Property Tax Under a Trust (Chicago, Orient: to rent, insurance, credit)

[Jesse69]

I get into arguments with my brother concerning our inheritance. He ******* that I will inherit a $650,000 Wicker Park home, while he gets nothing of it. He refuses to manage the trust when my parents dies and if he did manage the trust he would **** me off saying the house can't be maintained and that he has to sell it under me. Well, I tell him that when both my parents die I will do any job just to keep money rolling in and pay the property tax, utilities, and home insurance. He says the property tax will TRIPLE under a trust - is that true? We get long term resident and sr citizen discount on our property taxes now, so our bill is around $5800 yearly.

Anyone have their property tax switch to a trust? How much did it change for you?

[jdiddy]

Might have to sell your bikes and extensive ladies wardrobe.

[lycos679]

How are you going to pay the property tax on disability income?

The property tax will probably go up under a new owner (trust or person), but who knows if it would triple.

[chet everett]

Jesse's , uh, quirks aside, I feel for anyone that has to deal with family issues and property problems. I have faced lots of situations exactly as described and Jesse ought to plan ahead.

First the property can (and likely should) be titled to a trust now. Jesse's parents can make provisions that would prevent a "brother against brother" situation down the road by looking at all their assets and deciding how to equtiably structure any inheritance.

I believe Jesse has said that both he and his parents have disabilities and thus it is likely that he could qualify for some reduced property tax category. It is not likely that taxes would triple just becuase of the property being transfered from his parents to a beneficial trust but an attorney should be consulted that would lay out the details.

It is generally a good idea to get an accurate picture of the whole range of financial implications that should be considered and that would include not just the taxes but also the potential need to tap into any equity via something like a reverse mortgage, assuming that other guidelines are met.

There are lots of people that claim to specialize in "financial planning" that really have more of an interest in "selling" things like annuities / life insurance which may not be appropriate so it would behoove the OP or anyone facing similar challenges to educate themselves before they make any changes that may be costly...

Start by trying to track down these books --

The Wall Street Journal Complete Estate-Planning Guidebook: Rachel Emma Silverman: 9780307461278: Amazon.com: Books

Estate Planning Smarts: A Practical, User-Friendly, Action-Oriented Guide, 2nd Edition: Deborah L. Jacobs: 9780615453668: Amazon.com: Books

After We're Gone: Perspectives on estate and life plannning for families that include a dependent member with a disability: Duane Ruth-Heffelbower: 9780836195651: Amazon.com: Books

[Jesse69]

Originally Posted by jdiddy

Might have to sell your bikes and extensive ladies wardrobe.

I would sell 70% of my bikes and 40% of my women's clothes if I can't make a living in America. The Chicago job market sucks for Mech Eng type work, like they want 5+ years experience yet they pay peanuts - $50,000 to $55,000 a year. I've had several interviews where they didn't hire me because my $48,000 a year was too much for them. Pathetic Chicago companies and their pay, when it's expensive to rent a good apt in Chicago.

I will talk to my alderman about the future tax rate under a trust. I also need to complain to him about my neighbor who keeps throwing lots of bread on the sidewalk to feed the birds. Feeding birds is illegal and I've called the alderman twice but they never gave my neighbor a $500 ticket. She needs to be ticketed for every offense, because she not sympathetic that all those birds put a ton of bird**** on my vehicles.

So if I can't make a decent living in America then I will just move to the Philippines in Quezon City near my cousin. Sell our Wicker Park house for $650,000 and buy a $120,000 house in the Philippines. Live off of my $1171 monthly SSDI.

Or maybe I can survive in America doing any PT job that gets me $1000 monthly to add to my SSDI. So $2171 monthly should pay the property taxes, utilities, food, + needed expenses.

If I was in a bind I'd use crowdfunding for donations to pay my property tax. Like at Gofundme.com

[Chi-town Native]

Originally Posted by Jesse69

I will talk to my alderman about the future tax rate under a trust. I also need to complain to him about my neighbor who keeps throwing lots of bread on the sidewalk to feed the birds. Feeding birds is illegal and I've called the alderman twice but they never gave my neighbor a $500 ticket. She needs to be ticketed for every offense, because she not sympathetic that all those birds put a ton of bird**** on my vehicles.

These issues are not your alderman's responsibility. An alderman doesn't write tickets or assess/tax properties!

And people wonder why the City Council is so lame. It's because their constituents waste so much of their time on these kinds of things.

Specific to your housing/sibling issue, yes, the taxes are almost certainly going to go up just due to the senior exemption going away.

[emathias]

Originally Posted by Jesse69

I would sell 70% of my bikes and 40% of my women's clothes if I can't make a living in America. The Chicago job market sucks for Mech Eng type work, like they want 5+ years experience yet they pay peanuts - $50,000 to $55,000 a year. I've had several interviews where they didn't hire me because my $48,000 a year was too much for them. Pathetic Chicago companies and their pay, when it's expensive to rent a good apt in Chicago.

I will talk to my alderman about the future tax rate under a trust. I also need to complain to him about my neighbor who keeps throwing lots of bread on the sidewalk to feed the birds. Feeding birds is illegal and I've called the alderman twice but they never gave my neighbor a $500 ticket. She needs to be ticketed for every offense, because she not sympathetic that all those birds put a ton of bird**** on my vehicles.

So if I can't make a decent living in America then I will just move to the Philippines in Quezon City near my cousin. Sell our Wicker Park house for $650,000 and buy a $120,000 house in the Philippines. Live off of my $1171 monthly SSDI.

Or maybe I can survive in America doing any PT job that gets me $1000 monthly to add to my SSDI. So $2171 monthly should pay the property taxes, utilities, food, + needed expenses.

If I was in a bind I'd use crowdfunding for donations to pay my property tax. Like at Gofundme.com

I've always been amazed how $48,000 is "peanuts" yet you're happy to live on about 1/3 of that rather than work to triple your take-home pay.

[Chicago87]

Originally Posted by emathias

I've always been amazed how $48,000 is "peanuts" yet you're happy to live on about 1/3 of that rather than work to triple your take-home pay.

The difference is that the SSDI requires ABSOLUTELY NO WORK. It just gets deposited into his account every single month without him having to do anything to earn it, he doesn't have to put up with anyone or anything, and has unlimited free time. He can basically do whatever he wants, whenever he wants.

If he were to actually get a job, he has to WORK. Wake up early, not be able to sleep in, not be able to stay up late, commute, deal with orders from the boss, deal with coworkers, have much less free time, etc.

[lycos679]

Originally Posted by Chicago87

The difference is that the SSDI requires ABSOLUTELY NO WORK. It just gets deposited into his account every single month without him having to do anything to earn it, he doesn't have to put up with anyone or anything, and has unlimited free time. He can basically do whatever he wants, whenever he wants.

If he were to actually get a job, he has to WORK. Wake up early, not be able to sleep in, not be able to stay up late, commute, deal with orders from the boss, deal with coworkers, have much less free time, etc.

Still seems like a silly decision, especially considering the SSDI payments will be cut in a few years.

[Jesse69]

Originally Posted by emathias

I've always been amazed how $48,000 is "peanuts" yet you're happy to live on about 1/3 of that rather than work to triple your take-home pay.

I learned that when you interview or apply for a job you should ask for a salary that you think you're worth. Because if you get hired at a low salary it's hard to get a raise because COMPANIES ARE CHEAP ON RAISES AND THEY DISCREDIT THE GOOD / HARD WORK THAT YOU DO. - This happened to me at Platt Luggage.

Originally Posted by Chi-town Native

These issues are not your alderman's responsibility. An alderman doesn't write tickets or assess/tax properties!

And people wonder why the City Council is so lame. It's because their constituents waste so much of their time on these kinds of things.

Specific to your housing/sibling issue, yes, the taxes are almost certainly going to go up just due to the senior exemption going away.

I went to my alderman's presentation on property taxes two years ago. So they do deal with property tax issues. But I have to complain to my alderman about my neighbor's bird feeding too, which is very annoying because birds gather around here by habit then they put a ton of **** on the cars.