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Each year, millions of Americans dismiss estate planning efforts because they believe it is too complicated. While crafting estate plans can be confusing at first, the process can be simplified when you are working with the right team. Understanding the essentials of estate planning can help you and your family plan for a bright future without allowing anything to “fall through the cracks” when it comes to asset protection. Here are a few of the most important steps you should take when considering how to best protect you and your loved ones: Create a Will and Trust When most people think about estate planning, they think of wills – and for good reason. Many people may benefit from having this fundamental estate planning document in place before they pass away. Too often, though, wills are improperly constructed and frequently found to be invalid – especially those done online without any guidance from an attorney. A will is one of the most important aspects of a person’s estate plans, but without a trust in place, your family could still end up in court arguing over the decisions you made in your will. A trust ensures that the right assets go to those you intended. Trusts and wills work in conjunction to directly instruct the transfer of assets, and if done correctly, without having to endure any probate court proceeding. Designate Beneficiaries You have worked hard to put money into your retirement accounts, invest in the stock market, and possibly pay monthly premiums for life insurance to help take care of your family. Make sure your assets are transferred to your intended heirs by properly designating your beneficiaries. As your life changes, you may find yourself needing to update the individuals you listed as beneficiaries. Any time you are making a major life change (like getting married or divorced), you will want to reassess your beneficiary designations since beneficiary designations reign over what your estate planning documents state. Create Advanced Medical Directives and Powers of Attorney Should you become incapacitated, there is no document more important than your advanced medical directives and powers of attorney. Your statutory durable power of attorney allows you to name someone you trust to handle your financial affairs while your advanced medical directives will allow you to appoint someone to make medical decisions on your behalf. If you skip any of these documents, you could find your family going to court to have a guardian appointed to determine any decision that should be made regarding the healthcare you receive or your finances. It is far better to make plans in advance to leave the job to a trusted advisor. While you are at it, you should also consider your preferences for end-of-life care. Should you become incapacitated, doctors can refer to your advanced healthcare directives for instruction. This will allow the doctors to know your wishes when it comes to any life sustaining treatment you do or do not want. Cement Your Future Plans Now with Our Estate Planning Guide These simple steps can prepare you and your loved ones for what may lie ahead. Of course, your estate plans can be as detailed and as thorough as you would like them to be. If you need assistance to be sure everything is in order, contact Your Legacy Legal Care today at (281) 885-8826 or schedule online today. Our dedicated and experienced estate planning team will guide you step-by-step to provide the best protection for those you love.

Death is a reality that nobody wants to face, but it’s an inevitable part of life. As much as we hate to think about it, it’s important to plan for what happens when we pass away. One of the most critical aspects of this planning is creating a will. A will is a legal document that outlines how your assets should be distributed after your death. Sadly, many people neglect to create a will , and when they die, their estate ends up in probate. This blog will explore what happens if you die without a will in Texas, state intestacy laws, and the potential consequences of failing to plan. Dying Without a Will: Understanding Intestate Succession Laws in Texas In Texas, when a person dies without a valid will or trust, their assets will be distributed according to the state’s laws of intestacy. This means that the court will determine how your property is divided up based on a set heir hierarchy. Generally, this is what would happen: Any surviving spouse has rights to a portion of your estate. If you have children with that spouse, the spouse would be entitled to all community property (property acquired during marriage) plus one-third of your separate personal property (property owned before marriage or inherited). Your children would inherit the rest. If there are no children from the marriage or other relationships, then the surviving spouse is entitled to all community property plus all of the personal property and ½ of any real estate you owned independently. If there’s no surviving spouse, but there are children, they would inherit your entire estate equally. Deceased spouse’s children that are not of the current marriage inherit all of the deceased spouse community property. However, if someone dies without a will and has no spouse or children at the time of death, other family members, such as parents or siblings, may become heirs according to a specific order determined by law. Avoiding Complications: Why Texans Need a Will If you die without a will, your entire estate would have to go through probate — a complicated and stressful legal process — to distribute your assets. This is because, without a written document that outlines your wishes, the state of Texas will determine who inherits from you based on its intestate succession laws. This can be particularly challenging for those left behind as they try to navigate the probate court system and figure out how to divide up their property. In addition, dying without a will in Texas could result in higher estate taxes being owed. Therefore, it’s important to take the time now to create an estate plan that includes a legally valid will outlining who should receive what after you pass away. What Happens to Property When You Die Without a Will? If you die without a will in Texas, your estate will be distributed according to the legal requirements outlined in the state’s Estate Code. The probate court process involves appointing an executor or administrator to manage and distribute your estate. This person is responsible for locating and valuing all of your assets and paying off any outstanding debts or taxes before distributing the remaining property to heirs. If you have specific wishes about how certain assets should be distributed, creating a will is important to ensure those wishes are carried out. Otherwise, the state’s Estate Code will determine how your assets are distributed among family members based on their relationship with you. How to Protect Your Assets and Ensure Your Loved Ones Are Taken Care of If you don’t have a will in Texas, your dependents may not be provided for in the way you would want them to be. This is especially true if you have young children who would need guardianship arrangements made for them. Without a will, the probate court decides who will care for your children and their assets. To ensure that your loved ones are taken care of properly after your passing, it is important to make provisions for them in a will or, better, a trust. Here are three things to consider when providing for dependents: Who do you want to take care of your children? If you have minor children, it’s essential that you name a guardian in your will so that they’re taken care of by someone trustworthy and capable. How much money do you want to leave behind? Depending on the age of your children, they may need financial support until they are adults. You can set up trusts or designate beneficiaries in your will to ensure that their needs are met. What happens if something happens to both parents? It’s important to have contingency plans in place so that even if both parents pass away, the children are still cared for according to their wishes. One effective way to keep your hard-earned assets safe and sound and hand them off to the next generation is through estate planning. Creating a comprehensive estate plan ensures that your assets are distributed according to your wishes after you pass away. This includes making a will, setting up trusts , designating beneficiaries for retirement accounts and life insurance policies, and more. By creating an estate plan that considers inheritance laws and tax implications, you can minimize the risk of disputes over your assets and provide for your loved ones efficiently. Seeking Professional Legal Advice Whether you are settling the estate of a loved one who has passed away without a will or you are planning for the future, hiring an estate planning attorney is critical. A Texas attorney can provide clarity and guidance for your loved ones during the probate or estate planning process. A good lawyer will help you navigate the complex legal system and ensure your loved one’s assets are distributed fairly. Remember, the lawyer you choose will represent your interests in court and engage with other legal professionals on your behalf. Making a wise choice in this matter is crucial to safeguarding your legacy. Don’t leave anything to chance regarding your estate planning needs. Seek professional legal advice from Your Legacy Legal Care. Contact us today for a consultation.

Do you have a will in place? Maybe your children convinced you to draft a will, and you were able to get through any awkward conversations to produce a will to protect your loved ones. If you have put a will in place, this is great! You have made a responsible and kind decision. However, do you have a full-blown estate plan? No, this is not the same as a will. Think of a will as a small part of a comprehensive estate plan. A good estate planning attorney will tell you that you likely need more than just a will to ensure your financial affairs are in order. Let’s discuss an estate plan vs. a will. Essential Components of an Estate Plan Your cars, bank accounts, stock portfolios, homes, and business are just a few assets that could form part of your estate. Your will may not be enough to adequately provide for all these assets, depending on your specific needs. Your Legacy Legal Care™ offers the following practice areas to assist with estate plans: Wills Business succession Trusts Probate Elder law Guardianship Medicaid planning Special needs planning Long-term care planning Family law Children’s Safeguard Program ™ We also practice asset protection through strategies like opening retirement accounts, giving substantial gifts to beneficiary designations while you are still alive, organizing investments, and other financial planning strategies. Our attorneys can also help you establish a financial power of attorney to oversee your wishes. Your Houston Estate Plan Might Need a Trust Trusts form a vast portion of estate planning. There are so many Houston trust options at your disposal. From spendthrift trusts to revocable living trusts, there is something to fit your plans for your family. Whichever trust you choose, avoiding probate is a significant benefit of establishing a trust. You may not know that a will’s property transfer is subject to the state’s probate court. The probate process can be time-consuming and expensive. Interested parties may also contest the will’s validity, thus extending the process. Where probate can be avoided, it is recommended. After being placed in a trust, a piece of property is removed from the owner’s estate. This means that trusts facilitate tax protection and expedite the probate procedure process by reducing the number of assets that will have to go through probate. The Texas estate planning lawyers at Your Legacy Legal Care™ are well-versed in the Texas law on trusts under Texas Trust Code § 112.001 and will be happy to discuss your options with you in a strategy session. Including Medicaid Planning in Your Houston Estate Plan Making plans for your final days is arguably more important than planning for after your death. A will only comes into effect after your passing, leaving your elder years unaccounted for. As we age, some of us will eventually need to consider moving into a nursing home or assisted living facility. Working with an estate planning and elder law attorney is the smartest choice in preparing for long-term care. Medicaid is solely intended to offer medical help to those on a low income or 65 years of age or older, while being the biggest payer of nursing home services in the nation. Even though many older adults have income and assets over the Medicaid qualifying limit, using irrevocable trusts is one way to get these benefits. A Houston estate planning attorney at Your Legacy Legal Care™ will tell you how. Advance Care Directives Advance care directives are practical estate planning tools. These estate planning documents communicate your choices, priorities, and requests for healthcare while you are incapacitated to family members and medical professionals. When used correctly, an advance care directive like a medical power of attorney may reduce stress for your loved ones and guarantee that you receive the treatment you want. Advance directives aren’t exclusively for more than just senior citizens. All individuals should create these documents since unexpected end-of-life circumstances might occur at any age. Some examples include: Directives to physicians Out-of-hospital do-not-resuscitate orders A medical power of attorney Declarations for mental health treatment Your Estate Plan Needs More Than a Will if You Have a Business You will have to consider long-term objectives and make goals if you want your company to prosper. Have you thought about how your business would run without you? This is crucial. Your Legacy Legal Care™ is a business succession-focused law firm with the expertise to craft a Houston business succession plan customized to your requirements and business culture. A will, on its own, simply will not do. A solid corporate succession plan ensures that someone is chosen to temporarily or permanently assume leadership responsibilities. At your complimentary strategy session with a business estate planning attorney, we will talk about how your company will be passed to a new owner should you decide to retire, sell, or both, as well as any plans you wish to put in place if you pass away or are temporarily disabled. Expand Your Estate Plan With a Houston Estate Planning Attorney We offer complete estate planning services for clients in the following areas: Clear Lake Sugar Land Katy Bay City The Galleria Pearland The Woodlands At Your Legacy Legal Care™, we are committed to giving our clients the best legal counsel possible, together with caring advocacy and straightforward guidance. We strive to ensure that our client’s demands and goals are satisfied efficiently and effectively. If you have more questions about if an estate plan vs. a will is right for you, contact our office at (281) 218-0880 or schedule online to meet with a member of our client services team today!

If you are someone financially planning for a loved one with special needs, you are likely aware of how important Special Needs Trusts (SNTs) can be. These legal tools serve to provide financial security for your loved ones while preserving their eligibility for crucial government benefits. But as with any area of law, rules, and regulations around these trusts are subject to change. That’s why it is absolutely essential to stay updated on recent legislative amendments and understand how they might impact your existing arrangements or future plans. Recent changes to the rules governing SNTs could potentially alter the landscape of your financial planning. While these changes may seem complex and overwhelming at first glance, don’t worry – we’re here to help break them down in a way that makes sense. The Basics of Special Needs Trusts A special needs trust is designed to provide financial support for individuals with disabilities without compromising their eligibility for government benefits such as Medicaid or Supplemental Security Income. The trust establishment process involves legally transferring assets into a trust which can be used to pay for certain expenses not covered by government aid, like education, therapy, or personal care attendants. Understanding beneficiary eligibility is crucial when it comes to special needs trusts. The beneficiary must be classified as disabled according to Social Security standards, meaning they have a mental or physical impairment that significantly limits their ability to engage in substantial gainful activity. Changes to Special Needs Trust Rules There is been a bit of a shake-up in the regulations that govern special needs trusts (SNTs). The government made some significant rule interpretations and policy modifications to special needs trusts with the Special Needs Trust Fairness Act of 2015. These alterations aim to provide better protection for beneficiaries while also ensuring trust funds are used appropriately. As of December 13, 2016, individuals who are both mentally capable and classified as “disabled” by the government can now establish their own first-party SNTs. Previously, only parents, grandparents, legal guardians, or courts could do so. This shift corrects a historical oversight and empowers those with disabilities to take charge of their financial futures. These changes can be overwhelming and might even evoke feelings of uncertainty or worry as you navigate through them. But remember, these policy modifications are aimed at protecting your loved one’s best interests and providing assurance that their needs will continue being met effectively even when you may no longer be around to do so yourself. How the New Rules Affect Beneficiaries The new rules for special needs trusts allow beneficiaries with disabilities and mental capacity to establish their own first-party Special Needs Trusts (SNTs), enabling them to independently manage their financial affairs independently. while This means that as a beneficiary, you can now expect more control over and clearer information about the trust’s management and distribution process. Simply put, it makes your life easier. You will have more say in how your special needs trust is managed, which provides greater peace of mind, especially considering that this fund plays such a critical role in ensuring your financial security. While having the ability to establish your own trust, there are some drawbacks to a first party trust. Estate Planning Under the New Rules for Special Needs Trusts Following the recent legislative changes surrounding Special Needs Trusts (SNTs), individuals with disabilities should reevaluate their estate plans to harness the newfound opportunities. With the ability to establish their own first-party SNTs, mentally capable individuals meeting the “disabled” criteria now possess greater control over their financial futures. This shift emphasizes the importance of reviewing existing estate plans and seeking guidance from estate planning attorneys to explore the full range of options available. Given these changes, individuals with disabilities might find it beneficial to collaborate with an estate planning attorney. Professionals in this field can provide expert insights into how to structure SNTs to align with specific financial goals while maintaining eligibility for means-tested public benefits. By engaging in a thorough review of their estate plans and consulting with knowledgeable professionals, individuals with disabilities can ensure that their financial strategies reflect their aspirations and maximize their autonomy. Seeking Professional Guidance When updating your special needs trust plan, it is important to know when to get help. Trying to do it on your own can lead to misunderstandings and misinterpretations of the law. That’s why it’s crucial to reach out for professional guidance from Your Legacy Legal Care. Our special needs planning attorneys at Your Legacy Legal Care stay abreast of the latest legislative changes affecting your estate and can provide advice for your unique situation. With our experience, we can guide you through the process of setting up or modifying a special needs trust based on the latest guidelines. Contact us today for a consultation.

When a parent starts experiencing rapid health decline or shows signs of self-neglect due to dementia or other cognitive issues, it often falls on adult children to quickly step in. Seeking emergency guardianship through the courts is one way to legally gain decision-making ability when your parent’s safety and well-being hang in the balance. Emergency guardianship is a complex legal process with strict requirements. While hoping a parent regains the capacity to care for themselves is ideal, the reality is that progressive conditions often necessitate putting a caregiver legally in charge. Our Texas law firm has extensive experience guiding families through emergency and permanent guardianship cases. We can help you understand the steps, file the paperwork, and ensure the best outcome for your loved one. Recognizing When to Seek Emergency Guardianship As difficult as it is to consider legally stripping a parent of their rights, certain situations make emergency guardianship unavoidably necessary: Alzheimer’s or dementia – a drastic increase in memory loss, confusion, or poor judgment indicates a parent is unable to make sound health and financial choices or safely care for him or herself. Unsafe living conditions or self-neglect – hoarding, lack of utilities, an unsanitary home, or improper eating all demonstrate the need for intervention. Negligent financial transactions – suspicious bank withdrawal activity, unpaid bills, and threats of service cut-off suggest a parent can no longer manage finances responsibly. Sudden health events cause a disability – stroke, fall, or heart attack leading to either temporary or permanent incapacity requiring legal decision-making. Alternatives to guardianship, like power of attorney, may provide the ability to make decisions that are needed. In the absence of alternatives and if there is an immediate danger to the parent or their estate, a court petition for emergency guardianship may be necessary to protect a parent or their estate. Understanding the Emergency Guardianship Process in Texas Texas Estate Code allows temporary emergency guardianship of up to 60 days, or you may file for permanent control immediately. The process may involve multiple agencies, healthcare providers, and legal approvals: The Texas Adult Protective Services may be investigating elder abuse, neglect, or exploitation allegations if a report is made. Temporary guardian shall be appointed with limited powers if substantial evidence is presented that the person may be incapacitated and there is probable cause to believe that the person or their estate requires the immediate appointment of a guardian to protect the proposed ward against imminent danger. If there are no actions that can be taken to protect the parent and the parent is in imminent danger of harm to their person or estate, then a temporary guardian may be appointed. The guardian will be authorized to make the decisions necessary to protect the parent from harm in the immediate future. The temporary guardian may be authorized to make health care decisions, decide residence, or make financial decisions depending on what is necessary to protect the parent. After 60 days, the court can extend the temporary guardianship if circumstances warrant it, or an individual who has completed the permanent guardianship application process may be appointed permanent guardianship. The court will always favor the least restrictive alternatives to guardianship and only authorize the guardian to make those decisions that the parent is without the capacity to make for themselves. Our attorneys can help craft a guardianship strategy for your parent’s needs. Qualifying for Emergency Appointment of a Guardian To qualify for emergency guardianship, you have to prove there is an imminent threat of danger to their person or estate. Specifically, Texas law requires: Showing risk factors that jeopardize the parent’s health and welfare without quick intervention, like self-harm, lack of food or water, or living conditions that endanger safety. Showing that no other alternatives are viable, such as medical power of attorney to arrange their care until the guardianship hearing. How to Get Emergency Guardianship of a Parent If believing emergency guardianship may be necessary to protect your parent, the process involves the following: Choosing guardianship needed – temporary(60-day) or permanent. Filing emergency application -outlining the circumstances that are causing immediate danger to the person or property and what authority is necessary to protect the person An Attorney Ad Litem is appointed to represent the potential ward. Attending court hearing – judge decides whether to appoint an emergency temporary guardian. Officially granting guardianship – you gain limited authority to make decisions necessary to protect the ward We guide families through assembling the necessary medical and background paperwork and represent your case in court. Ensuring Your Parent Gets Proper Care Under Guardianship Gaining permanent guardianship is just the first step to getting a parent suffering from dementia, Alzheimer’s, or other incapacity the support they need. A permanent guardian’s responsibilities include: Monthly visits to determine that the Ward is taken care of. If the court has an assigned court investigator, they will visit annually to make sure the Ward’s needs are being met. Annual Reports/Accounts: The guardians are required to file annual reports on the condition and well-being of the Ward and also file annual accountings for the Ward’s estate. Utilizing community resources – Texas Guardianship Services provides experienced, accountable guardians when no family can serve. Prioritizing least restrictive care – consider assisted living instead of nursing homes or allow financial oversight versus complete control. Respecting the rights of the incapacitated person – make the best choices for medical care, living situation, and social engagement. While temporary guardians are able to protect their loved ones in the short term, permanent guardians have an opportunity to improve lives during incapacitation. This role comes with complex responsibilities but also the immense capacity to uphold dignity and personhood. With compassion and pragmatism guiding the way, guardians enable supportive solutions so that life continues on one’s own, fulfilling terms for as long as possible. Our Texas Guardianship Lawyers Can Help Emergency guardianship is necessary to protect loved ones in immediate danger, but permanent guardianship allows for long-term management of a parent’s affairs and aligns them with progressive health condition changes. Our guardianship lawyers at Your Legacy Legal Care™ can help you decide whether to file for temporary guardianship or make it permanent. We counsel guardianship needs, focusing on your loved one’s comfort, dignity, and best interests. If you need to pursue emergency guardianship of a parent in Texas, trust our dedicated attorneys to guide your family compassionately through this complex process. Reach out today to schedule a consultation.

For the first time in the history of the legal profession, a new breed of lawyers has emerged in the field of dementia-focused law. According to the World Health Organization, currently 55 million people are living with dementia worldwide, with nearly 10 million new cases every year. Dementia-focused law firms are more than just compassionate attorneys; they also have a clear purpose. They help to solve the difficult legal and financial problems associated with this growing condition, so families can focus on spending time with and caring for their loved one. Choosing the Right Skilled Nursing Facility When helping your loved one with dementia put a plan in place, it is important to look for an elder law attorney that can help place your loved one into the right senior care facility. This attorney needs to know the best planning options for your loved one, how to get them qualified for Medicaid if needed, how to protect their assets, and they need to be familiar with the local senior care facilities. It is very likely your loved one with dementia may need to be placed into a skilled nursing facility, and you want to work with an attorney that can point you in the right direction for facilities that will give your loved one the care they deserve and meet their personal needs and expectations. Working with a Certified Dementia Practitioner Certified by the National Council of Certified Dementia Practitioners (NCCDP), Certified Dementia Practitioners are specially trained and equipped with a unique knowledge of dementia and Alzheimer’s Disease. Those who choose to work with a Certified Dementia Practitioner can rest assured knowing they have a trusted partner and someone who is qualified to help. During training, Certified Dementia Practitioners are given an in-depth look at the disease, along with strategies to maximize the safety, dignity, and well-being of those affected by dementia. CDPs are required to complete continuing education with every renewal of their certification, so they remain qualified and educated on the best ways to help those with dementia. At Your Legacy Legal Care, we have a Certified Dementia Practitioner on staff to ensure the highest quality of service can be provided to families going through a diagnosis of dementia. When a loved one begins to lose cognitive function, we understand the hardships on both the loved one and their caregivers. By keeping a Certified Dementia Practitioner on staff, we are ensuring that we are not only able to help those with dementia accomplish their legal needs and planning, but that we can assist beyond our legal services. Personal Experience Many of our team members have experienced a loved one’s journey with dementia first-hand. Kim Hegwood witnessed what it was like for her grandfather to care for her grandmother after a diagnosis of dementia, as the hardships of being a caregiver began taking a toll. She saw the legal, financial, and emotional challenges her grandparents had to face, and she was inspired to become a dementia-focused estate planning and elder law attorney when she realized their legal documents were not sufficient for seniors with a dementia diagnosis. For many of our team members, this personal experience with dementia drives their passion for helping our clients who are going through a similar journey. Helpful Resources At Your Legacy Legal Care, we have an extensive library of resources and a network of senior care professionals that can assist you or your loved one with dementia. One of our best resources is the short book published by Kim Hegwood, You’re Not Alone: Living with Dementia. In a concise and easy-to-read format, the book offers helpful advice and essential information for the individuals and families dealing with this disease, including the signs and symptoms of dementia, other causes of memory impairment, the different types of dementia, how to plan ahead for legal matters and care costs, and more about dementia and caregiving. To learn more about this short book and the bonus materials you will receive with it, please visit www.yourlegacylegalcare.com/living-with-dementia. In short, when you choose a dementia-focused law firm, you are not only ensuring that the quality of the legal documents will hold up to the needs of you or your loved one with dementia, but you will also receive the extra assistance that you need outside of legal services. A great dementia-focused law firm should be able to provide you with information on local skilled nursing facilities, a vast network of memory care professionals, resources and support groups, and the caring and understanding that comes with personal experience of the dementia care journey. To learn how Your Legacy Legal Care can provide you and your loved ones with the elder care and dementia care services you may need, give us a call at (281) 218-0880 or book a strategy session here.

The only constant in estate planning is change. While you can do your best to be proactive and stay abreast of changing regulations, it seems there is always something new with which to contend. Despite all the uncertainty, there have been some positive developments for taxpayers this year. They include: Annual Gift Tax and Estate Tax Exclusions Are Increasing For the first time since 2018, the amount of money you can gift someone without filling out a gift tax form is increasing to $16,000 for singles and $32,000 for married couples. If you give more than that, you will need to fill out Form 709, the gift tax form. Rising rates of inflation are the reason behind the increase. Also in 2022, new federal estate and gift tax exemptions will increase to $12,060,000 per person. This increase also means that the lifetime tax exclusion for gifts will rise to $12,060,000, as will the generation-skipping transfer tax exemption. That means that even if you file Form 709, you will only owe taxes if you have given away more than $12,060,000 in the past. Required Minimum Distributions New life expectancy tables used in determining Required Minimum Distributions (RMD) from IRAs and retirement plans also went into effect as of January 1, 2022. These changes will impact those who have already reached their Required Beginning Dates for taking RMDs, qualified retirees, and beneficiaries of inherited retirement plans or IRAs. Your plan administrator or financial advisor can help you understand how such changes may impact your plan. Back Door Roth IRAs Still in Play Congress is considering legislation that would greatly reduce the benefits of certain IRAs, but negotiations have stalled in 2022. Initial proposals to limit Roth IRA conversions have not yet been enacted. That means the loophole commonly known as “back door” Roth IRAs have not been eliminated for 2022. Lower distribution means less taxable income. Using back door Roth IRAs helps you to continue to preserve and even grow your principle – so long as the market conditions remain favorable. Bear in mind that in an IRA transfer or conversion to a Roth IRA, you will be required to pay taxes on any money in your traditional IRA that has not been taxed already. Let’s say you contribute $5,000 to a traditional IRA, then claim a deduction for that amount on your tax return. If you then opt to convert that money to a Roth IRA, you will owe taxes on that $5,000. Additional taxes will be owed on any money that IRA contribution earned between the date it was initially contributed to the traditional IRA and when you opted to convert it to a Roth IRA. COVID-19’s Continued Role The COVID-19 pandemic continues to play a role in almost every facet of our lives. While no formal legislation has been passed surrounding estate planning and the pandemic, now is as good a time as ever to get your affairs in order. This is especially true for advanced healthcare directives. Should the time come when you are unable to speak up about your preferences, you will be glad you outlined your wishes via your estate plans. What This Means for Your Estate Plans There has never been a better time to make additional gifts in order to reduce your taxable estate. If you have been considering gifting your loved ones college tuition money or closing costs on their first home, 2022 offers you the flexibility to do so. Since gifts for medical or educational purposes do not count toward your lifetime exemption, it is an even better idea to put your money to good use in this way. If you are going this route, avoid giving cash directly to your loved one; instead, make sure to pay the hospital or university yourself. Update Your Estate Plans Now Making sense of estate planning laws often requires professional help. If you are unsure of how to best reduce your taxable estate by making additional gifts in 2022, it is important to consult with your financial advisor and estate planning attorney. It is also a good time to update your beneficiaries, get your advance directive on record, and factor in any changes you have made to your digital estate. Call us today at (281) 218-0880 or schedule online here to get the wheels in motion to best protect your legacy and loved ones far into the future.

Many people assume having a last will and testament is the centerpiece of any satisfactory estate plan. While they certainly have their benefits, having a will is far from the only piece of planning to consider. Trusts, in fact, offer a simple way to transfer assets to your loved ones while avoiding probate. There are several reasons to establish a trust. In Texas, there are just as many types of trusts to consider, each serving its own purpose to achieve the goals you strive for. Learning how the different types of trusts work can help you decide which is right for your affairs. Living Trusts Living trusts are those made by you (the “trustor”) during your lifetime. They include instructions for how assets or property can be used while you are alive. Living trusts allow you to benefit from the trust now while arranging for assets to be passed to a beneficiary upon your death. They are a great option for anyone hoping to avoid loved ones from going through probate proceedings.  It is a better way to plan to prevent disinheriting children on second marriages. Revocable and Irrevocable Trusts Like a living trust, revocable trusts are created during your lifetime. It can be altered, changed, or terminated by the trustor at any time. Upon your death, a revocable trust can be transferred over to a successor trustee and other beneficiaries. Revocable trusts also help keep your affairs out of probate court, which allows your assets to be transferred out of the public eye. Irrevocable trusts, on the other hand, have restrictions on what can be altered during your lifetime, nor can they be revoked after the trustor passes. Since this type of trust contains assets that cannot be moved back to the possession of the trustor, it can be incredibly tax efficient and provides asset protection. Irrevocable trusts are popular for this reason, and because it moves assets out of the trustor’s name and into the next generation. Your Legacy Legal Care allows you to remain in total control of the assets you fund into an irrevocable trust by making it a defective grantor trust, which will also allow you to plan for long-term care should it be needed in the future. Charitable Trusts A charitable trust can help you earmark funds for your favorite cause or organization. There are two varieties: charitable lead trusts and charitable remainder trusts. A charitable lead trust allows you to set aside funds for a specific charity, with the remaining assets going to your beneficiaries. Charitable remainder trusts allow you to receive income from assets for a set period of time, with the remaining money donated to your preferred charity. In Texas, a charitable trust receives favorable tax treatment. Your Legacy Legal Care can set up a charitable trust that allows you and your loved ones to retain the income that is generated by the amount given to a charity. Pet Trusts Yes, you can even ensure your “fur baby” is taken care of in the event of your disability or death. A pet trust is similar to other trusts where you create a trust that designates a trustee and a caregiver as the beneficiary. The trustee ensures the funds are used for your pet’s needs and care. Your pet trust can include specific instructions such as provisions for financial resources, dietary needs, grooming instructions, veterinary care, and any other instructions you wish to provide to ensure the utmost care for your beloved pet. Does Everyone Need More Than Just One Trust? Many people have more than one trust; it just depends on what they need and what they are looking to accomplish. Clients with retirement trusts may also want a revocable living trust for their non-retirement assets. By meeting with our experienced trust lawyers, we can discuss your goals and what types of trusts can best accomplish them. We have many clients who only need one trust, but we sometimes have clients whose goals are accomplished by four trusts. How can a Will or Trust Avoid Probate? As long as your asset is in the trust, it avoids probate. Our in-house Funding Coordinator helps clients fund their trusts, helping them put their assets into the trust now or making sure their beneficiary designations are done correctly so it occurs upon death. Most estate planning law firms do not help clients fund their trust, but a trust does not work unless it is funded. Our goal is to help clients as much as possible, and that includes ensuring their trust will work properly by helping them fund it. Bottom Line If you are unsure whether a trust is right for your estate plan, you do not have to figure it out alone. By speaking with a team member at Your Legacy Legal Care, you will gain peace of mind knowing that you have all your bases covered. To discuss the options that best fit your needs, contact us to schedule a consultation to talk about your specific estate planning goals.

In our modern era, Americans are living longer, fuller lives. We are fortunate to be getting more and more quality years in the typical lifespan. Of course, there is still a need to plan for accidents, illness, and the eventual possibility that long-term care will be necessary. Do I Need Long-Term Care Insurance? Without long-term care insurance, life can become particularly difficult. When costs start mounting up, you will likely have to pay them out of pocket until you are completely broke and have few assets left to pass on to your heirs. Only then will Medicaid kick in. Long-term care insurance can be expensive, but it can end up saving your estate in the long run. How to Ensure My Needs Are Met The best way to ensure your needs are met is to be prepared. Your Houston elder lawyer will be able to present you with a variety of options for long-term care insurance and other related considerations. He or she will help you put together a reasonable plan that considers the following: What are you going to need? You may need to do some research to determine what the costs are for long-term care in your area. It is important to have a reasonable idea of what to expect so that you can have enough money to provide for your needs. Remember that costs continually go up, so if you are planning now in middle age, you will need a larger policy to cover the increases due to inflation and other variables. Save money in the long run by planning to pay for the elimination period. By putting aside a reasonable amount of money that will cover expenses between the time that it is determined you need long-term care and when your insurance actually begins to cover it, you can end up with significantly lower premium payments. Work with your Houston elder lawyer to ensure you understand the coverage. Wording and coverage both vary from policy to policy, and you want to ensure that you are getting coverage for exactly what you want. Some policies limit the number of hours a week that you can have care, for instance, which can become problematic if you end up needing to pay for round-the-clock care. You also want to make sure that the policy cannot be canceled or non-renewed when you reach a certain age or become ill. Houston Elder Care Attorney Your Houston elder care lawyer will have extensive knowledge of what is most beneficial in our area and can help you plan for a future that protects both you and your assets. If you need help getting started, contact our Houston law firm at (281) 885-8826 to schedule a consultation. #ElderCare #LongTermCarePlanning

A statutory durable power of attorney is one of the most important estate planning documents you can create, but it is also one that can be misused. While it is not possible to completely prevent the possibility of financial abuse, there are steps you can take when drafting the document to greatly reduce the chances. Power of Attorney A statutory durable power of attorney allows a person you appoint (your “attorney-in-fact” or “agent”) to act in place of you (the “principal”) for financial purposes when and if you ever become incapacitated. This allows the person you choose to be able to step in and take care of your financial affairs. Unfortunately, if the agent chooses to exploit the principal, a power of attorney in the wrong hands or with too much power can be bad news. The following are some ways a power of attorney can be drafted by your attorney to prevent someone from taking advantage of you or your loved ones. Trustworthy Agent The first and most important step you can take is to appoint a trustworthy agent. Think carefully about who you want acting on your behalf, as you need to appoint someone you trust to have your best interests in mind. If you do not have any friends or relatives who are appropriate for this role, you can hire a professional fiduciary. This professional fiduciary can be a bank with trust powers, a certified public accountant (CPA), or a trust company. Second Signature At Your Legacy Legal Care, we never recommend appointing co-agents, as this can cause more issues than just having one agent. For many decisions to be made, all co-agents may need to be at the same location, which can pose a problem for any co-agents that may live out-of-state. However, one option you can implement is to require two signatures for large transactions. The power of attorney document can set rules on what transactions would require an additional person to sign off on them. Backup Agent In addition to having a trustworthy agent, it is encouraged for you to have a backup agent in case the first agent becomes incapacitated or no longer wants to serve as agent. At Your Legacy Legal Care, we always include backup agents to ensure you will be taken care of, should something happen to the first agent. If you do name alternates, make sure the document is very clear about when the alternate takes over and what evidence he or she will need to present when using the power of attorney. Third-party Accounting Another way to prevent an agent under a power of attorney from exploiting the principal is to require the agent to provide an accounting to a third party. This third party could be a family member or a friend. The accounting does not have to be formal; it could be a summary of the financial transactions. The power of attorney document can ultimately provide the details on what information needs to be provided to whom and how often. Limit Powers The power of attorney can provide detailed instructions on the various powers the agent may carry out. You can make it as broad or as limited as you wish. One of the most important powers in the power of attorney document is the power to gift. Strictly defining when gifting is allowed and how much the agent can give is one way to prevent abuse. Review Your Choices Every two to three years, you should review your choices in case your decision has changed – maybe the agent is no longer responsible with money, or they no longer have the capability to serve. If this is the case, do not be afraid to revoke the power of attorney if you are no longer happy with your choice of an agent. While these steps will be helpful to include in your statutory durable power of attorney to prevent financial abuse from happening, it is crucial to have an attorney draft the document for you. Power of attorney documents found online may exclude these important provisions. The steps listed above will give you a good idea of what an excellent estate planning and elder law attorney should include in the document. To discuss putting a statutory durable power of attorney in place with an experienced member of our team, give us a call at (281) 218-0880 or schedule online here.

Families with children with disabilities need to take extra precautions in their estate planning.  This is true regardless of whether the child with special needs is a minor or is now an adult – especially if they will one day need to collect any public benefits like Medicaid or SSI.  The details will depend greatly upon the child’s competency and age, but it is never too soon to start considering how to plan for your loved one with a disability to enhance their life after your passing with special needs estate planning. Prepare Advance Directives If you have an adult child that has the capacity, it is important that they execute a medical and statutory durable power of attorney.  Having a medical power of attorney will allow the person to designate a representative to make medical decisions on their behalf should they become incapacitated. A statutory durable power of attorney, on the other hand, gives a representative the opportunity to manage their financial affairs. Petition for Guardianship For children who are about to turn 18 and lack capacity, it may be important to file an Application for Guardianship.  It allows parents to continue making medical, financial, and residential decisions for their child even after they turn 18.  Doing so also allows parents to select alternate guardians in case they pass away unexpectedly. A First Party Special Needs Trust For your disabled loved ones that are under the age of 65 and inherit directly, consider establishing a first-party supplemental (special) needs trust. This is funded with the assets of an individual who has a disability who has inherited money, received a settlement following a lawsuit, or has lump-sum disability benefits. The trust can be established by the individual or their guardian and, when properly drafted, will not impact their eligibility for government benefits. Create a Third-Party Special Needs Trust Establishing a third-party supplemental (special) needs trust allows family members to use their assets to fund a trust for the person with special needs and leave assets to the child with a disability. This type of trust does not contain a payback provision, allowing assets to transfer between beneficiaries by the creator of the trust. It also will not impact the ability to seek government benefits. Plan for Medicaid Medicaid is a public benefit that many individuals with disabilities benefit from, however, you must be careful when establishing an estate plan to not disqualify your loved one from receiving it. There is a 60-month lookback period when applying for long-term care, and any transfers made during those five years may result in a Medicaid penalty. One exception to this rule? Transfers to a special needs trust generally incur no penalty. Special Needs Estate Planning Attorney These planning tips require serious consideration and a lot of guidance. Your Legacy Legal Care has personal experience in planning for loved ones with disabilities and will ensure you and your family are properly taken care of to receive the care they deserve. Call us at (281) 885-8826 or contact us here to start planning for your loved one’s future today.

Thoughtful estate planning allows us to care for our loved ones even when we can no longer be with them. For most, the first step in this journey is outlining their wishes and intentions for their estate in a last will. But with so many different types of wills available, how do you know which is the right fit for your situation? Basic wills, holographic wills, and pour-over wills all have different purposes. To light your way, our will lawyers will explore the key aspects in everyday terms. By understanding what makes one will different from another, you can embrace peace and purpose as you plan. What is a Last Will and Testament? First, let’s review the basics. A last will and testament is a legal document communicating a person’s final wishes regarding their property and dependents. It identifies beneficiaries who will take from the estate and an executor to oversee the estate settlement. Wills may also outline arrangements for heirs requiring special care. Elements that all wills have in common include: Naming beneficiaries to receive property/assets. Appointing an executor to handle estate administration. Directing asset distribution to beneficiaries. Nominating guardians for minor children. Establishing trusts to manage assets. Covering debts, taxes, and expenses. Outlining funeral and burial instructions. Crafting a customized will allows you to distribute your property as intended, avoiding disputes between heirs. It also helps minimize estate taxes to preserve more value for your beneficiaries. Legal Will Requirements in Texas For a will to be legally valid in Texas, it must hold specific criteria: Testator (person making the will) must be at least 18 years old. Testator must be of “sound mind” when making/signing the will. Will must be signed by the testator. During the execution of the will, these additional requirements apply: Have at least two credible witnesses aged 14+ sign Notary, optional, though recommended. Meeting these elements of a valid will ensures the document accurately reflects your intent and will stand up to legal scrutiny after you pass away. Our estate planning attorneys stay current on the state’s will drafting rules. One Size Does NOT Fit All: Types of Wills in Texas Texas recognizes several types of wills, each with pros and cons and specifics regarding creation and use. Formal or Attested Wills These testamentary documents are the most commonly used in Texas. The testator and two witnesses aged 14 and over must sign formal or attested wills in each other’s presence. After proper execution, the witnesses sign an affidavit swearing the testator wasn’t incapacitated or under duress. Key attributes of a formal will include: Testator signs in the presence of two witnesses aged 14 years or older. Witnesses sign affidavits regarding the testator’s capacity. Holds clear and unambiguous terms. Higher fraud protection with witnesses. Attorney drafted and reviewed (recommended). This will type provides excellent fraud protection and minimizes uncertainty when interested parties question its validity. The witness requirement prevents undue influence, fraud, or coercion on the testator. At the same time, the affidavits deter disputes over testamentary capacity questions. For those with substantial assets or complex estate plans, a customized formal will crafted by a probate attorney is ideal to ensure optimal execution of your wishes. Holographic or Handwritten Wills in Texas Holographic wills are written, dated, and signed in the testator’s handwriting. No witnesses are required. And the testator can create the instrument privately without legal help. Flexibility and convenience make these testamentary documents suitable for those with minimal assets or simple wishes. However, the lack of witness testimony and potential ambiguity in its handwritten terms make will challenges more likely after the testator passes away. Attributes of a Valid Holographic Will: Entirely in the testator’s handwriting. Dated and signed by the testator. No witness requirements. Convenience for simple estates. Risk of unclear terms or instructions. When properly executed, heirs and beneficiaries can readily admit these wills to Texas probate. The courts often authenticate the testator’s handwriting by comparing it with other samples. While convenient, the lack of witness protection makes holographic wills more vulnerable to will dispute claims like testamentary capacity or probate fraud. Unclear instructions can also prompt disputes between heirs. Thus, holographic wills are generally best reserved for smaller, simple estates. Pour-Over Wills Pour-over wills work in conjunction with separate living trusts that direct property distribution. First, the courts admit the will to probate. Then, any property in the probate court “pours over” into the trust. Often used for larger estates, a living trust handles asset distribution among heirs and beneficiaries according to the trust agreement. A pour-over should only be necessary when the trust is not fully funded. Key Features Include: Assets transfer to a living trust. Pour-over will covers the remaining assets not funding prior to death. Trust handles principal distributions. Will ties up loose ends. Ideal for more extensive or complex estates. Combining a living trust with a pour-over will let you direct valuable asset distribution through the trust with precision while unfunded assets will be in probate court and poured back into the trust. When to Modify an Existing Will Even with a formal valid will in place, changes in life circumstances make periodic modification of your will essential. Some common scenarios that compel prudent updates of testamentary documents include: Marriage or Divorce – asset distribution and beneficiaries often need modification to reflect new marital status conditions. Birth or Adoption of Children – reassess guardianship decisions when minors enter your estate. Purchasing Property outside of Texas – ensure your will is valid under the laws of states where you own property, and review distribution wishes accordingly. Health Changes – updating is wise if diminished health requires more care oversight for heirs. Tax Law Changes – revised estate tax exemptions or adjustments may enable your heirs to take more from the estate. Beyond life events, periodic reviews help catch out-of-date instructions or beneficiary info. We recommend that testators conduct formal will evaluations every 2-3 years. Please reach out if you need assistance amending your will to prevent disputes or unwanted outcomes for heirs. Tailor Your Texas Will To Your Legacy – Call Now No matter which type of will you select, periodic updates to your will are essential as life circumstances evolve. Contact us at Your Legacy Legal Care™ in Texas anytime to evaluate changes and ensure the courts properly fulfill your last wishes. We offer personalized guidance about each available will type in Texas to serve your unique needs and priorities.