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Estate planning can be a complex process. It becomes even more intricate when planning for a loved one with a disability. A trust for a person with a disability is a crucial tool in this process. It ensures their needs are met and their assets are protected. But what is the best trust for a disabled person? How does it work? And how can it secure their future? This article aims to answer these questions. It will provide a comprehensive understanding of disability trusts, including the Special Needs Trust. Whether you are a retiree or a family member of a disabled individual, this guide is for you. It will help you navigate the complexities of estate planning for a disabled person. Understanding Trusts for Persons With A Disability A trust for a person with a disability is a legal arrangement. It holds and manages assets for the benefit of a person with a disability. These trusts are designed to provide financial support. They ensure the person with disability needs are met without jeopardizing their eligibility for government benefits. Trusts can be tailored to the specific needs of the person with a disability. They can cover a range of expenses, from medical care to personal needs. Here are some key points about trusts for person with a disability: They protect the person with a disability's assets. They ensure the person with disability needs are met. They do not jeopardize the person with a disability eligibility for government benefits. The Role of Special Needs Trusts A Special Needs Trust (SNT) plays a crucial role in estate planning for a person with a disability. It is designed to hold assets for a person with disabilities. The SNT allows the person with a disability to benefit from the trust assets. At the same time, it does not affect their eligibility for public assistance programs. This is because the assets in the SNT are not considered available to the person with a disability. They are used to supplement, and/or replace, government benefits. The SNT can cover expenses not covered by government programs. These can include personal care attendants, out-of-pocket medical expenses, and recreational activities. Types of Special Needs Trusts There are three main types of Special Needs Trusts. Each serves a different purpose and has its own set of rules and restrictions. Here are the three types of Special Needs Trusts: First-Party Special Needs Trusts Third-Party Special Needs Trusts Pooled Trusts First-Party Special Needs Trusts A First-Party Special Needs Trust is funded with the person with a disability own assets. These could be from a lawsuit settlement, an inheritance, or savings. This type of trust is irrevocable. This means it cannot be changed or dissolved without the permission of the beneficiary. Upon the death of the beneficiary, any remaining assets in the trust are used to repay the government for the cost of medical care. Third-Party Special Needs Trusts A Third-Party Special Needs Trust is funded with assets from someone other than the beneficiary. This is often a parent, grandparent, or other family member. This type of trust does not have a payback provision. This means that upon the death of the beneficiary, any remaining assets can be distributed to other family members. The Third-Party Special Needs Trust is often used in estate planning to provide for a loved one with a disabilty. Pooled Trusts Pooled Trusts are managed by nonprofit organizations. They combine assets from multiple beneficiaries into a single trust. Each beneficiary has their own account within the trust. But the assets are pooled for investment and management purposes. Upon the death of the beneficiary, the remaining assets can either be left to the nonprofit or distributed to heirs, depending on the terms of the trust. Choosing the Right Trust for Your Needs Choosing the right trust for a person with a disability depends on several factors. These include the source of the assets, the beneficiary's needs, and the family's wishes. Each type of Special Needs Trust has its own advantages and disadvantages. Understanding these can help you make an informed decision. It is also important to consider the long-term needs of the person with a disability. The right trust can adapt to changes in the beneficiary's life and needs. Factors to Consider When choosing a trust for a person with a disability, consider the following factors: The source of the assets: Are they the person with a disability, their own assets or from someone else? The beneficiary's needs: What are the current and future needs of the person with a disability? The family's wishes: What are the family's goals and wishes for the person with a disability’s care and quality of life? These factors can help guide your decision. They can ensure the trust meets person with a disability needs and aligns with the family's wishes. Setting Up a Trust for a Disabled Person Setting up a trust for a person with a disability involves several steps. First, you need to draft the trust document. This outlines the terms of the trust and designates a trustee. Next, you need to fund the trust. This can be done with assets such as cash, real estate, or investments. The trust then manages these assets for the benefit of the disabled person. It's crucial to ensure the trust is properly set up. A poorly drafted trust can jeopardize the person with a disability eligibility for government benefits. The Importance of Professional Guidance Navigating the complexities of a disability trust can be challenging. That is why it is important to seek professional guidance. An estate planning attorney can help you understand the legal requirements and restrictions. They can also help you draft a trust that meets legal standards. This ensures the trust is valid and effective in protecting the disabled person's assets. Remember, setting up a trust is a significant decision. It's worth investing in professional guidance to ensure it's done right. Conclusion: Protecting Your Loved One's Future Setting up a trust for a disabled person is a crucial step in estate planning. It ensures their needs are met and their assets are protected. Choosing the right type of trust can be complex. But with careful planning and professional guidance, you can create a trust that best serves your loved one's needs. In conclusion, a trust for a person with a disability is more than just a financial tool. It is a way to provide for their future, ensuring they have the resources they need to live a fulfilling life. Contact a Houston Special Needs Planning Attorney Today 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.

Navigating the complexities of life estates can be a daunting task. Understanding the legal process and considerations involved in removing someone from a life estate is crucial. Whether you are a property owner, a life tenant, or a remainderman, this guide is designed to help you. We will explore the process of life estate removal, both during the life tenant's lifetime and after their death. This article will provide a clear, step-by-step guide on how to handle this intricate legal terrain.  By the end, you will have a better understanding of your rights and options, helping you make informed decisions. Understanding Life Estates A life estate is a unique type of property ownership. It grants an individual, known as the life tenant (usually a spouse in a second marriage), the right to use and enjoy a property during their lifetime.   Upon the life tenant's death, the property automatically passes to another person or entity, known as the remainderman (beneficiaries). This arrangement allows the life tenant to benefit from the property without owning it outright. However, it also creates a complex legal relationship between the life tenant and the remainderman. Understanding this relationship is key to navigating the process of life estate removal. The Roles of Life Tenant and Remainderman The life tenant is the individual who holds the life estate. They have the right to use, occupy, and benefit from the property as long as they live. However, they do not have the right to sell or transfer the property without the remainderman's consent. The remainderman is the person or entity who will inherit the property after the life tenant passes away. They hold a future interest in the property, but their rights are limited during the life tenant's lifetime. The remainderman cannot interfere with the life tenant's use and enjoyment of the property. Legal Rights and Responsibilities Both the life tenant and the remainderman have specific legal rights and responsibilities. The life tenant must maintain the property and cannot commit waste. This means they cannot cause significant damage or devaluation to the property. The remainderman has the right to inspect the property to ensure it is being properly maintained. Grounds for Life Estate Removal Removing someone from a life estate is not a simple process. It requires a clear understanding of the legal grounds for removal. In some cases, the life tenant may voluntarily relinquish their rights to the property. In other cases, the remainderman may seek to remove the life tenant involuntarily. Both scenarios require careful consideration and legal guidance. Voluntary vs. Involuntary Removal Voluntary removal occurs when the life tenant willingly gives up their rights to the property. This can happen through a buyout, a settlement, or a simple agreement between the life tenant and the remainderman. Involuntary removal, on the other hand, is more complex and often involves legal action. Legal Grounds for Involuntary Removal There are several legal grounds for involuntary removal of a life tenant. These include waste (significant damage or devaluation of the property), abuse, or neglect of the property. In such cases, the remainderman may have the right to seek a court order for the life tenant's removal. The Removal Process The process of removing someone from a life estate varies depending on the circumstances. It can be a complex and lengthy process, requiring careful navigation of legal procedures. It's crucial to understand the steps involved and to seek professional advice when necessary. During the Life Tenant's Lifetime During the life tenant's lifetime, removal can occur voluntarily or involvably. Voluntary removal often involves negotiation and agreement between the life tenant and the remainderman. Involuntary removal, however, may require legal action and a court order. After the Life Tenant's Death After the life tenant dies, the life estate typically ends, and the property passes to the remainderman. However, if there are disputes or complications, legal action may be necessary. It is important to consult with an estate planning attorney to understand your rights and options in these situations. Resolving Disputes and Legal Representation Disputes over life estates can be complex and emotionally charged. They often involve disagreements over property rights, responsibilities, or the terms of the life estate deed. In such cases, legal representation is crucial to protect your interests and navigate the legal process effectively. The Role of Courts in Life Estate Conflicts Courts play a key role in resolving life estate conflicts. They can interpret the terms of the life estate deed, determine the rights and responsibilities of the parties involved, and issue orders for removal if necessary. Court cases can take a long time and cost a lot of money. It's usually better to try to settle disagreements through talking or mediation first. Importance of Legal Representation Having a knowledgeable attorney on your side is invaluable in life estate disputes. They can provide advice, represent you in court, and help negotiate settlements or agreements.  Life estate disputes can be costly, involving property and impacting your financial future. Tax and Financial Considerations Altering a life estate can have significant tax and financial implications. These can affect both the life tenant and the remainderman. It's important to understand these potential impacts before proceeding with life estate removal. Tax Implications of Altering a Life Estate Removing someone from a life estate can trigger capital gains tax or gift tax implications.  The specific tax consequences depend on the details of the transaction, such as whether it's a sale, gift, or other type of transfer. Consulting with a tax professional is crucial to understand and plan for these potential tax liabilities. State Laws and Life Estate Removal State laws can significantly affect the process and consequences of life estate removal. These laws govern property rights, the legal process for removal, and the tax treatment of property transfers. It's important to consult with a local attorney or real estate professional to understand the specific laws in your state. Conclusion and Next Steps Removing someone from a life estate is a complex process with many legal and financial considerations. It's important to understand the rights and responsibilities of all parties involved, the grounds for removal, and the potential tax and financial implications. Consulting with legal and tax professionals is crucial to navigate this process effectively and protect your interests.   Contact Your Legacy Legal Care  today to learn more.

It's that time of year to get back into the school night routine of enforcing bedtimes, grocery shopping for the kids' favorite snacks, and having the next day's outfit picked out. While we are getting our minor children prepared for another school year, we must also remember many of our adult children are headed back to school as well! After all, the back-to-school hype is not just for young kids, many of our adult children are going off to college (and many for their first time), too! Our adult children tend to be very excited to be out “on their own” for the first time, but this significant life event is something that should not be taken lightly. This is their first taste of adulthood! It is now their time to make decisions regarding their care, finances, and other “adult” things on their own, but what would happen if something happened, and they could no longer make these decisions themselves? The Legal “What Ifs” of College Life Don’t get caught in the web of legal intricacies surrounding the myriads of “what ifs” when your adult child is miles away for semesters at a time. Did you know that even though you are a parent, the school, financial institutions (like the Financial Aid Office), and healthcare professionals are not legally allowed to disclose information regarding your child since they are now an adult? Unfortunately, we have seen scenarios arise where a parent needs to access something or decide on care to be provided on behalf of their child due to their incapacity. If this happens without the proper planning in place, this may force you into guardianship court. It’s a call that every parent dreads to get: the call informing you that your child is in the hospital. When you sent your child off to college the last thing on your mind was having the legal documents in place to help you through this scenario you did not think would occur, so now you are not able to access information regarding their health, make decisions regarding their care, and now you are left in the dark until you hire a guardianship attorney  to be appointed by a judge to be the legal guardian of your own child. Understanding the Limits of Parental Access The scenario above is just one example of where your access to information regarding your adult child is restricted. The following areas pertaining to your child are heavily restricted without essential estate planning documents, such as a statutory durable power of attorney  or medical power of attorney: Healthcare: Privacy laws (such as HIPAA), prevent healthcare providers from sharing medical information, even to parents. Education: FERPA Laws restrict access to academic records without the student’s consent – even if you are the one paying for their education! Finances: Financial institutions may not allow parents to manage their children’s accounts or access other pertinent financial information without the child’s previous consent (or power of attorney being on file). Estate planning is an important aspect to consider, not just for older adults, but for young adults, too! Here are the key estate planning documents any adult over the age of 18 should have: Medical Power of Attorney: This document allows for a trusted individual (such as a parent) to be named as an “agent” to make medical decisions on behalf of the individual that is unable to make them themselves. Statutory Durable Power of Attorney: This grants the ability to handle financial and legal matters on behalf of the person who is incapacitated to a trusted person (such as a parent). HIPAA Release: This gives authorization to the named individuals to access the medical records of someone who is incapacitated. This is primarily to help the agent named in the Medical Power of Attorney to make informed decisions regarding the person’s healthcare based on their previous conditions and records. Prepare for the School Year Ahead Having these important documents in place will not only provide legal protections for young adults, but it will also provide the ultimate peace of mind for the parents who may already be stressed about leaving their child in uncharted territory as a new adult. Estate planning is a crucial step in caring for an adult child, especially during a major life transition such as going to college. Our team at Your Legacy Legal Care understands the importance of ensuring you protect your loved ones, even if they are miles away. Reach out today to learn more about how we can help you and your adult children make their college years less burdensome by having the right protections in place. Call us today at (281) 218-0880 or schedule online here .

Estate planning is a crucial task that often seems daunting. It involves making decisions about the future of your assets, your retirement, and your legacy. In Texas, the laws surrounding estate planning can be complex. Understanding these laws is key to ensuring your assets are well-protected and your retirement is secure. This guide aims to simplify the process of estate planning in Texas. It will provide you with a comprehensive understanding of the necessary steps to protect your assets for future generations. We will delve into the role of an estate attorney in Texas, the importance of wills and trusts, and the intricacies of probate and estate taxes. We will also discuss how to choose the right executor and trustee, and the importance of regularly updating your estate plan. By the end of this guide, you will be better equipped to navigate the complexities of estate planning in Texas. Understanding Estate Planning in Texas Estate planning is a process that involves making plans for the transfer of your estate during incapacity and after your death. Your estate is comprised of all your assets, including real estate, bank accounts, investments, and personal possessions. In Texas, estate planning laws are unique and can be complex. It's important to understand these laws to ensure your estate is handled according to your wishes. Key components of a Texas estate plan include: Wills Trusts Powers of attorney Advance healthcare directives Each of these components serves a specific purpose in protecting your assets and your wishes for the future. The Importance of a Will in Texas A will is a legal document that outlines how you want your property and assets distributed after your death. In Texas, if you die without a will, your estate will be distributed according to state law. This process, known as intestate succession, may not align with your wishes. Therefore, having a will is crucial to ensure your assets are distributed according to your preferences. Trusts: Privacy, Protection, and Tax Benefits Trusts are another important component of estate planning in Texas. They provide privacy, as the details of a trust are not made public. Trusts also offer protection from creditors and can provide tax benefits. By placing assets in a trust, you can ensure they are managed according to your wishes, even after your death. Key Estate Planning Documents In addition to wills and trusts, there are other important documents that should be included in your Texas estate plan. These documents serve various purposes and are crucial in ensuring your wishes are carried out. Key estate planning documents include: Statutory Durable Power of Attorney: This document allows you to appoint someone to manage your financial affairs if you become incapacitated. Medical Power of Attorney and Directive to Physicians: These document outline your healthcare preferences should you become unable to make decisions for yourself. HIPAA Release: This allows designated individuals to access your medical information. Letter of Intent: This provides guidance to your executor or trustee about your specific wishes. Statutory Durable Power of Attorney and Advance Healthcare Directives A Statutory Durable Power of Attorney is a legal document that gives someone you trust the authority to handle your financial affairs if you become unable to do so. This person is known as your agent or attorney-in-fact.  You should choose someone that you trust to fulfill this role. A Directive to Physician, also known as a living will, allows you to specify what actions should be taken for your health if you are no longer able to make decisions for yourself due to illness or incapacity. A Medical Power of Attorney allows someone you choose to make medical decisions when you are unable to do so. All of these documents are crucial in ensuring your wishes are respected and your affairs are properly managed in the event of your incapacity. Probate and Estate Taxes in Texas Probate is the legal process of administering a deceased person's estate. In Texas, the probate process can be complex and time-consuming. However, with proper estate planning, the impact of probate can be minimized. Texas does not impose an estate tax or inheritance tax. This is a significant advantage for Texas residents. However, federal estate tax may still apply, depending on the size of your estate. Understanding probate and estate taxes is crucial in estate planning. It helps ensure your assets are distributed according to your wishes and can save your heirs from unnecessary stress and expense. Choosing Executors and Trustees Choosing the right executor and trustee is a critical part of estate planning. These individuals will be responsible for managing your estate and carrying out your wishes after your death. The executor administers your will, while the trustee manages any trusts you establish. They should be trustworthy, responsible, and capable of handling financial matters. Consider their willingness to serve, their relationship with your beneficiaries, and their ability to handle potential conflicts. It's a significant responsibility, so choose wisely. Regular Updates: Adapting to Life Changes Estate planning is not a one and done. It's a dynamic process that should evolve with your life circumstances and changes in the law. Major life events such as marriage, divorce, the birth of a child, or the death of a loved one can significantly impact your estate plan. Regular reviews ensure that your plan remains relevant and effective. Remember, an outdated estate plan can lead to unintended consequences. Make it a habit to review and update your estate plan regularly, ideally with the help of a knowledgeable estate planning attorney. Finding the Right Estate Planning Attorney in Texas Choosing the right estate planning attorney is crucial. They should be well-versed in Texas estate laws and have a track record of success. Look for an attorney who listens to your needs, explains complex legal concepts in plain language, and provides practical solutions. Remember, this is a person you'll be sharing personal details with, so comfort and trust are key. Don't hesitate to ask for referrals from friends, family, or financial advisors. A good attorney can make the estate planning process less daunting and more efficient. Conclusion: Securing Your Legacy Estate planning in Texas can seem complex, but it doesn't have to be overwhelming. With the right guidance and a comprehensive approach, you can create a plan that protects your assets, provides for your loved ones, and secures your legacy. Remember, estate planning is about more than just distributing assets. It's about ensuring your wishes are respected, providing for your loved ones, and creating a lasting legacy. With careful planning and the help of a skilled estate planning attorney, you can navigate the complexities of estate planning and find peace of mind. Your legacy is worth the effort. Speak with a Knowledgeable Texas Estate Lawyer No matter your life goals, it is important to make thorough estate plans. Speaking with an experienced Texas estate lawyer can help you navigate Texas law while setting up the brightest future possible for your loved ones. Schedule your estate planning appointment now by calling (281) 843-5602 or schedule online here .

If you’re in your senior years, you may want to think twice before tying the knot. The love bug can bite at any age, and that can include pain in your wallet. This advice comes from The Hartford (CT) Courant in its recent article “Fit to Be Tied? Think Twice About Marriage in Your Golden Years.” A late marriage can mess up your previous plans for your estate, personal finances, as well as any advance directives for your end-of-life health care. It can also impact decisions you’ve made and will make, in addition to those of your spouse and heirs. No one is saying that older folks shouldn’t marry. They just need to be aware of the impact it may have on their plans. Elder law attorneys advise that those thinking about marriage later in life, at the time when personal wealth is typically the highest, understand the laws on the property rights of both spouses. Property owned jointly or exclusively by either spouse is deemed to be marital property when it comes to divorce settlement or settling an estate in many states. If you understand the applicable property rights before the marriage, it’ll let you modify your wills, powers of attorney, health care proxies and designated beneficiaries to avoid legal conflicts in the future. Those who marry later in life must face several estate planning issues younger couples don’t. For example, there may be an accumulation of considerable assets or both may have children from earlier relationships. Marriage is a legal contract between two people that can only be ended by death, annulment or divorce. The laws concerning marriage typically aim to protect the rights and interests of both spouses. One spouse can’t entirely “disinherit” their surviving spouse, regardless of what he or she writes in a will. Under the law of some states, a surviving spouse is entitled to the income generated from a third of their late spouse’s estate for the rest of their life after all its liabilities are settled. A good idea to eliminate possible hard feelings is a professionally drafted prenuptial agreement. This document details the legal course to be followed in the event of divorce and decreases the possibility of major disagreements. Reference: The Hartford (CT) Courant (Sept. 24, 2016) “Fit to Be Tied? Think Twice About Marriage in Your Golden Years” #AssetProtection #WillChanges #PrenuptialAgreement #PowerofAttorney #Wills #estateplanning

A Los Angeles judge has dismissed a lawsuit that challenged Media Mogul Sumner Redstone’s mental competence. The Los Angeles Times’ May 9 article, “Judge dismisses mental competency case against Sumner Redstone,” said the ruling doesn’t totally end the legal drama with Redstone’s former girlfriend, Manuela Herzer. Herzer said she would appeal and immediately filed a new lawsuit against his family members. Nonetheless, the judge’s decision wipes out a major concern for Redstone’s executives at the struggling Viacom. Had the lawsuit succeeded and found that the 92-year-old billionaire was mentally incompetent, it could’ve made for a protracted corporate battle over of Viacom and CBS Corp., the other large media company controlled by the Redstone family. Instead, the case helped to resolve the rift between Redstone and his daughter, Shari. It also firmly established her as the mogul’s heir apparent. Los Angeles Superior Court Judge David J. Cowan didn’t expressly rule on whether Redstone was mentally competent, but he did conclude that Redstone was in command of his faculties enough to recognize and articulate who he wanted to be in charge of his healthcare. “In brief but compelling testimony, Redstone overcame his very significant ailments, including inability to speak clearly and what looked like much pain in swallowing” to provide the testimony, Judge Cowan wrote in his decision. “The court was able to see the strong conviction he had about what he said. He seemed very alert. He was composed and did not appear angry…. There are no legal grounds not to follow his stated wishes.” Herzer filed the petition in late November after Sumner Redstone removed her as the agent in charge of his healthcare. He also excluded her from his will. Herzer’s new lawsuit asks for $100 million from Shari Redstone, her two sons, five nurses for Redstone and his longtime chauffeur from Paramount Pictures, who also serves as house manager. Her complaint alleges that “Shari and her henchmen” orchestrated Herzer’s ouster from Redstone’s Beverly Park home last fall and robbed her of the $70 million that he planned to leave Herzer before he cut her out of his will in mid-October. The suit also claims “intentional interference” with an expected inheritance, breach of contract, and invasion of privacy. Reference: Los Angeles Times (May 9, 2016) “Judge dismisses mental competency case against Sumner Redstone” #AssetProtection #Guardianship #EstatePlanningLawyer #WillChanges #ProbateCourt #Inheritance #WillContest #ElderLaw

Here are six tax planning considerations of interest to those over age 50 from Next Avenue’s recent post, “2016 Tax Planning Ideas for People 50+.” Continuing to Save for Retirement. As you close in on retirement age, make sure to max out your retirement plan contributions through an employer-sponsored plan like a 401(k) or an IRA. The maximum 401(k) contribution for someone 50 or older in 2016 is $24,000 (the standard $18,000 maximum plus a $6,000 catch-up contribution). The maximum IRA contribution for 2016 (and for 2015) for people 50 or older is $6,500 (the standard $5,500 limit plus a $1,000 catch-up contribution). IRA contributions for 2015 can be made up until April 18, 2016. Giving a Charity Up to $100,000 from Your IRA. It’s now permanent for those over 70 ½ to make a tax-free “qualified charitable distribution” with a rollover of up to $100,000 per year from an IRA to a qualified charity. Thus, you can avoid paying income tax on an otherwise taxable distribution from an IRA by having the IRA trustee make the distribution directly to a qualified charity. Using Donor Advised Funds for Charitable Contributions. If you think your income will decline in coming years, consider taking advantage of your current ability to deduct charitable contributions by funding a donor advised fund (DAF) account, which are charities set up primarily by community foundations and financial institutions. Your contribution is held in an account from which you can make charitable contributions by “advising” the fund of your wishes. You get a charitable deduction, and the money can be taken out of the account for charitable causes in a later year. Saving for a Child’s or Grandchild’s Education. If you can afford to help send your children or grandchildren to college, a 529 plan is a tax-advantaged way of saving. Funds contributed to a 529 for the benefit of a child earn income and appreciate tax free. If the funds are used for college expenses when withdrawn, they’re not subject to federal income taxes. Making Annual Gifts. The IRS allows every person to give up to $14,000 annually to an unlimited number of recipients without incurring any gift taxes. Annual-exclusion gifts can be used for 529 plans, uniform gift to minors act (UGMA) accounts, or even as a gift to young working family members so that they may use the money for a contribution to their Roth IRA. If you have a few children and grandchildren, it’s a great way to give substantial amounts away every year. Downsizing Your Home. In many instances, you can avoid owing capital gains taxes on the sale of your home. If you’ve lived in your home for at least two of the five years prior to its sale, you can exclude from income taxes gains of up to $250,000 per individual or $500,000 for a married couple. To get the best advice for your situation, schedule and appointment with an experienced estate planning attorney. He or she will be able work with you and your other advisors to create the best plan for your needs. Reference: Next Avenue (February 26, 2016) “2016 Tax Planning Ideas for People 50+” #RothIRAs #AssetProtection #CharitableRollover #EstateTax #IRAs #529EducationSavingsPlan #401k #HoustonEstatePlanning #UniformGifttoMinorsActUGMAAccounts #PlanningfortheFuture #DonorAdvisedFundDAFAccount #HoustonEstatePlanningLawyer #TaxPlanning

We spend most of our adult lives planning for retirement. However, there are those that don’t plan—or don’t plan enough—for what to do once they actually get there. A recently posted pennlive.com article has some great ideas about what to do when we retire. The article, “5 steps for a successful retirement,” gives us some things to think about. Retire to something. The first work day after you retire, you’re going to wake up and have an entire day to fill. You’ll need to decide what you’re going to do with your time so that you can enjoy your golden years. You might volunteer or work part-time, but do it because it’s something you enjoy. Perhaps you want to take a class and learn something new or do some traveling. Often we think about retiring from something, but it’s more important to retire to something. Plan a budget and keep to it. A major adjustment for retirees is the lack of a regular paycheck. Yes, there may be Social Security benefits and a pension, but many of us will need to rely on savings. Chances are you will need to create an income stream out of your retirement assets. Calculate a reasonable amount to withdraw from your portfolio annually without jeopardizing your financial future and then divide that number by 12 to get a monthly figure. Don’t withdraw money on an as-needed basis because you might drain your account too quickly. Don’t forget about inflation. You need your portfolio to grow enough to outpace inflation. The only way to do that is to continue to invest in some stocks. Your portfolio should continue to trend upward until around age 80. If it peaks before then, you could run out of money. Keep track of medical needs. A major cost in retirement may be your medical care. If you retire prior to eligibility for Medicare, you need to plan how you’re going to pay for medical insurance. And even if you have Medicare, it doesn’t cover everything. Investigate some supplemental coverage and don’t forget about long-term care costs that may occur later in life. Update your estate planning documents. You should update your will, power of attorney, healthcare directive, and other estate planning documents after any big life event. Guess what? Retirement is a big life event. As you get older, you get closer to a time when you will need these documents. Make sure you’ve reviewed them and that they’re up-to-date to fit your current needs. If you don’t already have all these documents in place, talk to an experienced estate planning attorney and get things going. Reference: pennlive.com (November 15, 2015) “5 steps for a successful retirement” #HoustonAssetProtection #HoustonRetirementPlanning #ProbateAttorney #HoustonEstatePlanning #HoustonWills #HealthcareDirective #PlanningfortheFuture #HoustonTaxPlanning #HoustonPowerofAttorney #Medicare #HoustonTrustsandEstates

Americans are nothing if not generous. Each year, about 70 percent of the population makes charitable contributions. Most of these are done in the month of December. Gifts are often finalized in a hurry – we rarely consider the tax or financial implications when making charitable donations. Here are just a few of the most powerful estate planning tools you can use when considering your charitable giving this year and for years to come: Charitable Rollovers Individuals over the age of 70 may donate up to $100,000 a year to charities directly from the IRA. This is what is known as a Qualified Charitable Distribution, or QCD. The QCD will count towards any required minimum distributions, or RMDs, that account holders must make from their IRAs. Required minimum distributions must begin by the time the person turns 72. Qualified charitable distributions are a great way to meet RMD requirements while benefiting your favorite charity and excluding an amount from your income. This is an excellent idea for anyone who does not need their distribution to cover living expenses. Bequest in your Will or Revocable Trust One of the simplest and most direct ways to benefit a charity upon passing is to leave a bequest in your will or revocable trust. A bequest is a statement in your will or trust explaining how much you would like to leave to benefit your preferred charity. It is important to use the charity’s correct name and to explain the purpose for which you would like the organization to use your money. General-purpose funding is fine, too, if you do not have a specific way you prefer the donation to be used. Appreciated Stock If you possess publicly traded stock that has appreciated in value, you can gift it to a charity. Normally, you are subjected to capital gains taxes on the appreciation when selling stock. By gifting the stock to charity, though, you will receive a charitable income tax deduction equal to the full value of the stock at the time of the gift. This is a great way to get around capital gains taxes while also giving back. If the charity decides to sell the stock, they can do so without worrying about the taxes, too, since charities are tax exempt. If you need assistance in figuring out which method of charitable giving is best for you, call Your Legacy Legal Care at (281) 885-8826 or click here to schedule a meeting with our experienced elder law and estate planning team.

Family lawyers in Houston, TX are often told that couples who create a prenuptial agreement are basically saying that they plan to get divorced some day. That could not be farther from the truth! Actually, prenuptial lawyers in Houston see first-hand how these important documents can actually help keep a marriage intact…and not out of fear of alimony, either. Financial problems are one of the biggest causes of divorce in the United States. Couples in love often get married and head blindly into the most complex financial arrangement of their lives. Those who take the time to meet with a family lawyer and develop a prenuptial agreement, however, can almost completely avoid much of the drama that other couples will likely face. Sure, prenuptial agreements can lay out what happens in the case of a divorce, but more importantly, they can lay out what happens during the course of a marriage. Each partner and their lawyers work together to identify income and assets and then to plan for how it will be handled. Who is in charge of what? Does the money all go into a single pot, or does each spouse keep separate accounts? What means will you use to plan for the future? What about children from a previous relationship? By addressing these and other financial issues, couples are able to make sure they have compatible expectations before ever walking down the aisle. They can also avoid getting stuck later because they both have a written agreement about how finances will be handled. Instead of seeing a prenuptial as being there in case of divorce, it makes more sense to see it as a means of avoiding that outcome. Couples are encouraged not to wait until the last minute to talk about a prenuptial agreement. Really, putting together this kind of plan can be a lot of fun, as it allows you to dream together about the future you want and create a plan to reach it. In order to make sure that the prenup is upheld, however, you will want to take a couple of precautions. For example, each partner should have his or her own family lawyer in order to make sure everyone’s interests are being fairly considered. It is also important to make sure that all financial information is disclosed. You are about to get married, after all, there should be trust and honesty between you. And, if there is not…perhaps the planning helped you avoid using the prenup later. A Special Note About Blended Families The laws of inheritance are often not flexible enough to account for today’s modern life. For example, a surviving spouse may automatically inherit a deceased spouse’s estate, even if the latter has children. When the second spouse also passes away, the entire estate goes to his or her children due to blood lines, rather than to the step-children. That’s right, children from a previous marriage could end up totally (and legally) without anything. This is an issue that family and estate planning lawyers have seen too many times and one that the prenuptial agreement can account for up front.

It makes sense that Houston prenuptial lawyers see a lot of clients who are heading into their second marriages. After a divorce, the implications of what really happens are so much clearer than they were the first time around. Love does not always last, and the financial implications of ending a relationship can be devastating. Other Reasons to Consider a Prenup in a Second Marriage Not only is a divorced person more aware of the financial headache that comes along with ending a marriage, they are also more in tune with the fact that finances can contribute to the desire for a divorce. For that reason, the need for a prenuptial agreement that outlines the use of money during the marriage can play an important role in keeping things on track the second time around. Rather than only focusing on who gets what in the event of a divorce, the prenuptial lawyer can also help craft the document so that it lays out the way the couple agrees to approach certain subjects throughout the marriage. A big one is how money will be handled by the couple. Who is in charge of paying the bills? What are the couple’s goals for saving and retirement? Are there considerations that need to be made before making a large purchase? By being on the same page regarding these topics at the onset of the marriage, it is possible to get your priorities aligned and to stick to the plan. Second marriages often result in blended families, too. Whether the partners have adult children from a previous relationship or they will be caring together for minor step-children, the prenup can help to protect everyone involved should one partner pass away. For example, a mother may intend for the home she bought before the marriage to be passed on to her children, but she also wants her new husband to be able to live out the remainder of his days in the house. The prenuptial lawyer can refer to the laws of Texas to help create a “right of occupancy” for the surviving spouse. Prenup as Part of the Estate Plan A prenuptial agreement can wield a lot of power, but it is not necessarily a replacement for other estate planning. Wills and trusts come into play when looking at inheritance, so the prenup is more of a starting point than an ending point when it comes to laying out your longest-term plans. By working with a skilled Houston prenuptial lawyer, you can create a legally-binding agreement for how you want your marriage to look, and what needs to happen should it end in divorce. You can even have some influence in what happens after your death through the prenup. That said, it is a good idea to build on the cooperation that goes into putting it together to continue your estate planning on the next level. #estateplanningHoustonTexas #HoustonPrenuptialLawyer

A recent Business Insider’s article, “Ask a Financial Planner: ‘What should I include in a prenup?’,” says that the first thing to do is decide if you’ll need a prenuptial agreement, also known as a “prenup.” Do this by asking yourself, “What purpose do I want the prenup to serve?” If the document is intended to protect the assets you’re bringing into the marriage—such as a business, big-time investments, or rental property—speak to an estate planning attorney about the benefits of a prenup. Other folks who will have prenups drafted are those who marry later in life and have acquired assets on their own and/or were married before. They want to be clear on how their assets would be divided if there were a divorce. This is especially important with blended families. A prenup can simplify a divorce and lessen conflicts. The spouses understand how property and assets would be divided in a divorce. Divorce can be sticky, especially when there are significant assets involved. If that’s the case, you need to talk with a qualified estate planning attorney to draft a prenuptial agreement. While you’re at it, put all other estate planning documents in place, like a will, trusts, powers of attorney, and health care directives. The basic issues to address in a prenup include: A description of separate property versus marital property; How to distribute debts; How taxes would be treated; Spousal support; and Who will pay for legal fees One thing to note is that estate planning laws can be different in each state. Make certain that you talk with a qualified estate planning attorney. Reference: Business Insider (April 17, 2016) “Ask A Financial Planner: ‘What should I include in a prenup?'” #AssetProtection #Will #PrenuptialAgreement #PowersofAttorney #HealthCareDirectives #Trusts #estateplanning