Many people receiving Social Security Disability benefits wonder whether they are allowed to work and still keep their benefits. The answer is yes in some situations, but the rules are strict and can be confusing. Working while receiving disability benefits without understanding the guidelines can put your benefits at risk.

This article explains how working affects Social Security Disability benefits, the programs involved, and what you need to know before accepting a job.

Understanding SSDI and SSI Work Rules

The Social Security Administration offers two disability programs, and the work rules differ for each:

• Social Security Disability Insurance (SSDI)
• Supplemental Security Income (SSI)

Knowing which program you receive is essential because income limits and reporting requirements are different.

Substantial Gainful Activity Explained

Social Security uses a concept called substantial gainful activity to determine whether you are considered disabled. If your earnings exceed the monthly limit set by Social Security, you may no longer qualify for disability benefits.

The monthly income limit changes each year. Earning more than the allowed amount can result in benefit reduction or termination.

Trial Work Period for SSDI Recipients

SSDI recipients are allowed a trial work period that lets them test their ability to work without immediately losing benefits.

During the trial work period:
•You can work for up to nine months
•You receive full SSDI benefits regardless of earnings
•The months do not need to be consecutive

After the trial work period ends, additional rules apply to determine whether benefits continue.

Extended Period of Eligibility

Following the trial work period, SSDI recipients enter an extended period of eligibility. During this time:
•Benefits may continue if earnings stay below the limit
•Benefits may stop for months earnings exceed the limit
•Benefits can restart without a new application if earnings drop

This structure allows some flexibility while monitoring work activity.

Working While Receiving SSI Benefits

SSI benefits are based on financial need, so working affects payments differently. Earnings reduce SSI benefits rather than immediately ending them.

Key points include:
•Social Security excludes part of your income
•SSI payments decrease as earnings increase
•You must report all income promptly

Even small amounts of work income can change your monthly benefit amount.

Reporting Work Activity to Social Security

All disability recipients must report work activity to Social Security. Failure to report earnings accurately can result in overpayments and penalties.

You should report:
•Start and stop dates of employment
•Changes in work hours
•Monthly earnings
•Self employment income

Keeping detailed records helps protect your benefits.

Risks of Working Without Legal Guidance

Many people lose benefits because they misunderstand work rules or fail to report income correctly. Common issues include:
•Exceeding income limits
•Missing reporting deadlines
•Improper classification of work
•Overpayment demands from Social Security

Speaking with an attorney before returning to work can help you avoid these problems.

How an Attorney Can Help

An experienced Social Security Disability attorney can:
•Explain how work affects your specific benefits
•Help you plan a return to work safely
•Ensure income is reported properly
•Assist with overpayment disputes
•Represent you if benefits are reduced or terminated

Legal guidance provides peace of mind and helps protect your long term benefits.

Understanding Your Options Before You Work

Working while receiving Social Security Disability benefits may be possible, but it requires careful planning and strict compliance with Social Security rules. Before starting a job, it is important to understand how earnings affect your benefits and what steps are required to stay compliant.

If you are unsure about your ability to work or how income may impact your disability benefits, speaking with an experienced attorney can help you make informed decisions and avoid costly mistakes.

One of the most common questions injured workers ask is how long a workers’ compensation claim takes to resolve. Unfortunately, there is no single timeline that applies to every case. The length of a workers’ compensation claim in Illinois depends on several factors, including the severity of the injury, whether the claim is disputed, and how long medical treatment lasts.

Understanding the typical stages of a claim can help set realistic expectations and reduce frustration during the process.

Initial Reporting and Claim Processing

The workers’ compensation process begins when you report your injury to your employer. In many cases, employers promptly notify their insurance carrier, and benefits may begin quickly if the claim is accepted.

For straightforward injuries that require minimal treatment, benefits can begin within weeks. However, even at this early stage, delays may occur if the employer or insurer questions how the injury happened or whether it is work related.

Medical Treatment and Recovery Time

Medical treatment plays a major role in determining how long a workers’ compensation claim lasts. Some claims resolve quickly because the injury heals within a short period of time. Others remain open for months or even years due to ongoing treatment.

Claims often remain active until one of the following occurs:
•You reach maximum medical improvement
•You return to work without restrictions
•Your doctor assigns permanent work restrictions or disability ratings

The longer treatment continues, the longer the claim may remain open.

Temporary Disability Benefits Timeline

If you are unable to work due to your injury, temporary total disability benefits may begin shortly after your claim is approved. These benefits typically continue until:
•You are medically cleared to return to work
•You reach maximum medical improvement
•Your benefits are disputed or modified

Any dispute over work status or restrictions can extend the timeline of a claim.

Claims That Are Delayed or Disputed

Not all workers’ compensation claims move smoothly. Disputes can significantly lengthen the process. Common reasons for delays include:
•Employer disputes about whether the injury is work related
•Questions about pre existing conditions
•Requests for independent medical examinations
•Disagreements over disability ratings
•Late or incomplete paperwork

When a claim is disputed, it may take many months or longer to resolve.

Illinois Workers’ Compensation Commission Proceedings

If benefits are denied or disputed, the claim may go before the Illinois Workers’ Compensation Commission. This process includes hearings, evidence submission, and sometimes testimony from medical professionals.

Cases that go through the Commission often take longer due to scheduling and procedural requirements. Some cases may take a year or more to reach resolution, especially if appeals are involved.

Settlement Timing

Many workers’ compensation claims end with a settlement. The timing of a settlement depends on factors such as:
•Completion of medical treatment
•Agreement on disability ratings
•Strength of medical evidence
•Negotiations between attorneys and insurers

Some settlements occur within months, while others take longer if treatment is ongoing or disputes remain unresolved.

Permanent Disability and Long Term Claims

Claims involving permanent partial disability or permanent total disability often take longer than temporary injury claims. These cases require detailed medical evaluations and may involve additional hearings or negotiations before benefits are finalized.

How an Attorney Can Help Move Your Claim Forward

An experienced workers’ compensation attorney can help reduce unnecessary delays by:
•Ensuring deadlines are met
•Gathering complete medical documentation
•Responding to insurance disputes
•Representing you at hearings
•Negotiating fair settlements

While an attorney cannot control every aspect of the process, legal guidance often helps claims move more efficiently and protects injured workers from avoidable setbacks.

What to Expect From Your Workers’ Compensation Claim

Some Illinois workers’ compensation claims resolve in a few months, while others take significantly longer. Factors such as medical recovery, employer cooperation, and legal disputes all affect the timeline.

If your claim is taking longer than expected or you are facing delays or denials, speaking with a workers’ compensation attorney can help you understand what is happening and what steps may help move your case forward.

If you’re struggling with overwhelming debt, nonstop creditor calls, or the fear of losing your home or vehicle, you’re not alone—and you’re not out of options.
Bankruptcy is a legal process that may help you eliminate certain debts, stop collections, and work toward a financial fresh start. But like any major decision, it’s important to understand what bankruptcy is, how it works, and which type of filing best fits your situation.
This quick overview explains the basics in plain English.

What Is Bankruptcy?

Bankruptcy is a legal proceeding in federal court that may allow you to be released from the obligation of paying some or all debts. For many people, it provides relief from debt that has become impossible to manage. 

While bankruptcy can provide a “fresh start,” it can also carry consequences—so it’s important to know what you’re walking into before filing.

What Happens Immediately After You File?

One of the most powerful protections in bankruptcy is the Automatic Stay.

Once your bankruptcy case is filed, the automatic stay requires most creditors to stop collection activity. That typically includes:

• Phone calls demanding payment
  
• Wage garnishments
  
• Collection lawsuits
  
• Continued attempts to collect on the debt
  

This can provide immediate breathing room for individuals who have been under constant financial stress. 

Chapter 7 vs. Chapter 13: What’s the Difference?

Most consumer bankruptcies are filed under either Chapter 7 or Chapter 13. Understanding the differences can help you make the best decision.

Chapter 7 Bankruptcy (Often Called “Straight Bankruptcy”)

Chapter 7 is commonly known as liquidation bankruptcy. In this type of case, a trustee is appointed and may sell certain non-exempt assets to pay creditors. 

In many cases, however, people do not lose property because their assets are protected by exemptions.

Chapter 7 is typically used by people who want a quicker discharge and have limited income or limited property that must be protected.

Key points about Chapter 7:

• Debts may be discharged relatively quickly
• A trustee oversees the case

Certain debts cannot be discharged (examples below)

Chapter 13 Bankruptcy (Often Called “Reorganization Bankruptcy”)

Chapter 13 is often described as a wage earner plan because it is typically used by individuals with steady income who want to repay at least some debt over time.

Instead of liquidating assets, Chapter 13 allows many people to keep their property while following a court-approved repayment plan over three to five years. 

Key points about Chapter 13:

• Requires regular income
  
• Uses a repayment plan lasting 3–5 years
  

May help stop foreclosure and allow a homeowner to catch up on missed payments

What Debts Usually Cannot Be Discharged?

Bankruptcy can eliminate many types of debt, but some obligations generally cannot be discharged, including:

• Child support and alimony
• Most tax obligations
  
• Most student loans
  
• Certain debts involving intentional harm or wrongdoing
  

This is why it’s important to talk with an attorney before assuming bankruptcy will erase everything you owe.

Will You Lose Everything If You File?

Not necessarily.

Illinois provides certain exemptions that allow individuals to protect specific categories of property during bankruptcy. While exemptions vary and may depend on your specific situation, bankruptcy law commonly protects basic necessities and certain equity amounts. 

Bankruptcy is not automatically a “lose everything” process—many cases result in the filer keeping all essential property.

What About Credit Damage?

Bankruptcy can impact your credit score and appear on your credit report for years. This may affect:

• Future loans and interest rates
  
• Renting a home or apartment
  
• Certain employment situations
  
• Utility services, cell phone contracts, and more
  

That said, many people still decide bankruptcy is the right step—especially when it stops aggressive collections and provides a clear financial path forward.

Are There Alternatives to Bankruptcy?

Yes.
Some people may be able to avoid bankruptcy by working directly with creditors through:

• Reduced payment plans
  
• Temporary payment delays
  
• Credit counseling and structured repayment programs

In many cases, creditors may be willing to negotiate—especially if they believe bankruptcy is a real possibility. 

Final Thoughts: Bankruptcy Is a Legal Tool—Not a Personal Failure

Bankruptcy exists for a reason: to help people regain control when debt becomes unmanageable.

If your financial situation is becoming harder to survive month after month, bankruptcy may be a step worth exploring. The key is understanding your options, protecting what matters most, and choosing a legal strategy that fits your goals.

Download the Full Illinois Bankruptcy Guide

This blog post is only a summary. The full guide includes deeper explanations of:

• Key bankruptcy terms explained clearly
  
• Step-by-step breakdown of Chapter 7 and Chapter 13
  
• What to expect at the “341 Meeting of Creditors”
  
• Exemptions and what you may be able to keep
  
• Reaffirmation agreements and how they work
  
• Alternatives to bankruptcy and when they make sense

[DOWNLOAD THE FULL ARTICLE]

A Brief Description of the Types of Bankruptcy

Chapter 7: Chapter 7 is designed for debtors in financial difficulty who do not have the ability to pay their existing debts. Under chapter 7 a trustee takes possession of all your property. You may claim certain of your property as exempt under governing law. The trustee then liquidates the property and uses the proceeds to pay your creditors according to priorities of the Bankruptcy Code. The purpose of filing a chapter 7 case is to obtain a discharge of your existing debts. If, however, you are found to have committed certain kinds of improper conduct described in the Bankruptcy Code, your discharge may be denied by the court, and the purpose for which you filed the bankruptcy petition will be defeated. Even if you receive a discharge, there are some debts that are not discharged under the law. Therefore, you may still be responsible for such debts as certain taxes and student loans, alimony and support payments, criminal restitution, and debts for death or personal injury caused by driving while intoxicated from alcohol or drugs. Under certain circumstances you may keep property that you have purchased subject to valid security interest. Your attorney can explain the options that are available to you.

Chapter 13: Chapter 13 is designed for individuals with regular income who are temporarily unable to pay their debts but would like to pay them in installments over a period of time. You are only eligible for chapter 13 if your debts do not exceed certain dollar amounts set forth in the Bankruptcy Code. Under chapter 13 you must file a plan with the court to repay your creditors all or part of the money that you owe them, using your future earnings. Usually, the period allowed by the court to repay your debts is three years, but no more than five years. Your plan must be approved by the court before it can take effect. Under chapter 13, unlike chapter 7, you may keep all your property, both exempt and non-exempt, as long as you continue to make payments under the plan. After completion of payments under your plan, your debts are discharged except alimony and support payments, student loans, certain debts including criminal fines and restitution and debts for death or personal injury caused by driving while intoxicated from alcohol or drugs, and long term secured obligations.

Chapter 11: Chapter 11 is designed for the reorganization of a business but is also available to consumer debtors. Its provisions are quite complicated, and any decision by an individual to file a chapter 11 petition should be reviewed with an attorney.

Chapter 12: Chapter 12 designed to permit family farmers to repay their debts over a period of time from future earnings and is in many ways similar to chapter 13. The eligibility requirements are restrictive, limiting its use to those whose income arises primarily from a family – owned farm.

SERVICES AVAILABLE FROM CREDIT COUNSELING AGENCIES

If you’re not disciplined enough to create a workable budget and stick to it, can’t work out a repayment plan with your creditors, can’t keep track of mounting bills, or need more help with your debts than can be achieved by merely having a few of your unsecured creditors lower your interest rates somewhat, it makes NO sense to consider contacting a credit counseling organization. If, on the other hand, you meet all of those criteria, there are many non-profit credit counseling organizations are nonprofit that will work with you to solve your financial problems. But just because an organization says it is “nonprofit,” there’s no guarantee that its services are free, affordable, or even legitimate. In fact, some credit counseling organizations charge high fees, which may be hidden, urge consumers to make “voluntary” contributions that can cause more debt, urge consumers to enter “debt repayment plans” they simply cannot afford.

Most credit counselors offer services through local offices, the Internet, or on the telephone. If possible, it probably best to find an organization that offers in-person counseling. Many universities, military bases, credit unions, housing authorities, and branches of the U.S. Cooperative Extension Service operate nonprofit credit counseling programs. Your financial institution, local consumer protection agency, and friends and family also may be good sources of information and referrals.

Reputable credit counseling organizations can advise you on managing your money and debts, help you develop a budget, and offer free educational materials and workshops. Their counselors are certified and trained in the areas of consumer credit, money and debt management, and budgeting. Legitimate counselors will discuss your entire financial situation with you, and help you develop a personalized plan to solve your money problems. An initial counseling session typically lasts an hour, with an offer of follow-up sessions.

If your financial problems stem from too much debt or your inability to repay your debts, a credit counseling agency may recommend that you enroll in what is known as a “debt management plan” or “DMP”. A DMP alone is not credit counseling, and DMPs are not for everyone. You should sign up for one of these plans only after a certified credit counselor has spent time thoroughly reviewing your financial situation, has offered you customized advice on managing your money, and has analyzed your budget to make sure that the proposed DMP is one you can afford. However, remember that all organizations that promote DMP’s fund themselves in part through kickbacks from the creditors involved, which are called “fair share”, so you have to be wary as to whose best interest the counselor has in mind. Even if a DMP is not appropriate for you, a reputable credit counseling organization still can help you create a budget and teach you money management skills.

In a DMP, you deposit money each month with the credit counseling organization, which uses your deposits to pay your unsecured debts, like your credit card bills and medical bills, according to a payment schedule the counselor develops with your creditors. Your creditors may agree to lower your interest rates or waive certain fees, but it’s always best to check with all your creditors, just to make sure they offer the concessions that a credit counseling organization is promising you. A successful DMP requires you to make regular, timely payments, and could take 48 months or more to complete. Ask the credit counselor to estimate how long it will take for you to complete the plan. You may have to agree not to apply for — or use — any additional credit while you’re participating in the plan, and a DMP is absolutely useless if your problems stem from or involve your secured creditors holding your car, truck or home as collateral. DMP’s are also useless if your problems stem from alimony, child support or overdue taxes.

The bottom line is this: If all you need is a little lowering of your interest rates on some unsecured debts, a DMP might be the answer. However, if what you really need is to reduce the amount of your debt, bankruptcy may be the only solution.

EXPLANATION OF MEANS TESTING

Before your case can be filed, it is subject to what is called “Means Testing”. The Means Test was designed to determine whether or not you qualify to file a case under chapter 7 of the Bankruptcy Code, and if not, how much you need to pay your unsecured creditors in a chapter 13 case. For purposes of means test, you must state, after reasonable inquiry, your total current monthly income, the amount of all expenses as specified and allowed pursuant to section 707(b)(2) of the Bankruptcy Code, and if the plan is to file you in a Chapter 13 case, you must state, again after reasonable inquiry, your disposable income, as that term is defined.

YOUR DUTY TO PROVIDE ACCURATE AND COMPLETE DISCLOSURE

Some or all of the information you provide in connection with your bankruptcy will be filed with the bankruptcy court on forms or documents that you will be required to sign and declare as true under penalty of perjury.

All information that you are required to provide with the filing of your case and thereafter, while your case is pending, must be complete, accurate and truthful.

All your assets and all your liabilities must be completely and accurately disclosed in the documents filed to commence your case.

Some places in the bankruptcy code require you to determine and list the replacement value of an asset such as a car, or furniture. When replacement value is required, it means the replacement value, established after reasonable inquiry, as of the date of the filing of your bankruptcy case, without deduction for costs of sale or marketing. With respect to property acquired for personal, family or household purposes, replacement value means the price a retail merchant would charge for “used” property of that kind considering the age and condition of the property.

Information that you provide during your case may be audited pursuant to the provisions of the Bankruptcy Code. Your failure to provide complete, accurate and truthful information may result in the dismissal of your case or other sanctions, including criminal sanctions.

A person who knowingly and fraudulently conceals assets or makes a false oath or statement under penalty of perjury in connection with a bankruptcy case shall be subject to fine, imprisonment, or both. All information you provide in connection with your bankruptcy case is subject to examination by the Attorney General.

REQUIRED DISCLOSURES UNDER THE BANKRUPTCY REFORM ACT MANDATED BY 11 U.S.C.§527(B).

IMPORTANT INFORMATION ABOUT BANKRUPTCY ASSISTANCE SERVICES FROM AN ATTORNEY OR BANKRUPTCY PETITION PREPARER.

If you decide to seek bankruptcy relief, you can represent yourself, you can hire an attorney to represent you, or you can get help in some localities from a bankruptcy petition preparer who is not an attorney. THE LAW REQUIRES AN ATTORNEY OR BANKRUPTCY PETITION PREPARER TO GIVE YOU A WRITTEN CONTRACT SPECIFYING WHAT THE ATTORNEY OR BANKRUPTCY PETITION PREPARER WILL DO FOR YOU AND HOW MUCH IT WILL COST. Ask to see the contract before you hire anyone.

The following information helps you understand what must be done in a routine bankruptcy case to help you evaluate how much service you need. Although bankruptcy can be complex, many cases are routine.

Before filing a bankruptcy case, either you or your attorney should analyze your eligibility for different forms of debt relief available under the Bankruptcy Code and which form of relief is most likely to be beneficial for you. Be sure you understand the relief you can obtain and its limitations. To file a bankruptcy case, documents called a Petition, Schedules and Statement of Financial Affairs, as well as in some cases a Statement of Intention need to be prepared correctly and filed with the bankruptcy court. You will have to pay a filing fee to the bankruptcy court. Once your case starts, you will have to attend the required first meeting of creditors where you may be questioned by a court official called a ‘trustee’ and by creditors.

If you choose to file a chapter 7 case, you may be asked by a creditor to reaffirm a debt. You may want help deciding whether to do so. A creditor is not permitted to coerce you into reaffirming your debts.

If you choose to file a chapter 13 case in which you repay your creditors what you can afford over 3 to 5 years, you may also want help with preparing your chapter 13 plan and with the confirmation hearing on your plan which will be before a bankruptcy judge.

If you select another type of relief under the Bankruptcy Code other than chapter 7 or chapter 13, you will want to find out what should be done from someone familiar with that type of relief.

Your bankruptcy case may also involve litigation. You are generally permitted to represent yourself in litigation in bankruptcy court, but only attorneys, not bankruptcy petition preparers, can give you legal advice.

REQUIRED DISCLOSURES UNDER THE BANKRUPTCY REFORM ACT MANDATED BY 11 U.S.C. §528(a)(1)

FREE INITIAL CONSULTATION AGREEMENT

You (“Client”) are hereby requesting the opportunity to consult with and obtain information and advice from the Stephend Fiddes McGill & Associates, P.C. (“Law Firm”) regarding relief from debts, including relief from debts by filing bankruptcy under the United States Bankruptcy Code. This agreement is for purposes of that initial consultation only. If at the end of the Free 20 minute Initial Consultation, the parties agree that the Attorney is to provide any additional services short of being retained to file a bankruptcy, the parties shall attach an addendum to this contract setting forth the additional services the Attorney is to provide to the Client, the obligations of the Client, and the Attorney’s fees for such services. If the Client retains the Attorney to file a bankruptcy, the parties shall execute a separate contract setting forth the fees and other terms of such representations. With respect to the consultation, the parties agree as follows:

There is no fee for the completion of the forms and discussion of your financial situation. In the event that Client wishes to hire Attorney for any purpose other than a Limited 20 Minute Free Initial Consultation then a separate agreement must be executed by all parties.

Law Firm shall provide the Client the following services:

Analyze the client’s financial circumstances based on information provided by the Client.

To the extent possible, based on the information provided by the Client, advise the Client of the Client’s bankruptcy options and non-bankruptcy options.

Advise the Client of the requirements placed upon the Client to file a chapter 7 or 13 bankruptcy.

To the extent possible, quote the Client an estimated fee for the Law Firm’s services to provide bankruptcy assistance or other legal services to the Client.

There is no obligation on the part of the client to tender any fees for the initial consultation.

The Law Offices of Stephens Fiddes McGill & Associates, P.C. is proud to be designated as a Federal Debt Relief Agency by an Act of Congress and the President of the United States and is able to assist consumers seeking relief under the U.S. Bankruptcy Code.

SOCIAL SECURITY DISABILITY

SSDI is a federal insurance program of the government that is funded by your payroll taxes. That means if you are working and paying taxes, you are paying into this federal insurance program. Your eligibility for SSDI is based on whether you have worked for enough time and paid enough into the system. Generally, if you have worked for 5 of the past 10 years as of the date of onset of disability, you will qualify for SSDI. Younger claimants need to work for less time to become insured by SSDI. Your benefit amount is based on your earnings. By and large, the more you earned, the more benefits you will receive if you qualify for SSDI.

SUPPLEMENTAL SECURITY INCOME

SSI is a needs-based program of the government administered by the Social Security Administration (SSA). To qualify, SSA will evaluate your financial situation, and not your previous work. SSA will assess your financial situation by examining your assets and determining how much SSI benefit you are eligible for based on any income you receive.

In certain circumstances, you can receive benefits under both SSDI and SSI. This generally occurs when you apply for and qualify for both programs and your SSDI benefits are under the SSI benefit amount you would be eligible for. As a result, it is generally a good idea for claimants to apply for both SSDI and SSI at the initial stage of the application process to ensure receipt of the maximum benefits.

Probate:

Heir:

Legatee:

Beneficiary:

Wills:

Executor:

Administrator:

Power of Attorney:

Agent:

Living Will:

Trust:

Trustee:

Testamentary Trust:

This is a trust that is contained in the Last Will and Testament, and comes into existence only upon death, and is funded by estate assets. A typical Testamentary Trust is one that is for minor children, and holds and pays out for the support, education and health of the children upon the death of the parents.

Special Needs Trust:

When an heir or legatee is known to be disabled and receiving governmental benefits, such as SSI or medical coverage assistance, the receipt of an inheritance can result in such benefits being terminated until the inheritance is “spent down” to levels that re-qualify the person for those benefits. The direction of the inheritance to a Special Needs Trust for the benefit of the disabled person can preserve governmental benefits.

Guardianships:

A guardianship is a court procedure which allows a concerned party to obtain powers of the person and/or property over a disabled adult or minor. If an adult becomes disabled and is without a Power of Attorney, another adult has to be court appointed in order to gain powers over the disabled person’s property and person, and to powers of placement if needed.

Ward:

The name given to a person found disabled pursuant to a guardianship action.

Guardian Ad Litem:

The name of the attorney appointed by the court in a guardianship action. The attorney is a non-interested party, who is to act like a fact checker for the  court, to interview the alleged disabled person, and then report to the court findings and recommendations. If the Guardian Ad Litem reports that the alleged disabled person opposes the proceedings, the court may appoint another attorney to represent the interests of the disabled person.

Letters of Office:

When a person or entity has been court appointed in an official capacity, such as an Executor, Administrator or Guardian, the Circuit Clerk’s office will issue a certified document as proof of that designation. This document is called “Letters of Office”.

Small Estate Affidavit:

Essentially, a written non-money signature bond given to the holder of estate assets which allows the holder to turn over those assets to the estate representative. When an estate is less than $100,000.00 value, probate is not required, and assets can be marshaled by the estate representative in part using Small Estate Affidavits.

Special Secretary of State Small Estate Affidavit:

Similar in content to a Small Estate Affidavit, this Secretary of State form is used to transfer vehicle titles upon death of the decedent.

Affidavit of Heirship:

This Affidavit is used to assist in the transfer of real estate in unprobated cases. It is used to set forth the legal description of the real estate, whether all decedent’s debts have been paid, the names and addresses of heirs, and affirms that formal probate is not necessary.

Joint Tenancy:

Property can be jointly owned by joint tenancy with right of survivorship, tenants in common as to equal or unequal shares, and tenants by the entirety. Like property paid via beneficiary rules, property owned and held in joint tenancy with right of survivorship passes “outside of the estate”, is not an estate assets, and is not subject to contrary directions of a Will or Trust.

Deed to Trust:

A Deed that transfers interest in the described real estate to a Trust. Quit-Claim Deed: A Deed whereby the signor “quits” or gives up all rights, claims and interest to the legally described real estate.

Executor’s Deed:

A Deed that transfers real estate from the Estate to a buyer.

Intentional Interference with an Expectancy:

This is a case of action that can be brought by those that have an expectation of inheritance that is interfered with by a third party. For example, if a caretaker uses fraud or coercion to cause an ill or elderly person to make Will or Trust changes, making the caretaker the recipient of an estate, those deprived of inheritance by such caretaker action can sue the caretaker for a monetary judgment equal to the denied inheritance.

“Nursing Home Rules”:

Illinois has adopted the tougher federal rules regarding qualifying for state paid nursing home payments. There are exceptions and nuances, but the basic rules are as follows: For couples the following assets are exempt: a house up to $750,000.00 in value, one car, household, personal property and other assets totaling approximately $109,640.00, household income of approximately $2,700.00, pre-paid burial contracts up to $10,000.00, and life insurance up to $1,500.00. Any assets over these amounts must be “spent down” before qualifying for state nursing home payments. For a single person, the spend-down rules change drastically, and everything except the burial contract, life insurance as noted and $2,000.00 must be spent down on nursing home expenses before state aid kicks in. There is a five year look back period, which means any transfers of assets for less than fair value made within five years of applying for nursing home payments is considered a fraudulent transfer, done for the purpose of avoiding nursing home payment rules.

Estate Planning/Administration Examples

Now, let’s take a look at a couple of hypothetical situations that are not uncommon, and discuss possible estate planning options.

Hypothetical I:

Husband and wife are in their 30s or 40s, have “normal” assets (house, cars, some savings, some life insurance, 401(k) plan), and three minor children. Ideal estate planning would be to prepare Last Will and Testaments and Powers of Attorneys, appointing each other as Executor and Agent. The Will should have a
Testamentary Trust, which would hold the assets and invest them, and use them for the support, education, and medical provision for the children. We sometimes recommend that final disbursements be staggered. For example, one-third of the remaining trust is distributed equally to the children when the youngest graduates from a fouryear college or attains the age of 25, whichever comes first (the college attendance incentive)., one-half of the remaining trust is disbursed when the youngest attains the age of 30, and the remaining trust assets are disbursed when the youngest is 35 years of age. If a child is disabled, a separate Special Needs Trust should be part of the Will, so that the child’s share is paid to the Trustee of the Special Needs Trust. It may be recommended that life insurance and tax deferred monies be paid into the Testamentary Trust, by naming the trust as a second beneficiary of those assets.

Hypothetical II:

Holder of the assets (whether husband and wife or single) is older, children have left the nest, and the assets are more substantial. The concern at this point is not how assets should be handled for the benefit of the children, but how to avoid unnecessary probate. Ideal would be the development of a Revocable Trust, with a transfer of assets to the Trust. This might include a Deed to Trust for any real estate, and placing assets into a Trust account, subject to the terms of the Trust. Upon death, the successor Trustee can then liquidate and pay the Trust assets per the Trust terms, without the use of court processes.

Hypothetical III:

The husband passed away many years ago, and all assets were in joint tenancy with right of survivorship with his surviving spouse, or payable to the surviving spouse by power of appointment. Surviving spouse passes away, leaving four adult children. The estate consists of a house and contents, C.D.s, bank accounts and a vehicle, all of which combined total less than $100,000.00. The assets were never made subject to a Trust. A Will leaving everything equally to the children is located, naming the oldest child as Executor. This estate does not need probated. The house is sold, and at closing is transferred using an Affidavit of Heirship and four QuitClaim Deeds from the surviving children. The accounts and C.D.s are retrieved using a Small Estate Affidavit, and the funds used to pay any known debt prior to distribution. Once a buyer is found for the car, it can be transferred using a special Secretary of State Small Estate Affidavit. Since the claim period for unprobated estates is two years, it is recommended that some funds be “held back” in an account in reserve for two years in case any unknown debts or claims are presented prior to the expiration of the two-year period.

Hypothetical IV:

Same example as Hypothetical III, but one child is not willing to cooperate with the execution of the Quit-Claim deed. If not part of a Trust, probate would then be recommended to give the Executor court ordered power to sign an Executor’s Deed for purposes of conveying the real estate and marshaling the remaining assets.

Concluding Observations

Nothing in this handout is meant to be considered legal advice, but rather is meant to provide clarification as to terms used in the field of estate planning and administration, how estate planning is done, and administration is implemented. The terms and explanations given are very general and are meant to give the average lay person a basic understanding of estate planning and administration.

Please remember that despite what you hear from others, everyone’s estate planning needs are unique. What might have been done by your neighbor or other family members for estate planning for their property might not be appropriate for your circumstances and may in fact be the wrong thing to do requiring many resources and litigation after death to correct.

Please do not take any major estate planning steps on your own without first acquiring the knowledge to understand the complete possible ramifications of those steps. Some of you may have heard horror stories from friends or acquaintances about how assets and dignity were lost by the failure to use an attorney to properly plan for the future. In most cases such tragedies could have been avoided by simple estate planning with an attorney at a nominal cost compared to what was lost.

At Stephens, Fiddes, McGill & Associates, P.C. we have over 100 years of combined experience in estate planning and administration. We can assess your circumstances, make recommendations that best suit your needs, and prepare those estate planning documents that protect the assets and dignity of both yourself and your family. Come see us and find out why our firm was voted multiple times as one of the top three law firms in Central Illinois. Please remember that all asset information acquired is subject to the attorney-client privilege and cannot be disclosed to others for any reason.

DISCLAIMER

The information contained herein, and any other accompanying information and/or forms, were prepared to answer general questions and give general information about estate planning in Illinois. The information provided is meant to assist readers with general issues, and not meant to constitute legal advice for any specific situations and does not replace the advice or representations of an attorney licensed to practice law in the State of Illinois. Stephens, Fiddes, McGill & Associates, P.C. makes no claim as to whether the use of this information will achieve the results you desire and disclaim any responsibility for the consequences of any form prepared and/or action taken in reliance upon the information/forms given. The law firm further disclaims that any attorneyclient relationship exists by the distribution of this information or forms provided.

TRUSTS

THE FOLLOWING IS INFORMATION EXPLAINING TRUSTS AND PROBATE. IT IS PROVIDED TO YOU FROM INFORMATION FROM THE ILLINOIS STATE BAR ASSOCIATION.

1. How are assets distributed at your death?
A. Non-Probate Assets.
Certain assets may be distributed at your death without court proceedings because of the way the asset is titled or because the asset permits a beneficiary to be named. These assets are often referred to as “non-probate assets.” Assets held in joint tenancy with rights of survivorship are non-probate assets because on the death of a joint tenant title automatically passes to the surviving joint tenant unless it is proven that the funds were placed in joint tenancy solely for purposes of “convenience.”

B. Assets Passing Without Probate: Non-Probate Assets.
Assets with beneficiaries designated, such as life insurance, IRAs and retirement accounts are also non-probate assets because the asset will be distributed to the beneficiary at the owner’s death without court proceedings. Assets that are not non-probate assets, however, such as bank or investment accounts in your name individually, are usually distributed pursuant to the instructions in your will, or if you do not have a will, by the rules provided for by law (intestate rules). These are probate assets. After your death, the court supervises the distribution ofyour probate assets.

C. What Is “Probate?”
Probate is a legal process for administering and managing the estate of a person who died. A court appoints and supervises a responsible individual or trust company, usually as designated by you in your will, who administers and distributes assets. If you have a will, the person appointed is called an “executor;” if you do not have a will, then the person appointed is called an “administrator.” In Illinois, a simplified version of probate called independent administration is available in many cases, but your attorney may still be required to appear in court. Probate has standard procedures for the orderly payment of claims and distribution of assets that may shorten the period for creditors to make claims against the estate.

Probate has the advantage of involving a judge to help sort out disputes and supervise unsophisticated executors. Because a court is involved, however, probate can be somewhat cumbersome, with the need for preparation of special court documents and attorney appearances in court. With a sophisticated trustee or when all the beneficiaries are in agreement, avoiding probate may be desirable.

An alternative to leaving your instructions for distributing your probate assets after your death in a will is to put those instructions in a revocable living trust.

2. What Is A “Trust?”
In its simplest form, a trust is the designation of a person or corporation to act as a trustee to deal with the trust property and administer that property in accordance with the instructions in the trust document. The person who creates the trust is known as the “grantor,” “settlor,” or “trustor.” The persons who receive income or other distributions from the trust are called “beneficiaries.” A trust in essence creates a duty for the person designated as trustee to hold and manage the trust property for the benefit of the beneficiaries as named in the trust document.

A. What Is A “Living Trust?”
Unlike a will, which only becomes effective upon your death, a living trust (also called a “revocable trust” or an “inter vivos trust”) goes into effect during your lifetime and is revocable (capable of being changed, amended, or terminated). A living trust is created by a trust agreement document that specifies who is to be the trustee and that explains how the trust should be administered both during your lifetime and after your death, among other things. It is important to keep in mind, however, that the trust document merely sets up the trust, which will remain empty until it is properly funded, or in other words until assets are actually put into the trust. To maximize the advantages of a living trust, it is essential that you properly transfer your chosen assets to the trust at some point.

You have a lot of flexibility when it comes to setting up your living trust. You may choose to name yourself as trustee and maintain control of the assets you put into the trust, or you may designate someone else. You can also name co-trustees, even if you are one of them. Similarly, you may be the sole beneficiary of the trust during your lifetime, or you may name others, such as your spouse and children, as additional beneficiaries. If you become incapacitated, the trust provides for a successor trustee to manage the trust assets. Upon your death, the living trust contains instructions for the distribution of your assets, just as a will would.

The two primary advantages of a living trust, to the extent you transfer your assets to the living trust during your life, are the avoidance of probate and the avoidance of guardianship proceedings.

Assets held in trust at your death do not have to go through the probate process. When you set up and transfer your assets to a living trust, the trust is considered the owner of your assets. When you die, there is no probate because the trust already owns your assets and not you. The assets are then distributed according to the instructions in the trust.

A living trust is especially useful if you own real estate in more than one state. The general rule is that real estate is probated where it is located. Owning real estate in more than one state will give rise to one main probate administration in the state of your legal residence and another (called “ancillary administration”) in each additional state in which you own real estate. However, because probate is not required for property held in a trust, you can bypass ancillary administration by transferring your out-of-state real estate to a living trust.

Another advantage to a living trust is that it provides for comprehensive disability planning. If you become incapacitated, a living trust provides for a successor trustee to take over the control of the trust. The successor trustee invests the trust funds and uses them for your benefit, according to the instructions in the trust. No other disability plan provides these complete instructions. The successor trustee cannot use the assets for his or her own benefit, although he or she may receive compensation (if allowed under the terms of the trust). Additionally, the trust avoids the necessity of having a family member or other person named as a guardian by the probate court to manage your assets.

In addition, there are two secondary advantages to a living trust. One is privacy. Unlike a will, the contents of a living trust are not a matter of public record. Like most court records, probate files are open to the public. Anyone can go to the courthouse and review your probate file, which will most likely identify the value of your probate estate, your place of residence, and the names and addresses of your legal heirs. In Illinois, under the simplified procedure for probate administration known as “independent administration,” an inventory and accounting do not have to be filed with the court, and therefore the key documents showing the assets of the decedent are not made public. Even though the independent administration process reduces the amount of personal information accessible to the public, a living trust nevertheless provides the ultimate in privacy because it does not pass through probate at all.

Second, creating and amending a trust is usually simpler than creating and amending a will. Unlike a will, a living trust does not generally require a formal signing ceremony with required words spoken before at least two attesting witnesses. Only the grantor’s signature is required to create a valid trust instrument, although if the trust may own real estate it is wise to have the signature notarized to meet recording requirements.

B. Who Controls The Assets Of A Trust?
The trustee named under the trust controls the assets of the trust. In a living trust, the individual who creates the trust in most cases acts as trustee. If you choose to act as your own trustee, you retain broad powers to control and use the assets you put into trust. When someone other than you is the trustee, the trust sets forth specific instructions for the investment and use of the trust assets during your lifetime. Typically, even if someone else is acting as trustee, you will be the beneficiary of the trust and can amend or revoke the trust during your lifetime. As long as you are acting as trustee of a living trust that you created, no income tax returns nor accountings are required. You also may appoint someone other than yourself to act as trustee if you feel you want your assets professionally managed, or if you want them in the hands of an independent party, although this may lead to additional work such as the filing of a separate income tax return for the trust.

C. Who Should I Name As Alternate Trustee?
If the makers of the Trust are deceased, and the Trust has significant assets and reserved payouts to beneficiaries, we strongly recommend that the Trust Department of a financial institution be named as the Alternate Trustee. Naming an individual as Alternate Trustee can put that person and trust assets at significant risk from failure to properly invest, failure to account for and make proper Trust payouts, and puts that individual at significant risk for future litigation by the beneficiaries for those failures. The Trust department of the financial institution is in the best position to properly invest for and account for Trust assets.
D. Trust Distributions To Beneficiaries.
One particular advantage of a Trust is that payouts to beneficiaries can be staggered over the course of time. It is never prudent to give an 18-year-old beneficiary significant amounts of money. Trust can be written up so that the Trust funds are used for the benefit of the beneficiaries by a Trustee who can exercise oversight of the expenditure of those funds. Lump sum expenditures of the Trust can then be distributed over time, such as onethird of the principal and interest when the beneficiary attains the age of 25 or graduates from an accredited college or university, one-half of remaining principal and interest at age 35, and the remainder at age 40.

3. How Do I Fund My Living Trust?
The primary advantages of a living trust –avoidance of guardianship and probate – are realized only if you fund the trust before becoming incapacitated or dying. The trust controls only the assets which are registered in its name, so any asset that has not been transferred to the trust before your death will likely have to pass through probate, thus undermining one of the primary advantages to having a living trust. You should therefore have all of your assets that would otherwise be probate assets transferred to the trust, (although there may be instances where leaving certain assets out of the trust is more beneficial or even necessary). This is not a problem when the trust is set up, but every time you acquire or exchange assets that would otherwise be probate assets, you must make sure they are registered in the name of the trust. The amount of time and fees associated with retitling property depends on the number and type of assets you have, where they are located, and how they are titled. Usually, you can do the retitling of assets other than real estate yourself by following your attorney’s instructions.

Not everyone is able to fund their living trust immediately after creating it. Even if you do not fund the living trust during your life to avoid guardianship proceedings and probate, your living trust can still effectively work as your estate plan if you sign a “pour over” will that distributes your probate assets at your death to your living trust. If anyone did look up your will at the courthouse, they would know only that your will left your assets to the trust.

4. Other Ways To Avoid Probate.
In Illinois, if the assets in your estate titled in your individual name have a gross value of less than $100,000 and do not involve real estate, then your will does not necessarily have to be probated. Your assets can instead be distributed after an attorney prepares a small estates affidavit.

To avoid probate for an estate worth more than $100,000 or for one that includes real estate, your property must either be held in a trust or pass directly to a beneficiary by operation of a beneficiary designation or pursuant to some special type of property ownership, such as joint tenancy. You can also avoid probate for residential real estate by using a Transfer on Death Instrument.

Probate can be avoided by holding property in joint tenancy with another person or persons due to the fact that the jointly held property automatically goes to the surviving tenant(s) upon your death. However, there are several disadvantages to joint tenancies. To sell real estate, stocks, and many other types of assets held in joint tenancy during your lifetime, you must have the signature of all joint tenants. Thus, if your joint tenant is uncooperative or becomes incapacitated, you cannot readily sell or transfer your assets in their entirety. Bank accounts can be more of a problem because most deposit agreements give all parties the right to withdraw funds, meaning your joint tenant has the right to unilaterally withdraw funds at any time without your consent. In addition, if your joint tenant has creditor problems, the creditor can garnish the jointly held asset to satisfy the debt. Finally, adding someone as a joint tenant may be considered a gift to that person and a gift tax may be imposed. In summary, although there are advantages to using joint tenancy, they are usually outweighed by the disadvantages.

5. Can A Living Trust Avoid Estate Taxes?
Both a living trust and will, if properly drafted, can be used to reduce or eliminate estate taxes under certain circumstances, and especially for married couples. It is not necessary to create a trust to avoid estate taxes. Tax saving clauses that are included in your living trust are virtually identical to the tax saving clauses that would be included in your will. However, in addition to potential tax savings derived from a comprehensive estate plan, a living trust can also assist in organizing your finances. Thus, a living trust is well suited to both of these purposes.

6. Does A Living Trust Speed Up Distribution Of Assets?

The amount of time required for the distribution of assets for both living trusts and probate estates vary greatly depending on the circumstances. Probate estates usually remain undistributed for at least six months after the probate process has started to allow creditors an opportunity to present claims. A partial distribution can be made within the first six months if family members are in need. The trustee of a living trust has the same responsibilities as an executor in a probate administration: identify and transfer assets, render an accounting, pay creditors, file and pay estate and income taxes, and resolve any pending litigation. Usually this will take roughly the same amount of time as administering a probate estate. If a federal estate tax return is due, the trustee or executor may elect not to distribute all of the probate or trust assets until the return is audited and the tax paid. Probate can be delayed by disputes in court. A living trust does not automatically protect the trust assets from a dispute. Disappointed family members or creditors may file a lawsuit against the trust which could delay distribution. Most often, however, the length of the distribution process depends on how long it takes to liquidate the assets, regardless of whether they are held in a living trust or in a probate estate. For example, real estate will normally take longer to liquidate and distribute than will bank accounts.

7. Can I Avoid Creditors By Creating A Living Trust?
This topic should be discussed with your lawyer. In general, your assets cannot be protected from your creditors by putting them into a living trust. At the time of your death, your trustee will pay off any final expenses and debts that may be outstanding. Moreover, because you retain control over the trust assets either by retaining the right to revoke the trust or by retaining the power to control the assets by acting as trustee, the assets held in a living trust will still be included in any calculation to determine if nursing home care, for example, is to be paid for by public aid.

8. How Does The State View Trust Assets If Trustor Has To Go To A Nursing Home?
Because Trust assets normally are available to the Trustor or must be used for the Trustors care benefit if incapacitated, the Trust assets are still considered by the State as assets of the Trustor and have to counted as such in determining eligibility for nursing home Medicaid eligibility. The only way to prevent Trust assets from being counted as assets of the Trustor for nursing home eligibility purposes is to create an Irrevocable Trust that is not for the benefit of the Trustor, and place in assets in that Trust five years before having to go to a nursing home.

9. What If A Beneficiary Is Disabled And On Governmental Aid That Is Sensitive To Income And Assets?
If a beneficiary is receiving governmental aid that is sensitive to income and assets of the beneficiary, special language called “Special Needs Trust Language” can be inserted into the Trust for that beneficiary. The Trustee will then be able to use the disabled person’s Trust share for the benefit of the disabled beneficiary without jeopardizing receipt of continued governmental aid.

10. Will A Living Trust Save Me Money?
The cost of preparing a living trust as part of your estate plan is generally about the same as incorporating a similar estate plan in a will. There may, however, be additional costs associated with creating a living trust. These generally include the preparation of additional documents required to transfer assets into trust name and fund the trust, especially if real estate is transferred. Cost savings from a living trust may occur after the death of the grantor. Because there is no probate involved, there are no court costs and no attorney’s fees for preparation of probate documents or court appearances. In some instances, these savings are substantial. Even without probate, there may be fees for attorneys, accountants, and other professionals who assist the trustee in liquidating and distributing the assets of the trust. The trustee is normally entitled to a fee, just as an executor or administrator would be.

11. How Do I Create A Living Trust?
It is always important to have appropriate professional advice in tackling something as complicated as a will or living trust. In Illinois, only attorneys can assist in this process. If you need help finding a lawyer, see information on back panel concerning Illinois Lawyer Finder.

The use of a living trust is an important estate planning option. While a living trust can serve several valid purposes, it is generally not the only answer. Simply executing a living trust will not materially affect the disposition of your assets, will not save estate, taxes and may not reduce administration costs after your death. On the other hand, a well-prepared living trust as part of your overall estate plan has many benefits and will facilitate the implementation of a plan that meets your goals.

We at Stephens Fiddes McGill & Associates, P.C. are prepared to answer all your questions regarding estate planning, including how a Trust can best serve you family. Call us for an appointment and we will be happy to examine your circumstances and advise you how to meet your estate planning needs.

INTRODUCTION

The passing of a loved one is a soul-shocking event. Here at Stephens Fiddes McGill ; Associates, P.C., we recognize that this is a time of grief, confusion, and a general feeling of being lost in the world. We have prepared this information to help you navigate and find some difficult items. It outlines what you should be doing in the upcoming days, weeks, and months. These efforts will interface with your thought processes, and this information is presented as a checklist to turn to for helping you focus on moving forward as best you can.

WHAT DO I DO NOW?

This is the most common first question. Call us. We are here to help with compassion and knowledge of all estate type questions. Most cases do not need to be probated to resolve estate issues. Depending on the type and amount of property and debts, and how those are titled or beneficiaries, estates can be resolved without doing anything. Some estates can be resolved using non-probate affidavits of heirship. And if those methods are not available, we can guide you through the probate process.

GATHERING DOCUMENTS

After you call, an appointment will be made to discuss your estate matters with a seasoned, experienced attorney. To assist the attorney, he or she will need a variety of documents. If you’re not sure where any of these are, check with your lawyer, CPA, family members, and friends to see if they have them. If you’re still missing some after checking with these individuals, search your loved one’s file cabinets, personal safe, and bank safe deposit box. In a worst-case scenario, you may need to contact legal or business entities, such as the city clerk for a marriage license or a doctor’s office for medical records.

These are the documents you’ll need after your loved one passes:

• Birth certificate
• Death certificate
• Will and Trust, if a trust exists
• Marriage certificate
• Most recent financial account records, including checking and savings accounts, loan accounts, and investment accounts like trusts
• Real estate records, including deeds and lease agreements

456 Fulton  • Suite 222 • Peoria, Illinois 61602Telephone: (309) 637-8667 • Facsimile: (309) 637-1106 Sunset Plaza • 2920 Court • Suite B • Pekin, Illinois 61554  Telephone: (309) 353-5297

• Other titles of property, including for cars, boats, and RVs
• Recent credit report from one of the three credit bureaus (Equifax, Experian, and TransUnion) that list outstanding debts
• Military service records and discharge papers
• The last three years of tax returns
• Insurance policies
• Documents evidencing any tax-deferred assets, such as 401(k), IRAs, Pension
• Evidence of debt, such as mortgage statements, car loan statements, personal loan statements, and credit card statements
• A list of names and addresses of all surviving children, and if a child has predeceased, the name and addresses of all of the deceased child’s surviving descendants

You will need to bring those documents with you when you meet with your attorney.

OTHER COMMON QUESTIONS AND INFORMATION

SOCIAL SECURITY

Upon any death of any individual, the funeral director is obligated to report the death to the Social Security Administration (SSA) for you. Upon that reporting:

• SSA will notify Medicare.
• Any Social Security benefits the person was receiving will stop.
• You must return any payment for the month the person died.
• You should contact Social Security about your right to receive survivor’s benefits.

DRIVER’S LICENSE

Contact the Illinois Secretary of State’s office to:

• Cancel the person’s license or ID
• If any vehicles are in the deceased’s name only, transfer the title of any vehicle the person owned

INCOME TAX RETURNS

If tax returns were required in the past, you must file the person’s final income tax returns. Include all unreported income the person earned up to their date of death.

PASSPORTS

You can return the person’s passport to the Department of State (DOS) for cancellation. Google “How do I cancel the passport of a deceased relative?” for instructions.

• This helps prevent identity theft.
• The DOS will send the canceled passport back if you want it, or they can destroy it.

ELECTION OFFICE

Contact the local election office to cancel the person’s voter registration. This helps prevent voter fraud.

VETERANS OF MILITARY SERVICE

If the person was a veteran, you can contact the Department of Veterans Affairs (VA) about:

• Burial benefits
• Death benefits and survivor benefits
• Veterans life insurance

You must notify the VA to cancel these benefits:

• Compensation
• Pension
• Education
• Health

If the person was receiving military-related benefits, report the death to the Defense Finance and Accounting Service (DFAS). They will:

• Stop monthly pension payments
• Send forms for the Survivor Benefit Plan if the person was enrolled

SOCIAL MEDIA SITES

Contact social media sites to close or memorialize those accounts.

FINANCIAL INSTITUTIONS

Report the person’s death to banks, credit card companies, credit bureaus, and other financial organizations. Remove them as the co-owner and beneficiary of your financial accounts. You may wish to be the sole owner or add a new joint owner, such as an adult child. Also contact utilities and places where the person had memberships and subscriptions.

INSURANCE POLICIES

Cancel insurance policies solely in your partner’s name and remove them from joint policies.

CHILDREN IN COLLEGE

If you have children attending a college or university, contact the school’s financial aid office. Your children may qualify for financial support, even if they weren’t eligible before your spouse died. If they have any student loans, also contact those financial institutions; they may reduce or forgive the debt. Lastly, be sure your child’s Free Application for Federal Student Aid (FAFSA) is filed for the following school year. Even if your child didn’t qualify for student aid prior to your partner’s passing, they may be eligible now that your financial picture has changed.

FINANCIAL ADVISOR

If you don’t already have one, consider working with a financial planner. This is an especially important step if your spouse’s death will have a major impact on your finances due to lost income from their job or work-related benefits they received. A financial professional will help you create a new daily living budget and make recommendations on how to trim your cost of living and save for the future.

ESTATE PLANNING

You will want to talk to an attorney about updating your estate planning documents, such as your Will and Power of Attorney. Depending on how they were drafted, you may not need to make any changes, but it is prudent to have these reviewed to see if changes should be made to best protect your assets and how you want those assets to be distributed, and if you want to make changes to appointments you’ve made, such as your Executor in your Will and Agents for your Power of Attorneys.

GRIEF

Reach out for help if you’re having trouble coping with your grief. Even when we’re surrounded by friends and family immediately after the death of a loved one, they all have to go back to their daily lives at some point, leaving many people feeling isolated in their despair. This can be even harder on spouses who’ve lost their husband or wife. If you think you need help working through your grief, reach out to your loved ones to ask for their support. Many people also find it helpful to join a grief support group or work with a mental health professional, such as a psychiatrist, psychologist, or therapist. Coping with the loss of your spouse will be one of the hardest parts of their death, but you don’t have to go through it alone.

SUMMARY

No one is insulated and does not experience the heart-wrenching loss of a loved one. Here at Stephens, Fiddes, McGill & Associates, P.C., we are here to help, with understanding and compassion. Hopefully, this guide will aid your journey of your new life without the one you held so dear. Let us help you on that journey.

When you are injured at work, your medical records become one of the most important pieces of evidence in your workers’ compensation case. These documents help determine the extent of your injury, the treatment you need, and whether you are able to return to work. Insurance companies rely heavily on medical records when deciding whether to approve claims, deny benefits, or dispute your case.

Understanding how medical records affect your claim can help you navigate the workers’ compensation process more confidently and avoid common mistakes that hurt injured workers.

Why Medical Records Are So Important

Medical records serve as the foundation of your workers’ compensation claim. They show:

• The nature and severity of your injury
• Whether the injury is work related
• Your treatment plan
• Your ability to work or return to work

Any permanent or long term limitations

Without detailed and consistent medical documentation, insurance companies may challenge or deny your claim.

How Medical Records Help Prove Your Injury Is Work Related

One of the first things insurers look for is a clear link between your job and the injury. Medical records that include:

• A description of how the injury happened
• The date and time of the accident
• Early medical evaluations that match your report
• Statements from your physician connecting the injury to your job

…significantly strengthen your claim.

When the cause of your injury is unclear or not documented properly, insurers may argue it happened outside work, leading to delays or denial.

Consistent Treatment Strengthens Your Case

Gaps in treatment or missed appointments can raise red flags for insurance companies. Inconsistent care may suggest your injuries are not serious or that you have recovered sooner than expected.
To avoid this:

• Attend all scheduled medical appointments
• Follow your doctor’s treatment plan
• Report new or worsening symptoms immediately
• Keep records of all medical visits and prescriptions

Consistent treatment supports your case and shows the injury continues to affect your health and ability to work.

What Happens When Medical Records Contain Mistakes

Errors in your medical records can hurt your claim. Common issues include:

• Incorrect details about how the accident happened
• Missing notes about pain, mobility, or symptoms
• Incomplete work restrictions
• Medical history mix ups or unrelated conditions

If you notice incorrect information, notify your doctor right away. Accurate records are critical when dealing with insurance adjusters or the Illinois Workers’ Compensation Commission.

Work Restrictions and Their Role in Your Claim

Your doctor may recommend restrictions such as:

• No lifting
• Limited standing or walking
• Reduced hours
• Avoiding certain motions or tasks

These restrictions impact your eligibility for temporary total disability (TTD) benefits or modified duty work assignments. Medical records that clearly document these restrictions help ensure you receive the proper wage benefits while recovering.

Independent Medical Exams (IME) and Their Impact

Insurance companies may request an Independent Medical Examination. These exams are often used to challenge:

• Your doctor’s diagnosis
• Your work restrictions
• The severity of your injury
• Your need for ongoing care

Because IMEs are arranged by the insurer, the findings may not reflect your best interests. Your attorney can help you prepare and address discrepancies between the IME report and your treating physician’s records.

How an Attorney Uses Medical Records to Support Your Case

A workers’ compensation attorney plays a critical role in gathering, reviewing, and presenting medical evidence. An experienced lawyer will:

• Request complete and updated medical records
• Identify missing documentation
• Highlight inconsistencies or errors
• Communicate with your doctors about needed details
• Explain how your injuries impact your daily life and ability to work
• Use medical opinions to strengthen negotiations or hearing arguments

Strong legal representation ensures that your medical records fully support your claim and demonstrate the true extent of your injuries.

Protecting Your Workers’ Compensation Case

Medical records are powerful evidence, but they must be accurate, consistent, and complete. If you have been injured at work, your next steps should include:

• Seeing a doctor immediately
• Following the treatment plan
• Keeping personal notes about your symptoms
• Saving receipts and documentation
• Speaking with an attorney if your claim is denied or disputed

The better your medical documentation, the stronger your case will be.

Many claimants are understandably nervous about attending a disability or SSI (Supplemental Security Income) hearing. There is a lot at stake, and it can be intimidating going in front of a Judge. This letter will give you a brief overview of the hearing process, and what to expect at a hearing.

Hearing Options:

Social Security hearing offices were closed to the public for in-person service due to the COVID-19 pandemic. Hearings are now held in person, by telephone and online video.Telephone hearings and online video hearings continue to provide flexible, safe, and secure hearing options during this difficult time. No matter the option chosen, this is the information that applies to all three, unless noted otherwise.

Be There and On Time:

Whether your hearing is in-person at an SSA office or being held virtually over phone or video, the first step is being on-time. If you miss your hearing, it could take months to reschedule or worse, the Judge can dismiss your case entirely and you will have to start over with a new application. If you are travelling to your hearing, please make sure that you have a reliable ride, that you know the address, and give yourself enough time to account for traffic, bad weather, and parking. You must also bring a valid form of identification with you, as you will be required to pass through security when entering the hearing location.

Inside the Hearing Room:

If you are having an in-person hearing, please note that hearings are typically held in relatively small rooms, which look more like conference rooms than courtrooms. Usually, the only people in the room are the Judge and his or her assistant, your representative, and any witnesses who might testify. Witnesses can include anyone you have brought along to testify on your behalf, such as your doctor, social worker, friends, or family. Other witnesses can include vocational experts or medical experts that have been requested to testify by the Judge.

Testimony, Questions, and Answers:

One of the main functions of the hearing is to allow the Judge to see and hear from you directly about how your conditions affect your day-to-day activities and ability to work. Both the Judge and your representative will have the opportunity to ask you questions. Many claimants are nervous about this aspect of the hearing process, but you shouldn’t be. This is your chance to tell your story to the Judge, in your own words. We will review with you prior to the hearing how to address the judge, the anticipated questions, and answer any questions you may have as to the process.

Vocational Experts:

Once your testimony and the testimony of any witness, the Judge will turn to the Vocational Expert and ask him or her a series of questions, to determine if there are any jobs in the national economy a person with your age, education, past relevant work experience and physical and mental symptoms can work on a full-time basis. You cannot offer spontaneous commentary during the vocational expert’s testimony. Your attorney representative can ask questions of the vocational expert after the Judge is finished with his or her questions.

After The Hearing:

Judges typically do not make a decision to award or deny the claim at the conclusion of the hearing. In most cases, there is a period of several weeks or months following the hearing during which the Judge considers the evidence and testimony given at the hearing. While it can be difficult to wait for a final decision on your claim, this post-hearing period also affords us the opportunity to present additional evidence on your behalf. Once the Judge has considered all of the evidence, testimony, and legal arguments submitted by your representative, a final decision on your claim will be sent in the mail typically within 2 to 3 months of the hearing.

Frequently Asked Questions:

What should I wear?

We recommend clean, business casual attire for the hearing. For women, we recommend that you avoid excessive hair styling or make-up as if you were going to a fancy event or wedding.

Should I bring anything with me?

Please make sure to bring your current photo ID to the hearing. This can be a valid driver’s license, passport, or military ID. In addition, we also recommend bringing a list of your current medications.

Can I bring someone with me to the hearing?

Unless the judge specifically asks you to bring someone, they will not allow anyone else to be present for the hearing. If you have friends or family members who wish to speak on your behalf, we recommend that they write letters about your conditions and send those letters to our office.

How long will the hearing take?

The amount of time a hearing takes can vary, but on average it lasts about an hour.

What if I become so nervous that I am overwhelmed by anxiety symptoms and have trouble answering questions?

This is your hearing. If you become temporarily unable to continue with the hearing due to physical or mental symptom exacerbations, let us know during the hearing. The Judge’s are very good at allowing small breaks to occur to let you compose yourself, even if this occurs frequently during the hearing.

If you have any further questions about the hearing or your claim, you can contact us at 1-309-637-2667 or at info@sfmlegal.com.

If you were hurt at work, you expect your workers’ compensation benefits to cover medical care, lost wages, and the support you need while recovering. A denial can be frustrating, stressful, and confusing, especially when you feel the decision is unfair. The good news is that a denied claim does not mean the process is over. In many cases, injured workers successfully appeal and obtain the benefits they deserve.
This guide explains the most common reasons claims are denied, what to do next, and how an experienced workers’ compensation attorney can help you challenge the decision.

Why Workers’ Comp Claims Get Denied

Insurance companies may deny claims for several reasons. Some are legitimate, but many can be successfully appealed. Common denial reasons include:

• Insufficient documentation
• Disputes about whether the injury is work related
• Claims involving pre existing conditions
• Failure to report the injury on time
• Missed medical appointments
• Inconsistent statements or unclear accident details
• Employer objections or lack of witness support

Understanding the reason for the denial helps determine your next steps.

Step 1: Carefully Review the Denial Letter

Your denial letter should explain the specific reason your claim was rejected. Read it fully and note each issue listed by the insurance company. Keep this document in a safe place, as you will need it during the appeal process.

Step 2: Notify Your Employer and Correct Any Missing Information

f the denial was based on simple issues such as incomplete forms, missing signatures, or lack of documentation, begin by updating or correcting the information. Sometimes resolving small errors is all that is required.

Step 3: Gather Additional Evidence

Stronger documentation can help overturn a denial. Helpful evidence includes:

• Medical records
• Doctor statements linking your injury to your job
• Accident reports
• Witness statements
• Photographs or video evidence
• Workplace safety reports

The goal is to show clearly that your injury occurred at work and that you need medical treatment and benefits.

Step 4: Follow All Medical Recommendations

Insurance companies often deny claims if you miss appointments or do not follow prescribed treatment. Attend all medical visits and speak honestly with your doctor about your symptoms and limitations. Consistency strengthens your case.

Step 5: File an Appeal Before the Deadline

In Illinois, you have the right to file an appeal with the Illinois Workers’ Compensation Commission. Deadlines are strict, and missing one can jeopardize your entire case. Your appeal may involve hearings, documentation, and testimony about your injury.
Because the process can be complex, many workers choose to have an attorney handle the appeal on their behalf.

Step 6: Work With an Experienced Workers’ Compensation Attorney

Appealing a denied claim is not easy. Insurance companies often have lawyers and adjusters working to protect their interests. A knowledgeable attorney can help you:

• Understand why the claim was denied
• Collect strong medical evidence
• File appeal documents correctly and on time
• Represent you at hearings
• Negotiate for a fair settlement
• Protect you from common insurance tactics

Most workers’ compensation attorneys work on a contingency fee, meaning you do not pay unless they recover benefits for you.

When a Denied Claim Is Likely to Be Overturned

Many workers successfully overturn denials, especially when:

• There is clear medical evidence
• The employer initially disputed the claim but later supports it
• Documentation is corrected or updated
• Witnesses verify the accident
• An attorney provides legal representation

Do not assume the denial is final. Many injured workers eventually receive full benefits.

Take Action Quickly After a Denied Claim

A denied workers’ compensation claim can feel like a setback, but you still have options. The key is acting quickly and building strong evidence that supports your right to benefits.
If your claim was denied, consider speaking with a workers’ compensation attorney as soon as possible. An experienced lawyer can review the denial, explain your rights, and help you fight for the medical care and wage benefits you deserve.