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In estate planning, trusts are a powerful tool that can help individuals achieve their goals of passing down assets to their loved ones. However, many misconceptions can prevent people from taking full advantage of this tool. We will debunk 10 common misconceptions about trusts, help you understand why they can be a valuable part of your estate plan, and show you how a Houston trusts lawyer can help protect your assets for the future. Misconception 1: Trusts Are Only for the Wealthy Many believe trusts are only for the ultra-rich. However, trusts can be beneficial for people of all income levels. A trust can help you protect your assets and ensure they are distributed according to your wishes when the time comes. Misconception 2: You Can Only Create a Trust After You Die This is a common myth that prevents many people from taking advantage of trusts. While there are trusts that can be created after you die, this typically requires a probate proceeding. The truth is that you can create a trust while you are alive, which is known as a living trust. It allows you to maintain control of your assets while alive and ensure they are distributed according to your wishes after you pass away. Misconception 3: Trusts Are Complicated and Expensive While it is true that trusts can be complex, they do not have to be expensive. There are many types of trusts, and depending on your goals or needs, the cost of setting up a trust can avoid the financial and time commitments of a probate proceeding. Additionally, the cost of creating a trust can be outweighed by its financial benefits. Misconception 4: Trusts Are Only for Avoiding Taxes While trusts can be useful for reducing estate taxes, this is not their only purpose. Trusts can also protect assets from creditors, ensure they are distributed according to your wishes, avoid probate, and provide for loved ones who cannot manage their finances. Depending on the type of trust that is created, it may also be possible to protect your assets from public benefits such as Medicaid. Misconception 5: You Lose Control of Your Assets When You Create a Trust This myth prevents many people from creating trusts. While it is true that you give up some control when you create a trust, you can still maintain a significant amount of control, particularly when it comes to revocable trusts. You can specify how your assets are managed and distributed, and you can even serve as the trustee if you choose. Misconception 6: Trusts Are Only for Old People Trusts can benefit people of all ages. Younger individuals may have more to gain from creating a trust since they have more time to build and protect their assets. Misconception 7: Trusts Are Only for Those With Children While trusts can be useful for providing for children after you pass away, they can also be used for various other purposes. For example, you can create a trust to provide for a family member who requires special needs planning, protect assets from creditors, or support a charitable cause. Misconception 8: Trusts Are Irrevocable While some trusts are irrevocable, many are not. Revocable trusts allow you to change the trust during your lifetime, which can be useful if your life circumstances change or if you have minor children. Misconception 9: You Need a Lot of Money to Create a Trust While some trusts require significant assets, many types of trusts can be created with smaller amounts of money or assets. For example, a testamentary trust can be created in a will and does not require any assets during your lifetime, but this type of trust will be required to go through probate upon your death. Misconception 10: Trusts Are Only for Estate Planning While trusts are commonly used in estate planning, they can also be useful for various other purposes. Other Uses for Trusts Protecting assets from creditors Preventing accidentally disinheriting children Providing for a disabled family member Supporting a charitable cause Managing assets for a minor child Providing for a pet Trusts can be customized to meet your unique needs and goals. Whether you want to employ asset protection, provide for your loved ones, or support a charitable cause, a trust can help you achieve your goals. Enlist the Help of a Houston Estate Planning Lawyer to Create Your Trust Many trust misconceptions can prevent people from using this powerful estate planning tool. However, by understanding the truth about trusts, you can make informed decisions about your estate plan and ensure that your assets are managed and distributed according to your wishes. If you have questions about trusts or want to learn how they can benefit you, Your Legacy Legal Care™ can help. Contact us today to schedule your consultation.

Stop me if you have heard this one before. There once was a small business owned by a couple here in Houston. He focused on the day to day operations while she kept the books and made sure everyone’s checks cleared. One day she was in a terrible car accident, and she passed away. The next day was pay day. Nobody got paid that day, but they knew the owner would set things right once the shock wore off. A few days later, the boss was back in the office. Then the IT guy who comes by every once in awhile shows up. Apparently nobody but the deceased co-owner had the password to her computer, or any of the online accounts needed to pay the bills. In the breakroom, the IT guy lets slip why he is there and laments that fact that he can’t believe nobody else knows the company computer’s password. One of the longest serving employees exclaims, “Have some respect for the dead!” The IT guy replies “Is that all lower case?” *Ba Dum Tss!* Seriously though, estate planning as a business owner is much more complicated than regular estate planning because you are essentially crafting two plans — one for yourself, and one for your business. Below are four tips we urge business owners to take to heart as they begin the estate planning and succession planning process. ICE It Before getting into the weeds, or getting overwhelmed by the estate planning process, think about what would need to happen for your business to operate if you were suddenly incapacitated. Who should take over and run things in your absence in the short term in case of an emergency (ICE). Talk to the people you have identified and find out if they are comfortable being given power of attorney over your financial and legal affairs. Modern day power of attorney documents can be drafted so that they only spring into action should their creator become incapacitated, but you probably want to start involving the person you have identified in your decision-making so the transition is as smooth as possible. Nothing is sure but death and taxes Depending on how a business is owned and how much it is worth, estate taxes can become an insurmountable burden. Estate taxes can be as much as 50% or more of the total value of a business, and typically must be paid within nine months of the owner’s death. Few businesses have the liquidity needed to make this kind of payment on this short of a timeline. Invest In Life Insurance Speaking of liquidity, the way most businesses ensure they have enough cash to pay the bills after an owner’s death is by purchasing life insurance that names the business or other business partners as a beneficiary. Organize Key Records Finally, as the joke at the start of this post reminds us, gather together all the passwords, keys, and important records that will be needed for your temporary or permanent replacement to take the reins. Make sure they know not just where these items are, but how to use them. Don’t leave your business in a lurch if you become incapacitated or suddenly pass away. The time you spend thinking about and preparing for the inevitable will pay dividends in the future.

As the population of LGBTQ+ seniors continues to grow, it becomes increasingly important to understand the unique legal challenges they face in their later years. LGBTQ+ seniors often face legal challenges in estate planning and inheritance due to discrimination and social stigma. Let’s explore the importance of elder law for LGBTQ+ seniors and how an experienced Houston elder law attorney can help protect their rights and ensure they receive the care and support they need. What Is Elder Law? Elder law encompasses legal issues related to aging, such as estate planning, healthcare, and long-term care. It also focuses on protecting seniors’ rights in retirement, social security, and disability benefits. Elder law aims to ensure that seniors are protected and receive the care and support they need later in life. This includes advocating for their rights and addressing any legal challenges they may face regarding healthcare, housing, and financial planning. Elder law attorneys work closely with seniors and their families to create legal plans that address their needs and unique circumstances. With the help of elder law, seniors can navigate the complexities of aging with confidence and security. Understanding the Elder Law Challenges LGBTQ+ Seniors Face Studies have shown that LGBTQ+ seniors are more likely to experience social isolation, discrimination, and lack of access to healthcare than their non-LGBTQ+ peers. They may also face legal issues related to marriage, adoption, and inheritance rights. Social Isolation and Discrimination One of the most significant challenges facing LGBTQ+ seniors is social isolation. Many LGBTQ+ seniors do not have children or family members who can provide care and support in their later years. Additionally, they may face discrimination from healthcare providers and caregivers who are not trained in LGBTQ+ cultural competency. Healthcare Disparities LGBTQ+ seniors also face disparities in healthcare access and quality. They may be less likely to seek healthcare due to fear of discrimination or lack of access to LGBTQ+ affirmative healthcare providers. When they do seek out healthcare, they may encounter providers who are not familiar with LGBTQ+ health issues and do not provide culturally competent care. Legal Challenges Finally, LGBTQ+ seniors may face legal challenges related to marriage, adoption, and inheritance rights. In many states, same-sex marriage was not legalized until recently, meaning many LGBTQ+ seniors may not have the same legal protections as their non-LGBTQ+ peers. Additionally, LGBTQ+ seniors may face challenges related to adoption and inheritance rights if they do not have legal documentation in place. The Role of Elder Law in Protecting LGBTQ+ Seniors Elder law can play an important role in protecting the rights and well-being of LGBTQ+ seniors. Here are a few ways that elder law can help. Estate Planning Estate planning is an essential part of elder law that can help LGBTQ+ seniors protect their assets and ensure their wishes are fulfilled after passing away. An estate planning attorney can help develop a plan that meets your unique needs. This may include creating a living will, setting up trusts, and designating beneficiaries for retirement accounts and life insurance policies. Healthcare Advocacy LGBTQ+ seniors may face challenges related to healthcare access and quality. An elder law attorney can help advocate for their healthcare rights, including ensuring they receive culturally competent care and helping them navigate the healthcare system. Long-Term Care Planning Many LGBTQ+ seniors will require long-term care at some point in their lives. A Houston long-term care planning attorney could help navigate the complex long-term care system and ensure they receive the care and support they need. Legal Documentation Elder law attorneys can help LGBTQ+ seniors ensure that their legal documentation is in order, including marriage and adoption certificates, wills, and powers of attorney. This can help protect their legal rights and ensure their wishes are carried out in the event of incapacity or death. Contact an Experienced Houston Elder Law Attorney Today Elder law is crucial to ensuring the rights and well-being of LGBTQ+ seniors. By understanding their unique challenges and working with elder law attorneys, LGBTQ+ seniors can protect their legal rights and receive the care and support they need in their later years. If you or a loved one need guidance in setting up an estate plan unique to your needs and wishes, Your Legacy Legal Care™ in Houston can help. Contact us today to schedule a consultation.

It can be very difficult to deal with the passing of a parent. But when you are left to deal with their estate it can get quite confusing rather quickly – especially if it goes to probate. Probate is the settling of an individual’s estate by a court-appointed executor. While it can be simpler if the estate fits within a certain tax bracket, if it does not it can involve a lengthy court process, sometimes lasting even years. Can Probate Be Avoided? Probate may be avoided altogether if the executor is able to prove that all debts have been paid by the value of the estate and there are no significant debts remaining. In such situations, the court will likely choose to either settle the estate, perhaps using an affidavit. Things can get trickier if the individual who passes does not have a will and a clear, legal estate plan or if Medicaid or other social services are involved. In cases such as these, it is likely that probate will be found necessary. How Long Does the Probate Process Take? Probate generally takes several months to complete, even if the deceased had a will. The process begins with an individual (the executor, widow/er, family lawyer, etc.) filing the application to probate will along with the original will filed with a probate court. How Does Probate Work? Going forward the following steps usually take place: At a hearing, a judge finds whether or not the will is valid. If there is no will, an heirship hearing is required to determine the legal heirs of the estate. An executor is appointed. A judge chooses the individual designated in the will, a legal heir, or a surviving spouse, though they may choose to decline the position. Once the appointed executor signs the oath the letters testamentary may be issued. The executor is responsible for ensuring that creditors have been notified of the individual’s death. He or she will also prepare tax returns for the deceased. Additionally, the executor will confirm as to whether there are any other undocumented debts. Once all debts have been paid, the executor will file the appropriate paperwork and start to distribute assets to those entitled beneficiaries. However, if there is no will, the court is to decide who the appropriate heirs should be. Once the first four steps have been met, only then can the estate be settled. Probate Protects Though not always straightforward, once the probate process is completed and understood, it can help to ease any tension, fears and uncertainty often associated with it. The relevant laws serve to protect the estate and everyone involved. Sometimes the most important thing that you can do is exercise patience – and call an experienced attorney. Contact our office at (281) 218-0880 or schedule online at to meet with a member of our client services team today!

In Texas, the probate and settlement process can be complicated. When a court legally recognizes a person’s death, they must protect beneficiaries and the deceased’s estate. The rest of the process may take time depending on how large the estate is, how much debt the deceased owed, whether the deceased had a will, and what is included in it. Having an experienced probate lawyer by your side is essential to understanding this complex process. Understanding the Probate and Settlement Process When the court is involved, the probate process in Texas can be tricky. As an executor, you are responsible for representing an estate in the absence of the deceased. A responsible executor accounts for all assets and liabilities of an estate and should pay off all debts before the awards are distributed amongst the beneficiaries. As an executor, you should also ensure that the estate is settled amicably for all parties involved. One thing to note is that if assets are placed in a revocable or living trust, they cannot be controlled by the will. The court may get involved if the assets are not owned under an LLC or S-Corp but instead owned as an individual. However, the court stays out of the probate and settlement affairs if the assets are under a revocable (living) trust. Why Is Working with a Lawyer Important? As an executor, you should be aware of any family disputes over assets. Handling estate affairs can be expensive, so a probate lawyer will need to account for all benefits. Depending on the wealth of the inheritance, the documented assets and debts, and family relationships, there is no set amount of time given by a court to settle the estate. This makes having a legal representative at your side even more essential. What Nobody Tells You About Being an Estate Executor Being an estate executor has its difficulties because you have to keep the creditors and beneficiaries’ best interests in mind. The beneficiaries of an estate should be updated on the status of their benefits in the event of a loved one passing away. In some cases, a will may also be contested, or beneficiaries may reject assets. A variety of accounting and legal auditing takes place during the probate process to ensure that each party gets the portion of the estate they deserve. As an executor, you must make sure that all documents relating to the estate are organized and sent to the correct resources. Navigating the specific business entities that the deceased created might be difficult, but a legal professional can help you through the process. What Can Delay the Probate Process? When a lawyer is acquiring the information needed to complete probate, they may run into issues that slow down the process. For example, if an estate has many beneficiaries, allocating funds to each person and keeping them updated on the progress of settlement might take time. If the beneficiaries live far from each other, documents will be mailed to them, which could delay communication. If the assets are in different states or area codes, the process can lengthen even further. Estates are legally required to file tax returns in the form of the state-level estate tax or inheritance tax, so if an estate has failed to file, the probate process is slowed by a few months. The process can also be affected if the assets owned by an estate are unusual, meaning that it is difficult to pinpoint the monetary value of an item. Speak With an Attorney About Probate and the Settlement Process If you recently lost a loved one and are unsure of the litigation process behind their estate, an experienced probate attorney may be able to assist you. They could acquire all needed documentation, evidence, and information to ensure a recently departed loved one’s assets stay protected. If you want to learn more about how our team could help you receive your inheritance or other estate benefits, contact our office at (281) 218-0880 or schedule online to meet with a member of our client services team today!

In Texas, to create a proper estate plan, you must have the necessary mental capacity to execute a legal document. In general terms, mental capacity is shorthand for a person’s ability to reason, understand and make judgments for themselves. Mental capacity is a legal concept that refers to whether or not someone has sufficient understanding of what they are doing for it not to be considered legally irresponsible behavior on their part. Are you concerned about the testamentary capacity of your loved one? Are you wondering how to create a legal estate plan for them if they cannot do so themselves? Is there an already established estate plan in question that concerns you? Here, we will discuss the different types of capacity under Texas probate law, the requirements, what happens when these requirements are bypassed, and how you can get help. There Are Two Types of Capacity in Estate Planning In Texas, you must meet two types of capacity to create a valid will or estate plan. Legal Capacity To legally create a will in Texas, you must meet specific basic legal requirements. One of the following must be true: You are at least 18 years old You are or have been legally married, or You are a member of the U.S. military As long as one of these requirements is met, you are presumed to have the legal capacity to create a will. Testamentary Capacity In addition to the legal requirements, under Texas Estate Code, one must be of sound mind to legalize a will (testamentary capacity). Testamentary capacity criteria aim to prevent decisions arising from coercion or fraud. In Texas, testamentary capacity requires you to understand four things: The nature of your legal documents Your assets and how they should be distributed The persons who are the recipients of the property and their relationship to you The consequences of signing legal documents It is possible for a deceased person’s descendants to seek restitution by challenging their loved one’s documents in court if they believe that the person executed their estate planning documents without mental capacity. How Can You Prove Mental Capacity? In most cases, the best way to prove testamentary capacity or the lack thereof is to provide evidence. This can include eyewitness statements and medical records. If your loved one has a medical diagnosis of dementia, Alzheimer’s, or other illness that may affect their mental capacity, medical records will show this. On the other hand, if they do not have a diagnosis, having family members that can attest to their mental state can benefit your case. What Happens if a Person Signs Estate Planning Documents Without Testamentary Capacity? The document is invalid if a person signs estate planning documents without testamentary capacity. This means it cannot be enforced in court and will not carry out its intended instructions. The only way to challenge an invalid document is through the court system. An invalid will or trust can be challenged by a family member who believes they have been wronged by it. Suppose your family member dies and you learn that they left their entire estate to someone that mistreated them or assets were split unfairly between heirs, and a new will was created briefly before their death. You can contest the will in court to have a judge decide. What Are Undue Influence and Fraudulent Inducement? Undue influence is a fraud that causes the victim to act against their best interest. It does not have to be intentional and can happen when someone uses their power or authority to take advantage of a vulnerable person. It can happen in many ways and exist in many types of relationships. An attorney drafting a will that favors their interests, a parent pressuring their child into signing an inheritance agreement under threat, or a spouse convincing their partner to allow them to handle all financial and legal matters are examples of undue influence and are illegal under the law. On the other hand, fraudulent inducement is intentional and involves: Coercing someone into signing an agreement by misrepresentation Tricking Otherwise, defrauding the other party Both are crimes punishable under the law and can stem from estate planning for individuals without the testamentary or mental capacity to do so. Fortunately, there is a legal way to go about helping your loved ones plan for their future when they can’t do so themselves. What Should I Do if My Loved One Can’t Sign for Themselves, But I Want to Help Them Create an Estate Plan? Typically, you would need a power of attorney document to act on their behalf. However, if one does not already exist and they do not have the mental capacity to sign one now, you may petition the court for guardianship. This will require your loved one to be examined by a physician and declared mentally incompetent, and then the court will choose a guardian to handle their affairs. Guardianship proceedings are typically difficult and will cost more than establishing a power of attorney document. To prevent the need to go through guardianship, it is highly recommended to have a power of attorney in place before the possibility of mental incapacity occurring. How a Texas Estate Planning Law Firm Can Help Are you looking to get guardianship for your loved one? You are in the right place. At Your Legacy Legal Care™, we represent clients and their families in Houston, helping them make the best decisions for their family’s future. We can represent you when seeking guardianship while keeping your and your loved one’s best interests at heart. Our estate planning attorneys understand the intricacies of trust and estate planning in Texas and can help you establish your documents before mental incapacity may occur. Call now for a strategy session.

This article is based on a conversation by Kim Hegwood, estate planning and elder law attorney, and Tamara Claunch, Integrative Wellness and Life Coach who specializes in dementia risk reduction. For the full conversation on this topic, view the Life Happens podcast episode with Kim and Tamara here. It can be easy for many people to feel hopeless when it comes to a diagnosis of dementia. Like Tamara Claunch felt, it is easy to view Alzheimer’s and dementia with a negative attitude and worry that, once you or a loved one get it, there is nothing you can do. Tamara was the primary caregiver for her grandmother, who had Alzheimer’s disease and passed away in 2008. At first, it was easy for Tamara to feel hopeless and worried that her or her mother would get it. She felt like there was nothing she could do about it. In the following years, she actually discovered that those thoughts were not the truth and that there is a lot you can do to decrease your risk of developing Alzheimer’s and other dementias. Out of this difficult time, Tamara realized her passion for helping people and creating hope for the future. Is Alzheimer’s Disease Luck of the Draw? Alzheimer’s Disease is NOT just luck of the draw. While genetics do play a part in your risk profile, your genes only contribute to about 2 to 3 percent of that risk. The rest can be prevented by actions that you take. Kim asks Tamara, “If my grandmother and mother both had Alzheimer’s and I was always afraid of getting tested for the Alzheimer’s gene, and I came to you for advice on how to lessen the odds of getting it, how would you walk me through your process?” Tamara answers, “For those of us with a family history, that’s always in the back of our mind. A lot of people lay in bed at night and worry about whether they’re seeing the signs of dementia already. What I like to explain to people is that Alzheimer’s, in a way, is like any other chronic degenerative condition, for example heart disease, diabetes, and cancer. There are risk profiles around these conditions, and for me, one of the best things I did was get tested to understand my risk profile for Alzheimer’s.” What Is a Risk Profile and Why Is it Important? A risk profile consists of five basic categories: Biomarkers, which consist of the genes you were born with that you cannot control. Demographics, which you also cannot control. This consists of your age, your ethnicity, your gender, and where you were born or where you live. Lifestyle, which can largely be controlled. This can include your diet, exercise, drinking habits, smoking habits, and more. Medical, including any medical conditions or comorbidities you may have. Environmental factors. It is important to evaluate these categories to understand what your plan for getting off the road to Alzheimer’s may look like. Everyone will have a different plan that is tailored based on what these conditions look like and where that person wants to be. What Can You Do Today to Lower Your Risk? Tamara explains, “There are things you can do to lower your risk now, and the answer is really simple but most people don’t like it because it’s not a magical pill. We’re so conditioned to take a pill when we have a problem, but the real answer isn’t in the pill; it’s in our choices and behaviors. We can reduce our dementia risk by applying conditions that lower it to help balance out the genetic risk or the demographics that we’re born with. Things like exercise, nutrition, not smoking, not drinking much alcohol, losing weight, and doing cognitive training can help us not only reduce our risk for dementia, but also for heart disease, diabetes, and all these other complex conditions that are the result of lifestyle choices.” What Is an Integrative Approach? Tamara describes an integrative approach as working across the whole human being; it is more than just a physical aspect. It involves making changes that stick, taking it step by step. While helping clients, Tamara first understands the roots of their behaviors and helps them make changes that will result in new habits, new patterns, and new practices that support who the client is and where they want to be in life. Tamara says, “ I think a lot of people get overwhelmed, especially if I listed all of the things you need to do to reduce your risk.  It’s all about looking at where the client can make the biggest difference and to be honest, exercise and nutrition are hands down some of the hardest things to stick with. Having an accountability partner is very helpful, whether it is a friend or a coach like me who is giving your energy, excitement, resources, tools, and a plan you can execute to have better brain health and a better life.” It all comes down to how badly you want to maintain your independence and dignity as you age and taking the steps in the right direction. At Your Legacy Legal Care, we assist individuals with dementia in putting a plan in place for long-term care. To schedule a strategy session to discuss estate planning or elder law, call our office at (281) 218-0880 or contact us here.

There are so many adults today who don’t take the time to create their last will and testament , and their loved ones are forced to learn the hard way about the processes involved with transferring a property once someone has passed. Unfortunately, passing on your belongings is not as quick and simple as it seems in movies and televisions, and many times the assets you are attempting to pass on will get tied up in a long and costly process called probate. Estate planning can be quite complex, but there are two very important deeds that can help a property owner avoid probate in the state of Texas: the Lady Bird Deed and the Transfer on Death Deed. These deeds have similar goals, such as avoiding real estate recovery, but they have a few key differences. The more you know about each of these deeds and what they entail, the better prepared you will be with your future estate planning efforts. Continue reading to learn more about deeds and transferring property after death. The Lady Bird Deed Also known as the Enhanced Life Estate Deed, the Lady Bird Deed was designed to help pass property on from one individual to the next, outside of probate. The Lady Bird Deed typically allows the grantor to maintain the right to keep the property, sell it, lease it, or mortgage it and keep all proceeds of the property. This enhanced life estate arrangement can do a number of things, including: Allow for the transfer of the remaining interest on a piece of real estate Allow the current owner to reside on the property Allow the current owner to terminate the remaining interest on a property and transfer it to someone else Allow individuals to bypass the gift tax The Lady Bird Deed can be signed by an agent acting as a power of attorney. In most situations, if the grantor lacks mental capacity, it is best to use the Lady Bird Deed, instead of the Transfer on Death Deed. Transfer on Death Deed Much like the Lady Bird Deed, the Transfer on Death Deed is designed to avoid real estate recovery. However, the Transfer on Death Deed is relatively new, is untested in any published court opinions, and has some drawbacks the Lady Bird Deed does not: It may not be executed by an agent under a power of attorney. The beneficiary must survive the grantor by 120 hours. This is not the case with a Lady Bird Deed. A Transfer on Death Deed is subject to claims against the estate for two years after the death of the grantor. Every situation is different, which is why there are situations where the Lady Bird Deed may be more desirable than a Transfer On Death Deed. Contact Your Legacy Legal Care Today Now that you know the difference between Lady Bird Deeds and Transfer On Death Deeds, you can make an informed decision about passing along your belongings once you’re gone. Still, understanding estate planning can be complicated. It’s in your best interest to work with an experienced attorney so that you and your family can benefit from your deed. Want to know which deed is right for you? You can always speak to the estate planning attorneys here at Your Legacy Legal Care . Contact us to schedule a strategy session . FAQ: Estate Administration What is probate? Probate is the process after one passes away where their will gets carried out. The executor of the decedent’s estate goes through the probate process. Some of their duties include paying off remaining debts, appraising the decedent’s estate, and distributing assets to beneficiaries. If you’re an executor and need help with this process, contact a probate attorney . How do I assign an executor of my estate? You can assign an executor by appointing a person in your will. An executor is responsible for handling your estate once you’re gone, so it’s important to choose someone you trust. If you don’t appoint an executor in your will, the courts will assign someone this role after you pass away. This can cause problems if the courts choose someone you do not trust. Therefore, it’s important to name your executor in advance. What happens if I die without a will? A will states how you want to distribute your assets once you die. So if you pass away with a will, the courts will decide how to distribute your belongings. A will is a beneficial document because you can choose who gets what. For example, if you have a sentimental item you’d like to pass down to your child, you can specify that in your will. We advise creating a will with a reliable attorney so that it’s legal and valid. #transferofdeath #deed #ladybird #transferofdeathdeed #ladybirddeed

Getting named successor trustee for a loved one’s trust is an honor. It means that someone in your life trusts you to act in their interests in the moments following their death. However, it is also natural for many people to feel overwhelmed by this responsibility. Managing a trust that provides instructions for asset distribution after someone’s death comes with several complex legal, estate tax, investment, and compliance obligations. Without relevant expertise, the chances of mismanaging trust funds increase considerably. As Texas-based estate planning attorneys, we have seen firsthand the pitfalls people face as they administer the trust they have been left to deal with. With guidance from an experienced trust administration attorney, you can feel assured that all trust duties are handled appropriately. How Trust Administration Works in Texas In most cases, administering a trust begins at the time of the trust creator’s death. When this happens, the trustee must: Finalize Trust Assets: Collect information on accounts, titles, deeds, etc. to verify trust ownership. Obtain official date-of-death values, the death certificate, and appraisals. Pay Debts/Expenses: Settle any unpaid medical bills, taxes owed, and trustee/administration fees from trust funds. Manage Investments: Make prudent investment choices aligned with the needs of beneficiaries while preserving capital. Oversee Compliance: File required annual trust tax returns. Maintain thorough accounting records regarding each transaction. Consider trust accounting services where needed. Distribute Assets: Follow the distribution instructions in the trust document. Provide statements and communications to beneficiaries regarding distributions. On top of these duties, trustees must understand and carefully adhere to relevant trust, tax and probate laws. The Texas Estates Code and Probate Code provide many strict procedural rules trustees must follow. Staying compliant minimizes legal liability. But without proper legal, financial, and administrative knowledge, successfully balancing these competing trustee duties proves extremely difficult. Why Settlors Designate Family or Friends as Trustees If administering a trust seems so complex, why does the settlor name a family member or friend as successor trustee rather than a professional? Reasons typically include: Greater perceived trust in someone they personally know – Settlors often assume friends/family will show better care, judgment, and integrity than an unknown third party. Desire to reduce trust administration fees – Appointing a corporate trustee usually means higher ongoing service fees, while naming a relative provides perceived cost savings. However, these reasons are often based on assumptions about professionals’ skills and priorities. The truth is corporate trustees receive thorough training to handle trust administration and prioritize the beneficiaries’ interests. Professionals ultimately help simplify the process for beneficiaries rather than making it more confusing or costly. Risks of Using a Non-Professional Successor Trustee Becoming a trustee without enough legal and financial experience can cause problems later on. Some common issues that untrained trustees face include: Analysis Paralysis – Lacking experience with trust administration procedures causes delays or inaction. Some successor trustees even refuse the appointment once learning what it entails. Increased Litigation Risk – Well-intentioned mistakes stemming from ignorance of probate code requirements open the door to disgruntled beneficiaries trying to contest the trust. Poor Investment Decisions – Investing trust assets improperly can severely erode a decedent’s financial legacy for heirs rather than preserving it. Tax & Reporting Noncompliance – Failure to handle required tax filings and account documentation appropriately also invites litigation from frustrated beneficiaries and fines from governmental agencies. Legal liabilities and mismanagement risks prove a constant challenge for trustees who do not know what they are doing. Without a thorough working knowledge of trusts and estates’ legal and financial intricacies, trustee liability and mismanagement pitfalls abound for unsuspecting family/friend appointees. Why Hire a Corporate Trustee for Trust Administration Naming someone without enough training as your trustee can lead to legal and money problems later on. Instead, picking a professional corporate trustee offers more reliability for you and the beneficiaries. Some benefits of using a corporate trustee like a trust company or law firm include: Specialized Expertise: They focus fully on estate and trust administration. Corporate trustees get extensive legal, financial, tax, and investment training to manage different trusts. More Protections: They closely follow all fiduciary duty, compliance, and risk management laws protecting beneficiaries. Their credit, assets, and longevity provide added safety. Consistency: A company trustee won’t pass away or resign like a person might. This allows steady guidance of your trust for many years. Choosing a corporate trustee is better for upholding a settlor’s wishes while protecting heirs’ inheritance money. We Guide Successor Trustees Through Administration Duties If you have recently been appointed successor trustee for a Texas trust, please know that our attorneys are here to help you navigate this role successfully. Whether you have a thorough grasp of fiduciary duties or feel totally lost regarding the next steps, we offer reliable guidance so you can serve the trust’s beneficiaries smoothly and compliantly. With decades of combined Texas trust administration experience, the attorneys at Your Legacy Legal Care™ help simplify the complex trust hand-off process for successor trustees of all knowledge levels. We provide actionable direction regarding: Collecting and securing trust assets Navigating debts, expenses, and investments Meeting filing requirements Distributing according to the settlor’s instructions Avoiding personal liability Embark on your trust administration journey with Your Legacy Legal Care™. Contact us today to ensure precision in crafting your assets, passing them seamlessly into the hands of those you cherish the most.

A small business is a part of your identity, not to mention your livelihood. Business planning lawyers look to protect both aspects of this should you die or become incapacitated. Advanced planning is one of the smartest things that you can do to ensure that your small business meets the goals you have for it, whether you are at the helm or not. · Make sure that your wishes are followed · Ease transition for the company · Protect the business from being dismantled · Save considerable money When you think of your estate, you would probably include your home, your personal assets, and your bank accounts. But your small business is also considered as part of your estate, even though you likely don’t want it to be treated the same way as the other property already mentioned. There are a lot of decisions to be made, and a Houston business planning lawyer is the perfect person to consult. There are several things you will want to consider, and your attorney can help you draw up documents that are legal and binding according to state laws. For example: · Do you want the business to keep running after you pass away? · If so, who should be in charge? · What happens to your shares in a business? · Do partners need to buy your family out of the business or does ownership transfer to one of these parties? You will also want to have your lawyer explain the various tax implications that come along with your different options. It’s not unusual for a small business to implode after an owner’s death, not because there was no one to take over, but because the estate taxes just take so much that there’s not enough left to continue operations. Advanced planning for your business can help avoid this type of huge tax burden. Specific sections of the tax codes have been designed to assist with the transition of businesses by limiting the taxes on heirs’ stock or to pay estate taxes over the course of 15 years. These two seemingly small things can make the difference between keeping the doors open or shutting down. To get the most out of the tax codes that have been put into effect for folks like you, there is nothing quite as helpful as meeting with a qualified business planning lawyer in the Houston area. To get started, simply call our office at (281) 218-0880 to schedule a complimentary estate planning strategy session.

Trusts and limited liability companies (LLCs) are both legal vehicles that can be used to manage and protect assets, minimize taxation, and avoid probate. Whether a trust or an LLC is a better choice may depend on the type of asset, but you do not necessarily have to choose between the two. In fact, an LLC can be placed in a trust. To explain how that works, it is first necessary to better understand each type of entity and clear up some common misconceptions about them. What Is a Trust? When most people think of a trust, they think of a vehicle for transferring intergenerational wealth. While this is not too far off the mark, trusts are not exclusively for the wealthy. They are, however, a common way to avoid probate (the legal process of settling an estate when somebody passes away) and plan for estate taxes. For starters, it is not just money that can be placed in a trust. Trusts can hold cash, but they can also hold other assets such as bank accounts, securities, life insurance policies, real estate, intellectual property, personal possessions, cryptocurrencies and nonfungible tokens (NFTs), real estate, and ownership interests in a business—including an LLC. This is not a complete list of what you can put in a trust. The ability to transfer title of an asset to a trust does not mean that it is the best place for it. Before placing any asset in a trust, consult with an attorney about how the transfer might affect taxation, liability protection, and probate. Once you have decided that certain assets belong in a trust, the next step is to create the trust. You will need to specify the assets to be placed in the trust, somebody to oversee the trust assets (a trustee), the individuals who will receive the trust assets at the specified time (the trust’s beneficiaries), and instructions for distributing trust assets to beneficiaries (the trust agreement). In addition, you will need to fund the trust by transferring title of the assets into the name of the trustee. You will also have to choose the type of trust. A revocable trust is more flexible and can be changed during your lifetime, whereas an irrevocable trust cannot be changed once created. A testamentary trust can be created at the time of your death per instructions in your will. A key feature of trusts is that once your assets are transferred into the trust, they technically are no longer your personal property. They are the property of the trust, which is managed by a trustee for the benefit of the beneficiaries. This explains why some trusts can help minimize or avoid estate taxes. Also, because assets in a trust are not part of your estate at death, they do not have to be transferred to your heirs through the probate process; they are instead distributed according to the trust terms. What Is an LLC? An LLC is a type of business entity that provides liability protection to its owners and avoids double taxation. In terms of liability protection, when an LLC takes on debts and liabilities, its owners’ personal assets generally cannot be seized by creditors of the LLC as payment for what the business owes. LLCs also are not taxed at the corporate level. Instead, LLC owners pay taxes on business profits on their personal income tax return. This avoids the double taxation applicable to corporations. LLCs, like other businesses, have assets such as real estate, vehicles, tools, equipment, and intellectual property. And like a trust, just about any type of asset can be transferred into an LLC, including personal assets like cash and bank accounts, property, and personal possessions. Thus, LLCs can also serve as tools in the estate planning process. To start an LLC, you file the articles of organization with the secretary of state where the business is located. That could be your home state, but you can start an LLC in any state. If you are primarily looking for asset protection, then it might pay to shop around in different states. Nevada and Wyoming have statutes providing strong asset protection. An attorney can help you identify the right state for your unique needs. Most states also require you to file a report at least once per year. At startup, you pay a one-time filing fee. When filing an annual or biannual report, expect to pay approximately $100-$500 per filing. The other major document for your LLC is the operating agreement. While it must comply with state LLC laws, the operating agreement typically does not have to be filed with the secretary of state. This document specifies the LLC’s internal rules and procedures. Although it is not always advisable, you can stipulate in the operating agreement that, when you die, the business passes to your heirs, or the income from the business goes to your kids. It is important to check with your attorney to ensure that you have carefully thought through all of the ramifications, for example, whether the heirs are prepared to become business owners and if this plan is acceptable to any existing business partners. Like a trust, transferring the LLC interests to beneficiaries can be a way to avoid probate. Not only can you manage and pass on a family business through an LLC, you can also place assets in the LLC such as rental properties and vacation homes. In fact, just about any asset can be placed in the LLC, including money and personal possessions. Those with large estates can use a family LLC structure to minimize gift and estate taxes. Is a Trust or an LLC Right for You? To summarize, trusts and LLCs both have value as legal instruments that can shield assets from taxation and avoid probate. LLCs have the added benefit of personal liability protection, but they typically have higher ongoing costs than trusts. One benefit of those higher costs is that you have a greater ability to manage the assets in an LLC. As noted, once you place assets in certain types of trusts, they are out of your hands; but there is a trade-off with regard to privacy. Trusts never become part of the public record, while the existence of an LLC—though not necessarily the identity of its members (depending on your state’s law)—is public information. Some trusts and LLCs, when set up correctly, have the potential to protect assets from creditors. With trusts, you have to be careful to choose the right type of trust for maximum creditor protection. Even then, there is no guarantee that your beneficiaries will be completely protected. LLC asset protection varies by state, and care must be taken to treat the LLC’s assets separately from your personal property to keep creditors from being able to “pierce the veil” of the LLC and come after your personal assets. In short, there are trade-offs associated with using either a trust or an LLC. One common way to minimize these trade-offs is to place an LLC inside a trust. If a trust owns an LLC, it adds another layer of asset protection. In addition, one way to avoid having your name on state registration documents is to hire a third party to form the LLC for you and act as your registered agent. Beyond the basic pros and cons of each legal vehicle, it comes down to how the trust or LLC is structured. Our legal team can help you choose the right tools for your needs and draft the agreements that align with your goals. To set up an appointment, please call us at (281) 218-0880 or schedule online here.

As a parent of a child with special needs, your heart is filled with love and worry for their future. You want nothing but the best for your child, especially regarding their care. Naturally, you want to be sure that they will continue to receive the same love and attention that you provide, even when you are no longer around. It’s a daunting task but an important one. That is where a special needs letter of intent comes in. This legal document is like a love letter to your child, providing detailed instructions about their care and the services they need. It can be difficult to create, but it’s crucial to ensure your child’s well-being. To help you do just that, our special needs planning lawyers have put together a guide to walk you through everything there is to know about creating one. From how it works to a free special needs letter of intent template, you’ll have everything you need to secure your child’s future. Read on or contact us today for help. What is a Special Needs Letter of Intent & Why is It Important? A special needs letter of intent is a document that outlines instructions and guidance on how to care for your child with special needs when you are no longer able to provide that care. It goes hand in hand with a special needs trust by offering detailed instructions on how to provide personal care to the beneficiary. This document is helpful for caregivers, trustees, and family members who are part of your child’s care. It can help prevent confusion and ease tension within the family by clearly outlining your wishes. What Should Be Included in a Special Needs Letter of Intent? A special needs letter of intent should include detailed information about your child’s care and needs. It should cover areas like: Your child’s medical history Your child’s daily routine and preferences Information about your child’s medication, diet, and allergies Information about your child’s therapies and treatments Contact information for doctors, therapists, and other medical professionals Information about your child’s education and employment goals Information about your child’s hobbies and interests By providing detailed instructions about your child’s care, you can sleep peacefully, knowing that your child’s needs will be met, no matter what the future holds. How to Create a Special Needs Letter of Intent Creating a special needs letter of intent can be complex, but it’s paramount to securing your child’s well-being. Here are the four steps you can take to create one: Gather information — The first step is to gather all the necessary information about your child’s needs, preferences, and routines. Also, include information about your child’s hobbies and interests. Identify caregivers and trustees — Identify the people responsible for your child’s care. This can include family members, friends, or professionals. Draft the letter of intent — This document should be comprehensive and cover all areas of your child’s life. Consider consulting with an attorney experienced in special needs planning to ensure it covers all basis. Review and update regularly — It is essential to regularly review and update the special needs letter of intent to ensure it remains relevant and accurate. As your child’s needs change, you should update the document accordingly. By following these tips, you can create a comprehensive special needs letter of intent that reflects your child’s unique needs and ensures their care in the future. Tips for Writing Your Special Needs Letter of Intent Writing a special needs letter of intent requires attention to detail and a deep understanding of your child’s needs. It is not just about including basic information—it’s about painting a vivid picture of your child’s unique personality, preferences, and needs. Consider including information about their favorite hobbies, communication strategies, and emotional needs. Don’t forget to note any dietary restrictions or nutritional requirements. With our tips and special needs letter of intent template, you can confidently provide clear instructions for your child’s future care, giving your child a bright future. Take Action Today: Secure Your Child’s Future with a Special Needs Letter of Intent Don’t wait to create a special needs letter of intent for your child. Take action now to secure their future and provide peace of mind for yourself and your family. With our helpful tips and special needs letter of intent template, you can easily create a comprehensive guide for your child’s future caregivers that includes all the necessary details about their unique needs, preferences, and personality. Download the template and get started today—your child’s future is worth the investment of time and energy. Haven’t set up a special needs trust yet? No problem. Our team at Your Legacy Legal Care is here to help. Contact us today for a one-on-one consultation.