Search Results

Many folks assume that trust funds are only for the rich, however, people in all types of economic circumstances may see a benefit from them. A trust fund is a special legal arrangement that lets a benefactor arrange for certain assets to go to someone else. Motley Fool’s recent article, “Navigating the World of Trust Funds: Your Quick Guide,” explains that there are various types of trust funds that can serve as useful estate-planning tools. Here’s a rundown of revocable or irrevocable trusts, credit shelter trusts, generation-skipping trusts, and qualified personal-residence trusts. Revocable Trusts Also known as a revocable living trust, this trust lets you manage your trust during your lifetime. In creating the trust, you can name yourself as the trustee in charge of overseeing its assets. This lets you move assets in and out of the trust as you want or even terminate the trust if your circumstances change. There’s a good deal of flexibility, and a major benefit is that they have the ability to bypass probate. Depending on where you live, probate can be lengthy and expensive. A revocable trust can also reduce the estate tax burden on your beneficiaries. Irrevocable Trusts This is the opposite of a revocable trust. It can’t be altered or terminated without the consent of the trustee and the trust’s beneficiaries (and perhaps a judge). When you place assets into an irrevocable trust, you may no longer have any rights to them. The big benefit is saving money on estate taxes. When you transfer assets into an irrevocable trust, they’re no longer yours and are excluded from your estate’s value for tax purposes. Also, trust assets may be more difficult to access by creditors or anyone who initiates a lawsuit against you. And if you hold assets that you think will really appreciate over time, you can transfer those assets into the trust to remove them from your taxable estate and ensure that any future appreciation on them isn’t subject to estate taxes. It’s a serious long-term commitment and may be a good option if you have a larger estate. Credit Shelter Trusts This trust can help wealthy married couples lower their estate taxes by maximizing federal and state exemptions. If you set up a credit shelter trust, the assets in that trust will be transferred to your beneficiaries upon your death, but your spouse can keep his or her rights to the assets contained in the trust for the rest of his or her life. Ultimately, however, those assets won’t be counted as part of your spouse’s estate. This helps your family take advantage of available tax exemptions. With portability, this trust may not be as useful as it once was. Portability lets the first spouse who dies transfer his or her assets along with the “unused” estate tax exclusion amount to the surviving spouse, who can then apply this enhanced exclusion amount in his or her own estate. Generation-Skipping Trusts This trust is established for the benefit of your grandchildren, as opposed to your children. These trusts are used to avoid estate taxes: if your children inherit your estate directly, then the value of your estate is added to the value of their estate and this could potentially trigger estate taxes when they die. By skipping your children’s generation you may be able to transfer more assets to your family than to the IRS over the long term. The generation-skipping trust is subject to taxes, but it can be structured to reduce estate taxes, allowing affluent families to preserve their wealth for future generations. A big advantage of generation-skipping trusts is that they can help avoid generation-skipping transfer tax. Qualified Personal Residence Trusts This trust lets you leave your home to your beneficiaries and decrease your estate taxes. You can transfer your property by deed into the trust while retaining the right to live there for a certain period of time. Once that’s over, your beneficiaries can inherit your home, paying taxes on the value of the home at the time of the deed transfer. A qualified personal residence trust can be useful in locking in a lower value for gift tax purposes. And you can claim a lower value of the gift for your beneficiaries based on their delay in actually receiving the property. But if you die while living in your home, it’ll count as part of your estate and be taxed according to its value at that time. Trust funds can be a big element in your estate-planning strategy, so talk with a qualified trust attorney to see which type of trust is best for you. Reference: Motley Fool (Sept. 18, 2016) “Navigating the World of Trust Funds: Your Quick Guide” #IrrevocableTrust #GenerationSkippingTrust #RevocableTrust #QualifiedPersonalResidenceTrust #CreditShelterTrust #estateplanning

The words “fun” and “estate planning” are not typically used in the same sentence. Most people see estate planning as a chore to muddle through. While choosing beneficiaries and thinking about end-of-life care is certainly nobody’s idea of a good time, making such plans can provide tremendous peace for both you and your family. With your affairs sorted out ahead of time, you will gain all sorts of insight into your senior years – and all the possibilities they hold. Support Your Favorite Cause As you get your estate plans in order, consider your favorite charities, non-profits, and causes that you have supported over the years (or want to continue to support when you are no longer here). If you are passionate about supporting them, you can factor them into your retirement plans with a uniquely crafted estate plan. This goes beyond merely donating your time. Your legacy is important, and thanks to estate plans, your impact can be felt for many years to come. Make Travel Dreams a Reality Have you spent your life dreaming of taking a trip around the world? Perhaps you want to finally realize your dream of living abroad for a few years. Or maybe you just want to finally buy that lakefront condo you have been obsessing over. Whatever your dreams are for your golden years, estate planning can help make them a reality without the worry of something happening unexpectedly lingering over your shoulder when finally bringing your dreams to fruition. While nobody likes to think of their own mortality at any given point, we must consider there is always a possibility of the unthinkable happening. Establishing your estate planning documents will allow you to travel knowing that everything back home is taken care of, should something happen to you when living out your wildest dreams. Ensure Inheritance Isn’t Squandered Many retirees spend their last years fretting about the future of their kids and grandchildren. The reality is that many people make unwise decisions after coming into large sums of money. Estate plans can help inexperienced beneficiaries spend their inheritance wisely instead of spending it frivolously. From education to real estate to investments, your hopes and dreams for your family can live on for many generations if you choose. Protect Your Assets from Tax Liability To live out your retirement as stress-free as possible, you will want to conserve your assets and minimize the impact of taxes. Many use trusts to do just that, which will allow for more of your assets to be passed down to your loved ones. IRS rules for calculating the required minimum distribution from IRAs and qualified retirement plans offer many long-term planning advantages. If you and your heirs do not withdraw the minimum amounts when required, taxes can take a good portion of what should have been withdrawn. Start Planning Today It is difficult to know what you do not know. This is especially true when it comes to estate planning. If you are eager to plan for the best retirement possible but are not sure where to begin, schedule an appointment with a member of our team today by calling us at (281) 885-8826 or schedule online here.

One way to ensure that your assets go to the people you want is to have a comprehensive estate plan to spell out your wishes and intentions. A well thought out estate plan will outline your wishes for your beneficiaries and usually involves the assistance of an estate planning or elder law attorney. If you do not have an estate plan, you may be surprised to learn that your wishes will not always be followed. Let’s look at why you should have an estate plan and what could happen if you do not. It is never too late to make the necessary steps to ensure your loved ones are protected! Planning for Irresponsible Beneficiaries When you begin the estate planning process, you may wish to make provisions for beneficiaries that may not handle their money responsibly. If you have children, you can set a date by which they must graduate from a college or trade school and can also set a time limit to have the beneficiary complete rehabilitation or sobriety programs if they are struggling with an addiction. Planning for irresponsible beneficiaries may sound difficult, but it can be easy when you work with our team at Your Legacy Legal Care and use the right estate planning tools. One way to plan for this situation is to make use of incentive trusts. These are a type of trust designed to encourage or disincentivize certain behavior. For example, an incentive trust can require a beneficiary to finish college to qualify for a larger portion of their inheritance. Alternatively, a beneficiary can be rewarded with income for every dollar earned. A special needs trust, on the other hand, may protect a beneficiary from losing government benefits or other benefits if the beneficiary is unable to earn enough money to keep up with their needs. In addition to implementing rules, you can set a time limit for when their inheritance is distributed. You can also set an age restriction on the inheritance, even if your beneficiaries are not minors. However, this is particularly important if the beneficiaries are under the age of 18. If the beneficiary is young, he or she might be too young to understand the consequences of receiving an inheritance upon turning 18. However, if they are a minor, it may be advisable to set up a trust that will allow the trustee to control the distribution of the inheritance. Why an Estate Plan Is Beneficial Aside from preventing family fights and possible financial turmoil for your loved ones, an estate plan is also an effective way to ensure that your assets are handled in the manner you would have wanted. These documents can be created to specify the beneficiaries and the terms of an inheritance. Even if you do not have much money, estate plans can help ensure that your possessions are passed on in a manner you would have wanted and avoid any potential arguments between your loved ones upon your death. The peace of mind that an estate plan provides will be invaluable to your family and loved ones. An estate plan can protect your assets and minimize the time it takes to go through probate (or avoid it altogether). By including a medical power of attorney and a statutory durable power of attorney in an estate plan, your loved ones will be able to make decisions for you in the event of your incapacity, which will assist in avoiding guardianship. Perhaps the most important reason to have an estate plan is to provide for your immediate family. This is particularly important if you have children, as it will specify who you would like to raise them if you die. If you die without an estate plan, the court will decide who will raise the minor children. An estate plan can help minimize taxes, court costs, and allow beneficiaries to keep more of their inheritance. Probate will take many months to complete, even if everything goes smoothly, and is not cheap (or fun)! What Happens If You Don’t Plan Ahead While most people have some sort of will, estate planning is not limited to just that one document. Trusts allow you to control how your assets are distributed and can cover specific circumstances. Thorough estate planning can protect your family from financial hardships after your death. Not all families are close or on good terms, so if you do not want your family to inherit from your estate, then you should have an estate plan that states so. Some people consider friends more important than blood relatives. If you don’t plan ahead, the beneficiaries you intend to leave your assets to may not get them. Estate planning is important for everyone. At a minimum, you should have a will and powerful powers of attorney. However, many people do not plan ahead for these important documents, and it is a common mistake to procrastinate on executing them before they are needed. By taking the time to sit down with our team at Your Legacy Legal Care, you’ll avoid many potential financial, legal, and health care issues. Get started today by calling us at (281) 218-0880 or schedule online by clicking here!

According to mysuburbanlife.com‘s recent article “Understanding Long Term Care Insurance,” the U.S. Department of Health and Human Services defines long-term care (LTC) as a range of services and supports that an individual may require for activities of daily living like bathing, dressing, using the toilet, and eating. Long-term care also covers assistance required because of dementia or other cognitive impairments. LTC also can provide assistance with daily household tasks such as housework, grocery shopping, preparing and cleaning up after meals, and caring for pets. In anticipation of needing to pay for these services, people typically purchase long-term care (LTC) insurance policies. There are several things to consider and several types of LTC insurance to review before purchasing a policy. One of the most important items to note is that LTC policy premiums may increase down the road. This is based on the insurance company’s overall claim experience. Your future premiums will need to be paid with your retirement income. The cost of your LTC policy is based on several factors: How old you are when you purchase the policy The maximum amount that a policy will pay per day (or the annual benefit) The maximum number years that a policy will pay or its maximum lifetime benefit You should also purchase lifetime benefits over the life of the policy and inflation protection that will increase daily, monthly and annually. Many insurance companies will offer LTC policies to individuals between 40 and 80 years of age. They typically give discounts if both spouses apply together. LTC is a major threat to a person’s retirement income, so if your assets average more than $80,000 and your annual income averages at least $35,000, you should consider purchasing some LTC insurance. Reference: mysuburbanLife.com (April 7, 2016) “Understanding Long Term Care Insurance” #AssetProtection #LongTermCareInsurance #LongTermCarePlanning #RetirementPlanning

While most baby boomers in their 60s are healthy, many Americans will have health issues when they reach their 70s. With sicknesses like cancer and Alzheimer’s disease striking later in life, most Americans will require long-term care at some point. Motley Fool’s recent article, “5 Long-Term Care Myths Debunked,” looks at some common myths about long-term care to help you better prepare for that eventuality. No. 1: I won’t need long-term care. Yes, you probably will. Because life-altering conditions typically happen later in life, many people in their 60s underestimate the likelihood that they might need a long-term care health insurance policy. The U.S. Department of Health and Human Services says that 70% of people turning 65 this year will require long-term care in the future. No. 2: Insurance will cover long-term care. Private insurance and Medicare may cover skilled nursing, short-term care, and medically necessary care, but they won’t cover custodial or personal care services. These types of services make up a big chunk of long-term care expenses. While a Medigap plan will pick up many of the costs for services that aren’t covered by Medicare, it also does not cover long-term care costs. Private insurance and Medicare won’t pay for assisted living, continuing care in retirement communities, or adult day services. The costs of the care they will cover are frequently limited to specific situations and to a short period of time. Medicaid will cover long-term care, but qualifying can be challenging for many retirees and guidelines for eligibility vary in each state. No. 3: My savings will cover my long-term care. Not likely. The average person enters retirement with a median $131,000 in retirement savings. That’s not enough to pay for long-term care with the average assisted living facility costing more than $43,000 a year and the average nursing home costs running more than $82,000 per year for a semi-private room. No. 4: Medicaid can’t touch my home. Not necessarily. If you qualify for Medicaid and it pays for long-term care, federal law mandates that states recoup the money spent by Medicaid on your behalf from your estate after you pass. Most states’ probate laws include real and personal property, such as a home, in the estate. Medicaid won’t make your spouse sell your home after you die, but it may put a lien on your house in the amount of your costs after your spouse dies. No. 5: There’s not much I can do to plan ahead. Think again. Staying healthy as long as you can is a great strategy for reducing long-term care expenses. You can also take other steps to minimize the impact of long-term care expenses on your estate. Purchase a long-term care insurance policy. Consider combining life and long-term care insurance policies, which offer death benefits to survivors and some form of insurance protection against long-term care costs. Your state may also allow other options to protect your home. Depending on your situation, trusts and asset transfers may be useful, especially if implemented before the five-year look-back period of Medicaid to determine program eligibility. Discuss your options with an elder law attorney. Reference: Motley Fool (May 20, 2016) “5 Long-Term Care Myths Debunked” #ElderLaw #LongTermCarePlanning #Medicaid #PayingforaNursingHome

For decades, the experts have claimed there are five stages of grief — denial, anger, depression, bargaining, and acceptance. As probate attorneys , we have worked with clients at every stage. But we have also wondered if a certain stage was missing from the list. A recent essay in Vogue (of all places) confirmed our suspicions. Some researches are arguing that anxiety is a common response to grief, and that it should be recognized as an additional stage of the grieving process that many people must pass through. “When you’re grieving, you have such a heightened awareness of the fact that we have no control over anything. It’s there that anxiety really blooms,” says Claire Bidwell Smith, LCPC, a Los Angeles–based therapist specializing in grief. And this anxiety is only exacerbated by the frantic pace of modern life and the pervasiveness of social media, which encourages us to share our grief and share in others’ grief when we might not be ready or capable of doing so — which makes us feel even worse than we already do. Many of our estate planning and probate clients are clearly dealing with anxiety and how to process grief in a social media obsessed society, so it is good to see this is finally being addressed by medical professionals. As attorneys, we can’t treat our clients’ anxiety, or compose the perfect Instagram post to express their loss, but we can be compassionate and caring. From personal experience we know that matters almost more than anything. We can also help those who are grieving navigate some of the tasks that may trigger anxiety. We know how to manage the mountain of paperwork that appears when a loved one dies. From death certificates and medical bills, to letters from the credit card company and everything in between, we can help sort through documents to find the important ones. We can figure out what accounts to close, and even help you to get through the process. We also do the things that need to get done in order to start the process of sorting through the physical items that are left behind when a loved one dies. We can probate your loved one’s will so family treasures can be passed on to the rightful heirs, and everyday items that nobody needs or wants can be donated to charity or thrown out. As attorneys, it is our job to help clients control the few things that are controllable when a loved one dies. The paperwork; the stuff; the organizations, people, and business who all need contacted are things we can do so that those who are grieving can focus on their grief and work on picking up the pieces and starting to put things back together again.

Insurance planning shouldn’t begin until there’s been some financial planning, according to CNBC in its article “3 life insurance mistakes you can easily avoid.” They cite three common mistakes that can be easily avoided or fixed: Not enough insurance. About 37% of parents with young children don’t have sufficient life insurance, according to a 2015 report. Of those who do have insurance, 50% have less than $100,000 in coverage. Do a thorough analysis of your life insurance needs to be sure you’ve enough to cover funeral expenses, replace your income for the family and cover debts like the mortgage. Not reviewing your medical records. You should ask for a copy of your medical records from your primary care physician before applying for life insurance because the insurers will get those records, as well. They’ll look at your medical history to gauge risk and determine rates. There could be potentially costly mistakes in the record that should be fixed. Focusing on avoiding estate taxes. You may have your spouse own the life insurance policy on you so that you can be smart with your estate planning. Since you don’t own the policy, it won’t be included in your estate when you die. However, what’s known as “three-corner life insurance”—where the owner, insured and beneficiary are all different is to be avoided. This three-corner configuration has the effect of transforming the policy proceeds into a gift from the policy owner to the beneficiary but anything above the annual $14,000 annual gift tax exclusion would be considered a taxable gift to the owner. That would decrease his or her annual lifetime exclusion. Reference: CNBC (Sept. 16, 2016) “3 life insurance mistakes you can easily avoid” #AssetProtection #EstateTax #GiftTax #LifeInsurance #TaxPlanning #estateplanning

Two popular Social Security strategies—”file and suspend” and “restricting an application”—are being eliminated, says a recent Kiplinger article, “Some Social Security Loopholes Will Still be around in 2016.” Both of these were created by the Senior Citizens Freedom to Work Act of 2000, designed to encourage workers to stay on the job and delay claiming Social Security. This lets their benefits grow to better serve them in retirement. However, as more people took advantage of the changes, yesterday’s “freedom” morphed into today’s “loophole.” And in late October, with no public hearings or debate, Congress voted to end what were termed “aggressive” claiming strategies. However, the good news is that lawmakers are allowing six months to take advantage of the old rules. File and suspend. When you reach full retirement age (FRA), now at 66 but soon to be 67 for those born in 1960 or later, you can claim your benefits and immediately tell Social Security not to pay you. Only after you claim your benefits can others who qualify for payments based on your work record (your spouse or dependent children) receive those benefits. If you suspend starting the payments for them, you earn delayed retirement credits that will boost your benefit by 8% a year until you reach age 70. This is the key to many plans to “maximize” lifetime benefits. If you live longer than the average life expectancy, getting higher benefits later (for yourself or as survivor benefits for a spouse) could more than make up for the benefits you passed up earlier. The new law was originally planning to cut off anyone receiving benefits based on the record of someone who had suspended his or her own benefits, and the checks to spouses and dependent children were going to end six months after the bill was enacted. However, lawmakers reconsidered, and now not only will those now benefiting from file and suspend continue to receive payments, but nearly two million others will be able to use this. Anyone who is 66 by May 2 can take advantage of this. Restricting an application. You are able to apply for Social Security benefits as early as age 62, but waiting until FRA gives you an important opportunity. Before age 66, any application is considered to be a request for your highest possible benefit—whether based on your own work record or your spouse’s. But at FRA, you can “restrict an application” to spousal benefits only, even where it’s less than you’d get on your own. Why do this? So your own benefit will grow at the 8% annually mentioned earlier until you turn 70. The new law zaps out this option for those who turn 62 after January 1. If you’re older than that, you are grandfathered in and can still restrict an application when you reach age 66. Because this is going away, your spouse will be required to be receiving payments for you to get spousal benefits. Retroactive benefits. These two strategies are for married couples, but another strategy that’s being cut also helps singles. Social Security generally won’t pay more than six months’ worth of benefits retroactively. However, if you file and suspend at FRA, your suspended benefits are in essence banked. So, you can claim all benefits due since age 66 as a lump sum at any point, if you are willing to forgo the accrued delayed retirement credits. This could be valuable if your delayed-claiming strategy based on a long life expectancy is threatened because you become ill at age 69. Under the new law, this “insurance” will be available only to those who turn 66 by May 2. This is a complex and important part of many retirement income plans, and an estate planning attorney can help you determine what will work best for your situation. Reference: Kiplinger (January 2016) “Some Social Security Loopholes Will Still Be Around in 2016” #FRA #FullRetirementAge #Retirement #SocialSecurity

When you work, some of your income (currently 6.2% of eligible wages) is withheld for Social Security tax. When you retire, you’re eligible to get a Social Security benefit, which is a source of income based on your 35 years of highest earnings. Social Security uses a formula to determine how much you’re eligible to receive when you reach your full retirement age (FRA), which is from 66 to 67—depending on when you were born. Although these calculations sound complex, in its recent article “How to boost your Social Security benefit,” Vanguard says there’s something easy you can do to up your benefit: DELAY IT! Hard to believe, but delaying your Social Security benefits as long as possible is the best thing for many retirees. The Social Security Administration reports that nearly 75% of retirees who receive benefits take reduced payments because they filed before reaching FRA. If you wait and take your benefits at age 70, you easily can maximize your benefit. If you continue to work between ages 62 and 70 and earn more than ever before, the numbers used to calculate your lifetime earnings will increase, which may up the benefit you’re eligible to receive when you decide to collect benefits. Our Social Security program was created for and is funded by U.S. workers. Right now, there are about 40 million workers who receive benefits. You want to be among those who receive the most benefits, and you can be. With some smart planning about how you plan to live in retirement, you can be confident that you will get everything you deserve. Reference: Vanguard (June 21, 2016) “How to boost your Social Security benefit” #FullRetirementAge #RetirementPlanning #SocialSecurity

The issue of whether your Social Security benefits are taxed is based on your “provisional income.” This is your adjusted gross income—not counting Social Security benefits—plus nontaxable interest and half of your Social Security benefits. Kiplinger’s recent article, “5 Ways to Avoid Taxes on Your Social Security Benefits,” explains that if it’s below $25,000 and you file taxes as single or head of household (or less than $32,000 if you file a joint return), you won’t owe taxes on your benefits. So if your provisional income is between $25,000 and $34,000 and you’re single, or between $32,000 and $44,000 if you file jointly, it means that up to 50% of your benefits may be taxable. If your provisional income is more than $34,000 for a single or more than $44,000 if married filing jointly, up to 85% of your Social Security benefits may be taxable. Here are a few strategies that can help you keep your income below the thresholds and decrease the part of your benefits subject to tax. Donate your RMD to charity. Those who are 70½ or older can give up to $100,000 annually to charity from their IRAs tax-free. This gift counts as the required minimum distribution (RMD) but isn’t included in adjusted gross income. Purchase a QLAC. You can invest up to $125,000 from your IRA or 401(k) in a special version of a deferred-income annuity known as a Qualified Longevity Annuity Contract (QLAC). Money in a QLAC isn’t considered in calculating your RMD. As a result, you can reduce the size of your RMD, lower your income and decrease your tax bill. Payouts don’t start for several years. It can be as late as age 85 when they’ll be included in your taxable income. Withdraw money from tax-free Roth IRAs. Tax-free withdrawals from a Roth IRA or Roth 401(k) aren’t calculated as part of your AGI. If you roll over money from a traditional IRA or 401(k) to a Roth prior to receiving Social Security benefits, you can avoid taxes later in retirement. You are required to pay income taxes in the year of the conversion, but you can use the funds tax-free after that. Review income investments. Structure your portfolio to minimize the income it generates when that income is being reinvested because you’re recognizing income you don’t need. This means taxes you don’t want to pay! Consider a growth-oriented portfolio and remember that nontaxable interest, like interest on municipal bonds, is included when calculating the taxes on your Social Security benefits. Examine your tax moves. If your income is well over the $44,000 threshold, there is probably not much you can do to get below that level. But don’t focus only on Social Security taxes—look at overall tax-efficiency. Reference: Kiplinger (July 2016) “5 Ways to Avoid Taxes on Your Social Security Benefits” #AssetProtection #EstateTax #IRA #401k #QualifiedLongevityAnnuityContractQLAC #TaxPlanning #RequiredMinimumDistributionRMD #RetirementPlanning

Estate planning can be a complex process for anyone, but it becomes even more critical for high-net-worth individuals. With substantial assets and multiple sources of income, it is essential to ensure that everything is in order so you can protect your wealth and pass it on to future generations. An experienced Houston estate planning attorney can guide you through the ins and outs of high-net-worth estate planning, including the benefits, key considerations, and strategies you can use to protect your assets. What is Considered High Net Worth for Estate Planning Purposes? Generally, high-net-worth individuals in Houston have assets and income exceeding $1 million or more. However, this status also depends on factors such as the cost of living and lifestyle. It is essential to work with an experienced estate planning attorney in Houston who can help you evaluate your specific circumstances and determine the best strategies to protect and manage your wealth. Benefits of High-Net-Worth Estate Planning Estate planning offers several benefits to individuals with a high net worth: Minimizing estate taxes — Estate taxes can take a significant bite out of your assets, reducing the amount your heirs receive. High-net-worth estate planning can help you minimize these taxes and ensure your beneficiaries receive the maximum amount possible. Avoiding probate — Probate is complex , and it is a legal process that validates a will and distributes assets after death. It can be time-consuming, costly, and public, with the potential for family disputes. With high-net-worth estate planning, you can avoid probate and maintain privacy. Protecting your assets — Estate planning can help protect your assets from creditors, lawsuits, and other threats. You can use trusts, LLCs, and other entities to shield your wealth and ensure it is passed on to your loved ones. Providing for your loved ones — Estate planning enables you to provide for your loved ones, including spouses, children, and grandchildren, after you’re gone. You can establish trusts, set up guardianships, and make charitable donations to ensure your assets are used according to your wishes. Key Considerations for High-Net-Worth Estate Planning High-net-worth estate planning involves several unique considerations, including: Complexity — High-net-worth estate planning is often more complex than traditional estate planning, involving multiple assets, investments, and legal entities. It’s essential to work with an experienced estate planning attorney to ensure that everything is in order. Liquidity — High-net-worth individuals often have significant assets, but not all may be liquid. It’s crucial to consider liquidity when planning your estate, as you don’t want your beneficiaries to be forced to sell assets to pay taxes or expenses. Charitable giving — Many high-net-worth individuals have philanthropic goals and wish to make charitable donations. Estate planning can help you establish a legacy and support causes that are important to you. Family dynamics — High-net-worth estate planning can be complicated by family dynamics, especially in blended families , second marriages, or situations with estranged family members. It is essential to communicate with your family and create a plan that works for everyone. Strategies for High-Net-Worth Estate Planning Several common strategies can be used in high-net-worth estate planning to achieve your goals: Wills and trusts — A will outlines how you want your assets to be distributed after your death, while a trust can help you manage your assets during your lifetime and beyond. Trusts can also help you avoid probate and minimize taxes. A power of attorney — A power of attorney is a legal document that enables someone else to make important decisions—whether medical or financial—on your behalf if you become incapacitated. It is essential to have a power of attorney in place to ensure that your affairs are managed in accordance with your wishes and to prevent guardianships. Charitable giving — Charitable giving is an excellent way to support causes that are important to you while also minimizing taxes. You can donate cash, securities, real estate, and other assets to charity, either during your lifetime or after your death. Insurance planning — Insurance planning can help you ensure that your loved ones are provided for after your death. You can use life insurance , disability insurance, and long-term care insurance to protect your family’s financial future. Reach Out to an Experienced Houston Estate Planning Attorney High-net-worth estate planning is a critical process for anyone with significant assets and income. By employing specific estate planning tools, you can ensure your wealth is used according to your wishes. Working with an experienced estate planning attorney and exploring unique considerations and strategies involved in high-net-worth estate planning is essential. Contact us today at Your Legacy Legal Care, and we’ll review your estate to determine the best strategy for your needs and wishes.

You’ve worked hard for many years to build a successful business. With this, you’ve amassed a great amount of wealth. The question to ask is whether you should simply leave it to your kids like the Vanderbilt family, or should you be more deliberate like the Rockefellers? How do you turn a successful business into a financial legacy that will empower your family for generations to come? If you know your American history and the story of the Vanderbilts and the Rockefellers, you will recall that centralizing your wealth in a carefully planned trust is the best way to perpetuate, preserve, and protect your wealth. Compare the two historic families: the Vanderbilt fortune has been spent, while the Rockefeller fortune is still being enjoyed—six generations after John D. Rockefeller built it. Forbes, in “How to Create a Family Trust to Empower Your Great-Great-Grandchildren,” reports that some families invest substantial time and energy into designing a financial legacy with the assistance of a qualified estate planning and asset protection attorney. He or she can help create a plan that will empower children and grandchildren, as well as generations thereafter. Preserving and protecting financial wealth requires a sound understanding of, as well as a solid plan for, counteracting the three primary forces that erode wealth over multiple generations. The three forces are: The division of assets among the generations; Transfer taxes and capital gains taxes; and Business risks and third-party attacks. Studies have shown that as a result of these forces, financial wealth often doesn’t last beyond the third generation in 90% of high-net-worth families. It takes careful planning to make wealth last. Talk with a qualified estate planning attorney so that your estate endures more like the Rockefellers than the Vanderbilts. Reference: Forbes (December 23, 2015) “How to Create A Family Trust to Empower Your Great-Great-Grandchildren” #AssetProtection #HoustonEstatePlanningLawyer #HoustonTrustsandEstates #Inheritance