Illinois Restricts Gifts to Caregivers

As of January 2015, Illinois has a new law (Ill. Comp. Stat. Ann. § 5/4a) aimed at preventing caregivers from taking advantage of the people who depend on them. However, that law could easily invalidate perfectly reasonable gifts that you really want to make. For example, a gift to a new neighbor who brings meals and helps you pay bills could be voided, as could a gift to a paid live-in caregiver who has become a good friend.

If you live in Illinois and want to leave a substantial gift to any nonrelative who has recently helped you with personal or health care, see a lawyer first. You can leave such a gift—but first you may need to have a lawyer sign a statement, verifying that you’re acting freely and aren’t being unduly influenced. If you don’t, the gift could be void—meaning the intended recipient won’t get it.

This new law applies only to gifts greater than $20,000. Most gifts to family members won’t be affected, but gifts to loved ones who are not legally related, like stepchildren or unmarried partners, could be voided if your will is challenged.

If you think these laws could void gifts that you want to make, see a lawyer who handles estate planning, family law or elder care matters for help.