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Two times in the past four years, the attorney for the late publisher Richard Mellon Scaife unduly influenced the billionaire to change his estate planning documents to disinherit his daughter Jennie Scaife and give assets to newspapers and foundations the lawyer controlled, according to a court petition Scaife’s daughter filed recently. The Pittsburgh Post-Gazette reported, in “Daughter of Scaife files new petition challenging will,” that Jennie got nothing after her father’s 2014 death because she wasn’t included in his 2013 will or a 2010 codicil. Those changes followed a 2008 will that left her family memorabilia, according to the courts papers filed in Westmoreland County’s Orphans Court Division. The will changes benefited the Tribune-Review newspapers, the Allegheny Foundation and the Sarah Scaife Foundation. Each of these were controlled in part by attorney H. Yale Gutnick, the petition claims. As a result, everything from an estimated $1.4 billion to the family knickknacks went to those beneficiaries. Jennie claims that this 2010 change “was all part of a carefully orchestrated plan by Gutnick to prohibit Scaife family members from having the ability to contest Richard Mellon Scaife’s will.” The amended petition adds allegations to those she first made a year ago and looks to strengthen her case, which was complicated by the 2010 codicil. If a judge disqualifies a will due to undue influence, the assets are distributed according to any prior, legitimate will. If there isn’t an earlier will, it goes to the children. So, if Jennie is going to successfully recover some of the estate, she’ll have to show she was included in the last will that was free of undue influence. She says that’s the 2008 document. Jennie argued that during her father’s battle with cancer, Gutnick persuaded him to bequeath nearly everything to the newspapers and foundations, which the attorney directed and which were his big legal clients. She also alleged that her father’s bodyguard guided his hand as he scratched his initials on the 2013 will. “As a person in a confidential relationship with Mellon Scaife, an alcoholic who suffered from many medical issues, an addiction to medication, and weakened intellect for many years prior to his 2014 death, Gutnick received a substantial benefit under both” the 2013 will and the 2010 codicil, Jennie’s amended petition states. Gutnick was chairman of the Tribune-Review’s board until January. He was aware that, according to the petition, the newspaper’s losses were in the tens of millions of dollars every year and were likely to increase. Because of this, Jennie said the attorney influenced the publisher to put a large part of his estate into a trust fund to support the newspaper. Jennie’s petition also noted that the estate paid $100 million in state estate taxes, and hundreds of millions of dollars are said to be owed by the estate for federal estate tax. The petition estimates those taxes at $300 million. Likewise, the late publisher’s son was left out of his father’s will. However, he didn’t join his sister’s case. Instead, he’s a party in a separate challenge filed by the daughter and son in another county. That case alleges that Gutnick and two other trustees improperly allowed Scaife to drain a family trust fund of $450 million, which was primarily used to support The Tribune-Review. Reference: Pittsburgh Post-Gazette (July 27, 2016) “Daughter of Scaife files new petition challenging will” #AssetProtection #EstatePlanningLawyer #WillChanges #ProbateCourt #Inheritance #EstateTaxes #WillContest

Over a recent 12-month period, more than 43 million adults provided care for a vulnerable family member or friend—the contribution to family and society is staggering. One report puts the annual value of unpaid caregiving just for the elderly at $522 billion. That’s more money than it would take to retire the 2015 federal deficit. Kiplinger’s recent article, “How to Support a Caregiver,” reports that not only do caregivers provide mostly free care, but they also frequently sacrifice their own financial security in the process. The majority of care­givers are women, and for them, the total cost of caregiving amounts to an average of $324,040, according to a MetLife study: $142,690 in forgone wages, $131,350 in lost Social Security benefits, and $50,000 in reduced pension benefits. It doesn’t reflect forfeited career opportunities or the expenses caregivers cover out of pocket—several thousand dollars or more a year. For all their efforts, most people don’t think of themselves as caregivers. Rather, they think it’s just something you do as family. They don’t know there are resources for them. It doesn’t have to be done as a solo enterprise. Here’s how to find help. The job of caregiving often falls on the child who lives closest to the parent or on the child who is single. Daughters are more likely to provide basic care, according to the MetLife study, and sons tend to contribute financial support. Discuss roles with your siblings as soon as you realize that your parent or elderly relative needs help. Set up a family meeting—by Skype, FaceTime, or via conference call and have a social worker, mediator, or care manager facilitate the discussion. He or she, as a neutral party, can identify assignments for each of you and help the family navigate emotions that often arise when ailing parents are involved. Also discuss how caregiving and related expenses will be covered and look at it as a business proposition. If you’re the primary caregiver, your family might agree to pay you as an independent contractor. If so, it’s good to have a formal contract, known as a personal care agreement, to detail the terms of the arrangement. Or your parent might pay you—either from income and savings or by adjusting his or her estate plan to give you a bigger piece of the pie. Whatever the plan, get buy-in from your siblings right away. Even with your siblings’ help, you may need somebody to stop by your parent’s place to fix meals or to provide transportation. A local area agency can provide direct support to caregivers, including respite care (usually on a limited basis), counseling and emergency assistance. They can also connect you with local providers for such services as home-delivered meals, transportation, and help with chores. Some of these services may be free, but if a volunteer isn’t available, check out caregiving agencies. If you need a supervised setting for your relative while you’re at work or so you can take a break, look at adult day care. They offer meals, supervised outings, and sometimes health services. Consider hiring a geriatric care manager if your parent has complicated needs or lives out of state. Remember that Medicare doesn’t pay for personal or homemaking care, but it does cover home health care for people who are homebound and intermittently need skilled nursing or physical or occupational therapy. The services must be part of a plan that is established and reviewed by a doctor, and they must be provided through a Medicare-certified home health agency. Medicaid has specific income eligibility rules, which vary by state. Long-term care insurance also pays for in-home care, but you may have to wait up to 120 days, depending on the policy, before coverage starts. Your ability to balance caregiving and your day job may depend on your boss. Recently, some employers have begun programs that educate employees on elder-care resources and create a more receptive atmosphere for discussing work accommodations like job sharing. The stress of working a full-time job while caring for an elderly relative can be overwhelming, and if you’re considering quitting your job, try to work at least long enough to vest in your pension or 401(k) plan (which may require vesting for employer contributions) or to accumulate enough credits to qualify for Social Security. Prepare a budget for paying expenses after you leave your job. Rather than quit altogether, see if you can switch to part-time status, and be sure to find out how this would impact your benefits. Talk to your parents while they are still healthy about their expectations for later care and how they plan to pay for it. If you do this before someone’s ill, it’s easier and you make better decisions. Reference: Kiplinger (January 2016) “How to Support a Caregiver” #PayingforaNursingHome #HoustonMedicaid #MedicaidPlanning #HoustonElderLawAttorney #Medicaid #Medicare #RetirementPlanning #LongTermCarePlanning

When we’re all trying to save more money for retirement, the options can be confusing. For instance, is it better to put money in a Roth IRA or a traditional IRA? The answer is, of course, that any retirement savings plan is better than none at all. However, there are scenarios in which one option is the better than the other. It really depends on your circumstances. US News says in its recent article “Should You Contribute to a Traditional IRA or a Roth IRA?” that making the right decision includes predicting whether your tax rate will be lower in retirement. If you believe it will be, you might want to invest in a traditional IRA and take a tax deduction now. But if you’re currently in a low tax bracket, you may want to pay taxes now and save funds in a Roth, which you can withdraw tax-free later. If your income is too high, you can’t contribute to a Roth IRA. If you have a retirement plan at work, there are some limits as to how much you can deduct of your regular IRA contributions. Nonetheless, your contribution is limited to $5,500 a year—or $6,500 if you’re over 50. To contribute to a Roth IRA, your modified adjusted gross income can’t be more than $132,000 in 2016, and if you earn more than $117,000, you can contribute only a reduced amount. This limit applies to single filers, heads of households, or married people filing separately. The cut-offs for a married couple filing jointly are $184,000 for a full contribution and $194,000 for a limited contribution. Contributions are from after-tax dollars and can be withdrawn tax-free—including earnings—in retirement. You can withdraw the amount you contributed any time without penalty. You can contribute to a traditional IRA regardless of your income. If neither you nor your spouse is covered by a retirement plan at work, the full contribution is tax-deductible. If only your spouse is covered and you file jointly, you can get a full deduction provided your modified gross income is less than $184,000. There’s a lesser deduction with an income up to $194,000. If you’re covered by a retirement plan at work, you can get a full deduction only if your modified gross income is $61,000 or less (single) or $98,000 (married filing jointly). You can get partial deductions if your income is up to $71,000 (single) and $118,000 (married filing jointly). Withdrawals are taxed when you extract the money. If you take anything out prior to reaching age 59½, you’ll pay a 10% penalty. The right decision each year is going to depend on your age, the amount of retirement savings you have already, your current tax bracket, and your financial expectations in retirement. This decision may also be an element of your estate planning because you are required to start withdrawing from a regular IRA at age 70½ but are never required to take any money out of a Roth. Plus, you can continue contributing to a Roth after age 70½, provided you have earned income. A Roth IRA or 401(k) is a wise choice for young people just beginning in the workforce. Their lower salaries mean they wouldn’t get much of a tax deduction from a traditional IRA. These folks are great candidates for a Roth, which will compound forever! And unlike a traditional IRA, if you need the money at any time, you can withdraw the contributions you’ve made without penalty. With this in mind, here are four factors to consider when deciding to invest your retirement funds in a Roth IRA or traditional IRA: How does your income now look compared to what you expect in retirement? If your income is low now, a Roth might be a good choice, especially if you expect to earn more later. If you earn too much for a Roth, a traditional IRA is your only choice. What retirement savings do you have already? A diversity of investments in your portfolio makes it easier to minimize taxes and extend your savings. Analyze whether a Roth or traditional IRA will be better to add to your retirement portfolio. How close are you to retirement? The closer you are, the better picture you’ll have of your future and whether you’ll need tax-free withdrawals. Do you expect your money to outlive you? Once you reach age 70½, you have to make withdrawals from a traditional IRA and pay taxes on them. This does not hold true for a Roth IRA. If you don’t need those withdrawals, you’re better off choosing a Roth. If you expect you’ll need them, and you have a higher income now, you may be better with a regular IRA. Reference: US News (May 19, 2016) “Should You Contribute to a Traditional IRA or a Roth IRA?” #AssetProtection #IRAs #RothIRA #TaxPlanning

In order to save for retirement, some individuals are considering converting their traditional IRAs to Roth IRAs in order to maximize their low-income years in a challenging economy. But how do you know if that’s a good move for you? MarketWatch recently published an article entitled—simply enough— “Should I convert my traditional IRA to a Roth?” that runs through the what’s and the why’s of making this decision. Traditional IRA contributions can be tax deductible, but money taken out is considered income and is taxed. Contributions to a Roth IRA typically aren’t tax deductible, but the withdrawals aren’t subject to income taxes or capital gains taxes, provided you are over 59½ and have had the account for five years or more. A big benefit of Roth IRAs is that, unlike a traditional IRA or 401(k) account, there are no required minimum distributions after the investor reaches 70½: the money can grow tax free and be left alone for when it’s needed. Traditional IRA account holders who convert their accounts into a Roth IRA must pay income tax on the amount of the conversion. Whether to convert to a Roth IRA involves a variety of factors, like your age, your financial and life goals, and your current and future income. For some, the tax on the conversion from the traditional IRA to a Roth doesn’t compensate the money earned. Here are a few ideas on deciding whether or not to convert: YES! A conversion from a traditional to a Roth IRA is a good idea if: You’re pretty young or a business professional currently in a low tax bracket expecting to be in a higher tax bracket when you retire. A Roth can help to protect you from increased tax rates that you’ll encounter during your working life. You break up your conversion in smaller parts so that you don’t get bumped up into a higher income-tax bracket immediately since the conversion amount is considered income. You want to decrease your estate for estate taxes. You live in a state that’s exempt from income taxes (or it has lower income-tax rates) and plan to move to a state with higher tax rates for your retirement. You are single or a widower. Since federal taxes are usually designed with married individuals filing jointly in mind, converting to a Roth IRA would let you have lower joint tax rates and later the money would be yours tax free during the rest of the years that you’re single. You want to enjoy limits on how much your Social Security retirement income is taxed, as up to 85% can be taxed if the remainder of your income is at a certain level. Putting your money in a Roth will help keep your income tax level low. As such, your Social Security benefits will be taxed lower too. You want to help your family succeed financially in the future. A Roth IRA doesn’t require distributions; the money can continue to grow even after you die. Your family can make tax-free withdrawals for the rest of their lives. NO! A conversion from a traditional to a Roth IRA doesn’t make sense if: You’re an older investor or business professional currently in a higher tax bracket expecting to be in a lower bracket when you retire, as the money lost now considered as income in the conversion could wipe out any benefits of a lower income tax rate down the road; or You don’t have any financial mechanisms in place that can reduce your year’s income subject to taxes, such as tax deductions or loss carryforwards. You should always talk with your estate planning attorney before executing any conversions or advanced tax strategies. Reference: MarketWatch (November 25, 2015) “Should I convert my traditional IRA to a Roth?” #HoustonAssetProtection #IRAs #ProbateAttorney #IRAConversion #RothIRA #HoustonEstatePlanningLawyer #TaxPlanning

Money Magazine says that the generation gap has a new frontier: IRAs. The article, “Why Older Americans Should Get Hip to the Roth IRA,” says that the older you are, the more likely you are to favor a traditional IRA over a Roth IRA. However, older investors might want to look at what the youngsters are doing. About a third of Roth IRA investors are younger than 40, compared to just 15% of traditional IRA investors, says research from the Investment Company Institute. At the same time, just 24% of Roth IRA investors are older than 60, compared to 39% of traditional IRA investors, according to IRA account data from 2007-2014. These skewed results developed naturally—as Roth IRAs have income eligibility limits for contributions, and traditional IRAs don’t (but there are limits on deductibility). Roth IRAs have appealed to younger, typically lower-paid workers for some time. Traditional IRAs, which have been around longer, see retirees rolling assets from their 401(k) plans into a traditional IRA. It is the rollover money that is the largest share of IRA growth. A Roth IRA is funded with after-tax dollars, and that money grows tax-free. Plus, qualified distributions after age 59½ are also tax-free. With a traditional IRA, the investment is funded with pre-tax dollars. Typically, you receive an immediate tax deduction, and the money grows tax-deferred; however, distributions after age 59½ are taxable as ordinary income. You’re not eligible to contribute to a Roth as a couple if your household income is more than $194,000—for singles, it’s $132,000. Also, contributions will phase out at slightly lower income levels. Nonetheless, even high earners can start a Roth by converting assets from a traditional IRA because—beginning in 2010—there’s no income limit on who’s eligible to convert to a Roth. Uncle Sam says that you’ll owe ordinary income tax on any amount you convert. It’s generally not recommended to convert if you have to use converted funds to pay the tax. It would be a good time to consider a conversion when your income is down and you can convert at a lower tax rate—or when your investments have lost money, which would reduce your tax bill. The reason for converting is—even though it’s not a given that your tax rate will go down in retirement—by saving with a Roth, there are fewer worries. A Roth conversion is also a great estate planning tool. Speak with a qualified estate planning attorney about how a Roth IRA can fit into your estate strategy. Reference: Money (August 8, 2016) “Why Older Americans Should Get Hip to the Roth IRA” #401kEstatePlanning #RetirementPlanning #RothIRA

You want to prosper by following tried-and-true principles of effective wealth creation and asset management—not myths passed down from older generations or heard around the office water cooler. Kiplinger’s “8 Urban Myths of Personal Finance” unravels several urban legends of personal finance that have gained credence over the years. Myth: There’s No Need to Start Saving for Retirement Until You’re 40. Did you know that 25% of Americans ages 30 to 49 have saved nothing for retirement and that 59% say they plan to save more aggressively “later” to make up for that shortfall? The long-term effects can be disastrous if you don’t put away money in a retirement savings plan as soon as you start earning a paycheck. The truth is the sooner you start saving and investing, the better. Myth: Social Security Won’t Be Around When I Retire. Many people in the U.S. (55%) have this fear. The truth is Social Security isn’t going away. But remember that Social Security was designed as a supplemental retirement insurance program, not a pension per se. Myth: I Can Borrow from My 401(k) When Needed. More than 20% of 401(k) plan participants who are eligible to take loans against their retirement savings had outstanding balances in 2012. But there’s a problem in doing this—you’re borrowing pre-tax dollars set aside in your 401(k) and paying the loan back with after-tax money. That money will be taxed once again when you withdraw from your savings after you retire! If you quit your job, are laid off or are fired, you’ll need to pay the loan back—usually within 60 days. If you can’t pay it back, the outstanding balance is deemed a taxable distribution, and you’ll get dinged with a 10% early-withdrawal penalty if you are under 55. The truth is that while you are permitted to borrow from your 401(k) to make a down payment on a home or in cases of financial hardship, you’ll take a huge hit on your nest egg. Myth: Only Rich People Need a Will. About one half of all Americans ages 55 to 65 don’t have a will. If you should pass away without one, a judge will decide how to divvy up your assets and who will raise your children. The truth is everybody should have a will, even if it’s just to detail funeral and burial wishes. Reference: Kiplinger (May 2016) “8 Urban Myths of Personal Finance” #AssetProtection #Guardianship #401k #SocialSecurity #ProbateCourt #Inheritance #Wills #RetirementPlanning #estateplanning

If you are reading this blog, chances are that you thinking about removing someone from your estate. It is a tough choice. But, if you are ready to move forward, here is what you should know about disinheriting an heir or a loved one. Disinheriting Your Child If your will is drafted properly, it is generally possible to disinherit a child. However, you should be aware that if you choose to do this, that child could challenge or contest the will. Again, if you have a solid will in place, your estate will most likely prevail. However, fighting such a lawsuit can be costly for the estate which means there will be less money available for your intended heirs. Disinheriting Your Spouse Most of the time, it is impossible to disinherit a spouse. There are certain contracts that allow for a disinheritance such as a prenuptial or postnuptial agreement. These legal documents are valid since the spouse agreed to the arrangement in advance when they signed the document. Without a prenuptial or postnuptial agreement in place, the state’s elective share statute law typically protects the surviving spouse from being either intentionally or unintentionally disinherited. Here in Texas, the law allows you to completely cut your spouse out of your will, but only in regard to those assets that you control. Because Texas is a community property state, your spouse will still be entitled to a share of the combined marital property and to live in the marital home – even if you try to completely disinherit him or her. Disinheriting a child or a spouse is very tricky and must be done correctly to ensure that you get the result you are seeking. It is critical to discuss your situation in advance with a qualified estate planning attorney before making any changes to your current estate plan. If you would like to learn more about this, call our office at (281) 885-8826 and make an appointment to discuss the best options for your situation. #AssetProtection #Inheritance #Wills

Marriage is a blending of two lives, and while this is true on both a spiritual and physical level, it also has implications for your finances and other legal considerations. Family lawyers in Houston are often called upon during newlywed planning in order to clear up any confusion regarding how your new marital status affects you legally. Credit Your new spouse will not necessarily affect your personal credit score, but there are still implications. Your newlywed planning will likely include how to finance large purchases such as a home or vehicle. Family lawyers in Houston advise that if a couple is applying for a loan together, then both credit scores will be taken into consideration. Of course, so will both incomes, so simply having one partner apply is not necessarily the best option. Additionally, unpaid debts by one partner can become the legal responsibility of the other spouse after the wedding. If there are concerns about this, it is a very good idea to meet with a Houston family lawyer to determine how best to protect both parties, which is usually done with a prenuptial agreement. Taxes Taxes are definitely affected by your marital status. Married people are able to file their taxes jointly. There are both benefits and drawbacks to this. For example, by combining your income, you may find yourself in a higher tax bracket. On the other hand, if one spouse makes significantly more than the other, the averaging of these two amounts could lead to a lesser tax bill. Working with a good divorce lawyer is a great resource to refer you to a CPA to help in determining the most effective way to file your taxes. Estate Planning One of the biggest long-term legal considerations is how your marriage will affect your estate planning. Many newlyweds do not really understand the importance of planning while they are still young, but this is an incredible way to set and reach goals for your marriage. If you have children, estate planning becomes even more vital! There are special privileges for spouses when it comes to this type of planning. If this is not your first marriage, you will especially want to make sure you update any previous estate plans to include your new spouse and exclude your old one. Health Care Being married brings with it additional rights for you and your partner, such as the ability to care for one another in the hospital. There are also significant responsibilities that come along with this, including the need to make medical decisions for each other when necessary. An estate planning lawyer can help make sure your documentation is in order should you want that responsibility to fall to someone else. Along those same lines, it is a good idea to create a living will with your spouse so he or she is aware of the types of decisions you want made on your behalf.

Estate planning lawyers are in the business of helping their clients create the best financial strategy possible, not just for their heirs, but for themselves, as well. Setting yourself up for retirement or to simply live the lifestyle you want takes some effort, which is why so many people make the choice to work with a Houston estate planning lawyer who knows the ins and outs of putting together an effective route for success. There is a ton of information out there on what to do and what not to do, but a recent survey from Consumer Reports has offered a really good look into the most common financial mistakes that are made, potentially keeping people from creating their nest egg, protecting their assets, and so on. Take a look at this list and make sure that you are not falling into the same trap that so many others have. If you need some guidance and direction, talk to a reputable Houston estate planning attorney to turn things around before it is too late. The 7 Most Common Financial Mistakes 1. Emergency fund – Building an emergency fund can seem overwhelming, but it is an important part of protecting what you have. Three to six months’ worth of living expenses set aside will make all the difference if you suddenly lose your job or are otherwise unable to earn your regular salary. The emergency fund will keep you from living off of credit and starting that downward spiral. 2. Credit Reports – Credit reports wield a lot of power, from what home you can buy to what job you can get. Unfortunately, they often include errors, and it is up to you as a consumer to identify and fix the errors. You will not know if someone else’s mistake is harming you unless you take the time to review your report. 3. Reviewing the will – If you have already made your will, then good for you! (If not, please work with an estate planning lawyer in Houston to get this important task off your to-do list.) Unfortunately, even those who are responsible enough to get their affairs in order this way often overlook the importance of reviewing the will. An annual review allows you to make revisions based on life changes, including updating your beneficiaries. 4. Communicating with family – Once you have put together a plan with your Houston estate planning lawyer, it is imperative to make sure your family knows how to access it when the time comes. Whether you have stashed it in a safe deposit box or kept it with a lawyer or trusted individual, you will want your family to be able to find it to carry out your wishes. 5. 401(k) mishaps – Those who do not remember to review their 401(k) plans can miss out on a lot of opportunities. You want to make sure that you are making your contribution and that if your employer matches it, you are taking advantage of that. As with the will, you will also want to occasionally update your beneficiaries. 6. Homeowner’s insurance – Homeowner’s insurance can seem like an unnecessary expense, but if something catastrophic happens, it is your safety net. Imagine trying to replace everything you have worked so hard for with no funds to do so! 7. Debt – Debt is a beast that scares people to the point of not even seeking the help of an estate planning attorney in Houston. Allowing it to get out of hand, however, can have a disastrous impact on your financial life. Just because you have had trouble in any of these areas does not mean that it is too far-gone to be fixed. A Houston estate planning attorney can help you develop a strategy for getting back on track. For a consultation at our Houston estate planning law firm , simply call our office at (281) 885-8826 and mention this article.

With the ongoing changes to the law and shifting options and choices in the Houston area, it is a good idea to consult with an elder attorney who knows what the community has to offer. Elder and Medicaid lawyers in Houston are tasked with a lot of responsibilities, but perhaps one of the most important is working with clients who are making decisions regarding nursing homes. From cost to amenities to proximity to medical facilities, there are so many considerations that can go into choosing just the right facility for you or a loved one. Plan Ahead When Possible Obviously, it is not always possible to plan in advance for nursing home care. Illnesses and injuries can come from out of nowhere and sideline a previously healthy and active senior. In other cases, the individual may just not have been able to envision a time when he or she would need such care. People in these situations will also benefit from working with an elder attorney in Houston who is knowledgeable about what the city has to offer. When possible, however, planning ahead is one of the best things you can do to ensure you receive the kind of nursing home care you truly want. For one thing, when decisions like this are put off, it often ends up falling on the senior’s children or other caregivers to make the choices. If you plan earlier, when you are healthy, you can have so much more say in how the situation plays out in the future. Your elder attorney will obviously be a good resource in finding the best nursing homes in Houston that meet your wishes and requirements. You may also find that friends have great insight into places they have visited or where their family members have resided. Do some online research of your own, too. Many facilities will have pictures and descriptions on their web sites that will give you a preview of what they offer. Take a Tour You would never buy a home without seeing the inside of it or checking out the neighborhood, but it is shocking how many people choose a nursing home without ever having set foot inside. Whenever possible, your Houston Medicaid and elder attorney will encourage you to do on-site visits to get a feel of the facility. This is an opportunity to make sure that you feel comfortable, and can even give you a chance to speak with residents currently in the facility. What do they like best? What do they like least? Would they recommend this nursing home, and why or why not? Some nursing homes specialize in different areas or offer different amenities, so taking a tour will allow you to see if their services live up to what you have seen in their brochures or on their web site. You might even want to take notes so that you can compare the different facilities that you have visited. Choosing a nursing home is a pretty big deal. This is the place where you or your loved one will be living for an extended period of time, and you want to make sure that it offers a great balance of wants and needs. Working with a Houston elder attorney will give you an advantage when it comes to finding out what is out there in our area.

What would happen if loved ones suddenly could not make decisions for themselves? Who would make these decisions? What kinds of decisions would they be able to make? These are overwhelming questions to think about, but they are important ones. Texas residents thinking about these questions may want to consider making an advance directive. What is an advance directive? Texas offers advance directives to its citizens. These allow people to officially communicate their health care decisions in the event that they cannot speak for themselves. There are three types of advanced directives in Texas. One is a Directive to Physicians and Family or Surrogates, which requires signing individuals to actually communicate what they want to happen in certain situations. A Medical Power of Attorney appoints a trusted person to make decisions for the individual if the individual becomes incapacitated. The third is an Out of Hospital Do Not Resuscitate Order. What if I do not have an advance directive? If someone does not have an advance directive, Texas law provides for how decisions will be made if the person is incapacitated. If the doctor knows what the person’s wishes are, then the doctor will carry out those instructions. If, however, the doctor does not know what the person’s wishes are, Texas law spells out whom the doctor will consult. In order of priority the doctor will consult: A spouse Reasonably available adult children Parents Nearest living relative Another doctor, if a doctor who is not involved in the person’s care agrees An advance directive will override this priority, allowing the signing individual to choose who makes medical decisions when the individual is unable to. Advance directives become valid only when the person who created it is unable to speak for himself. Advance directives can also be revoked or changed at any time. They cover only health care decisions; other documents can be created to help with financial decisions. How do I create an advanced directive? There are several requirements for advanced directives to be enforceable. An individual must make sure that the language in the advance directive is enforceable and covers everything that the individual wants it to cover. Also, two witnesses need to sign the document, and there are particular people that do not qualify. There are also certain people that need to have a copy of the advanced directive . Health Care Directive Estate Planning in Houston Texas residents may want to contact an estate planning attorney to help them create their advanced health care directive. An attorney will make sure that the advanced directive covers all necessary items and meets all legal requirements. An experienced estate planning attorney can also help with elder law issues, VA and Medicaid planning and other issues related to special needs trusts and powers of attorney. These legal documents can also play a crucial role for families planning for the health and financial futures of their loved ones. Each estate plan is unique. That is why it is important to seek the counsel of a qualified estate planning lawyer in Houston to make sure that your plan accomplishes your goals. T o  set up a consultation today  please call the Your Legacy Legal Care at (281) 885-8826.

When a grandmother wants to give her two grandkids $50,000 each for college, there can be tax and financial aid consequences. The best way to go about this depends on what’s most important to the grandmother, says New Jersey 101.5’s article, “Several ways to gift money for college.” If grandma just wants to help the grandchildren with their education, she could set up a 529 plan for each child and contribute $50,000 to each account. 529 plans are tax-deferred accounts that are used for education. If the kids are young, the account could grow tax-free for years before it’s needed. It’s a very tax-efficient way to pay for education; however, there can be gift tax issues when setting this up. In general, grandma is permitted to give each child $14,000 a year without using up any of her lifetime gift/estate tax exemption. Nonetheless, there’s a special rule for contributing to a 529 plan. If grandma contributes the $50,000 in the first year, it’ll be prorated over the next five years at $14,000 a year—a limit with little effect because the federal estate and gift tax exemption amount is now $5.45 million. Grandma needs to remember another option: the payment of tuition directly to the educational institution is not a taxable gift at all, regardless of how large the payment. Bear in mind that the direct payment of tuition could jeopardize the child’s financial aid eligibility. If this is a concern, a 529 plan account is a better option, but grandma—not a parent—must be the custodian. If the parent is the custodian, the plan will most likely be deemed an asset of the parent, and this would have to be reported on the child’s financial aid application. Once payments were made out of the account, this would be considered income to the child and could put his or her financial aid in jeopardy. Planning for financial aid can be tough because each school has its own set of rules. Grandma could also just wait until the kid is out of school completely and then give him or her the funds to pay his or her student loans. If the child is likely to get financial aid, she could make gifts for other purposes like a down payment on a house or a wedding—instead of paying for school. Reference: New Jersey 101.5 (July 14, 2016) “Several ways to gift money for college” #529EducationSavingsPlan