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Children don’t have the right to inherit, and a father has every right to leave his kid or kids out of his will, says the article, “Your parent left you out of their will: What now?” from New Jersey 101.5. If the father is competent and not being unduly influenced by his current wife, he can decide to leave out the child from his first marriage. A husband frequently leaves everything to a spouse, even if it’s a second marriage. In some instances, a father may feel he’s being fair by leaving a child out of his will. It could be that the child from his first marriage is significantly older than the children from his second marriage. Perhaps he paid for the education of that older child or even put a down payment on the first home of that child. In light of this, the father may believe he must leave the rest of his estate to his other younger children in order to put them in the same position as his first child. Or maybe the father feels comfortable that his oldest child is successful in life and that his half-siblings are more needy. Another scenario might be that the father provided for the child from his first marriage in some other manner, such as by naming him as a beneficiary of a life insurance policy, IRA, or other payable on death account that does not pass under the will. Otherwise, if the father is competent, there is little a disinherited child can do. Upon the father’s death, a child could contest the will, claiming undue influence by his new wife. Reference: New Jersey 101.5 (November 19, 2015) “Your parent left you out of their will: What now?“ #EstatePlanningLawyer #HoustonEstatePlanning #WillChanges #HoustonWills #ProbateCourt #Inheritance #HoustonProbate #HoustonTrustsandEstates

Many people believe that, unless they own huge sprawling mansions or complicated trust funds, they have

Most families just aren’t prepared for the financial burden of dementia. They assume that Medicare cover all of the expenses. Not so. Patients and their families don’t realize that isn’t the case. Plus, everything gets more complicated when an individual has dementia. For example, if a dementia patient in a nursing home gets a fever, the staff may say that they aren’t equipped to handle it. They call 911. The patient is then admitted to the hospital. This can lead to complications for the patient suffering from dementia. They may get delirious and confused, slip or fall out of bed and sustain injuries, or they choke on their food. This can cause medical costs to sky-rocket. There are large disparities in out-of-pocket costs for the three diseases. Medicare covers discrete medical services like office visits and acute care, including hospitalization and surgery. These are the types of expenses experienced by cancer patients and heart patients. Those patients usually don’t need full-time home or nursing home care until the very end of their life, if at all. As a result, they don’t see that continuing cost. On the other hand, dementia patients need constant care for years. In addition, these dementia patients may not be sick enough for a nursing home, but they still will need supervision and care. When dementia patients are sick enough for a nursing home, the cost is not covered by health insurance. More than half of patients with dementia— with three-quarters of those from racial minorities—spend down, using savings to pay for the nursing home until the money is all gone. After that, Medicaid takes over. Talk with an experienced elder law attorney about care for the elderly, Medicaid, and dementia. He or she will have ideas on how to best address your family’s situation. Reference: The New York Times (October 26, 2015) “Costs for Dementia Care Far Exceeding Other Diseases, Study Finds” #PayingforaNursingHome #HoustonAssetProtection #MedicaidTrustPlanning #MedicaidPlanning #HoustonElderLaw #HoustonElderLawAttorney #Medicaid #HoustonTrustPlanning #Dementia #MedicaidNursingHomePlanning #LongTermCarePlanning

insurance benefits will go to the beneficiaries you indicated when you purchased the policy, not the trust

But our firm can show you how to put assets into a trust that your loved ones can tap into after you

An updated will. A properly drafted will can play a crucial part in minimizing your estate’s exposure to taxes. If you should die without a legally proper will, the probate court may wind up making decisions about your estate, regardless of your best intentions. Review your will regularly. Owned property. If you are married and own property you intend to gift, ask your estate planning attorney to check state laws to see how they may impact your estate. There are states where property owned prior to marriage is treated as separate property belonging to just one spouse, and there are community property states in which all property acquired prior to or during marriage is deemed to be owned by both spouses. Review your property and make sure it is set up the way you want. Beneficiary statements. Review your beneficiary designations, and make sure they’re as you want them. This includes retirement plans (401(k)s, 403(b)s, etc.), IRAs, bank accounts, and insurance policies. Remember that your named beneficiaries take preference over those named in a will, so it’s important to regularly review beneficiaries, particularly after major life changes like marriage or the birth of children or grandchildren. Health care directive and living will. It’s important to be prepared for the unexpected with your health, whether an accident, illness, or other reason. Draft a health care directive that provides guidance on the extent of the medical treatment you want to receive based on your condition. Power of attorney. You should give an individual the authority to make decisions on your behalf in the event you are unable to do so. A “durable” power of attorney will act as your agent, making medical and/or financial decisions for you when needed. Digital accounts. Make certain that loved ones know how to find all required information, including passwords, to access your online accounts—your financial accounts, social media accounts and household accounts like your cable and electric. Consult with an experienced estate planning attorney for help in creating this documentation as part of your estate plan. He or she can review your estate goals to make certain your legacy intentions are consistent with your overall financial strategy. Reference: Sonoma County Gazette (March 1, 2016) “6 Basic Steps to Legacy Planning” #HealthCareDirective #AssetProtection #IRAs #ProbateAttorney #401k #HoustonWills #ProbateCourt #ClearLakeProbate #CommunityProperty #Inheritance #LivingWill #DigitalAccounts #Beneficiaries #HoustonTrusts #PowerofAttorney #LeagueCityEstatePlanningLawyer

These findings were highlighted in the Barron’s article, “Preparing for Inheritance: How to Avoid Losing It All,” which also notes that smart financial, tax, and estate plans by themselves don’t create good stewards of wealth. Senior generations have to teach their heirs about the legacy they’re going to inherit, uniting the family unit around its accomplishments and civic engagement. When it does this, it has a better chance to preserve the family fortune as well as the family bond. Communication lets heirs have an understanding of their predecessors’ values, responsibilities, and choices. This may reveal ideals, beliefs, values, and shared visions that might otherwise have been left unsaid and allows the family to foster a common vision to support a common purpose for future generations. Annual family meetings should be scheduled with a goal of promoting family harmony. Eventually the family’s principal advisors, including those for legal, tax, and financial concerns, should receive a copy of a “heritage statement.” This is a formal document of the family’s story, values, and vision, and when it’s updated, the advisors should also get a new copy. A heritage statement should sharpen the family’s vision as it is to be shared outside the family. With a clearly defined vision, advisors’ recommendations can be coordinated with the family’s goals, beliefs, and values. Your family can up its chances of maintaining wealth rather than destroying it with the use of family meetings and the heritage design process for wise financial and estate planning. Contact a qualified estate planning attorney to assist you. Reference: Barron’s (November 7, 2015) “Preparing for Inheritance: How to Avoid Losing It All” #AssetProtection #HoustonEstatePlanning #HeritageStatement #Inheritance #HoustonEstatePlanningLawyer #TaxPlanning #HoustonProbate #HoustonTrustsandEstates #HoustonProbateAttorney

One strategy is gifting into a Grantor Retained Annuity Trust (GRAT), which lets you, in effect, loan savvy year-end strategies” #CapitalLosses #HoustonAssetProtection #EstateTax #IRAs #CharitableGiving #TrustsandEstates

Multi-million dollar estates Disabled Children/Individuals with Special Needs Who May Require a Special Needs Trust

Having a capable, trustworthy elder lawyer can be invaluable in protecting older loved ones from the attorneys who are also well-credentialed in estate planning can assist you plan for retirement, establish trusts

If you just had your estate planning attorney draft a trust without changing the deed to your real estate to reflect ownership by that trust, most states would not let the real estate pass through your trust A trustee can list the house for sale within hours of your passing, but an executor of your will must

Some funeral homes put that money in a trust fund or buy an insurance policy naming itself as beneficiary of “unknowns”, an alternative (and sometimes better option) is to work with an attorney to create a trust