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Years and years of school, and hours upon hours working through your residency is now paying off. You have officially become an MD here in Texas. Congrats! With the excitement of your new career, and maybe some anxiety about juggling your home life and work life, you may not be thinking about taking steps to protect your financial future. But, unfortunately your new career puts you at risk of being sued. The statics are astounding; according to the American Medical Association, 61% of physicians surveyed had been sued by the end of their career. These scary statistics are a very good reason to get your comprehensive asset protection plan in place now before you need it. Any asset protection attorney in Houston will tell you that a solid plan will allow you to build a wall around your personal money and property so that they cannot be subjected to lawsuits and risks related to your medical practice. For new doctors and seasoned physicians alike, there are several asset protection strategies that can be employed. For example, you may choose to put all of your assets in irrevocable trusts. By putting your assets in a trust , they are owned by the trust. Since you no longer own the assets, they are not vulnerable to lawsuits. A properly created corporation, such as an PC, LLC or LLP may also be necessary to separate the assets of your “business” from those of your personal use (such as your family home).  Again, a qualified asset protection attorney here in Houston can help you work through all of your options based on your practice needs and desires. Asset protection is the specialty of the law that addresses many of the concerns physicians have. There are several other strategies that you may choose to employ to organize your financial and business matters to minimize liability and lawsuit risks. There are several technical issues involved so it is always best to work with a qualified and experienced asset protection lawyer. We invite you to contact our office at (281) 885-8826 and let us know that you are just starting your career and we’ll offer you a consultation. Together, we’ll explore the strategies available to protect the assets you have now, and any that you will acquire in the future. #AssetProtection #HoustonAssetProtection #Trusts

As a Houston wills lawyer, I cannot state emphatically enough how important it is for all parents to create a comprehensive plan that will protect their children should the unthinkable occur. But what happens if you are divorced and can not come to an agreement with your ex-spouse as to who should raise your kids if something happens to you? Should you go ahead and document your own guardianship wishes anyway? And just whose wishes would hold up in court? In most cases, if your child’s biological parent is still living at the time of your death and you share custody, your children will be raised by the surviving parent, unless there is some clear reason why that should not happen. There is nothing you can do about this unless you can prove that the child’s biological parent is unfit to raise your child and make a compelling case as to why your guardianship nominations should be honored under the circumstances. Examples of this might include a severe drug addiction, criminal past or a history of abuse. However, if this is unlikely, the next best thing to do is name guardians anyway so that your wishes for the care of your children will be known and taken into consideration should your ex-spouse also pass away before your kids reach the age of 18. This is especially important in the event your ex-spouse did not legally document his or her guardianship wishes upon passing, as your wishes would then be given priority over, say, an unwilling step-parent (just think back to the Cinderella story for a chilling example of this). Finally, if you are a single parent and have concerns not only about guardianship but also concerning your ex-spouse handling any assets you would leave to your kids if you passed away first, I encourage you to meet with a Houston wills lawyer right away so you can protect such funds in a trust. If you need help getting started with this, please feel free to give us a call at Your Legacy Legal Care and request a consultation: (281) 218-0880 . #Divorce #Guardianship #Trusts

Estate planning does not have to be a long, complicated process. Before you meet with a Houston Trust and Estates attorney there are certain documents you may want to bring with you. Having these documents with you at your initial meeting can greatly simplify the process. Create a List of Assets and Liabilities First, you will want to create a list of all your assets and liabilities. Everyone will need to do this at some point during the estate planning process and the sooner you get this completed, the sooner your estate plan will be finalized. If there is something you forget it to list, it is not the end of the world and your Houston estate lawyer will recognize the error. Here are some common assets and liabilities you will want to include: Any bank accounts. Having recent statements is a great way to go. Investment accounts Stocks and bonds Life insurance and Annuity policies Deeds for properties you own Retirement plans Business partnerships or LLC interests Money owed to you Personal effects Loans and credit Determine Who Will Inherit Your Estate You will also want to determine who will inherit your estate. A Houston Trust and Estates attorney can help you narrow down candidates, but at the end of the day those decisions will be made by you. If there are certain items or properties that you want a specific person to receive, let your estate lawyer know. Also, if you have someone in mind to act as the executor, guardian for minor children, or medical power of attorney, let your Houston estate lawyer know so they can begin creating those legal documents. By doing these things in advance, you will have a great head start. The result is a more streamlined process and a stronger sense of control over the planning of your estate. Both you and your lawyer will benefit from from clear, concise communication. To set up your consultation today please call the Your Legacy Legal Care at (281) 885-8826. #estateplanning #Houstonestatesandtrustsattorney #Trusts

We want to believe that our financial institutions have our best interests at heart. After all, that’s why we entrust our savings with them month after month, year after year. Too often, though, banks inadvertently throw the most carefully laid estate plans out of alignment. If you are not taking the necessary precautions, your beneficiaries may not receive the assets you intended for them. Here’s how to be mindful of possible planning pitfalls: Transfer-On-Death Accounts Over the last few years, transfer-on-death titling has become a popular option with financial institutions. These bank or investment accounts name a beneficiary to receive the account’s assets when the account owner dies. The assets pass immediately at the time of the account holder’s death. While this sounds convenient, there are some drawbacks to be aware of. For instance, if you list your spouse as your beneficiary and then divorce without updating your beneficiaries on your transfer-on-death account, they may still be eligible to receive your assets when you pass – even if you have written them out of your will. That’s because transfer-on-death accounts pass outside of traditional estate planning. Even when transfer-on-death assets are passed down to the correct beneficiaries, account owners must consider the source of their estate expenses and tax liabilities. If assets pass through transfer-on-death accounts, there may be no remaining assets to help cover funeral expenses and other administrative costs. Creditors may go after beneficiaries, creating a legal headache for your heirs. Banking on Beneficiary Designations When you open an account at your bank, you will likely be asked to list your beneficiaries on a designated card. While this seems like a convenient way to pass on your assets when you die, there are limitations to consider. Beneficiary designations pass by contract, not by will, so you will be limited in your options for passing on assets. Let’s say you have a blended family. You and your spouse opt to list your children as equal beneficiaries on your bank account . If you pass away in a car accident with your spouse, your children will receive the entirety of your assets, while your partner’s estate gets nothing. That’s because contingent beneficiaries aren’t typically an option offered by financial institutions. Such situations often see beneficiaries inadvertently disinherited – something no family wants to face, especially in the aftermath of a loss. Banks have all sorts of rules and regulations about beneficiary designations. For instance, a trust cannot be listed as a beneficiary unless it has a current tax ID number. You won’t have such a number if your trust exists within a will. You will also be limited in naming a class as a beneficiary. If you’re hoping to generally list “all my grandkids” as your beneficiary on an account, you will be left disappointed. Take a Watch-Dog Approach If you are concerned about your financial institution throwing your estate plans out of alignment, take a proactive approach. Talk with your bank about their policies and procedures surrounding beneficiaries and transfer-on-death accounts. Ask as many clarifying questions as possible about what might happen if you pass away unexpectedly, including: Can I list more than one beneficiary on my account? What happens if my beneficiary predeceases me? Is it possible to update or change my beneficiaries? Are contingent instructions allowed? What asset protections are available for my beneficiaries? Of course, it’s hard to know what specific questions to ask – that is where an experienced estate planning attorney can help. In some cases, you may even want to bring your attorney along with you to meetings at the bank. By understanding the limitations of banks and their common approach to handling beneficiary designations, you will set your family up for the best possible outcome. Enlist the Help of an Experienced Estate Planning and Probate Attorney An experienced team of attorneys can help you with your family’s estate plans and probate needs. Whether you are looking to craft estate plans for the first time, need help updating existing plans, or are in need of probate following the death of a loved one, we’re here to help. Call our office today for a consultation at (281) 885-8826.

If you maxed out your work 401(k) by taking advantage of matching funds and rolled this to an IRA when you retired, you might not need all of that money—especially if you are a spouse with a pension and Social Security. One thought is to designate children or grandchildren as primary beneficiaries of the IRA. However, you don’t want them to be able to withdraw more than the required distribution based on their life expectancy. The Charlotte News-Observer’s article, “To ‘rule from the grave,’ establish an IRA trust,” suggests that you speak with a qualified estate planning attorney and explore the benefits of establishing an IRA standalone trust—which is also known as an “IRA trust,” an “IRA stretch trust” or an “IRA protection trust.” This type of trust is approved by the IRS and may be more advantageous than designating individual children or grandchildren—or naming revocable living trusts as beneficiaries of IRAs. If you name your revocable living trust as a beneficiary, you must be certain that it has the appropriate conduit-trust language and that the wording of the beneficiary designation is correct to take advantage of the stretch-out of the required minimum distributions (RMDs). Remember that if you go ahead and designate individuals as beneficiaries, you may create some headaches for them—including requiring a guardian to request permission from the courts to make distributions if the beneficiary is a minor. Also, the beneficiary may take higher distributions than necessary—often leading to increased taxation, eliminating the value of tax-free compounding and possibly running out of money. If the beneficiary is disabled, there is a risk of potentially losing needs-based government benefits. Other potential issues include the loss of control as to who will ultimately inherit the IRA after the death of the primary beneficiary and—if the beneficiary is not the spouse—the IRA being fair game for creditors. Typically, a surviving spouse beneficiary can make the IRA his or her own and take RMD based on his or her life expectancy. The RMD doesn’t need to begin until the spouse reaches age 70 ½ or April 1 of the following year. An IRA inherited by a spouse and converted to his or her own IRA will still be protected from creditors from personal injury lawsuits, bankruptcy and the like. Distributions from an IRA inherited by a non-spouse are required to commence the year after the death of the IRA owner. The RMD is based on the beneficiary’s life expectancy. A non-spouse inherited IRA isn’t protected in bankruptcy and may be hit with the claims of the beneficiary’s creditors. But the assets in a standalone IRA trust are protected by trust law, and they’re also protected from creditors. The trust can also control distributions so that they’re limited to the RMD based on the beneficiary’s life expectancy. That will defer the payment of income tax within the IRA, providing the greatest “stretch-out” of benefits to the beneficiary. Your estate planning attorney can help you decide if the trust should be a conduit or an accumulation trust. The RMDs have to be distributed to the beneficiary in a conduit trust, but with an accumulation trust, RMDs may be accumulated in the trust. The accumulation trust is better if you require additional protection for the beneficiary who’s in a bad marriage, a high-risk profession, has addictions or has special needs. It’s a very complex issue. Again, work with a qualified estate attorney to create a sound action plan based on your personal situation and objectives. Reference : Charlotte News-Observer (July 30, 2016) “To ‘rule from the grave,’ establish an IRA trust” #IRATrust #AssetProtection #EstatePlanningLawyer #IRAStretchTrust #IRA #ConduitTrust #Inheritance #RevocableLivingTrust #RequiredMinimumDistributionsRMDs #IRAStandaloneTrust #AccumulationTrust #SpecialNeeds #BeneficiaryDesignation #IRAProtectionTrust

One of the many responsibilities of local government is to make sure that their citizens are safe and protected from harm. Recent events have served as a poignant reminder that this level of safety also includes helping people prepare for and respond to emergency situations. This is why local governments have emergency preparedness programs, and the court system has ruled that these programs must be accessible to those with disabilities, under the American Disabilities Act (ADA) of 1990. If you have a child or dependent with disabilities, it is essential that you understand how the ADA should be working to make sure your loved one has access to these emergency systems. Even though these management practices are in place under the court rulings, certain issues still have a high impact on individuals with disabilities. Here are a few ways that you can help and make sure that your local government is helping keep individuals with disabilities safe. Notifications Unfortunately, many traditional emergency notification methods are not usable or accessible by people with disabilities. Those who are deaf or hard of hearing may not be able to respond to audible alerts, while those who are visually impaired, may not see flashing lights or other visible warning signs. A combination of notification method should be used to keep more of the population informed of potential emergencies. Evacuation Individuals with disabilities often face many challenges when evacuating in an emergency. Your community should have evacuation plans that enable people with mobility, vision, hearing or cognitive disabilities to be able to safely leave either on their own or with the assistance of others. Some communities have voluntary registries of persons with disabilities who may need individual evacuation assistance that can help the community make certain they are getting the extra attention they need. Accessible vehicles are also, of course, a ubiquitous tool in assisting with evacuations. Sheltering In some emergencies, an individual with disabilities may be required to leave their home and find refuge in a shelter. There are several steps that the community should be taking to ensure that individuals with disabilities can safely access this type of accommodation. Including: Ensuring community shelters have access points for persons with disabilities Working with group homes to make sure people with disabilities and their families know which shelters can accommodate those with disabilities in an emergency Adopting procedures to make sure individuals with disabilities are not separated from their service animals Train shelter staff on providing accessible communication tactics to those with hearing and vision problems Returning Home After an Emergency Following an emergency, when an individual with disabilities can leave their home, they may face certain setbacks, or find that their home was damaged and therefore no longer accessible because of their disability. Communities should have temporary accessible housing, such as accessible hotel rooms or temporary portable trailers available for those with disabilities if they are not able to immediately return home after a disaster. If you have questions about the ADA, your local governments emergency practices or what you can do to help your loved one with disabilities regarding these issues, legal advice may help. Call the experts at Your Legacy Legal Care a call at (281) 885-8826. #ada #americansdisabilityact #disability #naturaldisaster

When a loved one passes away, it can bring out the worst in some family members. Greed and entitlement rear their ugly heads as certain relatives try to get more than their fair share of the inheritance. As estate planning attorneys , we have seen this scenario play out far too many times. Families that were once close can become bitterly divided over money and possessions left behind. In this post, we want to have a thoughtful yet straightforward conversation about how to handle greedy family members after a death. We will share some of the common tactics we see and offer tips on how to move forward. We will also discuss making sure that your own estate planning documents are in order so this doesn’t happen when your time comes. Watch Out for These 5 Inheritance-Grabbing Tactics from Greedy Relatives We have seen more than our fair share of “inheritance vultures.” These are relatives who essentially prey upon other family members’ grief and loss for their own financial gain. While each situation has its nuances, there are some common plays we see family members employ to angle for more inheritance assets. Being aware of these schemes can help you spot questionable behavior right away and address it properly. Here are some of the typical tactics they tend to use: 1. Sweet-Talking and Sympathy Ploys Some of the most cunning inheritance vultures will initially act very kind, overly helpful, and seem to take a strong interest in supporting other relatives. Don’t be fooled, though – this is often a ploy to butter up widowers, executors, etc., before making a big “ask” for money, property, or other valuables. We call this the “kindness carpet pull” scheme. 2. Crocodile Tears These actors can turn on the waterworks to try to elicit sympathy and make others feel guilty if they don’t comply with demands. Sob stories abound, along with the “woe is me” routine. It’s emotional manipulation purely meant to weaken resistance to giving them more. 3. Veiled Threats or Ultimatums One of the more infuriating plays in the book is making what seems like outright threats or ultimatums. “If you don’t give me that car, you will never see your grandkids again.” – be prepared for bullying attempts of this nature. It preys on fears and vulnerabilities while aggressively angling for assets. 4. Questionable Documentation Greedy family members might also conveniently “find” documents allegedly demonstrating the deceased person intended for certain items or funds to go to them…how convenient! Don’t take it at face value. With help from a qualified estate planning attorney, verify the legitimacy of all legal documents before moving forward with distributing assets. 5. Challenging Competence or Undue Influence Finally, if they can’t produce conflicting documentation, they may resort to contesting the wishes of the deceased via will and trust contests . They may make claims that the deceased was not mentally capable of signing them or was unduly influenced by others. Comments like “Dad had dementia – he must not have known what he was doing” or “His new wife clearly took advantage and made him change his will” are red flags. If this happens, stay calm and know that incompetence is very hard to prove if the documents were legally executed. Speculation alone won’t hold much weight. Our estate planning attorneys at Your Legacy Legal Care™ build in safeguards to protect you from undue influence. So, have confidence in the documents unless concrete facts prove otherwise. Dealing With Contested Inheritances: How to Outmaneuver Greedy Relatives ​​Regrettably, some relatives let greed overpower decency when inheritances are involved. They pressure, manipulate, or outright threaten legal action to gain more assets. Beyond deep hurt from their actions, you may feel overwhelmed navigating it all. Take heart – there are steps you can take to fight back, especially when backed by legal guidance. Step 1: Review Signed Documents Thoroughly First Closely review any formal estate planning documents like wills, trusts, etc. Whatever is codified, there is what governs asset distribution. If you spot discrepancies with what greedy family members claim, point to the hard evidence in writing. However, without a will or formal estate plan, your state’s intestacy laws will determine inheritances. Step 2: See Through Smoke and Mirrors Do not let empty words or vague threats rattle you. Request to see legitimate paperwork backing up their assertions. If they hem and haw without producing proof, you can reasonably stand upon the estate plan’s validity. Lawyers who stir up inheritance disputes bank on beneficiaries giving in to intimidation. Fight back by gathering documentation and securing your own legal representation to challenge empty threats. Step 3: Set Healthy Boundaries Even when a relative causes conflict, grieving families often still care about them. You may feel tempted to give in little by little to keep the peace. However, going along with unreasonable demands typically enables more of the same behavior later on. Setting clear, firm boundaries protects your interests and makes expectations clear moving forward. It can also cause the other party to re-evaluate their actions. Step 4: Spot Signs Early Looking back, many people see that greedy or controlling relatives showed warning signs even before a death happened. But when someone dies, grief can make it hard to see the truth about people. Thinking about whether you noticed any warning signs earlier can help you decide if relatives’ claims are real and how to respond. Being prepared ahead of time is helpful. Step 5: Divide and Conquer No More A common strategy greedy relatives use is turning people against each other. When grieving, people can be more easily manipulated. Joining together with others named in the will gives important emotional support and a united front based on facts. Working together makes it harder for lies to spread. Getting past money issues after a death takes courage, wisdom, and commitment. But staying on the right path helps honor your loved one the right way. With patient friends and value-based advice, you can overcome selfishness. Step 6: Get Help From a Probate Attorney When beneficiaries threaten legal action against an estate, the most critical step is consulting a trust and estate litigation lawyer immediately. Contested wills and inheritance battles often come down to which party has the best legal resources and strategy. Capable probate attorneys assist in numerous ways during times of duress, including: Reviewing estate documents to identify any holes inheritance challengers could exploit so those can be reinforced proactively Formally establishing the estate plan’s validity via declarations and communications with the contesting parties Helping compile evidence related to the soundness of mind, intent, etc., that solidifies your defense Exploring negotiation, mediation, litigation, and other resolution options while outlining risks and costs candidly so clients can make informed decisions Leveraging legal pressure points through cease and desist letters, motions to dismiss unfounded lawsuits, and more. Advising clients at each phase of the disputed inheritance process to prevent rash choices and maximize outcomes While no one welcomes conflict, informed preparation can curtail much unnecessary stress when will contests loom. Plan Ahead to Protect Your Legacy As difficult as inheritance disputes can be, the best way to safeguard your assets and carry out final wishes is through proactive estate planning. By working with an experienced Texas estate planning attorney to create a properly executed will , trusts , and beneficiary designations , you retain control over who inherits your legacy. Legally sound plans withstand scrutiny and prevent relatives from overturning bequests. Through comprehensive planning, you also spare grieving relatives from having to battle each other or fend off money-driven inheritance ploys at their most emotionally vulnerable time. They can instead focus on healing and honoring your memory. Schedule a consultation with Your Legacy Legal Care™ today to customize an estate plan upholding your values. From wills, trusts, and asset protection to legacy giving and contest prevention, our attorneys partner with you to put your family first well into the future. Contact us today to plan your legacy responsibly and reduce inheritance conflict down the road.

The end of a marriage comes with many new beginnings. Starting a new chapter in life can be scary, thrilling, and more than a little uncertain. While you are likely eager to move on, there are certain responsibilities to take care of before you can fully do so. These chores are not always fun to think about – after all, nobody likes to consider who should inherit their assets when they die. Making these kinds of decisions ahead of time, however, can bring you peace of mind and allow you to move forward without worrying about your assets ending up in the hands of your ex or soon-to-be ex. Here is a handy checklist for all your estate planning needs: Your Will Even if you already have a will in place, it is always a good idea to create a new one after a divorce. Your post-divorce will may include: The decision to leave property to an individual or organization of your choice rather than your former spouse or partner Creating or reestablishing a trust for any children you have Choosing a guardian to care for your kids should you become incapacitated Naming a new executor for your estate Powers of Attorney If you have not already selected a trusted family member or friend to make financial and medical decisions on your behalf should you become incapacitated, now is a good time to do so. Consider executing a new statutory durable power of attorney as well as a medical power of attorney if you have your ex listed as your current agent. Life Insurance Most people list their spouse as their primary life insurance beneficiary. As soon as you are legally divorced, it is time to update those designations. You might opt to list your children as your primary beneficiaries, but you can also put down your favorite charitable organization, too. It is always a good idea to list several options, just in case a primary beneficiary passes before you do. Retirement Accounts Once your divorce has been finalized, you will also want to make sure to update the beneficiaries listed on your retirement accounts. Many people have multiple 401ks, Roth IRAs, and other retirement accounts, so take the time to make sure each one is updated to reflect changes in your life. You may want to solicit the help of a trusted estate planning attorney for this task. Too often, we hear stories where people fail to take care of estate planning concerns after a divorce. When money or assets get left in unwanted hands, the consequences can be devastating. Take action today to ensure that your wishes will be met no matter what the future holds. To ensure the proper distribution of your assets, click here or call us at (281) 885-8826 to schedule your strategy session today.

For most people, in Houston included, living through the coronavirus pandemic has left us weary yet ready to tackle any challenge that comes our way. This pandemic was completely unexpected a year and a half ago. There was so much uncertainty and stress, as we had never dealt with a pandemic of this nature in our lifetime before. First came the shock, then the isolation, and finally, the grief. At this point, millions of people have lost loved ones without being able to say goodbye. There was also the grief of families being separated, unable to attend key events and missing their loved ones in general. Over eighteen months later, we are still not out of the woods. We have used our estate planning expertise to collate our best advice to help you and your family plan for the future and finish strong through these difficult times. 1. Don’t Try to Do It Alone We have all been told to stay at home to prevent the spread of the virus. The message has been loud and clear that we should work from home if possible, only reach out in absolute emergencies, and try not to mix with others without appropriate precautions. Sadly, when you are grieving or facing a challenging situation, being alone is the last thing that experts usually advise. Now that we are a year and a half into the pandemic, many businesses have adapted and are ready to welcome you with open arms, ours included. Businesses are putting health and safety first by providing hand sanitizer, masks, and screens. With these precautions in place, there is no reason not to get the help you need. If you could benefit from talking to somebody, there is no reason to hesitate. Here at Your Legacy Legal Care, we believe that looking after our clients is truly a team effort. We can also point you in the direction of other professional services available in the Greater Houston area, such as counselors or therapists. We have been in the estate planning and elder law field for a long time, and we have seen our share of clients who needed help from other professionals. We recognize that, if you have never needed help like this before, it can be daunting to step into the unknown. Sometimes all you need is to connect with others who understand. 2. Remember Experts Are Still Here to Help COVID-19 has moved many of our activities online: family game nights, church services, work meetings, even weddings and funerals have been watched through the screen. It would be tempting to seek your legal advice online, too. However, as with most things in life, if it is worth doing, it is worth doing properly. While some services can be done online with no issue, using an online service to create your estate plan is not one of them. We have seen an increase in advertisements offering generic legal services online, but be wary of websites that can promise to have your estate plan done for you – you never know who is doing the work. And if you do not have any experience in estate planning, you never know what the quality of their work could be or whether it will even work in the eyes of the law. For your estate plan to truly be tailored to your needs and be executed correctly, your attorney will need to understand certain nuances about your family and personal circumstances. No two people have the same assets, wishes, healthcare needs, or living situations, so it is important that your estate plan is tailored to you. Our law firm remained open throughout the pandemic to continue offering our services, as many people realized the importance of having a plan during unprecedented and unknown times. We continue to offer our strategy sessions via Zoom and phone call, as well as in person, so our clients have the option to meet with us in the way that they are comfortable. 3. You Might Need to Make Decisions That Were Not Relevant Before If your children are still minors, you might feel that it is not necessary for you to make an estate plan just yet. You may think there is still room for changes in the future, such as having more children, grandchildren, or moving. While you might be waiting for your family to be complete before creating an exhaustive plan, there are certain decisions that you must not put off. One such decision is Guardianship, which is a way of notifying the court of who you would like to take care of your children should you and your partner become incapacitated or pass away. Having a Designation of Guardian in place means that you do not have to wait for the court to make any decisions for you. These decisions may not have been decisions you wanted to make in the first place, as the court may choose someone you do not want to be the guardian of your children. A Designation of Guardian eliminates this uncertainty and removes the need for the often slow-moving court process. 4. Check Your Life Insurance Policy The coronavirus pandemic has also brought along changes to the life insurance industry. Do not be afraid to get in touch with your insurer to go through your policy with you and see if any changes need to be made. Keep in mind that sufferers of long COVID may have a yet unknown impact on policies as well. 5. You Are Never Too Young to Start Estate Planning At this stage of the pandemic, the most vulnerable people should have been vaccinated. Anyone who has been infected and recovered has antibodies. Scientists are warning that the virus is making its way towards those who previously had to worry least about becoming seriously ill – young people. Although college kids are not our usual clientele, we continue to encourage anyone over the age of 18 to begin their estate plan. If there is anything that the pandemic has taught the public, it is that you can never be too complacent or too prepared. More and more, parents are encouraging their youngsters to meet with estate planning lawyers so they are not left at the mercy of the courts if they become seriously ill. Durable powers of attorney are open to people of any age, and they ensure that your bank accounts can be accessed if you are unable to manage your finances for a period of time. Advanced health directives allow young people to ensure their care is personalized and meets their wishes, although we hope it will never come to that. 6. Don’t Put Pressure on Yourself to Get a Perfect Estate Plan the First Time As well as bringing unwanted changes to our physical and mental health, the pandemic has also affected our finances. Your place of work might have been temporarily closed, impacting your ability to earn an income for your family. Some people have even managed to save money as a result of the pandemic, as their commute to work may not have been needed or they picked up a way to earn income on the side. No matter how the pandemic is affecting your finances, we are not sure how long these changes will last. You may be thinking that you are unable to make an estate plan until everything calms down, but an estate plan is not a once-in-a-lifetime event. You can update your estate plan at any time, and more than once. In fact, we encourage our clients to update their plans at least every two years. It is much better to at least have something in place, so your hard-earned assets are not distributed according to the outdated intestacy rules that dictate what happens if you do not leave a will. Aiming for perfection can be paralyzing. You do not need to have everything figured out, but it is much kinder on your loved ones if you leave some indication of your wishes rather than leaving nothing at all. If there is anything positive that has come out of the coronavirus pandemic, we have found that more people are treating each other with compassion and understanding as the norm. Whatever you have experienced over the past year, do not underestimate other people’s ability to relate. At Your Legacy Legal Care, we never stopped advising members of our community, to ensure that families were best placed to deal with whatever comes their way. Whether you are feeling overwhelmed, dazed, or quite frankly frightened, our years of expertise will put you at ease and help you gain the right protection to give you peace of mind. For help putting the best plan in place for you and your loved ones, schedule a complimentary strategy session by giving us a call at (281) 885-8826  or scheduling online here .

Retirement is often called the “decumulation” phase, when retirees are steadily spending down their assets. However, many retirees are not only leaving their nest eggs intact but are also saving a large part of their income. Recent studies say that they’re accumulating assets as they move through retirement. Kiplinger’s new article, “Shifting Gears from Saving to Spending in Retirement,” explains that it’s not just the wealthiest retirees who fall into this category. Retired households with at least $100,000 in financial assets save 31% of their income, on average, according to a recent study. A third of Americans age 65 and older took no retirement income from their nest eggs during the past five years, according to a 2015 study. Saving money is good, but if you’re cutting out basic comforts because you think you’ll live to 108 and have huge medical expenses or because you worry that you won’t be able to leave an inheritance for your children, you might want to reconsider the severity of those risks and how you’re managing them. On the other hand, if you’re on a cruise every other month and touring in a new Lamborghini but still spending less than your income, that’s a different issue. You should think about minimizing your tax liability as you continue to accumulate wealth throughout retirement. Also, keep reinvesting any extra income according to your goals, donate to charity or give away assets to family members. Saving is becoming a bigger part of retirees’ financial plans, especially with defined-benefit pension plans going away. Retirees now must depend more on nonguaranteed sources of income—like 401(k)s and IRAs—to cover expenses. As a result of the greater uncertainty involved with generating income from stocks and bonds, retirees who draw their income largely from investment accounts tend to save more than those relying on guaranteed-income sources. Many retirees say that saving is hardwired, but if you’re stuffing money under the mattress, think about how much retirement is really costing you and whether you’re saving up for future expenses that may never happen. While many retirement-planning tools say that your spending will increase by the rate of inflation each year of retirement, recent research contends that this may overestimate retirement costs. In inflation-adjusted terms, spending actually decreases 1% annually in retirement. Major expenses, like a mortgage or the children’s college tuition, may go away in retirement. Also, you might spend less on big vacations and other active pursuits as you get older. So, the amount you must withdraw from your portfolio to cover expenses might significantly decrease during retirement. Many retirees overestimate their spending needs. While optimistic, it might be a little unreasonable to plan on living to 110. You can look at a detailed calculator to factor in your health, family history and lifestyle to give you a better idea of your life expectancy. A recent study found that the wealthiest 20% of retirees could safely draw down as much as 50% more than what they’re spending. Reference : Kiplinger’s (August 2016) “Shifting Gears from Saving to Spending in Retirement” #AssetProtection #IRA #401k #Inheritance #RetirementPlanning

Term life insurance will cover you for a certain period of time. Alternatively, whole life insurance also includes a savings account known as its cash value, which builds over time. You can borrow against the cash value or surrender the policy for the cash. Huffington Post’s article, “5 Questions to Ask Before You Buy a Whole Life Policy,” sets out things to ask yourself before buying a whole life policy. Do I really need it? Whole life can be helpful, but it’s not necessary for everyone. If you require just some temporary coverage until you’ve paid off debts or your kids get through college, choose term life insurance. It’s inexpensive if you’re young and healthy. However, whole life can be a good if you: Have a big estate that’ll be subject to taxes when you die; Want to provide money to heirs for a funeral and final expenses or leave a legacy, even if you spend all of your retirement funds; Are the parent of a lifelong dependent, such a child with special needs—a life insurance payout can fund a special needs trust; or Maxed out contributions to tax-advantaged retirement savings accounts and want a safe place to grow cash long-term as part of your diversified portfolio. Can I afford it? Whole life costs a lot more than term life because some of the premium goes into the cash value savings account—and the interest rate and death benefit are also guaranteed. Note: it takes years to build up substantial cash value, and if you decide to quit the policy after only a few years, you’ll be out a chunk of change and have little or no cash value to take with you. There’s also a fee to surrender the policy during the early years. If you’re in need of permanent coverage, but can’t afford the premiums, look at a term life insurance policy that can be converted to whole life. Regardless of what type of policy you’re buying, get quotes from several companies and work with a qualified life insurance professional. How much coverage should I get? This depends on how you want to use the insurance. If you want it for estate planning, the payout needs to cover the estate taxes so that your heirs don’t have to pay them. Note: you will want to create an “irrevocable trust” to own the life insurance and to be the beneficiary on behalf of your loved ones to keep the proceeds from becoming part of your taxable estate. If you want to take care of final expenses, make sure it covers the funeral and any debts you’ll leave behind. How’s the cash value going to grow? The cash value in a whole life policy has a guaranteed annual return. If the company is a mutual insurer, there might also be annual dividends. This is a share of a company’s surplus, but they’re not guaranteed. Each year, a mutual company makes the decision whether to declare dividends and the amount to give to policyholders. The dividends you get will be based on your policy’s cash value. You’ll be eligible to earn larger dividends as you maintain the policy and let the cash value grow. How’s the company? Check on the financial strength ratings of the insurance companies you’re comparing. Get ratings online from A.M. Best and select a company with at least a B+ rating. Talk with your estate planning attorney about your overall finances and how life insurance fits into your comprehensive strategy before making a purchase. He or she can refer you to a qualified life insurance professional to help. Reference : Huffington Post (August 3, 2016) “5 Questions to Ask Before You Buy a Whole Life Policy” #EstatePlanningLawyer #LifeInsurance #SpecialNeedsTrust

Small business owners are nothing if not hard workers. Many spend a lifetime pouring their blood, sweat, and tears into their businesses. Without smart planning, all that work can be lost through disability, retirement, or death. If you own your own business and want to set your family up for a bright future, avoid these common planning mistakes: Skipping Disability Insurance Pop quiz: How long would your personal savings provide for you and your family if you become disabled? For most Americans, the answer is not very long at all . Unfortunately, your personal expenses will not stop just because you are unable to work. Disability insurance policies help ensure that your family is taken care of financially while you are out of the workforce. Mixing Business and Personal Finances Many family-run businesses start small. When you are running your company out of your basement or garage, it can be easy to forget to separate your business and personal finances. You might not notice too much of an issue at first, but as you grow, the combination can become problematic. Nip this problem in the bud by setting up business accounts that keep your personal finances out of your company finances. Failing to Have a Succession Plan When you retire, do you know who will take over your business? Many small business owners forget to put a succession plan in place. Failing to plan in this way can seriously backfire for those in your family who may (or may not) have an interest in taking over the family business. Consider how the business will be run should you become sick or suddenly pass away. It can be uncomfortable to discuss with your families ahead of time, but figuring out a succession plan now will save you and your loved ones serious stress later. Taking a DIY Approach to Estate Planning There are tons of online resources for estate planning, all boasting their ease of use and affordability. While these tools can be helpful for some people, the average small business owner will have more complicated affairs to get in order. A meeting with an experienced estate planning attorney will help you understand your options and make important decisions about your assets. You do not want something you worked so hard for to be gone in an instant due to a small error in an online will or power of attorney. If you are eager to set your family and business up for long-term success, schedule an appointment with one of our team members by calling us at (281) 885-8826  or by clicking here to schedule online .