Search Results

Now more than ever, our lives are lived in online spaces. We pay bills, socialize, work, and play virtually. It is natural that our assets would become increasingly virtual as well. Despite spending much of our free time online, few of us ever really consider how our digital assets might be handled after we pass away. It is an important conundrum to weigh even if you are a Bitcoin millionaire. Our digital assets deserve our attention – even the ones that hold purely sentimental value. The Revised Uniform Fiduciary Access to Digital Asset Act The Revised Uniform Fiduciary Access to Digital Asset Act was passed in 2017. Also known as RUFADAA, the legislation established rules around digital account ownership. It gives fiduciaries access to digital assets and allows them to copy and manage them as needed. The original creator or owner of the digital asset in question must give affirmative consent to the disclosure of electronic communications. Otherwise, any terms of service associated with the asset may apply. That is why so many people are opting to outline their specific wishes for their online assets in their wills and trusts. Not every state has passed RUFADAA legislation. In most of these states, the terms of service or privacy policy associated with the digital asset will supersede any instructions spelled out in a will. Federal data privacy laws generally forbid online account service providers from allowing access to the account by anyone besides the account holder. If you are eager to get into your spouse’s email account after they pass, for instance, you likely will not be granted access just because you were married. Taking Inventory If you are eager to make plans for your digital assets, spend time taking an inventory of all your online accounts. Which ones would you hate to see abandoned? Do you have cryptocurrency you would like to see a beloved family member inherit? Perhaps you own a successful website and want to see it handled in a particular way after you pass? By listing out all of your virtual assets and considering what you would like to see happen to each of them, you will be on your way to finding a solution that works for you. Once you have assembled your list, schedule a meeting with an estate planning attorney at Your Legacy Legal Care. We can answer questions you have about your options for virtual asset planning and protection. To protect your virtual and digital assets, call (281) 218-0880 or click here to schedule an appointment with our experienced estate planning team.

The estate planning industry is constantly changing. Technological advances make it easier than ever for both estate planning attorneys and their clients to get affairs in order. There is no doubt that there is a lot to be excited about in the field. Modernizing the estate planning process has been a long time coming, and COVID-19 has only further inspired developers to make their offerings more accessible. Social distancing might not have inspired the development of the technologies below, but they have certainly been accelerated thanks to the growing demand for virtual services. The use of these new technologies will undoubtedly change the estate planning world for good – even as COVID-19 becomes a distant memory in the future. Going Digital Digital documents are nothing new, but they have become more universally accepted in the estate planning world as of late. It has become standard to file an entire plan without ever touching a single piece of paper. This is perhaps the single largest transformation to happen to the industry in the last several decades. Simplifying the process makes folks more inclined to get their estate plans in order, so we are excited to watch this digital evolution continue to unfold. Electronic wills and digital signatures continue to become more common throughout the industry, too. Remote notarization is an exciting disruption of a very established process. E-signatures have been popular for some time, but they are only just now becoming widely accepted throughout the estate planning world in states that allow these documents to be signed virtually or electronically. Software Solutions Email and chat modules have revolutionized the way estate planning attorneys and their clients exchange information. Thanks to the rise of digital applications and software programs, it is easier than ever to create your estate plan using the device in your pocket. Many companies are even working to develop mobile versions of their software to allow users to work on the go. These programs help to make the estate planning process more streamlined. Rather than trading forms back and forth constantly for signatures, you will get the notarization and signing done virtually. It is COVID-safe and incredibly convenient, which is something that is beneficial to everybody in today’s world. The estate planning world has needed a modern approach for some time now, and as more and more technological advances find their way to the industry, we will be excited to implement them and make life more convenient for clients as laws allow. To learn more about how you can conveniently establish an estate plan to protect your loved ones, call Your Legacy Legal Care at (281) 218-0880, or click here to schedule your strategy session with an experienced estate planning and elder law attorney.

You may need to reevaluate some elements of your estate plan in light of the coronavirus pandemic, especially if there is a spike of cases due to the holidays. There are unique aspects of this crisis that your current estate planning documents may not be suited to handle or verbiage that is missing from these crucial documents that would prevent your agent from acting in your best interest. The language in some estate planning documents that is acceptable under normal conditions may cause additional problems for you and your loved ones if you fall ill during this pandemic. Look over the following documents to see if they may need updating in order to fulfill your wishes, or consider establishing these documents if you do not have them: Directive to Physicians. A Directive to Physicians (commonly known as a Living Will) is a document that you can use to give instructions regarding treatment if you become terminally ill or are in an irreversible condition and  are unable to communicate your instructions to the healthcare professionals that will oversee your care. This directive will include instructions to determine when life-sustaining treatment should be terminated. Many directive to physicians contain a prohibition on intubation, which can be used to prolong life, even in a vegetative state. However, in the case of Covid-19, intubation and placement on a ventilator can actually save a patient’s life (although many patients who are intubated have passed away). If your directive contains a blanket prohibition on intubation, feeding tubes, or even CPR, Your Legacy Legal Care can help you update your previously executed documents. Statutory Durable Power of Attorney. A Statutory Durable Power of Attorney (POA) allows you to appoint someone (known as your agent) to act in your place with regard to matters that do not include medical decisions. A power of attorney can be made to be effective immediately, or upon your incapacity or disability. A Power of Attorney that is effective immediately takes effect as soon as you sign it, usually with the understanding that it will not be used until you become incapacitated. A power of attorney that is made effective upon your incapacity or disability only takes affect when you become incapacitated. A problem can occur for your appointed agent who is attempting to act as your agent with making it effective upon your incapacity. When presented with a power of attorney that is only effective upon incapacity, a financial institution will often require proof that the person is in fact incapacitated, often in the form of a letter from a doctor. In the current chaotic environment of the coronavirus pandemic, getting a letter from a doctor will be difficult, if not impossible. Requiring your agent under a power of attorney to seek out a doctor to get a certification of incapacity will only add to their tasks and delay their ability to act on your behalf.  You may want to consider updating your statutory durable power of attorney to be effective immediately if you want your agent to be able to act on your behalf immediately. Medical Power of Attorney. A medical power of attorney allows you to appoint someone else to act as your agent for medical decisions. It will ensure that your medical treatment instructions are carried out. Without a medical power of attorney, or medical agent to act on your behalf, your doctor may be required to provide you with medical treatment that you would have refused if you were able to voice your wishes yourself. Usually, the person who is appointed to act as your agent would confer with the doctors in person. That will likely be difficult during the coronavirus pandemic because loved ones are often not allowed in the hospital with sick patients or have strict visitation guidelines. You need to make sure your health care proxy contains a provision that expressly authorizes electronic communication with your agent in the event of your agent being unable to communicate with your doctor or healthcare provider in person. Before revoking and/or updating your current estate planning documents, be sure to consult with your elder law attorney at Your Legacy Legal Care to ensure your powers of attorneys, healthcare directives, and your other estate planning documents express your wishes during this time. To schedule your strategy session, click here or call us at (281) 885-8826.

COVID-19 has wreaked havoc across the country this year. In Texas, to date, we have seen more than 854,000 cases and 17,000 deaths. We have all heard the horror stories about people entering the hospital, being placed on ventilators, and becoming seriously ill or even dying in pandemic conditions with no loved ones allowed nearby for comfort. One of the scariest parts of this pandemic is undoubtedly the risk you take of not executing necessary documents which would result in you being unable to express your wishes regarding your care, especially with family or loved ones being unable to be with you. This pandemic is a good reminder that we should all prepare for what will happen if we are incapacitated. Accidents can happen anytime, and, in a moment, you may be unable to express your wishes for your healthcare. You can prepare by planning for incapacitation by executing or updating your healthcare directive. Update Your Healthcare Directive None of us like to think about becoming seriously ill, but we should all plan for what will happen if we are unable to care for ourselves or even our families. Healthcare directives can help do that. An advanced directive is an order to your health care provider directing your provider, family, or surrogate decision-maker to manage your health care if you become incapacitated and can no longer communicate your own wishes. It is a good opportunity to ensure that your family knows your wishes for your healthcare prior to becoming incapacitated. There are a few different kinds of advanced directives: Directive to Physicians and Family or Surrogates; Medical Power of Attorney; and Gift by a Living Donor You should update your healthcare directive whenever you have a major life event or: You get married, separated, or divorced Your spouse or partner dies or is no longer capable of making these decisions for you; or You receive a serious or terminal health diagnosis. Even if nothing major changes in your life, you should have an elder law attorney review your directives every couple of years. Whenever you celebrate a new decade of life, give yourself this gift of security. Having a plan in place if you become incapacitated is an excellent way to ensure that you receive the best health care possible, according to your wishes, if you become seriously ill with COVID-19. But it is a good idea to have these plans in place anyway in the event of any other tragic event. If you need to put an estate plan and advanced directives in place, we can help secure that peace of mind for you and your loved ones. Your Legacy Legal Care offers comprehensive estate planning and elder law services. Call us at (281) 885-8826, or click here to schedule your strategy session today.

When you have a child with disabilities, planning for the future can be complicated. But it is even more critical for parents to plan for a time when you will not be there to care for and advocate for your child. If you make careful estate planning choices now, you can prepare for your child’s future care and financial needs. Some of the best options for future planning involve trusts. Supplemental (Special) Needs Trusts are often used in Texas to plan for future support of special needs children. Supplemental (Special) Needs Trusts Supplemental (special) needs trusts are the most effective trusts used for children with disabilities. This trust manages assets but also keeps your child eligible for additional resources and public assistance. There are two different types of special needs trusts: Third-party Special Needs Trusts Typically, a parent, grand-parent, or legal guardian funds a third-party special needs trust with their assets as part of an estate plan. The trustee typically distributes these funds as part of a will or living trust. First-Party Special Needs Trusts A parent, grandparent, or a legal guardian usually creates this trust using the child’s assets. This type of trust is common when a child receives a legal settlement from a personal injury lawsuit or other claim and will need life-long care. If any funds remain in the trust after the child’s death, they revert to the state, but only to the extent that the child received public benefits. You can also fund special needs trusts with the proceeds of a life insurance policy, or you can make one a sub-trust as part of an existing living trust. Supplemental needs trusts can be a critical component of planning for the future of your child with a disability. Support Trusts A support trust requires that the trustee distribute funds to the beneficiary for food, shelter, clothing, medical care, and educational services. However, beneficiaries of support trusts are ineligible to receive Medicaid or Social Security Income (SSI). So, a support trust is not the best choice if your child will need those services. If you are concerned about planning for your child’s future, legal, educational, and financial necessities, we can help. Your Legacy Legal Care offers comprehensive estate planning services to ensure your loved ones are protected. Call us at (281) 885-8826, or click here to schedule a strategy session to discuss your options.

“But life is just a party and parties weren’t meant to last.” -Prince, 1999 Prince really should have listened to his music lyrics. No one ever intends to leave a mess behind when they die, but a little estate planning can ensure that your loved ones are protected and that an executor distributes your assets that way you wish rather than letting the law decide for you. Here are some more lessons we can learn from celebrity probate mistakes and mishaps: Prince The probate battle over Prince’s estate is a nightmare. The pop icon died unexpectedly in 2016, leaving no will and no estate plan. Since Prince died intestate, the state of Minnesota will divide up his estate among his heirs. In Prince’s case, his heirs are his six siblings and half-siblings. Before the court could divide his estate, there was a fight about who his legal heirs were. Two years after his death, the attorneys had been paid millions in fees, but his estate still was not settled. The lesson to learn? Creating an estate plan can protect your legacy and avoid unnecessary legal and probate costs. Do not let an earlier experience or distrust of the legal system keep you from making plans for your loved ones. Jim Morrison Jim Morrison, the lead singer of The Doors, died at the age of 27. He left a simple, two-page will that left his entire estate to his long-term girlfriend, Pamela Courson. His will left his estate to his brother and sister if Pamela died before him. Morrison was estranged from his parents and did not mention them in his will. When Morrison died, his assets were relatively modest, but he owned a 25% interest in The Doors. Morrison’s girlfriend died three years after him, intestate, meaning she left no will. By the laws of intestate, her estate passed to her parents. But Morrison’s parents then claimed Morrison’s estate, arguing that Morrison was incompetent to make a will and had no common-law marriage with Courson, meaning they should have inherited his entire estate. At this point, his estate exceeded tens of millions of dollars due to the rising popularity of The Doors after his death. Notably, Morrison did not want his parents to inherit his estate. Courson’s parents eventually ended up settling with Morrison’s parents, splitting the estate equally. The lesson to learn? An overly simplistic plan (such as a holographic will) can result in unintended consequences. Jim Morrison could have created a trust for his assets, benefiting Courson for her lifetime and, when she died, pass it to his siblings. His parents would then have had no claim to his estate. If you are beginning the estate planning process or updating your plans, Your Legacy Legal Care offers comprehensive estate planning services that can ensure you avoid a costly probate process. Call us at (281) 885-8826, or click here to schedule your consultation.

We have all seen the ads online for free or inexpensive estate planning. It may be tempting to visit a website, answer a few questions, and get back a will or maybe even a trust created by a drag-and-drop template. It is certainly convenient, but are these cheap tools effective? In this blog post, we will look at some of the problems that can pop up with DIY estate planning. Properly Endorsed with Witnesses To be valid, a Texas will must be in writing, signed by the testator in person, and properly witnessed. This means a will must be attested to by at least two credible witnesses who are 14 years of age or older. See Tex. Est. Code § 251.051 (2017). They must sign the will in the presence of the testator. The only exception to Texas’s signature and witness requirements is a holographic will. A holographic will does not have to be signed and witnessed, but it must be written entirely in the testator’s handwriting. See Tex. Est. Code §251.052 (2017). An online DIY form typically does not meet the requirements of a holographic will, and if you improperly sign and witness the document, it will not be valid under Texas law. Explaining Your Intent Your will or estate plan’s significant purpose should be to explain how you intend to distribute your estate. Consider what can happen with a seemingly simple DIY will, for example: A woman wants to split her estate between her two children, but because her home and investment accounts are worth about the same amount of money, she bequeaths her home to her son and her investment account to her daughter. Five years later, after increasingly large medical bills, the woman has nearly depleted her investment accounts. When she dies, her son gets the house, and her daughter gets what is left of her accounts. Her “simple” will did not correctly express her intentions for her estate. An experienced estate planning attorney does not just draft documents. Most have extensive experience in counseling clients through very personal decisions. An elder law attorney can consider developments that you have not, ensuring that your estate plan reflects your intentions under many scenarios. Moreover, if a family member challenges the will, the estate will look to divine your intentions. While family members, who may also benefit from a specific interpretation of your will, can share their conversations with you and what they believe your intent may be, an attorney has no stake in the outcome. A court is more likely to take the word of an attorney that worked closely with you to determine your intent. Using Precise Language When you use DIY or online estate planning tools, you can also run the risk of using language that a court cannot enforce. Your will must clearly state the testamentary intent to dispose of assets. Even using language such as, “I would like Harry to have my house,” can render a disposition unenforceable. An experienced estate planning and elder law attorney can also advise you on your estate disposition’s tax consequences and help coordinate both probate and non-probate assets. If you are beginning the estate planning process or are needing to update your plans, Your Legacy Legal Care offers comprehensive estate planning services to give you peace of mind. Call us at (281) 885-8826, or click here to schedule your strategy session.

You have decked out the nursery, filled the drawers with tiny clothes, and installed a car seat. Now it is time to consider one of the most critical things on your “to-do” list after having kids – estate planning. While no one likes to think about the bad things that can happen in life, it is imperative to plan for them once you have children. Here are some of the minimum estate planning issues you should address once you have kids. Prepare Living Documents By preparing a medical power of attorney and a statutory durable power of attorney, you ensure that if something happens to you, someone can still access your funds to take care of your children. If you are incapacitated, your medical agent can make medical decisions for you as well. Pick Guardians and a Trustee If something happens to you, your children will need two things to ensure they are properly cared for – a guardian and a trustee. A guardian can make daily, educational, and health care decisions for your child. The court will ultimately officially appoint a guardian based on the “best interests” of your child. While a court will consider the guardian that you name in estate planning documents, they can overrule the decision if the court believes you have made a wrong choice or it is not in the best interest of your children. You and your co-parent need to have an extensive discussion together and with your potential guardian in advance in order to overcome any potential obstacle that may arise. A trustee will handle financial matters for your child in your place. While your children may only need a guardian until they are 18, a trustee may be necessary until your children are financially competent and are responsible with their inheritance. Your trustee can handle your children’s financial matters in the interim and eventually distribute the remainder of your estate to your children. Post-mortem Documents Post-mortem documents, like a last will and testament, trust, or testamentary trust, focus on what happens after you die. Minors can not own property, so any estate plan you create should account for how and when your children will eventually access your remaining assets. When developing these documents, you can consider your wishes for your child’s future. Do you want the trustee to pay for summer camp? Do you have strong feelings about college? Your trust and guardian documents allow you to set out your views and expectations of your children if you die while they are young. Review Your Life Insurance When many people first have children, they are not as financially stable as they are later in life. You should account for supporting your children if you die before accumulating enough assets to do so. An excellent way to do this is through a life insurance policy. Many people do not know that a trust can be the named beneficiary of the policy while your children are young. If you are beginning the estate planning process or updating your plans to account for new children or even grandchildren, Your Legacy Legal Care offers comprehensive estate planning services. Call us at (281) 885-8826, or click here to schedule your strategy session.

The lives of the rich and famous may not seem very relatable, but we can learn valuable lessons about planning from their mistakes. In this blog, we’ll take a look at the biggest estate planning stories of the year so far and what we can learn from them. Fred Trump and the NDA Has anyone missed the news about the new book by Mary Trump, President Trump’s niece? Simon and Schuster marketed her recent book, Too Much and Never Enough: How My Family Created the World’s Most Dangerous Man, as a tell-all about the Trump family. In June of 2020, Robert Trump, the President’s brother who later died in August of 2020, brought a suit against Mary Trump and the publisher. The lawsuit cited a non-disclosure agreement Mary signed in 2001, settling a lawsuit over her grandfather’s estate. The court sided with Mary Trump, holding that the NDA signed at the end of litigation over Fred Trump’s estate was too vague and likely related solely to financial details. The years of litigation that ensued over Fred Trump Sr.’s estate, the nasty family arguments that resulted, and a later tell-all book about the famous family are reminders of the importance of estate planning. If an estate plan is clear and well planned, messy litigation and family conflicts are far less likely. Prince’s Estate: Sign O’ the Times? Even though Prince died in 2016, the controversy over his estate is still making headlines. When he died without a will, more than 45 people claimed to be the pop singer’s heir, but the court declared that Prince’s six siblings were his legal heirs. While experts believe the estate is worth hundreds of millions, the court has spent the last few years working to properly value Prince’s assets, including complicated intellectual property rights. To make things more complicated, one of Prince’s brothers died in 2019, leaving the court to determine where his share of the assets should go. According to documents filed with the court, attorneys and the estate administrators have spent more than $55 million trying to unravel the mess. The estate also faces a 40% federal inheritance tax and a 16% Minnesota estate tax. What happened with Prince’s estate demonstrates why it is essential to plan while you are living. While no one likes to think about death, Prince could have avoided tens of millions in legal and administrative fees with a trust and thorough estate plan. Moreover, he could have avoided federal and state taxes that amount to more than half of the value of his estate. Aretha Franklin’s Estate: A Little R-E-S-P-E-C-T Please? Like Prince, Aretha Franklin died years ago. But the family has been fighting over her estate since her passing in 2018. Her four sons initially believed their mother died without a will and agreed upon her niece, Sabrina Williams, as the administrator. Since then, the family has located three different wills. They found two wills dated from 2010 in a locked cabinet and a third handwritten in a notebook with cross-outs and notes in the margin. Ms. Franklin’s long-term attorney asked the court to determine if the wills are valid under Michigan law. Earlier this year, after months of family in-fighting, Ms. Williams stepped down as administrator for the estate. The lesson we can learn here is the importance of making a will and regularly updating it. You should also always indicate which will takes precedence and explicitly revoke any previous wills in writing. Ms. Franklin’s family could face years of additional litigation over her estate because she failed to take this crucial step. If you’re ready to begin planning for your loved ones, call Your Legacy Legal Care at (281) 885-8826 or click here to schedule your consultation with our experienced estate planning and elder law attorneys. #CelebrityEstates

In 1971, George Washington famously wrote to Harriot Washington, “It is better to offer no excuse than a bad one.” Washington was reminding his niece to think more earnestly about life, but his advice still rings true today, particularly when it is time to plan for serious matters. More than half of Americans over the age of 55 do not have an estate plan in place. This startling statistic is a significant takeaway from the 2019 Merrill Lynch and Age Wave study Leaving a Legacy: A Lasting Gift to Loved Ones. Even more troubling, only 18% of people over the age of 55 have all of the recommended legacy documents, including a last will and testament, health care directive, and statutory durable power of attorney. So, what are the most common bad excuses for failing to make an estate plan? “I do not want to think about death.” No one wants to think about death. It is an uncomfortable subject for almost everyone, but if you fail to plan, your family could suffer major consequences. No one lives forever, but with proper estate planning techniques, you can take care of your loved ones and provide financial and health care decisions if you become incapacitated. 1. Taking care of your loved ones. If you die without a will in Texas, the Texas law of intestate succession will apply. Texas law, and not your wishes, will determine how a court-appointed representative distributes your estate. To get around this, you can: Validly execute a will. Create a revocable trust and transfer your assets to it during your lifetime. Add the person you want to inherit your assets as a joint owner. Designate the disposition of your assets upon death. An experienced attorney with estate planning experience can help you achieve all of this. 2. Detail how you want to be taken care of when you can no longer care for yourself. Estate planning is not just about who gets your assets when you die; it is also about making your wishes known for your care if you are no longer able to care for or make those decisions for yourself. To avoid guardianship in the event you are incapacitated, you need: A valid statutory durable power of attorney for financial decisions; A medical power of attorney; and A medical directive or living will (what we call a directive to physicians). These documents will allow you to name someone you trust as an agent for these critical decisions and detail your wishes about end of life decisions. “I only have one child. There is nothing to fight over.” Avoiding fights over your assets is only one reason to have a plan in place. An estate plan can also provide for a minor child’s physical and financial care, avoid nasty custody battles, and determine how your heirs receive your assets. If both you and your spouse die, who will care for your child? While Texas courts will naturally look to next of kin, what if two sets of grandparents and your sister all want custody? An estate plan can avoid this by appointing a guardian you and your spouse trust in advance. It is not just the physical custody of a minor child that you need to consider, under Texas law, any minor who inherits assets cannot receive or hold them directly until they reach 18. See Texas Estates Code § 1101, et seq. A Texas court will appoint a guardian to oversee the inheritance until that time. To avoid this you can establish a trust for your child to ensure they receive their inheritance on your terms. “My estate is not large enough.” As we have discussed above, estate planning is not just about a will. Estate planning can also provide for minor children, plan for your future medical decisions, and determine how your representative will distribute your assets. In some cases, estate planning can also help you avoid a protracted probate action. Ultimately, estate planning is about ensuring that you do not leave your final affairs to your heirs to untangle. Planning ahead can make a painful, stressful, and costly process much easier for the people who love you. Call us today at (281) 885-8826 or click here to schedule your strategy session with our elder law attorneys to begin planning ahead for your loved ones today.

Few people are comfortable dealing with questions like “what happens to my assets and my family when I am no longer here?” It is no surprise that estate planning is often an avoided part of financial planning. In fact, nearly half of Americans over the age of 55 do not have a will, and only 18% of them have what financial planners call the essentials: a Last Will and Testament, Health Care Directives, a Medical Power of Attorney, and a Statutory Durable Power of Attorney. At the very least, anyone with assets should have a Last Will and Testament; but estate planning goes further in protecting your assets. It makes sure your assets are distributed the way you want them to be and go to the people you want. An Estate Plan Is Not “Just” A Last Will And Testament Wills are legally binding documents that deal with asset distribution after death, but estate plans go much further than just distributing your assets. An estate plan arranges distribution in a way that maximizes benefits to your beneficiaries by minimizing taxes and expenses. An estate plan typically includes: A Last Will and Testament A Trust A Medical Power of Attorney A Statutory Durable Power of Attorney A Directive to Physicians A HIPAA Authorization A Business Succession Plan You may think estate planning is for people who have more assets than you, but as these five points make clear, it is a smart choice for everyone, regardless of your age or net worth. 1) It Protects You And Your Assets. Estate planning is not just the distribution of assets to your beneficiaries. It also protects you if you become incapacitated or can’t make decisions for yourself. You can designate an agent in your Statutory Durable Power of Attorney and your Medical Power of Attorney who would make financial and medical decisions on your behalf. 2) It Protects Beneficiaries. Estate plans can protect young or financially inexperienced beneficiaries but are also helpful in protecting assets from frivolous lawsuits (i.e. Divorce). A plan also covers issues like who will raise your minor children if you die or become incapacitated, what assets are distributed to children from a previous marriage, and how children with special needs can remain eligible for government benefits while still receiving their inheritance. 3) It Spares Heirs A Big Tax Bite. Even if your estate is below the federal estate tax exclusion rate, which for 2020 is $11.5 million per individual, there are other issues to consider. Seventeen states and the District of Columbia currently impose either an inheritance or estate tax, or both. Texas does not have either one, but other states’ inheritance taxes may apply if you live in Texas and inherit money from a state that does. Texas also does not have a transfer tax, but an estate planning attorney can help explain things like the federal generation-skipping transfer tax exemption and how it might apply to you. 4) It Helps Meet Philanthropic Goals. Legacy planning is a common part of the estate planning process and can help shape the way you’re remembered. Some people choose to leave money and other assets to charities or educational institutions. Others create family foundations or set up charitable trusts. You can also establish a charitable remainder trust (CRT) which gives beneficiaries a stream of income while you’re alive with the remainder going to a favorite charity after death. 5) Prevents Family Discord. Many estate planning attorneys will attest to the fact that one of the biggest problems they deal with regarding estate plans is family conflict. It concerns the people setting up a plan, too, who says preserving family relationships after they’re gone is as important to them as preserving future generations’ wealth. An estate plan can make your wishes clear and hopefully keep peace within the family. It can be particularly helpful when dealing with business succession. The Best Time To Plan Your Estate If you want your loved ones and your assets protected, now is the time to talk to an attorney who specializes in estate planning. We at Your Legacy Legal Care are here to assist you in executing the estate plan that is best for you and your family. Peace of mind for you and your loved ones is our ultimate goal for you, and that begins with a tailored plan to preserve your legacy. Contact us at (281) 885-8826 to begin protecting your loved ones today.

One of the questions we ask our estate planning clients is what documents they have already signed that might dictate how an asset is treated upon their death. The answer we usually get is, “Uhhhhh… I don’t know.” If this would be your response, don’t fret. It is really common to forget or not realize that you have already done a substantial amount of estate planning, just by filling out the pile of documents you sign when you do things like buy a house, open a bank account, or start a new job. This blog post will cover some of the common, everyday contracts that govern what will happen to your assets when you die, and discuss why it is important to take a closer look at them. Deeds & Titles If you purchased property in the Houston area or bought some other significant asset with your spouse or with another investor, and one of you dies, the other person will either become the sole owner of the asset or will now share ownership of the asset with a new owner. What happens to a shared asset at the death of an owner depends on what the title or deed says. Even if you say something else should happen to the asset in your will, the deed or title will trump that provision and dictate what happens. Bank Accounts When you open a bank account you are often required to indicate who the account should transfer to at your death. The bank often calls this a POD or payable on death form, and may not explain it fully. If you have filled out paperwork indicating that an account is payable on death to so and so, that person will automatically become the owner of the assets in the account at your death. If your estate plan says otherwise, or you were counting on using the assets in the account to fund some of your estate planning goals, that’s too bad. Insurance Policies All life insurance policies require you to pick a beneficiary, and an alternative beneficiary in case the first beneficiary dies before you do. Unless you update your policies, your insurance benefits will go to the beneficiaries you indicated when you purchased the policy, not the trust you carefully created in your estate planning documents. Retirement Accounts A federal law named the Employee Retirement Income Security Act of 1974 (ERISA) dictates how retirement accounts are to be split up when the covered employee dies first, leaving behind a spouse and children. The law also provides benefits to the ex-spouses of many covered employees. It shocks many people to learn that their ex-spouse may benefit when they die and that there is little that can be done to minimize the benefits that flow to an ex. Social Media Accounts Social media companies like Facebook are now encouraging their users to name another user who is authorized to take over a loved one’s account after the user’s death. As digital assets become more common and more valuable, expect to see more companies specifying what happens to their user’s accounts upon the user’s death. Read The Fine Print If you have any of the documents or assets above, you already have an estate plan. What you may not have is an estate plan that fits your current needs or desires. Working with an experienced estate planning attorney to craft a customized plan that incorporates and updates your existing estate planning documents is the best way to ensure that the estate plan you have is the plan you want.