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Congratulations! After putting it off for as long as humanly possible, you’ve finally completed and implemented your estate plan. Check that box and cross that off the list! But are you really finished with the planning? The answer must be “no,” or this would be a very short post. There’s one very important step that remains: a periodic review and update of your estate plan in its entirety. What? Yes, that’s right. If your plan was done five years ago or longer, there might be a few changes in your life besides new drapes and a flat screen TV. Real life changes can happen—like getting married, getting divorced or maybe having a child … or two … or three. It could be that you’ve reconnected with a daughter or son who was once estranged. These changes can be outside your control—like income tax and estate laws that are amended, repealed or are newly effective. That once perfect estate plan may not be a “10” any more. It has lost some points because it’s out-of-date and—in its current state—has the potential to be inaccurate and cause much grief for your heirs. Change is constant, and WMUR’s article, “Money Matters: The ‘final’ estate-planning step,” says that there are some key indicators that show when a review is in order. It could be a change in: Estate valuation: The value of your estate may have changed significantly, like through receiving a sizable inheritance or winning the lottery. Economic situation : Your income level has been modified or you’re retiring. Employment : If you or your spouse has a job change, it may call for an estate plan modification. Family situations: The marital status has changed for your child, grandchild or you. There’s a new baby in the family. Your spouse, child or grandchild has died. You or a family member are now ill or incapacitated. Other individuals like your parents are now dependent on you. Businesses: Your closely held business interest may have changed. Maybe you formed, purchased or sold a closely held business, which could mean liquidation or reorganization. Did you execute a buy-sell agreement with your partner, or are there differences in employee benefits, pension plans or deferred compensation plans? Major transactions: This includes making substantial gifts and borrowing or lending money—even purchasing, leasing or selling assets or investments. You moved: If you moved to another state, it may impact your planning. A new vacation home in another state: This could have ramifications. Any litigation: Lawsuits can affect your finances. Insurance coverage: Changes in your insurance coverage may impact your estate planning needs or may make updates necessary. Death of a trustee, executor or a guardian: If one of the individuals you designated dies or changes his or her mind about serving, you must revise your estate plan and replace that person. Unless you can read tea leaves, you’re not going to know about every event that should prompt you to review and revise your estate plans. Use your common sense and think about what’s going on in your life and in the lives of your family and loved ones. If it’s been four years or more since you reviewed your estate plan with your attorney, now is the time to make that appointment. Reference : WMUR (August 11, 2016) “Money Matters: The ‘final’ estate-planning step” #AssetProtection #Guardianship #EstatePlanningLawyer #WillChanges #Inheritance #Wills #Trusts

One of the most common questions our Houston Probate Lawyers get from people who just inherited assets is whether or not they owe taxes on the money or property they just received. It is an excellent question, but the answer is a bit more complicated than yes or no. If you have just inherited from an estate, the answers below will help guide you in the right direction. Income Taxes The IRS requires everyone to claim every source of income when they file a tax return, however the IRS does not consider inheritance to be part of your income, so you likely do not have to claim it on your tax return. Capital Gains Tax You have to pay capital gains taxes anytime a gain is achieved. For example, if you buy a house to renovate and resell, you would have to pay capital gains taxes on the money you made above the original purchase price if it is not your homestead. If you inherit an asset and the value of that asset increases, that asset would be subject to capital gains taxes from the date your inherited the asset, not when it was originally purchased.  This is called a step up in basis. Death Taxes There is a federal estate tax that applies to any asset transfer that is valued over $5.49 million (2017). However, a spouse can transfer unlimited assets to their spouse without having to pay the federal estate tax. Some states also have an inheritance tax, but Texas does not. Hopefully, you now have a better idea about how your estate will be taxed when it is handed down to your heirs. If you anticipate that your estate is structured in a way that will require your heirs to pay substantial taxes, it may be in your best interest to speak to a qualified estate lawyer. There are many legal ways to reduce the tax burden on your estate. To set up a consultation, call the Your Legacy Legal Care at (281) 885-8826. #Houstonprobatelawyers #Inheritance #Probate

In 40 years, Bill Harris built up a lifetime of memories with his wife, Nora, but since she was diagnosed with early onset of Alzheimer’s seven years ago, things have changed. “She doesn’t really make words sometimes,” said Harris in an article on KGW.com entitled “Man says state ignoring wife’s wishes in advance directive.” For Harris, this tough situation got even more difficult with the decision of a southern Oregon judge this summer. The judge, in effect, “condemned her to ride out Alzheimer’s to the bitter end,” said Harris. He says it’s exactly what she didn’t want. When Nora was told of her diagnosis, she completed an advance directive to be certain that her illness wouldn’t be prolonged. She believed when it wasn’t mechanically possible to eat by herself then she wanted to let nature take its course. However, now she’s stopped eating by herself and is being spoon-fed at a nursing home because, according to the judge’s ruling, her advance directive wasn’t specific enough. Still, the advance directive forms usually only cover getting fed through a tube, creating a conflict between two laws. An advance directive allows you to elect what happens if you become incapacitated, but the state law is there to make sure that care facilities do their job. Advanced directives should be as specific as possible. “What they did was basically sentence her to have to experience the full gamut of Alzheimer’s,” said Harris. He said he also wishes the judge would have ruled in the spirit of the law and not the letter. The advance directive law has limitations, but the legislature could amend the law so someone can make decisions on a loved one’s behalf. However, now the best option is to be as specific as possible when filling out an advance directive. Reference : KGW.com (Sept. 19, 2016) “Man says state ignoring wife’s wishes in advance directive” #AdvanceDirective #ElderCare #ElderLawLawyer

ThinkAdvisor’s article, “New Estate Planning Strategies for a Post-Portability World,” says that there may be many folks who’ve continued to rely upon their outdated, pre-2013 estate plans. This could easily lead to adverse tax consequences in the future. Reviewing a pre-2013 estate plan may be really beneficial for higher-income individuals. There are new techniques and strategies to help them take advantage of the new rules to minimize estate and income tax liability. Relying on the old credit shelter trust strategy may no longer be a wise move, since there are new strategies that can produce dramatic tax savings—as well as more flexibility. Prior to portability, which allows a surviving spouse to (almost) automatically use the deceased spouse’s estate tax exemption, credit shelter trusts were used by married couples to fully use their two estate tax exemptions. Part of the deceased spouse’s assets equal to the estate tax exemption amount would be placed into a trust created for the benefit of the surviving spouse. The remaining assets—those in excess of the deceased spouse’s exemption—would pass outright to the surviving spouse. The surviving spouse didn’t technically own the assets held in the trust. As a result, those assets would pass without estate tax to his or her heirs. The assets that the surviving spouse owned outside of the trust would also pass without estate tax up to the value of—but not exceeding—the exemption amount. For many, a credit shelter trust isn’t necessary for estate tax purposes. The “permanently” higher federal estate tax exemption is now at $5.45 million this year. Many folks don’t understand that the value of the assets (tax basis) is in effect frozen at the time they’re placed in the credit shelter trust. Thus, if those assets appreciate in value, they may create an unexpected income tax hit for the heirs. But if those assets were left outright to the surviving spouse, they’d see a step-up in basis upon the surviving spouse’s death. If the asset value has appreciated, capital gains taxes are minimized. But unlike a credit shelter trust strategy, a disclaimer strategy can provide flexibility to a surviving spouse. This lets a spouse evaluate his or her financial circumstances and the tax rules as they actually exist at the time of the deceased spouse’s death. To use this strategy, he or she leaves all assets to the surviving spouse outright but gives the survivor the option of disclaiming those assets. If the spouse opts to disclaim the assets, they’ll pass into a bypass trust established for his or her benefit. This can be nice if the surviving spouse lives in a state with its own estate or inheritance tax, since that exemption may be a lot lower than the federal exemption. In addition, a bypass trust can also be good from an asset protection standpoint if the surviving spouse is worried about creditors’ claims or a possible new spouse later in life. The disclaimer strategy lets the surviving spouse analyze his or her situation when it’s relevant. They don’t have to rely on a strategy that was possibly put into place years before. Regardless, consult a qualified estate planning attorney to help you select the most appropriate strategy for your circumstances. Reference : ThinkAdvisor (June 7, 2016) “New Estate Planning Strategies for a Post-Portability World” #AssetProtection #EstatePlanReview #EstateTax #DisclaimingAssets #IncomeTax #CreditShelterTrust #TaxPlanning #estateplanning

As a Houston probate lawyer , I am often asked if every asset a person owns will have to go through the probate process when they die. The short answer is that it depends . While most real estate owned by a person does go through the Harris County probate court following the loss of a loved one, a few asset classes are exempt. They are referred to as non-probate assets. Instead of being distributed through a will, non-probate assets are automatically transferred to the survivors/beneficiaries, outside of probate. The assets are transferred at the death of the testator regardless of any instructions in the will. As an example, if a husband and wife own a piece of property together, the property is automatically transferred to the surviving partner. There is no distribution of property needed. There are other assets besides jointly owned assets that are distributed outside of probate. Any assets with a named beneficiary typically avoid probate. Life insurance is one such example where payouts go directly to the beneficiary. In addition, retirement money is a non-probate asset. Life estate and inter vivos trust also are considered non-probate assets.   Here is a brief list of the most common assets that are passed outside of Harris County probate for your reference: Assets held in joint tenancy with rights of survivorship Retirement accounts such as IRAs or 401(k)s that have a beneficiary named Life insurance proceeds that do not have the estate named as a beneficiary Assets held in a living trust Money in a payable-on-death bank account (POD) Securities, bonds, real estate, or other assets with a transfer-on-death provision Pension plan distributions Remember, non-probate assets are distributed immediately. Simply contacting the bank or company where the asset is located and presenting the death certificate is usually enough to get the ball rolling to distribute the funds. On the flip side, the probate process can take a year or more to get to the point where assets can be distributed to a beneficiary. The good news is that there are ways to structure your assets so that none of them have to go through probate—even if the assets you are leaving to your loved ones fall outside of this list.  An attorney can help you utilize legal tools and planning to minimize your exposure to probate, or avoid it all together. But, only an experienced estate planning attorney can help you set up your assets to ensure that outcome. If you would like to speak to a probate lawyer today to set up an estate plan to best protect your assets and minimize the impact of probate court, call our office at (281) 885-8826 or schedule a free consultation online . #nonprobate #Probate #ProbateCourt

Navigating the probate process in Texas can be a daunting task. Especially for retirees who are already grappling with the complexities of estate planning.  Understanding the intricacies of court proceedings, the role of a probate lawyer, and the steps towards estate settlement is crucial. We will explore whether you need a lawyer to probate a will in Texas, and how to ensure your assets are well-protected for future generations. By the end, you will have a comprehensive understanding of the probate process in Texas, making your retirement planning more secure and less stressful. What is Probate and Why is it Necessary? The probate process in Texas is a legal procedure That involves validating a deceased person's will, settling their debts, and distributing their assets to the designated beneficiaries. This process is overseen by a probate court. It ensures that the deceased's estate is properly managed and their wishes are respected. It involves proving in court that a deceased person's will is valid, identifying and inventorying the deceased person's property, having the property appraised, paying debts and taxes, and distributing the remaining property as the will (or state law, if there's no will) directs. The Role of the Court in Probate Proceedings In the probate process, the court plays a pivotal role. It oversees the validation of the will, appointment of the executor or administrator, and ensures the deceased's estate is distributed according to the will or state law. The court also resolves any disputes that arise during the probate process. In essence, the court ensures the probate process is conducted in a fair and lawful manner. Learn more about what happens in probate court in our comprehensive guide . Steps to Probate a Will in Texas Probating a will in Texas involves several steps. These steps ensure that the deceased's estate is properly managed and their wishes are respected. Filing the will and application for probate The probate hearing Inventory and appraisal of estate assets Settling debts and taxes Distributing assets to beneficiaries Filing the Will and Application for Probate The first step in the probate process is filing the will and an application for probate with the probate court. This step initiates the probate process and notifies the court of the deceased's passing. The Probate Hearing: What to Expect After the application is filed, a probate hearing is scheduled. During this hearing, the court validates the will and appoints an executor or administrator to manage the estate. Inventory and Appraisal of Estate Assets The executor or administrator is responsible for identifying and inventorying the deceased's assets. These assets are then appraised to determine their value. Assets can include real estate, bank accounts, life insurance, and much more. Settling Debts and Taxes The executor or administrator also settles the deceased's debts and pays any taxes owed by the estate. This ensures that all financial obligations are met before assets are distributed to beneficiaries. Distributing Assets to Beneficiaries The final step in the probate process is distributing the remaining assets to the beneficiaries as directed by the will. If there is no will, the assets are distributed according to Texas intestacy laws. The Role of a Probate Attorney in Texas A probate attorney plays a crucial role in the probate process in Texas. They provide legal guidance, ensuring that the process is carried out correctly and efficiently. Their expertise can be invaluable, especially in complex estate situations or when disputes arise. When Should You Consider Hiring a Probate Lawyer? Hiring a probate lawyer in Texas is required in most all probate courts. Since a lawyer is required, they can be very helpful if the deceased owned property in multiple states or had significant debts. How a Probate Attorney Can Assist with Estate Settlement A probate attorney can assist with various aspects of estate settlement. They can help with filing the will, managing assets, settling debts, and distributing assets to beneficiaries. Their guidance can make the probate process smoother and less stressful for everyone involved. Navigating Complexities: Common Probate Scenarios The probate process can become complex in certain scenarios. Understanding these complexities can help you navigate the probate process more effectively. Without a Will: Intestate Succession in Texas If a person dies without a will in Texas, their estate is distributed according to the state's intestate succession laws. This can be a complex process, and legal guidance is often beneficial to ensure a fair distribution. Contested Wills and Family Disputes Disputes over a will can complicate the probate process. A probate attorney can help mediate these disputes and ensure the deceased's wishes are honored. Simplifying the Probate Journey with a Houston Probate Lawyer The probate process in Texas can seem daunting, but understanding the steps involved can simplify the journey. Whether you can navigate the process with or without a lawyer, being informed about your options can help ensure a smooth estate settlement. At Your Legacy Legal Care, our experienced probate attorneys  will handle the proceedings on your behalf so you can focus on honoring your loved one’s wishes. We are your compassionate legal partners, here to support you every step of the way.  Contact us  today to schedule a consultation – we’re ready to help you move forward during this difficult time.

Probate court is a place where the stories of people’s lives unfold. It’s where emotions run high, where the past meets the present, and where the future is shaped. As the surviving loved ones, you are tasked with distributing assets, paying off debts, filing taxes, and more. It’s a lot to take on while mourning. Having an experienced probate attorney to guide you makes all the difference during this difficult time. At Your Legacy Legal Care , our team has helped countless families navigate Texas probate courts. We know this process can feel daunting and confusing, especially when you’re grieving. Our goal is to empower you. In this guide, we walk through the key steps of what happens in probate court so you can feel fully prepared and supported. What Documents Are Needed for Probate? The probate of an estate in Texas involves preparing and filing various legal documents throughout the proceedings. Some of the core documents include: Last Will and Testament – This document executed by the deceased outlines their final wishes for distributing their estate. It must be filed initially to commence probate. Application to Probate Will – This application is filed to initiate the probate process and officially request the appointment of an executor. Letters Testamentary – After a hearing and the Court approving the will, the Court issues these letters after appointing an executor. They verify the executor’s legal authority to act on behalf of the estate. Inventory, Appraisement, and List of Claims – The executor must file this inventory, providing a complete list of the decedent’s assets and liabilities. Notice to Creditors – The executor must publish a notice in order to notify any potential creditors of the estate administration. Estate Tax and Income Tax Returns – The executor must file all required final individual, estate, and inheritance tax returns. Final Accounting and Petition for Distribution – This accounting and petition requests court approval to distribute assets to beneficiaries and close the estate. It is not necessary in independent administrations unless the will or a beneficiary requests the accounting. Proper preparation and filing of these documents is critical to moving efficiently through the probate process . What is the Probate Process in Texas? When a person passes away without leaving a valid will , their estate must go through probate court if they own real estate, oil and gas, and minerals, as well as any asset without a beneficiary designation. This involves a series of legal procedures intended to collect assets, pay debts and taxes, and distribute property to beneficiaries according to the will. Here is a more in-depth look at what happens in each phase of probate court proceedings: Initiating Probate by Filing a Petition The first step is to file a petition with the appropriate county probate court in Texas to officially commence proceedings. This petition asks the court to admit the decedent’s last will and testament to probate and appoint the executor named in the will. Initial Court Hearing to Appoint the Executor At the initial court hearing, the probate judge reviews the will to validate it. The judge then officially appoints the executor named in the will to oversee administering the estate. Notifying Beneficiaries and Creditors The executor must provide proper legal notice to all beneficiaries named in the will and to any known creditors. This allows interested parties to assert any claims on estate assets and funds. Filing an Inventory of Assets and Liabilities The executor must file a detailed inventory that accounts for all of the decedent’s assets as well as any outstanding debts and liabilities. Handling Claims Against the Estate The executor must address any claims made against the estate by creditors. This involves reviewing claims for validity, negotiating repayment, and using estate funds to settle legitimate debts. Filing Necessary Tax Returns The executor must file applicable tax returns on behalf of the estate, including estate tax returns. Any taxes owed must be paid out of estate proceeds. Distributing Assets to Beneficiaries Once all valid claims and taxes are paid, the executor distributes the remaining assets to the beneficiaries as outlined in the decedent’s will. Closing the Estate Finally, the executor can petition the court to close the estate after completing administration and distribution. Once approved, the executor is discharged from duties by the judge. Most will not file to close the estate as it is more costly to reopen if assets are found in the future. Variations to the Typical Probate Process While standard probate with a valid will follows the main steps outlined above, there are some common situations that can alter the usual proceedings: Small Estates – If the estate value is under $75,000, it may qualify for simplified small estate procedures. Contested Wills – If the will’s validity is challenged by heirs or beneficiaries, probate can be significantly prolonged through litigation. Claims Against the Estate – Disputes over debts owed or asset ownership can complicate probate, potentially requiring negotiation or legal action. Lengthy Asset Sales – If assets like real estate must be sold during probate, this can extend timelines considerably compared to liquid assets. Having an experienced probate attorney allows us to help you navigate any variations from normal proceedings. We have the legal skills to handle complications and customize our counsel to your specific situation. How an Attorney Can Guide You Through Probate Having an experienced probate attorney assist you through the probate process can be invaluable. A knowledgeable probate lawyer can ensure that all of the required legal filings and notices are handled properly and deadlines are met. They will help you gather and prepare the necessary documentation, such as the inventory of estate assets. A probate attorney can also negotiate creditor claims against the estate and make sure any required taxes are filed and paid correctly. They will counsel you on your options for distributing assets to beneficiaries and closing out the estate according to the specifications in the will. Overall, having an estate planning attorney to guide you helps the probate process go as smoothly and efficiently as possible while avoiding costly legal errors. Their counsel can prove invaluable well beyond the closure of the estate, too, as they can continue assisting you with any residual matters related to the estate or probate proceedings even after the court formally closes the case. Don’t Navigate Probate Court Alone – Your Legacy Legal Care Can Guide You Going through probate can be complex and emotionally draining – but you don’t have to go through it alone. The dedicated attorneys at Your Legacy Legal Care provide tailored guidance through the probate process when there is a valid will. We will handle the proceedings on your behalf so you can focus on honoring your loved one’s wishes. Our decades of combined probate experience in Harris County, Galveston County, Brazoria County, Chambers County, and Liberty County allow us to protect your rights, efficiently execute the will, and ensure proper asset distribution. We are your compassionate legal partners, here to support you every step of the way. Contact us today to schedule a consultation – we’re ready to help you move forward during this difficult time.

While estate planning is important for married couples, it is arguably even more necessary for couples that live together who are not married. Without an estate plan, married couples would not be able to make end-of-life decisions or inherit from each other. Estate planning serves two main functions: determining who can make decisions for you if you become incapacitated and who gets your assets when you die. For those who are married, fortunately there are laws in place to protect spouses who fail to plan, by governing the distribution of property in the event of death. If you do not have a will, property will pass to your spouse or children, or to your parents if you die without a spouse or children. Estate Planning for Unmarried Partners There are no laws in place to protect unmarried partners. Without a solid estate plan, your partner may be shut out of the decision-making and the estate. The following are the essential estate planning steps that can help unmarried couples: Joint Ownership One way to make sure property passes to an unmarried partner is to own the property jointly, with right of survivorship. If one joint tenant dies, their interest in the property ceases to exist and the remaining joint tenants own the entire property. This is also a good way to avoid probate. Beneficiary Designations Make sure to review the beneficiary designations on bank accounts, retirement funds, and life insurance to make sure your partner is named as the beneficiary, if that is your wish. Your partner will not have access to any of those accounts without a specific beneficiary designation. Statutory Durable Power of Attorney This appoints an agent to act on your behalf for financial and legal matters in the event of your incapacity. Without it, if you become disabled or unable to manage your affairs for a period of time, your finances could become disordered and your bills not paid – and this would place a greater burden on your partner. Your partner may have to go to the court to seek the appointment of a conservator, which is an expensive and time-consuming process. All of this can be avoided through a simple document. Medical Power of Attorney Similar to a durable power of attorney , a medical power of attorney appoints an agent to make health care decisions for you when you cannot do so for yourself, whether permanently or temporarily. Again, without this document in place, your partner might be shut out by other family members. If it is important for all of your family members to be able to communicate with health care providers, a HIPAA release will permit medical personnel to share information with anyone and everyone you name, not limiting this function to your health care agent. Will Your will says who will get your property after your death. Your will is important for two main reasons: If you have minor children, it permits you to name their guardians in the event you are not there to continue your parental role. It allows you to designate the executor who will take care of everything related to your estate, including distributing your possessions, paying your final bills, filing your final tax return, and closing out your accounts. Revocable Trust A revocable trust can be especially important for unmarried couples. It permits the person (or people) you name to manage your financial affairs and it allows you to avoid probate completely. By using a trust and skipping probate, your assets also remain private. Call an Estate Planning Attorney Today To determine the estate planning options that are right for you and your partner, speak with an experienced estate planning attorney at Your Legacy Legal Care by calling (281) 218-0880 or contact us here.

It may be time to contact your estate planning attorney if it has been a while since you updated (or reviewed) your estate plan.  Experts recommend updating your estate plan every three to five years—whether changing beneficiary designations or updating estate planning documents—to keep it relevant and legally enforceable. Even though estate planning can sometimes be uncomfortable as some do not like discussing their own mortality, your estate plan must reflect the most up-to-date information available.  At Your Legacy Legal Care , we are available to help you plan your estate . Our team is composed of compassionate, honest, and well-informed attorneys that can make updating your estate plan simple. If you want to protect your assets and plan for contingencies, keeping your estate plan updated is essential. Updating Your Estate Plan to Reflect Life Events In addition to updating your estate every three to five years, it is also important to update your plan after significant life events. Some of these major life changes include: Marital or domestic partnership changes for you or family members (marriage, divorce, or separation) The birth or adoption of a new child or grandchild Your child’s or grandchild’s school funds When someone on your estate planning documents becomes an adult Death or disability of someone named in the estate Death or disability of your executor or trustee A name change of someone in your estate plan A significant change in financial status Illness or disability of a spouse or family member named in the estate plan Purchasing a home or another large asset If you receive a large inheritance Any change in federal or state laws or tax laws Changing Your Beneficiaries The biggest reason people opt to update their estate planning is that they want to change their beneficiaries. If you want to change beneficiaries or remove a beneficiary, it is essential to make sure it is reflected in your entire estate plan. You need to ensure there is no difference or confusion between beneficiaries on your estate plan and specific beneficiary documents, such as life insurance or retirement plans. If any listed beneficiaries have passed away before you, it is important to update your estate plan to reflect this change. If you do not take this step, your intended beneficiaries may undergo a lengthy and sometimes contested probate process to get the assets you intended. What Needs to be Updated in Your Estate Plan Your estate plan is made up of many parts and documents. To truly update your estate, you must update all of the following documents: Your will, which details what assets people will receive after you die, as well as who will be the executor to carry out your last wishes. This may also include a business succession plan . Advanced directive or living will, which specifies your end-of-life care wishes and whether you consent to extraordinary measures like ventilators and feeding tubes. Medical Power of Attorney, which outlines who you choose to make healthcare decisions for you in the event you cannot make your own decisions. Financial Power of Attorney, which gives someone the ability to manage your financial affairs and financial accounts if you are not able to do so on your own. A comprehensive estate plan may also include a revocable living trust . A living trust allows someone to take ownership of your assets while you are still alive and distributes them to your beneficiaries after your death. With this type of trust, you would still be able to manage your assets while living. Experienced Estate Planning Attorney Your Legacy Legal Care consists of experienced attorneys who take pride in establishing personalized estate plans tailored to every client’s unique situation. From creating or updating your will or helping to establish trusts , we are here to help with all aspects of your legacy estate plan. We pride ourselves on being accessible to our client’s needs. From our conveniently located Houston, Texas, area offices, we provide dedicated services in estate planning, probate, guardianship, special needs, and elder law.  Contact us today for a complimentary strategy session. We can’t wait to help you update your estate plan.

Will you or a loved one need long-term care soon? Medicaid is the primary funding source for most Americans paying for long-term care, but it is intended for low-income individuals and families. In order to qualify for Medicaid, you need the assistance of an experienced Houston Medicaid planning lawyer to ensure your assets are protected and you do not need to drain them to pay for care. Medicaid planning is a crucial part of your estate planning strategy, and Your Legacy Legal Care is ready to help you protect your legacy and secure your family’s future. What is Medicaid Planning? Medicaid is a joint federal and state program that provides healthcare coverage for low-income individuals and families. Medicaid covers long-term care costs for eligible individuals, including nursing home care, assisted living, and in-home care. To qualify for Medicaid, you must meet certain eligibility requirements, including income and asset limits. Some people think they can simply transfer their property and money to their children to qualify for Medicaid when the time comes for long-term care. However, Medicaid also has strict rules regarding the transfer of assets, which can result in penalties or disqualification from benefits. Medicaid planning is crucial for individuals at retirement age and even earlier. Medicaid planning refers to the estate planning strategies of structuring your assets and income to qualify for Medicaid benefits while protecting your estate from long-term care expenses. Benefits of Hiring a Medicaid Planning Lawyer Medicaid laws and regulations can be complex and ever-changing. A Medicaid planning lawyer has specific knowledge of Medicaid laws and regulations and can provide guidance on the best strategies for qualifying for Medicaid benefits while protecting your assets. A Medicaid planning lawyer can also provide customized planning for your unique situation, with your specific financial and personal circumstances in mind. We can help you create a plan that meets your needs and goals while providing guidance on asset protection strategies and helping you navigate the complex rules regarding asset transfer. Working with a lawyer can prevent common Medicaid planning mistakes and provide peace of mind that your long-term care needs will be met without sacrificing your estate. You can create a plan that ensures you receive the care you need while protecting your family’s future. When to Consider Hiring a Medicaid Planning Lawyer Several situations may warrant the help of a Medicaid planning attorney, such as: Changes in your financial situation — If your financial situation changes—such as receiving an inheritance or experiencing a significant increase in income—it may be time to consider hiring a Medicaid planning lawyer to reassess your eligibility for Medicaid benefits. Planning for retirement — As you approach retirement, it is essential to plan for long-term care expenses. A Medicaid planning lawyer can help you create a plan to meet your long-term care needs while protecting your estate. Diagnosis of a chronic illness — If you or a loved one has been diagnosed with a chronic illness, such as Alzheimer’s or Parkinson’s, it is essential to start long-term care planning . Need for long-term care — If you or a loved one needs long-term care for some other reason, planning for Medicaid benefits is essential. Medicaid Planning Strategies Protecting your assets from Medicaid and long-term care costs is crucial, and there are various strategies a Medicaid planning attorney can use to do so. Asset Protection Trusts Asset protection trusts are trusts created to protect your assets from being consumed by long-term care expenses. These trusts are irrevocable, meaning you cannot change them once they are created. They are typically created for the benefit of a spouse or children, and the trust assets are not counted towards Medicaid’s asset limit. Gifting Strategies Gifting strategies involve transferring assets to family members or loved ones to reduce your estate’s value and qualify for Medicaid benefits. However, Medicaid has strict rules regarding asset transfers, and improper transfers can result in penalties or disqualification from Medicaid benefits. A Medicaid planning lawyer can provide guidance on the best gifting strategies for your unique situation. Medicaid Annuities Medicaid annuities are a type of financial instrument that can convert countable assets into a stream of income. These annuities are often used to meet Medicaid’s income requirements while preserving assets. Spousal Impoverishment Rules Spousal impoverishment rules are designed to prevent a healthy spouse from being impoverished just so their spouse can receive long-term care benefits. These rules allow the healthy spouse to keep a certain amount of assets and income while their spouse receives Medicaid benefits. Trusted Medicaid Planning Lawyer in Houston, Texas Medicaid planning is a crucial aspect of estate planning that can help you qualify for Medicaid benefits while protecting your assets and savings from being consumed by long-term care expenses. If you are considering Medicaid planning, working with a Medicaid planning lawyer who has the knowledge and experience to provide customized planning for your unique situation is essential. Doing so can ensure your assets are protected, and your estate is preserved for your loved ones. Contact us today at Your Legacy Legal Care, so we can start planning for your future and the future of your loved ones.

Estate planning is a vital step in securing the financial future of any family. While it is commonly associated with retirement and old age, estate planning for young families is equally as important. Having a plan in place can ensure that your assets are distributed according to your wishes and your family is taken care of in the event of your unexpected passing. Let’s explore why estate planning for young families is essential, what steps you can take to ensure that your loved ones are protected, and how a Houston estate planning attorney can help. What is Estate Planning? Estate planning is the process of making arrangements to manage your assets and ensure that they are distributed according to your wishes after your death. It involves creating a will, setting up trusts, and designating beneficiaries for your life insurance policies and retirement accounts. Estate planning also involves planning for your children’s care and making sure that your wishes are followed in case of your unexpected death or incapacity. Why is Estate Planning Important for Young Families? Young families often put off estate planning, thinking they are too young to worry about it. However, accidents and illnesses can happen to anyone at any time, and it’s crucial to be prepared. Estate planning can help you: Protect your children — Estate planning allows you to appoint guardians for your children in the event of your untimely death. Without a will, the court will decide who will care for your children, and it may not be the person you would have chosen. Estate planning ensures your children are cared for by those you love and trust. Minimize estate taxes — Estate taxes can take a significant portion of your assets and leave your family with less than you intended. Estate planning can help you minimize your tax liability and maximize what you leave behind for your family. Avoid probate — Probate is the legal process of distributing your assets after your death. It can be lengthy and expensive, and your assets may be tied up in court for months or even years. Estate planning can help you avoid the probate process and ensure your assets are distributed to your heirs quickly and efficiently. Protect your assets — Estate planning involves asset protection , which shields your money and property from creditors and lawsuits. By setting up trusts and other legal structures, you can ensure that your assets are protected for your family’s benefit. Steps to Take When Estate Planning for Young Families Now that you understand why estate planning is essential for young families, here are some steps you can take to get started: Create a will. A will is a legal document that outlines how you want your assets distributed after your death. It also allows you to appoint guardians for your children and name an executor to manage your estate. Set up trusts. Trusts are legal structures that allow you to transfer your assets to a trustee who manages them for your beneficiaries. Trusts can help you avoid probate, minimize estate taxes, and protect your assets from creditors and lawsuits. Designate beneficiaries. Beneficiary designations for your life insurance policies and retirement accounts ensure that the funds are distributed directly to the chosen people without going through probate. Appoint guardians . Guardianship for your children is a crucial step in estate planning. You can name someone you trust to take care of your children in the event of your death. Consult with an estate planning attorney . Consulting with an estate planning attorney can ensure that your estate plan is legally sound and tailored to your specific needs. Trusted Houston Estate Planning Lawyer for Young Families Remember, estate planning is not a one-time event. It is a process that should be reviewed and updated regularly to reflect changes in your life and circumstances. By planning for the unexpected, you can enjoy peace of mind knowing that your young family is cared for. Contact us today at Your Legacy Legal Care, and we will walk you through the steps to create a personalized estate plan that fits your needs and wishes.

When a parent ends up in the hospital, it can be frightening. But it can also be chaotic if your parents have not yet thought about their wishes for health care, end-of-life, and their estate. What end-of-life and long-term care planning should they do? Medicare: The First 100 Days Medicare will cover up to 100 days in a long-term care facility if you parent comes from the hospital after a seventy-two (72) hour inpatient stay. If your parent has a Medicare Supplement, they may not have to worry about a large deductible. If they do not, the deductible could exceed $10,000.00. Medicare will not cover anything beyond 100 days because the program is not for long-term care. Medicare will not cover the stay at all unless your parent’s health is improving. Long-term Care: Long-term care is expensive. If your parent has long-term care insurance, check to ensure that it covers assisted living or home health care. If it is a policy issued in the last 15 years, chances are that it does, but it is always best to be sure. Long-term care insurance will generally kick in if your parent needs assistance with “activities of daily living” (ADL) or has a cognitive impairment. Daily living activities typically include eating, bathing, using the restroom, continence, and moving from a bed to a chair. Even with long-term care insurance, your parent may face a deductible or an elimination period, which is usually the first 90 days. Medicaid: If your parent does not have long-term care insurance and is facing a stay longer than 100 days, self-pay may be the only option. Your parent may qualify for Medicaid, which can cover long-term care, but there are strict income and asset requirements. Your parent cannot simply give away assets or sell them for under market value. Medicaid has a five-year lookback period where they will attempt to “claw back” any assets disposed of in this manner. If they can no longer recover the asset gifted or sold below value, your parent may no longer be eligible for Medicaid coverage. If you have a more complicated situation such as a family-owned business or family-owned property, you will need to consult with an experienced elder law attorney. Plan for the Future If your parent recovers, a hospital stay can be a wakeup call. It is an excellent time to look at your parent’s estate planning and nudge them to get it done before it is too late. Do they have an end-of-life plan, long-term care insurance, and an estate plan? If not, suggest that your parent establish a directive to physician’s, medical and statutory durable powers of attorneys, and other estate planning documents to help take some weight off of their shoulders. It is never too late to come up with an estate plan and make your end-of-life wishes known to your family. Your Legacy Legal Care offers comprehensive estate planning services. Call us at (281) 885-8826 , or click  here  to schedule your strategy session today!