your resume stands out.

  • Find a way to become an employee referral. This will improve your odds of getting hired more than anything else you do.
  • Check LinkedIn for any possible connection you can make to the recruiter or someone at the hiring company.
  • Edit your resume for each job to include phrases from the posting. If an automatic parsing tool is used, you will be a perfect match. If not, you’ll catch the recruiter’s eye.
  • Craft a unique cover letter for each position to personalize your application.
  • Have a zero-tolerance policy for grammatical and spelling errors.
  1. Be strategic and have a long-term plan. This means thinking about where you want to be in 3–5 years or more. Mapping out your path will help you identify the type of experience you need and the skills you want to acquire. It not only makes you a more committed candidate, but it also keeps you focused and motivated.

Remember, the path you are on is long and likely to take unexpected turns. Our best advice is to use each stop to learn, expand your skills and gain the experience that leads to the next opportunity. We know you’ll do great.

If you are interested in making Old Second Bank your first stop after graduating, click here.

Taking the Stress Out of Closings

Alaine Bussler, Residential Closing Manager00001

David Kozuh, First Vice President—Residential Lending

Making the decision to buy a new home is thrilling, and the last thing we want is for the mortgage process to interfere with that. That’s why we make sure you know what to expect each step of the way. If you have a question or don’t understand something in a document you’ve been sent, we are here to talk you through it.

New Transparency

In the past, much of the stress in the closing process came from the way lenders were required to provide disclosure and loan documents to you. It made it harder to know how much your home—and your loan—would really cost after fees. That was typically something that came at the very last minute, without adequate time to review.

That has changed. The disclosure requirements are now much easier to read and understand. We are able to give you the first document, The Loan Estimate, three days after you apply for a mortgage, and the second document, The Closing Disclosure, three days before you close. This gives you time to review the terms and amounts you are agreeing to and enables you to ask questions if there is anything you are unsure of.

The Loan Estimate

Like its name implies, this three-page document summarizes the terms and price of your loan. It provides the information needed to develop a better understanding of your mortgage quote, including the amount you can expect to pay monthly based on the estimated closing costs.

The Closing Disclosure

The Closing Disclosure is an itemized account of the final settlement expenses and is provided three days before you close. Specifically, it confirms the final terms, how much cash you will need to bring to your closing, the loan details and the total cost of the loan. The Closing Disclosure also provides an accounting of any changes in the amounts that appeared in the Loan Estimate, along with reasons for them.

In combination, the two documents enable you to understand what, if anything, changed before agreeing to the final terms.

Big Numbers Shouldn’t Lead to Tense Times

The changes to the disclosure law essentially make the way we work with our borrowers—taking the time to answer questions and being transparent about what’s being agreed to—standard to the industry.

Give us a call, at 877-966-0202 and let’s talk about what we can do to keep your mortgage experience as stress free as possible.