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The House of Representatives passed a bill recently seeking to protect elderly investors. Industry trade groups urged the Senate to “quickly follow suit,” as reported by nasdaq.com in “Advisers May Get New Tools to Combat Elder Financial Abuse.” The Senior Safe Act The Senior Safe Act would provide civil and administrative liability protection to advisers, broker-dealers and other financial professionals who report suspected abuse to an agency—such as Adult Protective Services, law enforcement authorities, and state and federal regulators. The bill says that compliance officers and other firm supervisors would be immune from liability as long as they had received training on identifying elder abuse. With millions of baby boomers retiring, additional efforts are needed to protect the nation’s most vulnerable citizens. There is companion legislation in the Senate authored by Susan Collins (R-Maine). That bill is awaiting consideration by the Senate Banking Committee. Critics of the bill raise concerns that the shield from liability under privacy laws applies only to situations in which advisers report abuse to covered agencies. Frequently the best way to deter financial exploitation can be to alert the victim’s family. Fraud happens from people outside the family, and getting the family involved may be all it takes to make it stop, they argue. They go on to say that reporting to these agencies can just cause more problems for the family. Three states recently passed laws that are even more stringent and require financial advisers to report suspected abuse instead of just giving them legal protection if they chose to alert authorities. These states are Alabama, Indiana and Vermont. Reference : nasdaq.com (July 8, 2016) “Advisers May Get New Tools to Combat Elder Financial Abuse” #ElderAbuse #ElderLaw #FinancialFraud

Talking with some attorneys about your end of life plans can be like trying to communicate with someone from a different planet. Latin phrases and acronyms get thrown around to impress you, or to justify their prices. And nobody seems to care whether you understand the plan you are walking out the door with or are as confused as a goat on astroturf.  At the Your Legacy Legal Care, things are different. We are all about plain language and transparent pricing. We go out of our way to ensure that our clients understand their estate plans, so they can be sure their final wishes are accurately reflected in the stack of documents they walk out of our office with.  One topic we end up spending a lot of time talking about is trusts . There are so many different kinds of trusts out there that we could never cover them all in a blog post, but they all fall into two broad categories that we thought it would be helpful to explain. All trusts are either revocable or irrevocable.   Revocable vs. Irrevocable The root of both of these words is “revoke”, which you are probably aware, means to take back or recall. A revocable trust is, therefore, one that can be called back, altered, or destroyed by the person who created it. On the other hand, an irrevocable trust cannot be changed once it has been created. Each type of trust has its benefits and downsides, which are discussed more fully below.  The Benefits Of Revocable Trusts Revocable trusts are also known as living trusts because they can be altered or revoked while you are alive. They are used to hold and pass on assets ranging from guns to vacation homes.  The benefit of putting assets into a revocable trust is that the next owner can take possession of them without going to the probate court for permission after the trust creator has died. It is, therefore, faster to pass assets via a revocable trust than a will. It also preserves your financial privacy since, unlike wills, trusts are not public documents.  While you are alive, you can alter a revocable trust by adding or removing assets from it, and you can name different trustees and beneficiaries. The price of this flexibility is that items in a revocable trust remain part of your estate and can, therefore, be taxed.  It should also be noted that all revocable trusts become irrevocable when the trust creator dies because the power to make major changes to the trust dies with them.  Irrevocable and Unchangeable  If you are eager to minimize your taxable estate or protect assets, an irrevocable trust may be a better option for you. An irrevocable trust cannot be altered after it is created. Because of this, the government no longer considers assets held in an irrevocable trust to be part of the trust creator’s estate, so it typically does not tax them. Irrevocable trusts are commonly used to hold assets, insurance policies, funds that are to be used to take care of a minor or funds to be protected until the Grantor’s death and passes to the beneficiaries.  Trust Us If you have questions about the different types of trust, or any other estate planning topic, we are here to help. Please contact us today to schedule an appointment in our Houston office.

The probate process in Houston can be long and costly, which leads people to think of creative ways of avoiding or speeding up the process.  One thing that people often do is to add their child’s name on their bank accounts. They believe by doing so, their child will have immediate access to the money rather than having to deal with the courts. Another thing that people try is to add their child’s name to their property deed to avoid having to wait for the probate process to transfer ownership. Either of these methods might work, but they are fraught with problems. Here are just of few of them. Any decision you make about your assets requires mutual consent. If you add your child’s name to the deed of your home, you made him or her joint owner. This means that any decision, like selling the property, will have to be approved by both of you. If your child disagrees with your decisions, it will be costly and will need court intervention. You can imagine the family problems that could result from that litigation. “Mi casa es su casa” also means “My creditors are your creditors.” If your child has financial problems, you should absolutely not add their name to any of your assets. If you do, the asset is now vulnerable to your child’s creditors. You could possibly lose your home due to your child’s financial mistakes. The survivor may do anything they please with the assets. Once you pass away, your child will become the sole owner of all your assets. Any verbal agreement you had with them to distribute your assets to the rest of your heirs is meaningless. I know you trust your child completely, but there is always a possibility that your child may change their mind and not follow your instructions. There are other ways to avoid probate. If you want to speed up the process for distributing your assets to your heirs and make sure your wishes are followed, talk to an experienced Houston estate planning attorney. As you can see, simply adding a child as an owner of your assets can cause problems you never saw coming. Call us today at (281) 885-8826 to set up a consultation today. #JointTenancy #Probate #willsandtrusts

One of the tasks an estate lawyer in Houston may handle is estate planning for children with disabilities . Children with disabilities need ongoing care, including financial care, throughout their lives. The best course of action for a parent of a disabled child is to speak to an estate lawyer in Houston to establish a special needs trust (“SNT”). An SNT makes sure that your child benefits from your estate without making them ineligible for SSI or Medicaid benefits. Estate planning is complicated enough, but trying to do your best by your child can make your head spin. Willing them a lump sum, property, or other wealth directly may disqualify them from SSI and Medicaid and puts in their hands assets they may not be able to properly handle. However, if you leave them nothing, then they are without the financial security you have provided for your other children. If you give the assets you intend for your child with disabilities to their siblings for safekeeping, it legally becomes the siblings’ property. It won’t be protected from the siblings’ creditors, and it may be considered communal or joint property if the sibling is married when they receive it. The best solution is to create a third-party special needs trust or SNT. A trust is an asset administered by a third-party trustee on behalf of a beneficiary. The third-party trustee is someone besides you (the benefactor) or the beneficiary (your child with special needs). Anyone you choose, including one or more of your other children, can agree to be a trustee. The trustee doesn’t own the assets, and they can’t make decisions that are against the beneficiary’s interests. The money in the trust is belongs to the trust and is spent solely on behalf of the beneficiary. An estate lawyer in Houston can create a third-party SNT for your child with disabilities. Assets in a third-party SNT come from someone other than the beneficiary. They are also not used to determine your child’s eligibility for SSI and Medicaid. This is because the beneficiary, your child with special needs, doesn’t actually own the assets in the trust, so it is not considered a personal asset when determining eligibility for benefits. The trust can help to cover costs beyond what Medicaid and SSI provide, like dental care, transportation, and private nursing or care. For example, a father may hire an estate lawyer to create a third-party SNT for his son with disabilities son who lives in an assisted living facility. Medicaid contributes nothing to the cost of assisted living, and SSI only covers a portion of the cost. The SNT, however, covers the rest of the cost. It also covers costs for things like dental cleanings, new clothes, and entertainment. An estate lawyer in Houston who is experienced in creating a third party SNT can help you provide for your child with special needs. They can help you give your child all the benefit you can provide without forcing him or her to give up other benefit. #estateplanning #Houstonspecialneedslawyer #specialneedsplanning

A power of attorney (POA) is a document that serves as a written authorization to represent or act on another’s behalf. However, a POA does not necessarily give someone the right to make all decisions. There are different type of POAs, and they have different rules determining the abilities of the person named as Power of Attorney.  As a Houston Estate Attorney, I want to be clear that if you are an agent under POA, it is important to know what decisions you can, and cannot make on behalf of the grantor. Here are a few frequently asked questions regarding POAs. Do I have the authority to make medical or financial decisions for the grantor? Or both? You can have either a financial or medical power of attorney. You may have already guessed but a financial power of attorney has authority over your financial matters and a medical power of attorney can have power over medical decisions. A medical power of attorney can have many different guidelines or limitations depending on the desires of the grantor. While it is possible that you have been granted the power to make both medical and financial decisions, it is important to point out that two different legal documents must be executed. Does this Power of Attorney expire after a set time period or does it go on forever? This can depend on the state you live in and what that state allows. If your power of attorney expires after a set time, it is important to renew or set up a new power of attorney at that time. If your power of attorney is durable that means that it will hold authority granted by the documents unless the individual chooses to revoke the power of attorney. If you do have a durable power of attorney it is still important to regularly review the document, as some instructions will not accept a power of attorney that is over a certain age, which is typically 12-24 months. Is my Power of Attorney effective now or after a triggering event? Many POAs are effective at the time that the document it executed. However, if you wish, you can make it effective only after a certain triggering event such as incapacity. If you have been named as an agent under a POA for someone, be sure to periodically review the document with an experienced Houston estate attorney who can ensure that you have the decision-making authority you need. If you do not have a POA, you should consider putting one in place to ensure that someone can speak for you if you are unable to speak for yourself. Contact us today at (281) 885-8826 to get started. #HoustonEstatePlanning #PowerofAttorney

One of the most frequently asked questions our Houston elder lawyers receive is, “When should we start planning for long-term care?” The short answer is, “Long before you need it!” When it comes to your home, your health and your finances, you want to be in the driver’s seat. That is why it is so important to plan now for any future care you may need. Even if you have a nice nest egg set aside for retirement, it could quickly become cracked and scrambled if you require a stay in a nursing home or need assisted living. A nursing home stay could easily cost you $6,000 to $12,000 per month. How long would your money last at that rate? Many people realize that long-term care is a rising concern for elderly individuals. While it is true that most people living in long term care facilities are older, planning for long-term care is not something you should put off. At any point, any one of us could require long-term care. Just one accident could place you in long-term care facility for the reminder of your life. Unfortunately, we have seen families forced into debt and even bankruptcy to meet the needs of their loved ones. This is why we discuss the need for long-term care insurance with all of our clients. Additionally, we make sure that you have all of the proper legal documents such as powers of attorney and healthcare directives in place in the event something happens to you and someone has to step in and make financial and medical decisions on your behalf. A solid Medicaid Plan and/or Irrevocable trust may also be a wise idea in order to protect your family’s finances from the grasp of long term-care facilities, without jeopardizing your loved one’s access to benefits such as Medicaid down the road. When setting up your plan, it is important to meet with an attorney that not just handles estates, but also elder law issues, in order to create a strategy for long-term care that will protect your family and provide total peace of mind. If you have any questions about a long-term care plan or would like to discuss the documents that you need, contact our Houston elder attorneys at (281) 218-0880. #ElderLaw #LongTermCarePlanning #Medicaid

Sole proprietorships are a common type of business. For sole proprietorships, the business owner and the business are the same legal entity. The business owner of a sole proprietorship is personally responsible for any debts the business incurs. However, unlike a corporation, the sole proprietorship belongs to one person and is legally a business indistinct from that one person. Once the sole proprietor dies, the business does too, creating estate planning problems. Problem: The business’s assets go into your estate. Your business is legally no different from you, even if you have a tax ID, even if your business has a storefront, employees, and assets that are clearly not personal, like manufacturing equipment. If you die with or without a will, the assets that you use in your business could go into Harris County probate for weeks, months, or years. Problem: Your business creditors can go after any part of your estate. If you owe money to any entity, they will get first crack at your estate. Say you have a bad year. You are $30,000 in debt, and your business doesn’t have enough assets to cover the costs. If you die with this debt, almost anything in your estate may be liquidated to cover business debts, including your house if you are single. Problem: If my heirs run the business, they may run into legal problems. Your heirs of your estate might be vulnerable to lawsuits if they try to wind down the business themselves. In Texas, your business dies with you, and there may be legal problems if your heirs run the business as if you had not died. Solution: Create a trust to wind down the business. A Houston will lawyer can help you create a trust for your sole proprietorship so that upon your death, the trust gets the assets, and the administrator of the trust can wind down your business and have any remaining assets go to your estate. This may or not be available, depending on the type of business, so check with a Houston estate lawyer first. Solution: Create a buy-sell agreement affective upon your death. In Texas, you may be able to create a buy-sell agreement with someone, like your adult children, to go into effect upon your death. Your estate lawyer can help you create this agreement. Essentially, you sell your business to someone, but you continue to run it in good faith. When you die, the sale is complete. They can stay in business, or they can shutter it. Solution: Incorporate your business and will your shares to your heirs. A sure way to make sure your heirs get your business without losing an inheritance from your personal estate is to incorporate before you die. This makes your business a distinct legal entity, and you can own some or all the interest in the corporation. Your Houston estate lawyer can draft your will so you portion the corporation amongst your heirs as you see fit. If you have questions about how to best plan for the eventual succession of your business, feel free to contact our Houston estate attorneys to schedule a consultation. #businessplanning #Houstonbusinessplanninglawyer

You have worked hard for the success of your small business, but have you thought about what will happen to it after you are gone? By engaging in Succession Planning, the small business owner can ensure that his or her wishes are followed should the unthinkable occur. Not only does this kind of planning make for an easier transition on those left behind, but it also saves money and can literally keep the business from failing altogether. Your small business is a part of your estate, and just like your home and other assets, planning needs to be done for how it should be handled upon your death. You will want to go over your options with a qualified Houston wills and estates attorney and make them legal and binding through the proper documentation. Of course, you will also want to communicate with those individuals who will be charged with executing your wishes and keeping the small business running smoothly. Unfortunately, the death of a small business owner can also spell the death of the business. Estate taxes can be so expensive that the business just cannot survive paying them. Within nine months of your death, as much as 50% of the business’ worth can be due to the IRS. It is pretty hard to imagine a small business surviving the loss of 50% of its value. Laws like this play a role in the fact that small businesses do not typically survive through the generations. According to The Small Business Review , only about 30% of family businesses make it to the second generation, 12% to the third generation, and 3% to the fourth generation. Obviously, there are a number of factors involved, but the need to pay taxes and take care of other transitional costs create a significant burden in passing a business on to heirs. By planning in advance, you can take advantage of Section 303 and Section 6166 of the tax codes. These breaks do things like limit taxes on your heirs’ stocks and allow for the estate tax to be paid over the course of 15 years, respectively. Of course, these tax breaks are best utilized when they are understood in advance and the small business owner has made plans for their implementation. If you have questions about planning for the future of your family business, please feel free to give us a call at Your Legacy Legal Care:(281) 885-8826. #BusinessSuccession #SuccessionPlanning #Wills

As a Houston asset protection lawyer, I can report that statistics show that there were approximately 20 million lawsuits last year. Let that sink in a minute. 20 million lawsuits. There are many con-artists and scammers just waiting to take advantage of the legal system to deprive you of your hard-earned wealth. Many of the lawsuits above were what I would consider frivolous, but even frivolous lawsuits are often settled for staggering amounts of money. If you are a business owner, property owner or a professional service provider such as a doctor or dentist , you are particularly vulnerable. Here are a few examples of some of the most common lawsuits against professionals: _          Personal injury on your property _          Personal injury as a result from a motor vehicle accident _          Malpractice liability _          Lawsuits from former partners _          Liability arising from misconduct These are just a few examples of vulnerabilities that businesses face. But the number of ways you can get sued is only limited by the imaginations of the disreputable people waiting in the wings. The best way to prevent these types of lawsuits is preparedness. There are various asset protection strategies that will protect your business and yourself. By using a series of asset strategies, you can protect yourself from future creditors.  In addition to protecting yourself, you may also deter potential con-artists and creditors from filing frivolous lawsuits against you in the future. Asset protection can only help you if you have it in place before someone sues you. You cannot put one in place today to protect your assets from current debtors or current complaints against you. It is important to act now to protect your assets from those that seek to make their own fortune at your expense. If you would like to discuss what type of asset protection strategies you can employ, give our Houston asset protection lawyers a call at (281) 885-8826 to schedule a consultation B before you need it! #AssetProtection #HoustonAssetProtection

It has become more and more common now to see clients come in with probate cases that need to be dealt with in multiple states. Many seniors today are “snow birds,” meaning they spend their winters in states with warmer climates while keeping their actual residency in the state they have spent most of their lives in. These seniors often own property in the state where they spend their winters, whether it is real property like a vacation home or timeshare, or even tangible property like a car, boat, or financial account. When the senior passes away, a situation is created where an out of state or ancillary probate proceeding must take place to administer the out-of-state property. Whatever the case may be, clients dealing with an out of state probate often need help since they are dealing with two or more sets of probate rules and regulations, all of which differ from state to state. Cost of Probate Texas probate lawyers find that one of the biggest issues involving an out-of-state probate proceeding is cost. Typically, you will need to pay probate court fees for each property held under a different probate court jurisdiction. In addition, you may be faced with extra accounting and legal fees. If possible, you should try to find an attorney who is licensed both in the home state of the deceased and the state where the ancillary probate is taking place.  While the fees may still be higher than usual because the probate is out-of-state, it will still most likely be cheaper than hiring multiple attorneys to handle one estate. Last Will and Testament Another serious issue can arise if the decedent did not leave behind a Last Will and Testament. When this happens, the probate court will often order distributions of the estate based on the laws of intestacy. The problem with out-of-state probates is that every state has different laws of intestacy, meaning the heirs in one state may not be the same as the heirs in another. This is a very tricky situation and one where Texas probate attorneys urge their clients to proceed with caution as it may cause additional stress for already grieving family members. Are there ways to avoid an out-of-state probate proceeding? Yes, but it all depends on the state where the additional property is held since, as noted before, every state has different laws concerning probate. Some of the techniques Harris County probate lawyers use to get around an out of state probate include placing the property into a revocable living trust, owning the property jointly with someone else, or drafting a type of deed where the property is transferred upon death. However, probate lawyers caution that this type of planning must be done BEFORE death, and attorneys must be consulted to make sure these techniques will actually work in the state where the property is held. If you are need help with an out-of-state probate or would like to plan to avoid out-of-state probate proceedings, please contact our Houston law firm at (281) 885-8826 to set up a consultation. #Probate

Unfortunately, many elderly people wait until they are already experiencing problems to meet with a Houston elder law attorney . The reason this is so tragic is because by then it may be too late to put a plan in place that would help them as they go through the difficult stages of life they will soon experience. Without a plan in place, the family’s life can hit a tailspin when the elderly parent is diagnosed with a serious medical issue. The adult children suddenly become caregivers which can wreak havoc on their own family and the elderly person can be facing sudden changes in living arrangements and everything else they know. At our offices, we have seen many situations where the family waited too long to get our help. We find that the reasons given for waiting so long vary a bit, but here are a few that are very common. A slow decline becomes an instant problem. It is not unusual for older people to become forgetful; they say it is a normal part of aging. It is easy to overlook some of the benign behavior like forgetting birthdays and missing appointments. But, many families do not realize the extent of the elder’s problem until something major happens – like they struggle to find their way home or they forget to turn off the stove. If you see signs of memory problems in your parents, take them to their doctor for a full medical evaluation and get them to a qualified elder law attorney in Houston. The attorney can only help you if the elder is capable of legally signing documents. The elder fears losing control. It is reall y hard to modify the parent-child dynamic. Even as an adult, your parents may still see you as their child who needs them. Other times, it can be difficult for formally independent people to ask for help – especially from their kids. The best way I have found to help here is to simply explain to them that by planning their future now, they are actually staying in control of their future . Planning now means they get to pick their living arrangements, the type of medical care they would like and even the type of intervention they would want at the end. There is really no better way to stay in control of your destiny! They want to keep their private information private. Many elderly individuals tend to be very private about their finances. Discussing money with children can be an uncomfortable topic as many in their generation found it improper. Or, they may be embarrassed that their financial situation is not what they wanted it to be. Either way, this is a barrier I encourage you to get past. Not having access to financial information is a great deal of stress on adult children who are suddenly left with incapacitated parents. One way I have worked through this with families is to let the elder know that they can work with a qualified elder law attorney who will keep their information confidential until such time as it is necessary for their designated representative (it may or may not be their child) needs it. Breaking though these challenges can be very difficult on your own. Our Houston elder attorneys have experience discussing these and other uncomfortable topics and have a great track record of putting families at ease. Do your parents a favor and encourage them to get started. Planning early will give them the opportunity to make their own decisions about the future of their finances. Give us a call today at (281) 885-8826. #ElderLaw #HoustonElderLawAttorney

Wills and trusts administration in Texas can be somewhat complicated, and some folks are looking to avoid the hassle-not to mention the expense-by using other means. For example, many accounts and policies have a “payable on death” option wherein you simply name a beneficiary. Other assets may also be passed via a beneficiary designation. So, does this really circumvent the need for wills and trusts administration? As with just about any area of law, the answer is not straightforward. For the most part, though, leaving your assets in this way can be pretty risky. A will and/or trust is a much more thorough way of covering your bases and ensuring that your wishes are truly followed. There are a few ways that this other model can go wrong. For example, if you have named a beneficiary who passes away before you do, the holder of the account can give it to someone else; and you will not have a say in this. A person might try to work around this by naming a minor as the beneficiary, but there are also considerable problems with this, as minors typically cannot receive assets. The same is true for those who are incapacitated. Instead, a guardian will be named for the assets, and you will have no control over how he or she chooses to use them. Through wills and trusts administration, however, you can set things up to work the way you want them to. The very same accounts and assets can be left to one or more trusts, for example, with you naming the trustee and designating what you would like to have happen with your money or other valuable items. Working with a wills and trusts lawyer in Houston has other benefits, too. Leaving your assets to a trust can help avoid the probate process, for example. Many people also appreciate the fact that certain kinds of trusts can save the estate and your beneficiaries considerable taxes. Estate taxes are controversial, to say the least, and putting together wills and trusts can help avoid many of the charges that would otherwise be assessed. While it is reasonable to consider using the payable-on-death option or beneficiary designation, an estate planning attorney will often steer clients toward utilizing wills and trusts administration instead because it will generally afford you more control over your assets and allow you to leave more behind for your loved ones.