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You have worked your whole life to preserve your wealth; after you pass on, the last thing you want is for Uncle Sam to wind up with the lion’s share of your hard-earned assets. An inheritance can mean a college education, cash to start a business, or myriad other advantages that will give your descendants a leg up in life – but only if the money gets past the taxman. Your estate generally includes everything you own at the time of your death, including real estate, bank accounts, stock holdings and personal property. If the value of your estate exceeds a certain exempt amount, the IRS will take a cut. There are many strategies that an experienced estate planning attorney can use to help you reduce the taxable value of your estate and pass on as much as possible to your heirs. Specifically, if you are looking to keep a nest egg intact for your grandchildren, a generation skipping trust can be a highly advantageous instrument. Without an estate plan, taxable assets take a 40 percent bite at each generational level Currently, the top estate tax rate is 40 percent. This means that if you pass your entire estate down your children, the IRS will take 40 percent of the value that exceeds your estate tax exemption. Assuming Congress does not modify the standard estate tax rate, this also means that when your children pass on an estate to their children – your grandchildren – the value of their taxable estates will be slashed by 40 percent once the government takes its cut. For families with significant wealth, this taxation through each generation can be crippling. A generation skipping trust is just what it sounds like; it is a financial vehicle that “skips” your children’s generation and transfers assets directly to your grandchildren. The primary purpose of a generation skipping trust is to avoid the double round of taxation that comes with the generational transfer of wealth first to your children, and then to your grandchildren. Any nonexempt portion of your transfer to a generation skipping trust will only be taxed once before being available to your grandchildren. Generation skipping trusts also protect familial wealth and assets intended for long-term appreciation. Should your children suffer major financial setbacks – divorce, oppressive medical bills, a failed business, etc. – assets in the trust are not reachable by your children’s creditors. Setting up a generation skipping trust does not necessarily mean your children have to be left completely out of the picture, though. The trust can be structured so income generated by the trust’s assets – for example, dividends or interest – is accessible to your children. Of course, a generation skipping trust can also be customized in other ways to ensure that the assets and any income they generate are distributed according to your wishes. Ask a lawyer for help in crafting a comprehensive estate plan A generation skipping trust can be a powerful tool to lower the tax burden on the assets you would like to pass on. A knowledgeable estate planning attorney can advise you on the full range of legal options that can help you protect your legacy. Contact an attorney to learn more.

When most people think of estate planning, most think about drafting wills. Although wills are certainly an important part of estate planning, sometimes they are not enough to accomplish an individual’s goals. Sometimes, in addition to a will, it is necessary to set up a trust. Trusts may be set up while the individual is still alive or may be created by a will. Although they are not a complete substitute for a will, a trust offers many benefits not found in a will. Trust advantages One of the big advantages of trusts is that they allow property subject to the trust to skip the probate process. During this process, the court determines whether the will is valid, identifies the individual’s heirs, ensures that the estate’s debts are paid, and distributes the estate’s assets according to the terms of the will (or according to the law, if the individual died without a will). Unfortunately, this necessary process can be expensive and lengthy. Since the estate foots the bill for the costs of probate, it can significantly decrease the value of the estate, especially if there are complications. Unlike a will, property in a trust skips this process entirely and is distributed according to the provisions of the trust immediately upon the individual’s death. Another helpful advantage of trusts is that they are much more flexible with regard to distribution of property than a will, as they allow individuals control over when their heirs receive their assets as well as how the assets are to be used. For example, individuals can specify that their children do not receive their inheritances until a certain age or until certain conditions have been met (e.g. finishing college). Additionally, individuals can specify how their heirs may use their assets (e.g. for educational purposes). Wills, on the other hand, do not offer this level of control. Trusts are also useful for large estates, as they can help avoid taxes. Due to the flexible nature of trusts, they can be structured in a way that minimizes or eliminates the need to pay estate taxes. Additionally, trusts can help protect the privacy of the individuals involved. Since trusts do not have to go through probate, which is a matter of public record, the terms of the trust are not accessible by the public. Speak with an attorney Although a useful option, trusts are not right for everyone. Because of this, it is wise to speak with an experienced attorney before beginning the estate planning process. An attorney can assess your situation and recommend the estate planning solution that would best carry out your goals.

Since long-term care will be needed by the majority and is not covered by Medicare, it is important to have an estate plan that will address this need. As the elderly population of the United States continues to increase, younger people of today face an issue that their grandparents did not have to worry about—paying for long-term care. The Georgetown University Public Policy Institute estimates that about 70 percent of adults will need long-term care some time after age 65. Long-term care is required by people that need help with their day-to-day tasks such as cooking, cleaning or shopping because of a chronic illness or disability. Long-term care is a new concept, as the few people that were in these circumstances in the past would be treated by hospitals or nursing homes. However, today, only about five percent of people have conditions warranting a stay in a nursing home of five years or more. It is a good thing that long-term care exists nowadays, as everyone does not need (or desire) the institutionalized care that a nursing home provides. Long-term care can be home or community-based and includes options such as: • Home care: Ideal for those that are independent, but need help with tasks such as bathing, transportation or cooking. This type of care involves nurses and health aides visiting the home to provide help with these tasks. • Senior day care: For independent seniors that do not need a high level of care and would like to socialize with other seniors, there are a variety of day care options available. For this type of care, seniors visit a care center, where basic health care is provided along with a variety of entertainment and social options. • Assisted living: For seniors who prefer to have their medical care and entertainment options onsite, assisting living is the ideal option. This involves moving into an apartment or facility geared towards seniors. The facility provides onsite assistance with day-to-day tasks as well as entertainment options. However, each residence is able to maintain a high level of independence (unlike a nursing home). Estate planning can help Many people do not want (or need) the institutional (and somewhat depressing) environment of a nursing home and want to maintain their independence, so they prefer long-term care instead. However, long-term care is quite pricey, especially if it is not properly planned for. Since you will likely need some form of long-term care in the future, it is important to engage in estate planning early to work out the means of paying for it. Unfortunately, Medicare will currently only pay 100 days of long-term care in most cases. However, proper estate planning, which may include Medicaid planning, long-term care insurance and other options, can help you ensure that you receive the type of care you want in your golden years. To learn about your options, contact an experienced estate planning attorney. An attorney can consider your situation and show you the best way of achieving your long-term care goals.

The importance of protecting assets through trust can’t be overstated. We’ve often written about this in the context of the value trust creation delivers in terms of providing a tax shelter and also allowing beneficiaries to avoid the hassle of having the assets tied up in probate after the grantor’s death. Divorce situations can also present something of a challenge sometimes. Generally speaking, because Texas is a community property state, negotiating what the court might accept as a fair settlement of property division may not be tremendously difficult. But for couples with more complex property issues — perhaps because of closely-held businesses or a professional practice — an experienced attorney’s attention is typically required. Third-party trusts might well be a factor in such cases. It’s not unusual for well-off parents or grandparents to set up trusts intended to directly benefit specific heirs. In the event of a divorce, it has been known for the assets of such trusts to become the focal point of dispute. Under most conditions, trust money that is brought to a marriage by one spouse or the other tend to be vewed as separate property rather than marital property. As such, the funds would very likely be protected. But there have been legal fights over such matters in some states and so some legal observers recommend adding a layer of protective language when creating a trust. Such language might mean including a clause that specifies that the grantor wants the funds protected from creditors and any claims by a potential ex-spouse. Another provision could leave control of asset distribution in the absolute control of an independent trustee. Just to be a bit more safe, a couple might consider executing a pre- or post-nuptial agreement that acknowledges that the trust should be treated as separate property in the event of divorce. And to keep the line clearly drawn, those funds should never be handled in a way that might be construed as their being comingled with marital property. Source: Forbes, “What Divorcing Women Need To Know About Protecting Third-Party Trusts,” Jeff Landers, Oct. 8, 2015 #SexualAssault #Students #TrustAdministration

There are a lot of reasons why it’s a good idea for nearly everyone in Houston to have a solid estate plan. Whether such plans should include the creation of one or more trusts is something that can be assessed in consultation with an experienced attorney. These days there may seem to be fewer reasons for establishing trusts. Many governments have made it easier to pass most assets on to designated beneficiaries, reducing how long any assets are held up in probate. But rather than sidelining trusts, it might be better to think of them like special teams in football. In that vein, here are some scenarios in which a trust might be appropriate, even in cases of modest estates. Perhaps a spouse is concerned about the spending practices of his or her mate. Setting up a trust, administered by a trustee, allows for greater control over asset distributions. If the spouse remarries and starts a new family, a trust can ensure the property stays within the lines of original family succession. Trust restrictions might be useful, too, to provide for children or grandchildren and protect them from potential profligate spending. But on the flip side, they can also offer the grantor a way to encourage the development of desired behaviors, within reason. There may be advantages in setting up a trust for a special needs beneficiary in the family. This might be particularly important if maintaining health care coverage through Medicaid is a priority. A trust could receive third-party contributions that can help the special needs person. As long as the money is used appropriately, government aid shouldn’t be at risk. Another plus with trusts is that if they are properly structured, they can adapt. Tax and trust laws do change over time and a trust needs to have flexibility to change with them if necessary. With proper thought and action, you can create a legacy that reflects your goals, desires and care. #Chat #estateplanningHoustonTexas #Lawyer #TrustAdministration

Estate planning is a constantly changing field, in no small part due to continuously evolving legislation. Just this year, the Achieving a Better Life Experience (ABLE) Act was passed, and it has implications that should be discussed with your estate planning lawyer in Houston. What the ABLE Act Is This piece of legislation is actually an amendment to section 529 of the IRS code. Section 529 is where we get the name of the “529 Plans” that many Houston estate planning lawyers help clients set up in order to save for a child’s college expenses later. An interesting note about 529 plans is that they are not considered part of your estate when it comes time to pay estate taxes. ABLE Accounts are like 529 plans, but their purpose is to protect those with disabilities. For this reason, they are of particular interest lawyers who plan for individuals with disabilities. Not all states offer ABLE Accounts at this point, so it is important to check with your estate planning lawyer to determine if it is an option for you or your family member. As of now, there is an annual limit of $14,000 per year contributed to the account in total. More than one person can contribute to the account for the benefit of the person named, but the total of all these contributions has to be $14,000 or less per year. This means that the account can grow to be fairly large, which has both its benefits and its drawbacks. For example, once it reaches more than $100,000 in value, the account holder will lose most likely lose eligibility for SSI benefits. Using the Account Growing the account is certainly an important part of the discussion to have with your estate planning or special needs lawyer in Houston, but it is also good to know just how the funds can be used. According to the Act, the money is for “qualified disability expenses.” At this point, those qualified expenses have not been thoroughly defined, but they will typically be centered around education, training for employment, assistive services and technology, health and wellness, housing, transportation, and a few other categories including a number of legal and financial services. Drawbacks The biggest drawback so far is that the account has a payback provision. Any money left in the account will go to reimburse Medicaid (i.e. federal/state government) for any money Medicaid paid after the account was established. Once the rules are set in Texas, we will have more information for clients. More Questions than Answers? Because the ABLE Act is so new, it is hard to predict exactly what it is going to look like. Additionally, estate planning and special needs lawyers will have to evaluate each client on an individual basis to determine if this kind of account would be a benefit or a hindrance to reaching other goals. In many cases, you may find that a more “traditional” special needs trust really meets your objectives better #Advisers #Billing

Wills and trusts administration is a big category of law, and it can be a little confusing to understand exactly what it all means. The specifics of this type of work will vary from state to state, so what happens in Texas will be slightly different from how it all takes place in any other state. For the most part, though, wills and trusts administration involves the following: Assets Passed Under a Will The wills and trusts administration lawyer in Houston will be helpful to the executor of a will in figuring out what assets are included in an estate. He or she will assist in figuring out what the debts are, as well. Then the entire estate will be guided through the court process known as probate in order for the assets to be distributed appropriately with the will in mind. Estates Without a Will Wills and trusts lawyers in Houston can also be instrumental, even when there is no will. They can assist with the probate process, working with the person chosen as the executor to meet all legal obligations. Because there is no will to direct the distribution of assets, the courts will have a bigger say in what goes to whom. Administering Trusts This item is a little more obvious, considering we are talking about wills and trusts administration! In cases where there is a trust, the attorney will work with the trustees or beneficiaries to figure out what kinds of rights and obligations will come into play. Working together, the entire team will find ways to meet the requirements of the trust. Tax Implications Finally, a wills and trusts administration lawyer in Houston will be instrumental in helping beneficiaries and trustees navigate the myriad of tax implications that come along with an estate. If the decedent created a trust, it may have been for the very purpose of protecting assets from exorbitant taxes in the first place. A good lawyer will continue this trend in order to ensure the trust remains as valuable as possible. Anyone who has been named as the executor of a will or a trustee should definitely consider hiring an attorney in Texas to guide the process. From probate to appointing an administrator to settling any legal proceedings for the estate, this professional can protect the overall worth, as well as speed the process. They can also assist or make referrals for beneficiaries who find themselves in need of their own advice after inheriting wealth.

Probate lawyers in Texas spend considerable time balancing legal obligations with the intended wishes of an individual who has passed away. Additionally, the probate lawyer may be pressured by survivors to get a particular outcome. There are also considerable taxes and the fact that everything is public to complicate the issue. That is one of the biggest reasons that Texas probate lawyers are such big fans of living trusts. When an individual places assets into this kind of trust, it can avoid numerous problems during the probate process. Protecting the Assets One of the things a living trust can do is designate a trustee to manage the funds when you have an heir who is unable to do so for himself or herself. For example, the decedent may not wish for the entire inheritance to be distributed at once-say the beneficiary is young and there is concern the money will all be spent frivolously. If the assets go through probate, rather than a living trust, they will simply be dispersed. In this way, the trust offers protection of the assets left behind, as well as those who inherit. Protecting the Heirs A living trust can also protect the beneficiaries from court costs. There may still be estate taxes to take into consideration, but they will likely be far less damaging than if a probate lawyer has to take the entire thing through the Texas courts. In the end, that is more money in the hands of the people you want it to reach, rather than to court fees and lawyer expenses. In fact, a living trust does not get included in the probate process at all. Protecting Your Wishes Many people are surprised to learn that even if they have a will, the estate will still have to go through probate. It is not particularly uncommon for a Texas probate lawyer to have to contend with family members who want to contest the will during this process. A living trust is less likely to be contested, mainly because the person creating the trust will often have made many decisions regarding it throughout his or her life (transferring assets, distributing funds, investment decisions). It is difficult to assert that the grantor was unduly influenced or somehow incompetent every step of the way. Protecting Your Privacy As mentioned above, the probate process is public. A probate lawyer in Texas has to file all types of documents with the courts, most of which become public information. A living trust, on the other hand, is kept private. Not only does this help keep family affairs confidential, but it also protects heirs from being preyed upon by scammers and con-men who search public records for targets. A living trust is not the right choice for every situation, but it is certainly something that should be considered with an attorney. Probate lawyers in Texas see how beneficial they can be every day.

When you leave this world, what will your legacy be? This is a question that Houston trust lawyers work with clients to answer. Sure, your immediate goals probably revolve around making sure that your children and grandchildren are cared for to the best of your ability. But, there may be other interests that you want to support or further with your estate. Identify Your Interests For many people, there is no question when it comes to what kinds of causes they want to support. A cancer victim, for example, may be especially motivated to ensure that his or her legacy is dedicated to finding a cure or supporting others living with the disease. Someone who spent significant time volunteering for a particular nonprofit organization may choose to direct funds or energy back toward that group. A die-hard fan of a particular university may want to create a scholarship for students who wish to attend his or her alma mater. The point is to let your trust lawyer in Houston know what cause or causes truly stir your passion. By identifying your main interest, you can then determine how best to use your estate plan to further it. Direct Gifts One of the most common ways to leave a legacy for a cause is obviously to give them money. Some people will create special life insurance policies for this purpose. Instead of naming a family member as a beneficiary on the policy, you would name the nonprofit instead. In order to do this appropriately, though, you will want to have your trust lawyer look into how to make sure you are within the legal parameters of Houston and the state. Many nonprofit organizations have made it very simple for supporters to bequeath them funds in this way. You may also have a specific type of activity that you want your money used for. Instead of donating to the general fund of a food bank, for example, you may want your gift to be used specifically to further a particular program that you really believe in or to purchase new freezers to expand their ability to store perishable foods. Getting the Family Involved A different aspect of legacy planning has more to do with sharing your passion with your family. To do this, an individual might ask the Houston trust lawyer to put together a trust. Instead of donating money directly to a particular organization or cause, it would go into this trust, which would then be overseen by those you name. In this way, you can give your loved ones the opportunity to become hands-on involved in whatever your passion happened to be. This does not just give the trustees unfettered access to money to do whatever they want, however. Instead, you can create guidelines for the trust to ensure that the funds are used in ways that you want. There is virtually no limit to how this can be done, so you might direct that your family review proposals. to determine how to award funds annually, or you could ask them to play some other type of role in determining how best to use the trust to further its stated goals. However you choose to develop your legacy, keep in mind that you will want to work with a trust lawyer who has experience in this area and is aware of the laws that apply to organizations in Texas.

As if losing a loved one is not hard enough, will and trust lawyers around the country have been seeing an increase in identity theft of those who have passed away. This creates considerable difficulties to the surviving family and really does add insult to injury. In order to protect your loved one’s name, take this advice; and if you suspect there has been an identity theft, you may want to reach out to a trust lawyer in Houston. The practice of unscrupulous people using a deceased’s identity is called “ghosting,” and about 2.5 million deceased Americans’ information is being used every year. During the time shortly after death, criminals are able to use social security numbers and other information to apply for loans and credit cards, along with a variety of other misdeeds. Some even file tax returns for those who have passed away and then receive the refund! Trust lawyers in Houston are advising family members on ways to protect the information of their deceased loved ones. Most of the criminal activity takes place within the first six months while different systems, institutions, and government entities are registering the death. You can help speed up this process and also limit thieves access to information in several ways: · Call the Social Security Administration to report the death. · Send copies of the death certificate (via certified mail with a return receipt) to all three of the credit-reporting bureaus, asking them to placed a “deceased alert” in the credit report. · Send death certificates to any place the deceased may have had an account (bank, mortgage company, credit card providers, etc.) Again, have them list the individual as deceased. · Cancel their driver’s license. Many of the identity thieves get their information by looking through obituaries and gathering enough data to find the individual’s social security number. To limit this, make sure the obituary does not contain the kind of information that would make this easier, such as a birth date or mother’s maiden name. Following Up A few weeks after taking care of these tasks, you will want to order copies of the deceased’s credit report to look for any activity. Do this again a few months later to ensure that things are still staying quiet. Trust lawyers in Houston do advise that fraudulent charges made by identity thieves are generally not the responsibility of surviving family members. While this is some consolation, it does not stop the sense of injustice that comes with knowing your loved one’s name and information was used inappropriately. Taking the steps above can help to prevent this kind of crime and to catch it early if needed.

Part of the American Dream is to create wealth for yourself and your family, and business lawyers in Houston have seen again and again, that one of the best ways to do this is through founding your own successful small business. While creating wealth is certainly the goal for many small businesses, the owners’ concern should extend in how to properly protect that wealth. Doing Things Right Making your business a success depends upon doing things the right way. There are tons of laws and regulations that extend to conducting business in Texas. From licenses to inspections, your industry will affect just what types of regulations you need to adhere to. In order to make sure you’re staying in compliance, you will likely benefit from working with a business lawyer. There is an incredible range of legal obligations that may relate to your business, and while you can do some research on your own, it is always best to back it up with solid legal advice. For example, you may need to provide contracts to your customers. While you can possibly draw up a draft of these on your own, it makes financial sense to have them reviewed by an attorney who is able to ensure they extend all the right protections to you. Another area in which many businesses will benefit from working with a business lawyer is in determining the right type of business structure. In some cases, a simple sole proprietorship or partnership may be the right choice, but there are many, many times when some form of corporation is preferable due to the protections it affords. An S-corporation, C-corporation, LLC, or LLP is often a much better choice, because it can help to keep your business and personal assets separate and protect one in situations where the other is vulnerable. Growing Your Business As your small business grows into a not-as-small one, a business lawyer in Houston is instrumental in smoothing the transition. Perhaps you want to offer shares in your corporation or create bylaws for your organization. There are very specific legal requirements that go into developing these aspects of your business, and working with a business lawyer is the most responsible way to move forward. Should your business outgrow you, or vice versa, you’ll also want to consult with a Houston business lawyer in how to go about selling it or creating a succession plan. This protects partners and shareholders, and can even have an impact on your personal life and finances. Legal direction is necessary for ensuring that all parties are treated fairly, not to mention for understanding the implications that come along in the form of taxes and other responsibilities. Business lawyers in Houston are familiar with the laws that govern all aspects of running a small business within the state, and utilizing their expertise is a huge step toward laying a foundation for success in realizing the American Dream.

Whether you are planning to get married or are already enjoying your wedded bliss, there is no time like the present to get financial advice from a knowledgeable family lawyer in Houston. You and your partner should put more planning into your financial future than you did into your wedding, after all, one only lasts a day and the other is for the rest of your lives! Financial discussions are not always easy, but laying out a clear roadmap early on can actually be beneficial to the overall health of your marriage. Money issues are a huge contributor to unhappiness in a partnership, and Houston family lawyers have seen time and again how working together earlier can avoid a lot of stress later on in the relationship. Planning for the Future It is impossible to peer into the future and know everything that you and your spouse are going to face together, but there are some pretty obvious considerations to make. Talking with your partner and possibly with a family lawyer in Houston can help you determine how you plan to approach many of the biggest financial considerations facing newlyweds. · College and/or student loans · Purchasing a home · Planning for children · Funding retirement · Life insurance policies · Other large purchases (cars, furniture, etc.) · Travel Planning for these types of things can cause some stress, but it can also be fun. Knowing that you eventually want to be able to take a trip to Paris and then taking concrete steps to make it happen can be a wonderful bonding experience and will also pay off in the experience of a lifetime. Family lawyers in Houston see all too often how couples get into financial difficulties by taking trips or making large purchases when they have not planned ahead to make them realities. Planning for the Present While just as important, sometimes figuring out what to do about finances right now is a little less fun. Still, you and your spouse need to take the opportunity to look at your current financial situation in order to make your long-term goals a reality. There are some considerations that are especially important for newlywed planning, too, when it comes to how to combine (or not) your finances. · What are your expectations when it comes to money · Which finances and accounts will be combined, and which will not · How will you deal with debt brought into the marriage · Will there be resentment if one spouse makes more money than the other · What are your views on using credit Budgeting In order to develop a long-term plan, you and your partner will need to use the above information to create a workable budget. This should include: · Income (wages, businesses, investments) · Assets (accounts, stocks, retirement, property) · Debts (school, home loans, business loans, credit cards) · Expenses (ongoing and incidental) By laying out what you have and what you need, you can develop a plan to help meet your current requirements, as well as to save for the future. A good family lawyer in Houston can help you put all of this information into perspective to create workable plan to meet your financial needs.