Topic: Sole Proprietorships
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Are payable on death beneficiaries permissible on an account owned by a sole proprietorship?
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We do not see any problem with a sole proprietorship establishing a payable on death (POD) account. Under the Illinois Trust and Payable on Death Accounts Act, a POD account is created when “one or more persons opening or holding an account sign an agreement with the institution providing that on the death of the…
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Can a sole proprietorship account have a payable on death (POD) designation?
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If a sole proprietorship holds a deposit account, we are not aware of any provisions in the Illinois Trust and Payable on Death Accounts Act that would prevent the owner(s) from designating a payable-on-death beneficiary. The law allows account owners to designate payable-on-death beneficiaries for any “account,” defined as “any account, deposit, certificate of deposit,…
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Have there been any recent changes regarding the documentation and titling of a sole proprietorship account?
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There have not been any changes in the law regarding sole proprietorships that we know of, but we note that this area of law is somewhat unclear because the federal law differs from Illinois law. For purposes of account titling and documentation, the federal IRS rule — allowing for married couples sole proprietorships — is…
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Can a husband and wife own a jointly owned business as a sole proprietorship?
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There have not been any changes in the law regarding sole proprietorships that we know of, but we note that this area of law is somewhat unclear because the federal law differs from Illinois law. For purposes of account titling and documentation, the federal IRS rule — allowing for married couples sole proprietorships — is…