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Believe it or not, creating a legacy is not all about having libraries and hospitals named after you. There are great ways that you can help your family remember your values and beliefs that will cost you little to nothing. A very thoughtful (and completely free) way to create your legacy is to write annual letters to your children and other important people in your life.  These letters can be kept with your estate planning documents.  Then, each person will have a special message sharing your feelings and thoughts. The letters do not have to be held back until your death, either. Many people choose to present the letters to their children upon graduation or on their wedding days.  Estate planning certainly deals with death, but it also gives us a reason to think about life and the way we want to live it. Another way to create a legacy is to determine important causes in your life and then support them through your estate planning. Whether you are an avid contributor to the American Cancer Society or you have a soft spot for a local animal shelter, these are the kinds of non-profits and charities you can support to ensure your values are represented in your planning. Many nonprofit organizations will happily work with you to put together some kind of a giving plan for your estate.  There may be tax benefits in addition to knowing that you are doing something important for the world. A Houston will lawyer can also help you with setting up a family trust that can be used to further causes that you or your loved ones are passionate about.  This is a great way to build a legacy, not just for yourself, but for your entire family.  If you are unsure of how or why you should set up a family trust to create your legacy, definitely take the time to meet with a qualified estate planning lawyer.  He or she will likely have many other suggestions for ways to use your planning in order to help build your legacy. #estateplanning #Houstonwilllawyer #willsandtrusts

Unfortunately, while we stick our heads in the sand, life continues to happen, and our need to create an estate plan does not lessen. But you know that, right? So, below I have laid out the top three excuses I hear, as well as a few quick talking points that you can use to help your spouse understand the necessity of planning for the future. “We have plenty of time to deal with this…” is the most common objection to creating an estate plan. Most people want to wait until later in life before creating an estate plan, but this is a mistake. As you know, tragedy can strike at any time. People also mistakenly believe that they only need an estate plan if they have a great fortune. Estate planning is much more than dividing your assets. With an estate plan, you can can ensure that there are guardians named who can care for your kids if you die while they are still young, or appoint someone you trust to make financial or medical decisions if you are incapacitated. “If something happens to me, you (the spouse) will inherit everything anyway…” is another common excuse you might hear to avoid creating an estate plan. While the spouse will inherit the majority of the estate, this is not a good reason for not creating an estate plan. What if something happens to both partners? If you have children, who do you want to raise your them if something happens? With an estate plan, you can make your wishes known and avoid long and costly custody battles for your loved ones. If you are on a second marriage, then you won’t inherit without a plan. If all else fails, you can remind your spouse that you, in fact, already have an estate plan. You have the default estate plan created by the state of Texas, and the state does not take any of your wishes into consideration. The process of settling one’s estate through the courts is long, expensive, and stressful for your loved ones. With an estate plan, this can all be avoided. Children of second marriages are usually disinherited. There are many more advantages to be gained from creating an estate plan and absolutely no advantages for doing nothing. An estate lawyer in Houston will be able to create a plan that is right for you and will never pressure you to into doing anything before you are really ready. Call our office today to start this difficult, but necessary, conversation. #estateplanning #estateplanningforcouples #Houstonestatelawyer

A trustee is the person who will manage the assets that are in your trust. Many people choose to be their own trustee and can continue to manage their affairs as normal. Married couples can be named co-trustees. In that case, when one dies, the other can continue to make financial decisions without any other legal steps needed. You can also name a successor trustee. A successor trustee is the person who will take over your decision-making if you (or the co-trustee) are no longer able to do so. In some cases, several successor trustees are named in case the previous one is unable to serve. In other cases, people choose to select two or more adult children who will act together. Some people choose a completely unbiased corporate trustee, usually a bank or trust company, who will take over decision-making. The following list contains some of the responsibilities that are required of a trustee: Make decisions regarding assets in your trust. This typically involves managing the trust investments, property and making decisions that are in the best interest of the trust beneficiaries. Assets must also be managed according to the terms of the trust and governing law. Keep detailed records for all of the trust transactions.  All transactions need to be accounted for by maintaining a record of receipts and other documentation. Comply with all federal and state law requirements. It is critical that a trustee follows the terms of the trust documents and the trust creator’s instructions. Additionally, a trustee is responsible for complying with federal and state laws, meeting any reporting requirements, and filing federal and state taxes. Administering a trust is often complicated and confusing. The trustee not only has to manage the details of the trust, they are also dealing with emotions and conflicts that can arise among the beneficiaries of the trust. That is why many trustees contact us to assist. We can help you avoid all of this by walking you through the entire trust administration process. Doing so will relieve you of tremendous stress and might help you avoid litigation brought on by unhappy beneficiaries. #TrustAdministration #trustplanning #Trusts

Many people think that as long as your will clearly defines how you would like to transfer your property at your death, it will be an easier, straight forward process. However, this is not always the case.  Especially when it comes to probate in Harris County. There are many different rules that can impact how assets are transferred in a way that maybe you had not intended. But, does everything you own have to go through this probate process—which is public, easy to contest and can take a long time?  It depends.  Property can become non-probate property depending on whose name is listed as the owner. Property will be considered non-probate property if: There is a joint owner with right of survivorship A beneficiary is already designated on a life insurance or a retirement account Property is owned by a trust with named beneficiaries In these cases, joint owners and beneficiaries displace the request of the will. At the time of death the property will pass automatically to the joint owner or beneficiary without the approval of the probate court. The bottom line is that your will is not necessarily the final authority on where your property and assets will go at the time of your death. Knowing the difference between which assets are subject to probate and which are not can save your family a lot of heart ache. If you want to be certain that your family gets the money and property that you want to leave to them, call our office at (281) 885-8826 to schedule a consultation. #Probate #ProbateCourt

If your elderly parent is becoming more forgetful or is demonstrating other unusual behavior, you should get them to a doctor right away to be checked for dementia. More than 3 million cases of dementia are diagnosed each year and is most prevalent among people 65 years old or older. Dementia is often overlooked at the beginning because sometimes the symptoms are very vague, but if caught early, there are steps that you can take to improve your loved one’s cognitive health. many people fail to put an estate plan in place and only take action during a medical crisis or after a diagnosis such as dementia. In some of those cases, it is too late due to the client’s diminished capacity. You should not, however, assume that it is always too late. In order for the legal documents to be valid you must be able to prove that the signer had mental capacity at the time they signed. So even if an individual is suffering from dementia as long as they still have periods of lucidity they may still be competent enough to sign a will in Texas. The following criteria must be met in order for an individual to be considered mentally competent: They understand the nature and extent of the property that they own. They remember who their relatives and descendants are and are able to select who should inherit their property. They understand the function of a will. They understand how all of these things are put together to form and estate plan. It is extremely important that all 4 of these criteria are met when executing the will or you could be leaving the door open for other family members to contest the will. If the will is successfully contested it will be considered invalid and the estate would have to pass through the state’s intestacy laws. Or, if there was a prior valid will, that would be used to settle your parent’s estate. If your parent is showing early signs of dementia, call our office right away for a free consultation. We can make sure that your parent’s wishes are known and documented in a way that will avoid a court challenge. #Dementia #ElderCare #ElderLaw #estateplanning

It is tax time again, which means IRS scams are once again on the rise here in Houston and throughout the United States.  Predictably, many of the victims of this scam are the elderly, since they are often the most vulnerable. If the victim refuses to give the information or provide payment, the caller may become hostile and aggressive and threaten to have the senior arrested. This insidious method works more often than you think, so we encourage you to talk to your elderly loved ones. Here are a few of the red flags you can tell them to watch for: A phony IRS agent will demand immediate However, the real IRS will not call you about taxes you owe without first sending a statement. A scammer will not let you ask questions or request an appeal. The scammer may demand a specific type of payment such as a wire transfer or prepaid debit card. They may ask for personal information such as credit card numbers. The phony IRS agent may threaten to send law enforcement for non-payment. Please be aware that some of these scammers are very convincing and they may already know some personal information that is online or apart of the public record.  But, if you suspect that the person on the other end of the line is not who they say they are, just hang up and report the call to your local law enforcement authorities. If you are worried about yourself or elderly loved ones falling victim to these types senior scams, call our Houston elder law attorneys at (281) 885-8826 so that we can help protect your finances. #ElderLaw #scamsonelderly

pre-plan their funeral so that they can relieve their loved ones of the burden of doing so when they are gone.  Because of the growing demand for funeral pre-planning, local funeral homes are also responding by offering different plans that allow people to pre-plan the service they would like, pick out a casket, and even pay for everything in advance. Pre-planning your funeral here in Texas can be a wise idea, but you might want to think twice before pre-paying for your final expenses in advance. You should be aware that here in Houston the state of Texas, there are rules that often require the funeral home to invest the money paid to them so that it is available when needed. Some funeral homes put that money in a trust fund or buy an insurance policy naming itself as beneficiary.  With that said, if you are considering a pre-paid plan, you should find out the following: If your funeral home goes out of business, will you lose part or all of your investment? If you move out of the area, is there a penalty or complete loss of your plan? If the funeral home invests the money you pay them, do they get to keep the interest or do you? Can you change or cancel your plan? If you sign up for a payment plan and you die before it is complete, does the funeral home have an insurance policy that will cover the remaining costs? Because pre-paying your funeral here in Texas often comes with risks and a lot of “unknowns”, an alternative (and sometimes better option) is to work with an attorney to create a trust which will allow you to provide detailed instructions about your final wishes and set aside funds to cover the expenses.  This is all set up and controlled by you, removing the funeral home as the middle man, while still providing you with the same same peace of mind that your end-of-life affairs are taken care of. If you would like help to independently pre-plan and pre-pay your final affairs, including your funeral,  call our Houston estate attorneys at (281) 218-0880 to set up a consultation. If you would like, we have an expert that can review the funeral home contract that you are currently considering and tell you what other options may be available. #estateplanning #FuneralPlanning #HoustonEstatePlanningAttorney

When making decisions on care and insurance coverage for disabled and/or elderly loved ones, it is easy to get lost in the myriad of choices and complicated regulations. With Medicaid there are income caps, so individuals often do not qualify because their income exceeds the eligibility limits. A Special Needs Trust can also be set up, but these are only for people under age 65. How can an individual with disabilities qualify for Medicaid and get the care they need if they are over 65 or have been told they are ineligible for these coverages due to income? A good solution is to use a Pooled Trust. If your loved one with disabilities is a child, you need to ensure that they will be cared for in the event of your death. Since even a small amount of cash assets can disqualify individuals with special needs from the care and assistance they need, it is important to not let these assets pass directly to them upon your passing. A Trust is the best way to ensure your loved one with special needs keeps their care and assistance while also benefiting from the legacy you leave behind. A Pooled Trust is a type of fund, much like a bank, in which contributions to the fund are pooled together for administrative purposes but separated into accounts based on the individual’s contributions for the disabled person’s needs. This set-up was originally intended to help those with disabilities with excess assets that were not enough to fund a Special Needs Trust.  Unlike a Special Needs Trust, a Pooled Trust account can be created for a person with disabilities of any age. This can even include the normal disabilities of old age. The way this works is that a qualified non-profit organization sets up the Pooled Trust account and creates a spending plan for income and assets. The amount allocated to this account will depend on factors such as monthly income, assets, expenses, and medical and special service needs. The non-profit will assign a Trustee who is responsible for managing the assets on behalf of the individual with special needs. The benefit of such an arrangement is that the Trustee and the non-profit are both heavily involved in the special needs community and understand the care and compassion needed to look after your special needs loved one. Not all Pooled Trusts are managed the same. It all depends on the non-profit managing the trust. Fees charged, payment disbursement, and the services they offer all vary, so be sure you know what you are signing on to. Do your research in finding the right Pooled Trust non-profit to set up and manage your account. If you need assistance selecting a Pooled Trust that is right for you or your family, we invite you to contact our Houston special needs and elder lawyers to schedule a complimentary consultation with the mention of this article.

The National Football League said “no” to New Orleans Saints owner Tom Benson’s original proposal to remove team ownership from his estranged family’s trust funds. This means he’ll have to try again with new financial terms. The NFL won’t let Benson personally guarantee promissory notes he offered in exchange for Saints shares held in trust funds created for his daughter and grandchildren. This was recently reported in The Times-Picayune article, “NFL rejects Tom Benson’s ownership deal with estranged family’s trusts.” The 89-year-old Benson disowned his daughter and two grandchildren after a bitter fallout a few years ago. According to Benson, he intends to leave full ownership of the Saints to his wife Gayle and has been trying to revoke the trust funds’ shares. Benson sued in federal court after the trustees guarding the funds blocked his attempt to remove assets in exchange for 30-year promissory notes, including about $375 million for the team’s shares. The offer also includes an attempt to remove shares in the Pelicans, the NBA franchise he also owns. The trust funds allow for assets to be removed, but only in exchange for other assets of equal value. Court filings show the NFL’s finance rules won’t allow Benson to use his personal wealth, which includes his controlling, voting stock in the Saints, to back the proposed promissory notes. With that arrangement, the trusts could try to seize Benson’s personal assets—including the controlling stock—if he were to default on the notes. The trustees, attorneys Robert Rosenthal and Mary Rowe, and Benson announced this summer that a tentative settlement was reached. The promissory notes in the exchange were contingent on NFL approval. In August, a U.S. District Judge scheduled a trial after settlement talks didn’t result in a final agreement. Benson recently filed an amended lawsuit with a new offer of promissory notes based on a January 2015 value of the team. Rowe’s attorneys responded, claiming that because the NFL rejected Benson’s first offer, any new deal must be based on the current value of the teams, which would be higher. Rowe has asked a judge for a hearing on the issue. Benson’s attorney says his client has a right to change the notes offered in January 2015. A trial is scheduled for February 6. Reference: The Times-Picayune (September 30, 2016) “NFL rejects Tom Benson’s ownership deal with estranged family’s trusts”

The Wall Street Journal recently provided some guidance for Americans relocating overseas in “Moving Abroad? Here’s the Checklist.” Insurance. These regulations are frequently at the country or state level, so insurance that is valid or that can be sold in one jurisdiction may often not be sold or used in another. If you are a resident of two countries, and each has mandatory health insurance, it may be difficult to locate a provider whose insurance is accepted (for medical and tax purposes) in more than one country. Long-term care and disability policies are often not valid or have reduced benefits outside of the country where they’re purchased. Life insurance, if issued some time ago, can usually be kept when you move overseas—but you may see some currency risk and financial regulations for policies with a cash or investment account associated with them. Auto insurance isn’t typically portable. Investment Planning. These regulations vary by country, so be certain to work with people who understand your situation and are competent to provide cross-border services. U.S. expats should know that most foreign investments may be subject to punitive U.S. taxation and costly compliance. Investing in U.S. exchange traded funds or individual stocks is usually a better option, with U.S. mutual fund investments generally off-limits to investors living outside the U.S. Estate Planning. These laws are different from one jurisdiction to the next. With an international move, your estate planning may no longer be valid, so talk with an experienced international estate-planning attorney. Government Benefits. You should learn in advance if health coverage like Medicare, unemployment insurance, welfare, and other government benefits will be available when you move overseas. If you’re being asked to move for your employment, check your employment agreement to see what types of government benefits you will be eligible for if you are terminated from the position while overseas. If you’re planning to retire abroad, you won’t be able to use Medicare—you’ll need to make alternative health care arrangements. Find out if you can have your Social Security benefits paid to you while living abroad. Reference: Wall Street Journal (September 29, 2016) “Moving Abroad? Here’s the Checklist”

When it comes to planning, the focus is typically on making you better prepared for the future. That means limiting taxes, creating wiser investment strategies, knowing when it’s best to claim Social Security and developing sustainable retirement income plans. All of these help you on the path to your financial future and your long-term goals. But The Brainerd (MN) Dispatch reports in “3 common estate planning questions, answered,” that there is, however, one exception. That’s estate planning. While much of financial planning primarily benefits you, your estate planning primarily benefits your family and loved ones. The basic component of your estate plan is your will but there may be other parts you need. Depending on your estate, you may want to consider a trust, in addition to healthcare directives, powers of attorneys and guardian designations. You should also remember that your will isn’t necessarily the only instruction when it comes to distributing your assets. The beneficiary designations on your retirement and brokerage accounts, and the life insurance policies you own will take precedence over what you say in your will. Review beneficiary designations regularly to be sure the money in your accounts or the death benefit on a life insurance policy goes to the right person. A trust can be complicated, so talk with an estate planning attorney to see if it makes sense and whether you’ll actually benefit from using a trust. If most of your assets are covered by beneficiary designations or owned in joint tenancy, those assets are already exempt from probate, so they won’t necessarily benefit from a trust strategy. The executor or the personal representative is the person who will be responsible for carrying out the instructions in your will, settling your debts and paying taxes on your estate. As far as selecting an executor, it should be someone with the capacity to carry out the needed tasks of the position. It also needs to be someone who is willing to serve and is familiar with your situation such as a family member or a close family friend. If you don’t spend every last dollar you have to your name on the day you die, you’ll need to have an estate plan. Speak with an experienced estate planning attorney to develop one. Reference: The Brainerd (MN) Dispatch (Sept. 23, 2016) “3 common estate planning questions, answered” #AssetProtection #Guardianship #EstatePlanningLawyer #PersonalRepresentative #Executor #PowerofAttorney #Wills #TaxPlanning #Trusts

For the Scripps family, who were heirs to a media fortune, they simply spent their millions. According to an article on CNBC.com, “The Greed Report: Not a billionaire? You still need an estate plan,” they took luxury cruises around the world and family outings to strip clubs. Melissa Scripps bought Queen Elizabeth II’s coronation chair and Queen Victoria’s nightgown. Like his mom, son Michael liked to buy war memorabilia and guns. Oh, and he married a stripper. When the well ran dry, the family started to fight. Mother and son turned on each other, one family member went to prison and tarnished a name once associated with entrepreneurship and philanthropy. This tragedy provides some lessons for the rest of us. Everybody needs estate planning in some form or another—it doesn’t need to be complex in many situations but everyone needs a plan, even those with social problems, financial problems and marital problems. A good estate plan will consider all of those problems and keep your assets in the family and away from the government and taxes. Estate planning doesn’t have to be complex or expensive. Estate planning is sometimes 95% social work and 5% legal, some attorneys say. The legal part they know—it’s the social part that takes time. The Scripps family probably should have spent more time on the social part as well: Melissa Scripps’ attorney said that at the time she inherited the family fortune, she had never held a real job and only had a high school education. Maybe some more estate planning might have prevented the Scripps’ century-old legacy from turning into a gigantic family feud. Reference:  CNBC.com (Sept. 22, 2016) “The Greed Report: Not a billionaire? You still need an estate plan” #AssetProtection #EstatePlanningLawyer #Inheritance #Wills #TaxPlanning