Estate Planning

Monday, December 19, 2011

Two Common Houston Estate Plan Myths -- BUSTED

By: Kimberly Hegwood, Wills and Estates Lawyer in Houston, TX

As of this writing, it's a fact that almost 60% of Americans do not have a basic will, and that is a big problem.

One of the big reasons that most families don't yet have this kind of plan in place is because of some incorrect thinking about whether it is right for them, or if it is even necessary. And sure --some people just have not gotten around to creating a will or trust. Others think they don't need an estate plan because they are not "rich".  

But here is the problem--if you continue without an estate plan, you could leave a legacy of bad feelings and attorneys' fees.

So I wanted to speak to some of the more common misconceptions out there. I will start with a couple big ones this week, and when the time is right, address a few more in 2012...

MYTH #1: Only rich people prepare estate plans.

Do you own ANYTHING? Because if so, you need a will. You see, a will allows you to designate who will receive your property should anything happen. Continuing without one ensures that your assets will be distributed under the terms of your state's "intestate succession" laws. That means your money and property could end up with family members you have not spoken to in years, instead of who you would really like to see control your assets.

I won't go into all of the different components of a will, trust, medical power of attorney, directive to physicians, etc., as my purpose here is to emphasize that failing to plan is simply a decision to trust your assets to government bureaucrats who do no know you from Adam.

Even if you think your situation is pretty straightforward, you may feel more comfortable hiring a lawyer to guide you through the process.

MYTH #2: Everything goes to your spouse, if something happens.
 

Unfortunately, that is not always the case. We deal with clients from different states around the country, and state laws vary. In fact, in most states, if you continue without a will (intestate), your inheritance will be divided among your spouse and your children. In New York, for example, when someone dies intestate, the spouse gets the first $50,000 of the estate and what is left is divided 50-50 among the spouse and the children.

You can imagine how this could create all kinds of problems, particularly if your spouse was financially dependent on you or you have children from a previous marriage.

I will send a few more in the future, but I hope you can already see that things are not always as we "think". And don't miss the chance to take advantage of the time and focus you will already be applying to your preparation for tax season, by moving towards getting your estate plan done (or updated) in 2012, after you have already done the hard work of gathering all of your documents. It is actually the perfect time for it.

Friday, December 09, 2011

Going Beyond the Will | Estate Planning Law Firm in Houston

Parenting is more than reading to your children or getting them to eat their vegetables. It's also about securing their financial future. One way to do that is by drafting a trust and naming a trustee.

Here are a few questions to ask yourself to determine if a trust is right for your family:

How much money will you be leaving to your children?
A trust may not be worth the effort if you think you will only be leaving a child (or children) $100,000 or less. On the other hand, if you are leaving life insurance money to cover four years of school and you own a home, there is a good chance a trust would make sense for you.

Are you wanting to provide boundaries to how the money is spent?
A trust allows you to restrict spending to basic support, including food, clothing, education and health care. This is something that can't be done with a custodial account. If the custodian is a soft touch, he could end up lavishing your child with designer jeans and a fancy car, leaving very little left for the college years. Even worse, if the custodian is also the guardian, he could start writing himself large "support" checks to help cover his other expenses.

Would you want to give your children some breathing room before the money hits-- to fail well, or to find their own path?
If you think giving a high-school senior a large sum of cash is a recipe for disaster, then you should consider a trust. Kids in their 20's are in such a transitional time that we do not necessarily want them to have significant financial decisions to make, when they could be pursuing their passions.

Is your bequest to be used only for education?
If you specifically bought life insurance so that there would be enough money to help fund college in the event of your death, then you will definitely want to delay the age at which your kids inherit your money. Otherwise, your child could think a red Ferrari is a better investment than a crimson Harvard diploma.

Do you want to set up a way for your children to hold mismanagement of funds accountable?
One more benefit of a trust that you don't get with a custodial account is that a trust is a legal contract; the trustee has an obligation to follow your directions and act in a reasonable and prudent manner. If the beneficiary feels the trustee spent the money frivolously, he can demand an accounting, and can sue for reimbursement if the trustee acted improperly with the funds. It may be pretty tough to prove illegal or improper actions with a trust, but just the threat of a possible lawsuit can keep someone in line.

Don't forget -- we are only a phone call or email away, and our consistent question for you is this: "What more could we do for you, to help?"

Monday, November 21, 2011

Wills and Estates Lawyer in Houston Says, “Don’t Sign Up For That Pre-Paid Funeral Until You Ask These Questions!”

Many people like the idea of choosing a funeral home and making their own arraignments to ensure their loved ones are never burdened with the task. Pre-paid funeral plans allow you to make all the decisions ahead of time and pay for it in installments. Not having your loved ones put in the position of planning and paying for your funeral is a wonderful idea, but, before signing on the dotted line on any agreement, be sure to ask the following questions:

1. Can you get your money back if you change your mind?
2. Does the money you invest earn interest? If so, who gets it?
3. What happens if the funeral home goes out of business?
4. Can the plan be moved if you move to a different state?
5. If money is left over after expenses, what happens to it?

Another key consideration is to find out what happens if the prices increase by the time the services are needed. Make sure that you are being guaranteed the services you selected at the contracted price. Some pre-paid plans sneak in additional payments for “final expense funding” which allows the funeral home to charge the difference in price.

There are a number of alternatives to pre-paid funeral plans. For example, you can buy life insurance to cover funeral costs. Another is to set up a bank account solely for the purpose of paying your funeral expenses. Both of these options allow you more flexibility to change your plans if you so choose.

However, if either of these options is chosen, it is important to make sure your loved ones know your wishes. Additionally, clearly lay out these plans in your estate planning documents. Then there will be no doubt about what you want, which will go a long way in reducing the stress that your loved ones may experience upon your passing.

Before you make any decisions, be sure to consult with an experienced Houston wills and estates attorney. Estate planning attorneys know which questions to ask and can help you better understand all of your options. Then, you really can feel secure that you’ve taken the burden of making end-of-life decisions off of the shoulders of your family.

Thursday, November 10, 2011

Time For an Estate Plan Tune-Up | Houston Wills and Trusts Law Firm

Most people are smart enough to keep their cars in good working order--it requires tune-ups, an annual physical check-up, etc. But I am always surprised by the common misconception about how often they should have their estate plan reviewed. 

You see, most people see estate planning as something you "do once" and never have to think about again. That is just flat incorrect. Just like your health can take a dramatic turn (for the better or worse) in a year, your estate planning decisions can change dramatically in a short period. Sometimes, something as simple happens as the people you have identified to serve as the guardians for your minor children move out of state. That is just one of many good reasons to revisit your estate planning decisions.
 
Your estate plan is a "living and breathing" plan (at least when done right) and therefore has to be maintained to reflect your life as it is today.  That is why I have a special offer for my clients and friends in this week's Strategy Note (see below).
 
If you have already prepared your estate plan--congratulations!  But now is the time to make sure that what you have put together will suit your needs NOW. 
 
So, if you don't have your estate plan in place, make today the day you take this important step for yourself and your loved ones.  And, if you have already taken this important step...let's (together) make sure it lasts.

+++++++++++++++
SPECIAL OFFER
NO CHARGE Estate Plan Review
Learn how you can protect your assets, and have control over the way they are passed on to your loved ones--at no charge!
Limited to first SEVEN Respondents Only
Email me or Call: 281-218-0880 to set up this special session
+++++++++++++++

Friday, September 30, 2011

Houston Estate Planning for Couples Marrying Later in Life

Couples who choose to marry later in life have different concerns than those marrying earlier, and a good Houston estate planning lawyer can help you make the right decisions for your circumstances.  Each situation is a little different, but there are some fairly common topics that should be considered:

1. Do the husband and wife have grown children?  If so, then the estate plans will likely need to include specific instructions regarding how inheritance will work.  This is fairly important to ensure that each biological and step child receives what the parent wishes, rather than allowing Texas laws to supersede your desires.
2. Does each intend to be the beneficiary of the other?  Older couples who marry may already have their own plans for their estates, and sometimes these don’t involve one another at all.  If spouses do not intend to inherit from one another, they will likely need a prenuptial agreement that clearly spells this out.  Without it, spouses will almost always inherit, despite plans that were made to the contrary.
3. Who will pay medical expenses?  If one spouse becomes ill, it may be the responsibility of the other (usually wealthier) spouse to pay for medical expenses.  Again, a prenuptial agreement can help to limit this, although Medicare will usually supersede a prenuptial agreement.
4. Is one spouse widowed?  Some older couples today have chosen not to marry because it can stop pension or social security benefits from a previous marriage.  This is something that should be carefully explored with your Houston estate planning lawyer.
5. Should you have joint accounts?  When older couples marry, it is sometimes recommended to keep assets separate.  This extends to bank accounts and titles on property.  Any assets that are in both spouse’s name can go to the survivor, even if a prenuptial agreement stating otherwise was in place.

When estate planning, older couples usually do best by choosing an independent trustee.  The passing of a loved one often brings out the worst in people, so naming either you or your spouse’s child as the trustee can have unexpected negative consequences.  Your Houston estate planning lawyer can help you identify a good candidate or even recommend a trust company to keep your trust or will from being ignored or misused. 

In addition, the estate planning lawyer can help you uncover other areas of concern that are not obvious at first glance, such as updating legal documents to reflect the new relationship and setting up powers of attorneys, living trusts, etc.

If you need help and are ready to get started, simply call our Houston estate planning law firm at (281) 218-0880 and ask to schedule a free Lifetime Legacy Planning Session. These sessions are normally $750, but you can come in free with the mention of this article (limited to first 20 responders).

Friday, September 23, 2011

Will Lawyer In Houston Explains the Basics of Estate Planning and What That Means For YOU

When a person with assets over $100,000 passes away, their assets will be handled in one of three ways:
 
(1) if they had no will, their assets will be distributed as mandated by the Texas probate code through a court proceeding called probate;

(2) if the person had a valid will, the estate will still have to go through the Harris County probate process, but the court will carry out their wishes as stated in their will; or

(3) if the person had a valid living trust (and their assets were re-titled in the name of their living trust), their wishes would be carried out in private, without the court's involvement. 
 
So ... why does it matter to you? 

The answer to this question depends on how much you care about what your loved ones have to deal with after you are gone and how much control you want to have as to who gets what, and when and how they get it. 
 
If you do nothing, you get no input on any of these questions and the court and one of your eager family members/friend/creditor who petitions the court will make these decisions on your behalf through a process called probate.  Why do you care about probate?  Often, the probate process can take 6-12 months, can be extremely costly, and the process is completely public.  The probate process can often lead to squabbling between family members and airs the family's dirty laundry. 
 
If a person leaves a valid will, it will still have to go through the probate process described above, but the court will have the benefit of knowing how you want your affairs handled.  Instead of relying on the laws of intestate succession (which is the law that distributes your assets to your family members in the order of their relation to you), the court will pass on your assets to the specific people you have identified in your will. 

Through a valid will, you can control WHO gets your assets, but you will have no control as to HOW and WHEN they get it.  
 
A living trust (that has been properly funded), on the other hand, gives you more control.  If you are working with an attorney who has expertise in this field, you can control WHO gets your assets, and WHEN and HOW they get it without the court's involvement.  Even better--with a living trust, it is a private administration and can generally be handled in a short period of time.    
 
You may be asking yourself: why would someone in Texas ever do a will instead of a living trust?  Typically, a person will choose a will over a living trust for one of two reasons:

(1) they don't know the difference between the two, or
(2) the "cost" of doing a living trust.  
 
There are some obvious advantages to doing a living trust over a will, but starting with something is better than nothing.  If you are not yet ready to make a leap into the world of living trusts, a basic, will-based estate plan is a starting point.  In addition to giving the court direction about how you want your assets distributed, a will-based estate plan should also include your advance health care directive (which identifies the person(s) that will make health care decisions for you, if you are incapacitated) and a durable power of attorney (which identifies the person(s) that will make financial and legal decisions, when you can't). 

While we all care about what happens to our assets, every person over the age of 18 needs to have an advance health care directive and durable power of attorney.

Friday, September 16, 2011

Houston Estate Planning for Senior Citizens – It’s About Taking Care of Your Loved Ones

I hear the same excuse over and over….

I don’t have an “estate.”

I have more debt than assets.

The only thing I have is my home.

As you may have guessed, these are excuses that people make for not preparing an estate plan. These people are sadly misinformed. They think estate planning in Houston is only about money. Estate planning does take care of financial issues, but the way I see it, the most important reason for doing an estate plan is for the benefit of the people that you leave behind.

Estate planning in Houston is essential for senior citizens who are concerned about the well-being of their loved ones. No matter what your level of wealth happens to be, there are decisions that will have to be made if you become incapacitated or when you pass on.  If you don’t leave detailed instructions for the type of medical care you want or what to do with your things, you will be putting those you love most in the position of being a mind-reader. They will have to do their best to figure out what you would have wanted and then deal with the consequences such as unhappy family members who disagree with them. Do you really want to cause this type of stress for them at a time when they are already upset and mourning?  I doubt it.

I realize thinking about these things is not easy or fun, but approaching it in an organized manner may help. Here’s a list of things to consider when planning your estate:

1. Talk to close family members and let them know how you would like to handle the dispersal of your assets and sentimental items. Also, talk to them about the type of medical care you would like to receive should you become incapacitated. Chances are, if everyone knows your plans ahead of time, there will be fewer arguments and a lot less stress.
2. Prepare a list of all of your assets including your home, your financial accounts, insurance policies and any personal possessions.
3. Make a list of everyone that you would like to be a beneficiary of your estate. You may also want to include organizations that are meaningful to you.
4. Plan for how you would like your pets cared for if something should happen to you.
5. Make a list of passwords, PIN numbers and other codes that someone might need.
6. Think about who you would like to put in charge of your medical care and who you would like to oversee the dispersal of your assets. You can appoint different people for these critical jobs.
7. Consult with an experienced estate planning attorney who can offer advice about how to arrange your estate so that the person you put in charge of your financial and medical decisions will have the fewest complications.

These steps alone will go a long way in reducing the stress that your loved ones will experience. Isn’t their well-being enough reason to do an estate plan?

If you answered “yes,” then be sure to give our Houston wills and trusts office a call at (281) 218-0880 and ask to schedule a Lifetime Legacy Planning Session.  These comprehensive sessions are normally $750, but you can come in absolutely free with the mention of this article. However, this offer is limited to the first 10 responders so call today!

Wednesday, August 24, 2011

Houston Business Attorney Offers More Tips to Avoid a Downgrade For Your Family

By Kim Hegwood, Houston Business Attorney

Last week, we were all reeling a little from the S&P downgrade and all of the other chaos flying around the "body politic" (and economic, to boot).

Wednesday, August 24, 2011

Houston Estate Planning Tips for Blended Families

It is clear to Houston estate planning attorneys that the modern American family comes in all shapes, sizes, colors, and configurations.  This creates unique circumstances when creating wills and trusts, writing prenuptial agreements and putting long-term care plans in place.

There is always potential for conflict when it comes to estate planning in general, but the added element of a blended family can compound problems.  For this reason, it’s a great idea for anyone in a blended family or non-traditional relationship to discuss their options with an Houston estate planning attorney to ensure you are planning with such complexities in mind. 

In preparing for this conversation and its outcome, it makes sense to consider the following:

1.    What role will your new spouse play in your estate?  What role will your children play?  Those who are married later in life may choose to leave their entire estate to their biological children, while the spouse does the same.  In other situations, both spouses may choose to leave their assets to the surviving spouse or to do a combination of both.  Of course, many step-parents choose to consider their non-biological children in the estate planning process as well.

2.    It may seem unlikely now, but there is potential for a spouse who receives your assets to disinherit your biological children.  To avoid this, beneficiaries (and their inheritance) should be clearly and legally outlined in your will.  Likewise, children could move to disinherit the new spouse, so this provision will also protect him or her.

3.    Use your will to make your wishes known when it comes to the inheritance of specific assets.  Your estate planning attorney can help you to identify what these are, as it is very easy to overlook a particular asset, not realizing it holds value (monetary or sentimental).

4.    To remove concerns regarding what a spouse, child, or step-child might do should you be unable to oversee your own finances, work with the estate planning attorney to set up a living trust, powers of attorney, and other legal documentation before they become necessary.

5.    Review any retirement accounts, mutual funds, insurance policies, etc. to ensure they are kept up to date as your familial status changes.  For example, you may need to remove a former spouse in favor of your current one, add step-children as beneficiaries, or amend your beneficiaries with the birth of a new child.

Probably the most important aspect of making these choices is to ensure they truly reflect your preferences and wishes, as well as applicable laws here in Houston..  Because there are a number of special considerations in these types of situations, be sure to choose an estate planning attorney who has significant experience working with blended families.

Here at Hegwood & Associates, we are happy to work with you and your extended family to ensure your have the right plans in place should the unthinkable happen.  Just call (281) 218-0880  and ask to schedule a Lifetime Legacy Planning Session.  These comprehensive sessions are normally $750, but you can come in free with the mention of this article. However, these sessions are limited to 10 per month so reserve your space today!

Monday, August 01, 2011

Houston Elder Attorney Discusses The Big Financial Questions Your Children Will Ask

By: Kim Hegwood, Houston Elder Attorney

Children may wish to ask their parents about their financial status, but worry about being overly intrusive. Or they fear their elders may perceive their questions as motivated by self-interest. They may conclude mistakenly that their parents would prefer to keep their finances private.

However, whether it is our parents or ourselves, we are all certainly mortal, so planning for the future is always wise. Estate planning is just as critical when we are young as when we get older. And if you think estate planning information is hard for you to pull together, imagine how challenging it would be for someone else who may have to step in for you during a family crisis.

As a parent, if you are willing to share some of this information with your children--especially if one of them is also the executor of the estate--they will appreciate having the facts and be more prepared emotionally when the time comes. They will know your wishes ultimately anyway, and good communication will lessen any surprises ahead of time. They will benefit from knowing the answers to the following questions.

Do you have enough saved for a comfortable retirement? Even if you try to use a safe withdrawal rate (by age) to make sure you have enough money toward the end of your retirement, few parents manage to correctly time spending their last dime to the day they die. So adult children are justifiably concerned about their parents.

If your spending is under this withdrawal rate, you have more than enough and probably can leave a legacy to your heirs. But if you are over this rate, you may run out of money and have to compromise your standard of living abruptly. It may be uncomfortable, even embarrassing, for parents to share their finances with their children, but grown children often want to know how their parents are doing.

Where are the important documents? The five documents your executor or your children should be able to retrieve quickly are: a will, a living will, power of attorneys (yes, you should have two - durable and medical), a directory of basic information and the latest end-of-year financial statements.

The directory of information should list the assets of your estate along with account or policy numbers and contact phone numbers. It also helps to indicate your intentions for the distribution of each asset, which will help confirm you have the correct titling and beneficiary designations on every portion of your estate.

You may have structured your will to divide your estate equally among your children. But if you have tried to make it easy for one child to access your bank accounts by adding his or her name, you have overridden your estate plan and left that child joint tenancy with complete rights of survivorship.

Titling and beneficiary designations are legal estate planning actions. It is best to review them with your legal advisor. Various types of assets are best designated differently in the estate plan. This is not the occasion for do-it-yourself thrift. It is a rare family that has compiled and reviewed a complete list of estate assets: bank accounts, investment accounts, retirement account, real estate holding, life insurance, health savings accounts and so on.

Are there any special bequeaths? Any promises you want kept should be documented. Your good intentions will not matter if you are not around to implement them. If you have promised money to a charity and want that obligation kept, document it specifically. If you have promised to loan a child money, document it. If you have promised to help fund your grandchildren's college education, document that. Without documentation, none of these promises can be kept if you are not around to make the decisions.

Are there plans to remarry? If parents have remarried, intergenerational estate planning is even more critical. Prenuptial agreements and careful estate planning are required in the case of second marriages to avoid disinheriting children or grandchildren from the first marriage. The default is rarely a good option.

Do you have any prepaid funeral arrangements? Do you want to be buried or cremated? Do you have any preferences for a memorial service? Although it may seem macabre to plan your own funeral, a memorial service takes time and thought. It will be that much more special and comforting to your family when it is filled with your favorite music and readings.

Encourage your children's interest in your estate planning. Most of time, their intentions are honorable. They may simply want to understand your values and therefore your wishes.

Monday, August 01, 2011

Probate Attorney in Harris County Answers, “How do I obtain a death certificate?”

If you have lost a loved one and are now attempting to close out their estate, we are sorry for your loss and we understand how frustrating the process can be.

The steps to take after the loss a loved one can be overwhelming, but requesting a death certificate is a great place to get started.  You will need a death certificate to complete many of the administrative tasks that you will face in the weeks to come, so it only makes sense to order a copy of this as soon as possible.

While the exact process to order a death certificate can vary from county to county, there are basic guidelines that you can follow to make the request for a death certificate as quick and easy as possible.

Let’s take a look at these guidelines:

- I typically recommend ordering 8-10 copies of your loved one’s death certificate. As mentioned above you will need them for many tasks over the next few weeks, so it’s best to have them on hand. The easiest way is to order them through the funeral home, as there is generally a lag time when you order straight from the county recorder’s office.

- Make sure to have the following information readily available when filling out the request:

• Full name of the deceased
• The date of death
• The place of death
• The deceased’s date of birth
• The purpose of your request
• Your driver’s license number
• Provide a self-addressed stamped envelope along with your request
• Typing or printing the information is helpful

If you are still not sure how to properly obtain a death certificate for your loved one, or you need to know whether or not you should obtain one based on your responsibilities, contact ourHarris County probate lawyers at the Hegwood and Associates by calling (281) 218-0880 to schedule a free consultation. Not only will we provide you with information onhow to obtain a death certificate in Harris County, but we can also help you navigate the complicated world of probate after a loved one’s death.  Call today!

Monday, July 25, 2011

Estate Planning Attorney in Houston Warns About Matching Beneficiaries to Those Named in Your Will or Trust

As an estate planning attorney in Houston, I have unfortunately seen many circumstances where a person goes through the time and expense of having an estate plan done, only to fail to update their beneficiaries on their financial or retirement accounts before they pass away.

An example of this would be Mary naming her brother Bill as the beneficiary of her life insurance policy in her trust, but at the time of her death, she had a different beneficiary named on the policy itself.

Just as life changes, so do your relationships, which can affect who you want to receive your assets --especially if you do not have children. Changing the beneficiary on assets such as bank accounts or life insurance policies is not uncommon, but you must remember to make sure that your will or trust reflects that change also.

Keeping your estate planning documents and beneficiaries up-to-date and coordinated is a quick and painless way to prevent legal headaches from occurring after you are gone.

Having two different named beneficiaries on two different documents can result in a lengthy and costly process to fix it – especially if each named person believes that they should be the one to inherit the asset.

The best way to avoid problems like this is to have a lawyer who focuses on Houston wills and trusts handle every aspect of your estate. If you are ready to get started, we invite you to call our office at (281) 218-0880 and ask if you qualify for a free Lifetime Legacy Planning Session ($750 value).

Monday, July 18, 2011

Houston Wills and Trusts Lawyer Offers Ways to Approach “Tough Conversations” With Mom or Dad

When meeting with a wills and trusts lawyer in Houston for the first time, many adult children realize that they have no idea where their parents stand in terms of having the right plans in place to protect their assets and wishes if something happens to them.

Do their parents have a will or trust and, if so, where are these and other important documents located? Should assisted living or nursing home care become necessary, what plans are in place to cover the costs? Will mom or dad even have enough money after these costs to carry them through retirement?

These are some very important questions that need to be asked, and an experienced Houston wills and trusts lawyer can steer you in the right direction. That being said, no matter how good your relationship is with mom or dad, the subject can be a difficult one to approach.

Perhaps the best place to start is timing. Holidays such as Christmas, Hanukkah and Thanksgiving are known to be stressful times, so avoid these occasions. Current events often present the perfect opening, as there is always some Hollywood legend or financial mogul who dies leaving a fortune for the heirs to squabble over.

Or, the personal experience of a friend or relative can be worked into a dialogue. “So-and-So’s mother was admitted to the hospital recently and no one knew where to find her important papers.” For the adult child who is doing estate planning of their own, it would only be natural to want to discuss their parents’ plans with them during this time.

For some families, several conversations over a longer period of time might be a better approach. No one wants to feel like they are being told what to do, and money matters are often emotionally charged conversations to begin with. 

Remember, advance preparations are in the best interests of the parents, sothattheir wishes can be carried out upon death.  Be sure to communicate this from the start to avoid your parents shutting down or getting defensive about the questions you are asking.

Finally, don’t forget to include the topic of long-term care in your conversations with mom or dad.   While no one likes to think about the possibility of becoming disabled or incapacitated by something like a stroke or Alzheimer’s disease, it does happen and it’s something that must be planned well in advance for.  If you start early enough, an Houston wills and trust lawyer can help you put the right plans in place to ensure mom or dad’s wishes during incapacity are honored and that they won’t be forced to sell or give away all of their assets in order to qualify for state or federal assistance.

Are you now ready to help your parents put a rock-solid plan in place that ensures their end-of-life wishes are honored to the fullest?  Then be sure to call our Houston wills and trusts lawyers for assistance.  With the mention of this article, you may qualify for a Lifetime Legacy Planning Session ($750 value), at no-charge.  Simply call (281) 218-0880 to find out more. 

Wednesday, July 06, 2011

Houston Estate Planning Lawyer Says, "Don't Let Your Plan Get Out of Shape!"

By: Kim Hegwood, Houston Estate Planning Lawyer

Too many lawyers just focus on the financials, and neglect to help families identify, articulate and pass along their dreams, passions and hopes for their children and loved ones.

Yes, some families take the bull by the horns, and do this themselves, but it makes really good sense to get outside help in making absolutely sure that every base has been touched.

Specifically, your children and your loved ones should be able to have resources and tangible memories which help them answer these kinds of questions:

*    What dreams did they have for me?
*    How have they seen the world change around them, and how do they feel about it?
*    What kind of family were they hoping to create?
*    Were there any mistakes made which they'd like to see me avoid?
*    What activities were they most glad to have participated in?
*    How did they make decisions about what to do as a family?

There are more questions, like this, of course, that you could cover...but the main point I want to make with you is this:

You just never know when these questions will be asked.

And, I hope you put in place the right tools to make sure you have got the answers.

Tuesday, June 28, 2011

Houston Estates Lawyer Suggests Letting Your Teens Know Now About Their Inheritance

Depending on your family’s lifestyle, your teenage children may already have an idea of what would happen if you and your spouse were to pass away. They may not know the exact dollar amount of the money that they would inherit, but they probably have an idea of who they would live with and that they would receive most of your assets if something happened.

As a Houston estates lawyer, I know that many parents feel this information is sufficient enough for their minor children.  But having an open discussion with your teen can prevent them from being angry or confused if you have decided that he or she will not have access to their inheritance until they are a few years past the age of majority, such as 21 or 25 years old.

It is common knowledge that inheritances are distributed at the age of 18, unless the parents have set up a trust that makes the teen wait. If a teen anticipates these funds at 18, but discovers that you have made them wait until 25, they might get the wrong idea and feel that you made the decision because you did not trust him or her. And with you not there to defend your decision, the teen could be upset and confused.

The best way that the Houston wills and trusts lawyers at Hegwood & Associates feel that you can avoid this anger or confusion is to sit down and have a frank discussion with your teen.

Talk to them about the following issues:

- The amount of money that he or she is to inherit (you may also ballpark this figure)

- The age you feel is appropriate for the inheritance (i.e., 21 or 25 years old, etc.)

- The age that the teen feels is appropriate

- How you want the money to be spent, for example on college or the down payment on a house

- Whether there are other stipulations besides age for receiving the money. For example, you can set it up so that the teen can receive the money at any age, as long as he or she has graduated from college.

Doing what you can to eliminate secrets or surprises from your estate plan can not only bring your family together while you are still living, but it can make the grieving process easier for your kids after you are gone.

Let the estate planning attorneys at Hegwood & Associates help you with these decisions by setting up a Lifetime Legacy Planning Session.  These sessions are normally $750, but you can come in free of charge with the mention of this article. Call us today at (281) 218-0880 to schedule your appointment.

Saturday, June 18, 2011

Houston Estate Planning Lawyer Discusses The Dangers of Do-It-Yourself Wills and Trusts

Trusts lawyers in Houston are seeing a growing number of online websites offering Do-It-Yourself legal documents and estate-planning software.

Surprisingly, most attorneys will tell you that there are some everyday forms where this approach makes good sense. In fact, many law firms offer a selection of standard legal forms available for their clients’ use at no charge. However, when it comes to wills and trusts, a poorly executed document can cause more harm than doing nothing at all.

It’s important to realize that estate planning is a complex area of law, based on statutes that vary state by state and often change from one year to the next. Wills in this state have procedures and requirements that must be followed, and a wills lawyer in Houston knows what those stipulations are. 

For example, all states require your will to be signed in the presence of at least two witnesses and they must sign in your presence and in the presence of each other. Something as seemingly trivial as improper witnessing procedure can result in the whole document being deemed null and void.

Wills and trusts aren’t merely about the distribution of the deceased’s funds either.  Children are the most valuable “asset” of an estate, yet a recent survey found that nearly 3 out of 4 couples with minor children had made no provisions for legal guardianship of their children should an event claim both parents’ lives at the same time. This may be an unusual circumstance, but it is by no means a rare one. An experienced wills and trusts lawyer will prepare the proper documentation needed to insure the wishes of the parents are carried out that your DIY estate plan may miss.

Another danger inherent in DIY wills is that they give a person a false sense of security. An individual may think that his/her affairs are all in order when, in actuality, something of importance may have been left out or an area of the form filled out improperly. Remember, there is no one-size-fits-all document that covers every situation. Online document mills are prohibited by law from dispensing legal advice, therefore they can not advise you of the forms you really need to protect your family and assets, nor will they represent you in court should it become necessary.

Sadly, DIY wills and trusts that are intended to save a few bucks can easily result in estate losses of tens of thousands of dollars.  If you have a DIY will or trust, the most important thing you should do is have it reviewed by an experienced Houston wills and trusts attorney.  Here at Hegwood & Associates, we will review your current estate planning documents free of charge so you can have the peace of mind knowing your family will be protected if the unthinkable happens. 

Just call (281) 218-0880 and ask to schedule a Lifetime Legacy Planning Session ($750 value).  However, these sessions are limited to 10 per month so call today!

Saturday, June 18, 2011

Houston Estate Planning Security: Have It Before You Hit the Sand

Imagine the scene—it’s vacation time. You push the umbrella into the sand, watch the ocean waves roll up onto the beach in sublime rhythm. Your kids run out into the water, maybe, toting boogie boards and laughter. It’s the summer – the week ahead stretches out lazily, and all you have to do for the first time in months is just relax and enjoy family time.

You sink into your beach chair, feel the hot sun blazing down on your skin … wait, hot?!

You jump and race up the beach to the nearest phone (unless you are one of those that can’t leave it behind) to call a neighbor, someone, anyone.

You realize you forgot to turn off the stove!

As frightening as that scenario is, there are equally important red-flags that should trigger a similar alarm when preparing for vacation. Take for example the vital questions such as what would happen if you and/or your spouse were killed on the trip? What would happen to your children if you were incapacitated thousands of miles away from home? Have you prepared your will?

The last thing you need to worry about on vacation is what will happen if you don’t come back, and a good set of estate planning documents will keep that worry far from your mind. This typically means setting up a will and a trust tailored to the unique needs of your family before hitting the road.

Remember, simply writing a few requests down on a piece of paper does not mean you have a plan in place! In a number of states, a will must meet statutory requirements to be ruled as valid in the eyes of a court. Even if that sheet of paper accurately describes your post-mortum wishes, there is no guarantee that the Court will even consider the document.

So, before you slip into your bathing suit and hit the surf – make sure you know that your family is taken care of by planning for the worst and expecting the best!

Friday, June 03, 2011

A Houston Wills and Trusts Lawyer Offers Advice for Newlyweds

By: Kim Hegwood, Houston Wills and Trusts Lawyer

In the midst of finding the perfect dress, choosing a venue, and tasting countless cakes, Houston newlyweds often overlook the importance of finding a reputable wills and trusts lawyer.  It’s easy to get caught up in planning for the wedding and to forget about planning for the marriage!  Really, though, the beginning of your new life together is exactly the right time to start your estate planning.

Perhaps you think it’s unnecessary because you don’t have what you would consider an “estate.”  Wills are not just about leaving property to your (potentially not-even-born-yet) children, however.  They help protect you and your new spouse, as well as other family members, should something unexpected happen.

Living Wills

Living wills are a powerful example of why newlyweds need a wills and trusts lawyer.  A living will declares your wishes in case you are unable to make them clear on your own.  Would you want to live on life support?  Do you wish to donate your organs?  Are there medical procedures that you absolutely would not want to undergo?  Your attorney can help you draw up the paperwork that makes your wishes clear and relieves your new spouse of trying to make those very difficult decisions in what would likely be the worst time of his or her life.

Along with a living will, you will likely also need to create powers of attorney.  These will designate who is able to make decisions for you, both medically and financially.  In many cases, this will be your spouse, but what would happen if you were both unable to make quick decisions for yourself?  A Houston wills and trusts lawyer will help you create these important documents according to our local laws and regulations.

Probate

If you should suddenly pass away, would your spouse or other family members have access to your insurance?  Your bank accounts?  Your property?  The answer is not as obvious as it seems.  Your estate could easily end up in Harris County probate, meaning that those who should inherit from you are denied access for months or even years.  Putting an estate plan in place can help relieve some of this burden while speeding up the process for your loved ones.  It can also save them considerable amounts of money.

A Houston wills and trusts lawyer will help you make sense of what needs to be done, and the process is actually far easier than many people imagine.  It’s also less expensive than you might think, and certainly less expensive than having your new spouse or family denied inheritance that should rightfully be theirs.  Just consider it one more administrative task that needs to be taken care of as you add your spouse’s name to your accounts, get a driver license with your new name, or take care of the other paperwork that comes along with being a newlywed.

At Hegwood & Associates, PC, we often work with newly married couples to create a plan that works now, but also takes into consideration your wishes and plans for the future (i.e. children, acquisition of new assets, business growth).  To get started, simply call (281) 218-0880 and request a free Lifetime Legacy Planning Session ($750 value). However, these sessions are limited to 10 per month so call today!

Thursday, May 26, 2011

More Questions To Ask Any Houston Estate Planning Lawyer

By: Kim Hegwood, Houston Estate Planning Lawyer

This is a problem which many families and lawyers overlook: Not ensuring there is a plan in place for regular communication as the laws and tax code change.
 
And there's actually multiple problems I have seen here. So here are some questions to ask any lawyer who you consider when putting together an estate plan:
 
1) "Do you have a team in place to handle my needs?"

Otherwise, this creates a less than ideal circumstance for a family who wants active management, as things inevitably slip through the cracks (certain matters develop or items are thought of later, etc.).

These solo houston estate planning lawyers have to spend so much time working "in" their practice, that they do not have the time (or often, inclination) to make sure assets are 'owned' properly (which means your plan will fail!) or that they are up to date on the changes which come through every year. This leaves new opportunities untouched, or worse ... it can create plans which work for 2011 ... but not for 2021.

And then what happens if your lawyer retires or passes away?
 
2) "What happens when things change in the life of my family?"

Unfortunately, even when there IS a team approach in place, often there is no previously-agreed-upon plan for communication when the laws inevitably change, or when family dynamics also become different.

Make sure that your lawyer will notify you appropriately when, in fact, there are changes to the tax or legal code that potentially impact you, and that they keep in regular communication with you otherwise.
 
3) "Does the planning fee include a regular review of your plan?"

If not, then you will be faced with having to initiate reviews yourself, and having to pay additional fees for the privilege, at that.

In fact, the optimum scenario is when a lawyer will provide you with some sort of "estate planning maintenance" program, or retainer program for ongoing service--which saves you money and gives you peace-of-mind over the course of your family's life together.

I hope these help!

Thursday, May 26, 2011

Updating Your Will with an Estate Planning Attorney in Houston

As an estate planning attorney in Houston, I commonly see people who understand the importance of the initial estate planning but then forget that they need to keep their wills and trusts up-to-date.  These documents aren’t something that should just be done once and then tucked into a safety deposit box never to be visited again.  Actually, there are several times in the course of your life that you need to dig out your wills and trusts and make changes.

·Marriage – Obviously, when you get married, you will have a new spouse to consider when it comes to things like inheritance, living wills, and powers of attorney.

· Divorce – If you don’t relish the thought of your ex receiving your estate, you may want to meet up with your Houston estate planning attorney to make some changes.

· Children – The addition of a child should trigger a need to reevaluate your will and other documents.  Estate planning is often thought of as a way to care for your children after your death, and that can only be done if you keep your documents current with the birth of each child.

· Purchases – If you acquire new assets, whether in the form of real estate or something else of value, you will want to call your estate planning attorney to be sure it is covered in your will.

· Health – You may find that certain health conditions cause you to reconsider the wishes outlined in your living will.  This ensures that your loved ones and healthcare providers are apprised of your decisions.

· Insurance – Over the course of your insurance policy’s life, you may find that you want to change the terms, such as the type of coverage you have or the beneficiaries of your policy.  When changes like this occur, it is important to have an estate planning attorney reflect that in your legal documents.

A Houston estate planning attorney will be current on federal, state, county, and city laws and will be able to guide you as you keep your wills and trusts up-to-date.  This protects you and your beneficiaries and can actually keep your will from being invalidated after your death.

So if it’s been awhile since you’ve updated your estate plan, I invite you to give our office a call and schedule a complimentary Lifetime Legacy Planning Session to have your documents reviewed ($750 value).  Simply call (281) 218-0880 to get started.

Wednesday, May 04, 2011

Houston Trust Lawyer Discusses Estate Plan Changes for 2011 and Beyond

As a Houston Trust Lawyer, this is something which I am seeing more and more in 2011, and it is a big mistake: lawyers and families not ensuring there is a plan in place for regular communication as the laws and tax code change. And, as we have seen this year ... that is inevitable.
 
There are, obviously, a few issues in play here:
 
1) Some lawyers don't have a "team" in place to serve the needs of families.

This creates a "less than ideal" circumstance for a family who wants active management, as things inevitably slip through the cracks.

These solo lawyers have to spend so much time working "in" their practice, that they don't have the time (or often, inclination) to make sure assets are owned properly (which means your plan will fail!) or that they are up to date on the changes which come through every year. This leaves new opportunities untouched, or worse...it can create plans which work for 2010...but not for 2011 (or 2020).

And then what happens if your Houston trust lawyer retires or dies?
 
2) What happens when things change in the life of your family?

Unfortunately, even when there IS a team approach in place, there is no previously-agreed-upon plan for communication when the laws inevitably change, or when family dynamics also become different.

Make sure that your lawyer will notify you when, in fact, there are changes to the tax or legal code, and that they keep in regular communication with you otherwise.
 
3) Does the planning fee include a regular review of your plan?

If not, then you will be faced with having to initiate reviews yourself, and having to pay additional fees for the privilege, at that.

In fact, the optimum scenario is when a lawyer will provide you with some sort of "estate planning maintenance" program, or membership group for ongoing service--which saves you money and gives you peace-of-mind over the course of your family's life together.

Wednesday, April 13, 2011

Two Bad Estate Plan Strategies | Houston Trust Attorney

By: Kim Hegwood, Houston Trust Attorney

Why do so many families end up with a big fat mess on their hands in dealing with their estate when there is a change in circumstances? Well, here are two reasons to start...

Going it alone with "cheap" online options
 
Did you know that many lawyers like to joke to one another about how good those online legal programs (LegalZoom®, Pre-Paid Legal®, etc.) are for our business? Why would that be?  First, because they are NOT as "easy to use" as claimed, and secondly...they actually cost you an arm and a leg in the long run!
 
You might think they seem like an inexpensive and safe option. But I am not referring to the money for the service itself.
 
Using those programs can end up leaving thousands (or much more) of YOUR assets in the coffers of Uncle Sam...even if you follow all of their instructions to a tee. I see it ALL THE TIME--frustrated clients bringing in online-generated plans, astonished at all the "hidden savings" my staff and I are able to find for them.
 
The security you get is actually false security. 
 
Even worse...
 
Choosing the WRONG asset allocation method can end up leaving your estate owing more to the IRS than if you had done nothing at all.
 
Now, it is not my intention to scare you, but again--I have seen it more than I would like. Frustrated families coming to see me during a period of great stress, and my staff and I having to attempt to "undo" poorly-crafted plans created by well-intentioned families (or even other lawyers) which ends up costing everybody far more than they would like.
 
So, I hope you are with me:  YOU AGREE ... choosing a well-trained and caring professional, who will put YOUR interests first--rather than just making another "sale" online.
 
With all that, now we come to the issues you will deal with in choosing the right planning lawyer for your needs.
 
Choosing a Houston trust lawyer who will charge you overly-high hourly rates for simple services
 
Many lawyers will lure you in with (again) "cheap" basic services...and proceed to rack up the fees as they execute planning services which really should have been covered by the flat fee.
 
When you are investigating flat fee services from a lawyer, here are some simple questions to ask:
 
* "Are all of your fees flat fees?"
* "What about ongoing work after the initial completion of my estate plan documents?"
* "What happens when I call with legal questions 2 years after my planning documents were completed?"
* "What if the questions are about something other than my estate plan?"
 
You need to be satisfied by the answers you receive to these questions, as they often sneak up on families after-the-fact, and can be a major drain on your family's cashflow.

And, of course, here is something which will make it even easier... (repeated from last week, because of good response)

+++++++++++++++++
"PROCRASTINATORS ONLY" Special Gift Certificate
$200 Towards Any Estate-Planning Service
"Yes, I Have Procrastinated In Preparing an Estate Plan ... But I Still Want to Protect Myself and my Family from All the New Tax Laws and Ensure That My Family is As Prepared and Protected As Possible With a Rock-Solid Estate Plan."
Deadline April 25th
Not valid with any other offer

Thursday, March 24, 2011

Houston Estates Lawyer Offers Advice on Talking to Your Parents about Their Estates

As a Houston estates lawyer, I know how common it is for each generation to avoid planning for their deaths.  Few people are eager to spend time thinking about their own mortality, including the parents that raised and cared for us.  Unfortunately, not spending a little time with a Houston estates lawyer can end up costing more than just a little time.

Discussing estate planning with your parents can be tricky.  Neither of you wants to think about the fact that they will one day pass away.  Not only that, but you likely don’t want to look greedy or uncaring.  That’s why you should approach the topic in a way that lets them know you have their best interests at heart.  Here’s two important things to keep in mind:

1. Estate Planning Protects your Parent’s Legacy

One of the most important things to remember when you’re discussing an estate is that it will be your parent’s legacy.  It is not the only way they’ll be remembered, but it does give them the opportunity to have a say in what becomes of the assets they worked so hard to acquire.  An experienced estate planning lawyer will be able to show them more options than they likely ever realized were possible.

2. Estate Planning Protects the Beneficiaries

Just because you’ve grown and gone out into the world doesn’t mean that your parents don’t still feel the need to “parent” you.  Taking the proper steps to plan their estate means that they can lessen the burden on their children and grandchildren at what is sure to be a difficult time.  Let your parents know that you want to follow through on their wishes, and by planning in advance, you can make sure that happens.

Acknowledging that our parents won’t always be here is a difficult thing to do, but it is a necessary part of preparing for the future.  By introducing the topic in terms of protecting their legacies and their beneficiaries, it is possible to turn the conversation into one of empowerment.  Once the subject has been brought out into the open, it’s best to take steps to speak with an experienced Houston estates lawyer to make everything official.

Thursday, March 17, 2011

Estate Planning for Houston and Beyond

Whether you live in Houston or Twodot, Montana, the need for estate planning is the same.  Sure, there are some laws that vary a bit from state to state.  Americans in general, though, need to prepare their estates in order to protect both their assets and those they wish to receive them.

If it mirrors the national average, then estate planning for Houston is only at about 35%.  That means that 65% of Americans have not yet prepared for what will happen to their assets when they die.  These assets might include cash, stocks, bonds, real estate, insurance policies, and even personal items and heirlooms.  Without proper estate planning, none of those things are well protected.

The first step in estate planning is to make a list of your assets.  This can then be used to create a last will and testament.  It’s generally best to meet with a Houston estate planning attorney, especially if minor children are involved.  In addition to figuring out who gets what item, this attorney can help you set up trusts and guardianships for those children.

Whether you have young children, adult children, or none at all, it is also important to create a living will.  This document allows you to make choices about your medical care should you be unable to explain them yourself due to illness or injury.  This explains to doctors the proper course of action to take, according to your wishes, even though you are unable to discuss it with them at the time of treatment. 

Estate planning for Houston residents should consider this vital information, including a power of attorney that officially transfers your decision-making authority to the person of your choice when needed.

Finally, it will be necessary to name someone as the executor of your will.  When you pass away, this person will handle the administration of your last will and testament, as per your instructions.  When conducting estate planning for Houston residents, a qualified estate lawyer will ensure that this executor is given the appropriate legal authority.  In some cases, the attorney may actually be the appointed executor.

Friday, March 04, 2011

Houston Wills and Estates Lawyer Discusses 3 Easy Ways to Protect Your Kids in an Emergency

Imagine being involved in a serious accident or suddenly dying without the authorities or medical personnel knowing that you have minor children waiting for you at home.  

Now imagine your children waiting for hours upon hours feeling scared, confused and helpless while their babysitter or other caregiver scrambles to figure out what happened and why you never returned.

Even worse, imagine social services removing your kids from their home during this devastating time because they can’t find legal documentation that says who the kids are permitted to stay with if something happens to you.

Scary thought, isn’t it?  Yet as a Houston wills and estates lawyer, I know that far too many area parents set themselves up for this devastating situation by not having the right emergency plans in place should the unthinkable occur.

Fortunately, there are 3 easy steps you can take right now to make sure your kids are protected if something happens to you. They are as follows:

1.     Legally document your choice of guardians- This is obviously the most important step in making sure your kids are cared for by the people you want, in a way you want, if something happens to you.  In addition to naming someone who can take care of your kids on a long-term basis, you’ll also want to name short-term guardians who can immediately show up and support your kids if the unthinkable happens.  Without such documentation in place, the authorities will have no choice but to place your kids temporarily into the care of social services until a judge can make this decision on your behalf.

2.     Carry a Guardianship Card in Your Wallet- This is such an easy, yet commonly overlooked step that will spare your children from hours of worry and anxiety if something unexpectedly happens to you.   Essentially, you are going to create a card for your wallet that lets the police or medical personnel know that you have minor children at home.  It should include your address, phone number and any other pertinent information necessary to get in contact with your kids.  Finally, the card should include your guardianship instructions so the authorities know exactly what to do if tragedy strikes.  .

3.     Leave detailed instructions with schools, babysitters and neighbors- Once you legally document your choice of guardians, it’s critical to leave such information with your child’s school, babysitter and even the next-door neighbors.  That way, if the police show up at your door, someone will have tangible, legal proof as to where you want your children should go in an emergency.

Yet again, it all starts by legally documenting your choice of guardians so someone has clear permission to care for your kids if something unexpectedly happens to you and/or your spouse.

If you have not yet documented your choice of legal guardians and are not quite sure how to start, I invite you to give our Houston estate planning office a call at (281) 218-0880 and schedule a Lifetime Legacy Planning Session.  These sessions are normally $750, but you can come in free with the mention of this article. Simply call (281) 218-0880 to reserve your spot today.

Wednesday, February 23, 2011

Houston Wills Lawyer: If You Care About Your Inheritance, Name Beneficiaries!

By Kimberly Hegwood, Houston wills lawyer

As a Houston wills lawyer, I know that many people think about…and even openly discuss who they want to receive their possessions if something unexpectedly happens to them.  They truly believe their expressed wishes hold legal weight and their family can use these directions to distribute their estate accordingly following their passing.

Yet merely expressing to loved ones who you want to inherit your estate and actually documenting your choice of beneficiaries in a will are two very different things in the eyes of the law!

That’s because your undocumented “wishes” will not keep your estate out of probate court.  The law is very clear that if you die without a will in place, the decision as to who gets what following your passing is no longer yours to make.

Instead, when an estate goes through probate court, a judge (who doesn’t know you or your wishes!) will have the responsibility of distributing your property directly to your surviving heirs (as defined by the Probate Code) as he or she sees fit.  This can be a problem for a number of reasons.

First of all, your “heirs” may not be your desired beneficiaries.  You may have wanted to leave your property or other affects to a friend, partner or even a distant relative much further down the bloodline.  Or perhaps you thought about leaving some money to your heirs upon your passing, but you also wanted to leave a few specific assets to your favorite charitable organization.  Either way, without having such specific wishes in writing, a judge would have no choice but to leave your assets to immediate heirs if there were no beneficiaries named in their place.

And even if you did want your biological heirs to inherit your entire estate upon your passing, allowing the probate judge to make such determinations is still problematic in that you have no say as to who specifically gets what if something happens to you (e.g., Mary gets the car, Billy gets the house, Sally gets the family heirloom collection).

Finally, it may be the case that you don’t want a certain heir to inherit any of your estate upon your passing.   The decision to disinherit an heir can be made for a variety of reasons, but unless you also spell this out in writing, he or she may still have legal claim to the assets you wanted to prevent them from getting their hands on.

Therefore, it’s extremely important that you take the time to make your wishes about beneficiaries known in your will or other estate planning documents while you are still alive and well to handle such matters.  Remember, you’ve worked hard to acquire everything you own and it only makes sense that you are the one who designates who gets what if the unexpected happens.

If you’re not sure how to get started documenting your end-life-wishes so they hold up in a court of law, give our Houston estate planning and probate office a call at (281) 218-0880 and schedule one of our Lifetime Legacy Planning Sessions. These sessions are normally $750, but you can come in free of charge with the mention of this article. However, this offer is limited to the first 10 callers so make your appointment today!

Thursday, February 17, 2011

Houston Will and Trust Attorney Discusses the Truth About Online Legal Options, etc.

By: Kimberly Hegwood, Houston Will and Trust Attorney

Why do so many families end up with a big fat mess on their hands in dealing with their estate when there is a change in circumstances? Well, here are two reasons to start...

1) Going it alone with "cheap" online options
 
Did you know that many lawyers like to joke to one another about how good those online legal programs (LegalZoom®, Pre-Paid Legal®, etc.) are for our business? Why would that be?  First, because they are NOT as "easy to use" as claimed, and secondly...they actually cost you an arm and a leg in the long run!
 
You might think they seem like an inexpensive and safe option. But I am not referring to the money for the service itself.
 
Using those programs can end up leaving thousands (or much more) of YOUR assets in the coffers of Uncle Sam, or in the probate process...even if you follow all of their instructions to a tee. I see it all the time--frustrated clients standing upon a poorly-constructed legal foundation, not just for their assets, but for the disposition of other important wishes (like the taking care of children).
 
The security you get is actually false security. 
 
Even worse...
 
Choosing the wrong asset allocation method can end up leaving your estate owing more to the IRS than if you had done nothing at all.
 
Now, it is not my intention to scare you, but again--I have seen it more than I would like. Frustrated families coming to see me during a period of great stress, and my staff and I having to attempt to "undo" poorly-crafted plans created by well-intentioned families (or even other lawyers) which ends up costing everybody far more than they would like.
 
So, I hope you are with me:  Choosing a well-trained and caring professional, who will put YOUR interests first--rather than just making another "sale" online is critical for any disaster plan.
 
With all that, now we come to the issues you will deal with in choosing the right planning lawyer for your needs. Here is another mistake:
 
2) Choosing a Houston Will and Trust lawyer who will charge you overly-high hourly rates for simple services.
 
Many lawyers will lure you in with (again) "cheap" basic services...and proceed to rack up the fees as they execute planning services which really should have been covered by the flat fee.
 
When you are investigating flat fee services from a lawyer, here are some simple questions to ask:
 
* "Are all of your fees flat fees?"
* "What about ongoing work after the initial completion of my estate plan documents?"
* "What happens when I call with legal questions 2 years after my planning documents were completed?"
* "What if the questions are about something other than my estate plan?"
 
You need to be satisfied by the answers you receive to these questions, as they often sneak up on families after-the-fact, and can be a major drain on your family's cashflow.

Wednesday, February 02, 2011

Houston Wills and Trusts Lawyer Asks, ‘Are You Afraid of Seeing Your Shadow Like the Groundhog?’

I’m not sure there are official statistics for this, but based on my years of experience as a Houston wills and trust lawyer, the number one reason people don’t do their estate plan is that they simply can’t face their own mortality.

In a way, we are like the groundhog…occasionally we stick our heads out of our warm, protected, cave of ignorance to think about what would happen to our family if something unexpectedly happens to us.  In regard to estate planning, are you the type of peek-out, see your shadow, and go back in to your safe and warm bunker and hide type of person?  Or do you step out and face the day and charge full steam ahead?

Interestingly enough, the tradition of the groundhog being afraid of seeing his shadow is a recent phenomenon.  The tradition started as a medieval superstition that all hibernating animals (not just the groundhog) came out of their caves and dens to check the weather in early February.  If the animal could see their shadow, it meant winter could go on for another 6 weeks which meant they could go back to sleep.  A cloudy day meant spring was just around the corner and they could venture out.  As you can see, shadow didn’t “scare” the animal back into the safety of their den.  It was simply an alarm clock of sorts!

So with that myth dispelled, I also want you to stop using the fear of your mortality as a reason for postponing doing your own will or trust.

Simply think of estate planning as a way to ensure that your legacy will go to the people you want, in the way you want, when you want.  It will also allow you to save your loved ones court costs, attorney’s fees and most importantly, will allow them to mourn your loss without the additional burden of dealing with government red tape, a chaotic court system and financial confusion.

So, as we see all the news and excitement surrounding Punxsutaney Phil this year, take a long look at yourself and see if you are ready to make sure your family is taken care of no matter what.  If your plans are sorely lacking, I invite you to give me, your neighborhood <insert city> will and trust lawyer a call to discuss your options. 

By simply mentioning this article, you can come in for a Lifetime Legacy Planning Session (normally $750) at no charge.  However, this offer is limited to 10 per month so call (281) 218-0880 to reserve your space today.

Thursday, January 20, 2011

Houtson Trust Lawyer Discusses Having the Right Tools for the Right Job

By: Kimberly Hegwood, Houston Trust Lawyer

A will is a simple legal document which describes what should happen to your assets upon death...and it is, frankly, not enough for most families. That is because the actual distribution is controlled by probate, without a plan in place. Upon your death, the will becomes a public document available for inspection by all comers. And, once your will enters the probate process, it is no longer controlled by your family, but by the court and probate attorneys.

Oh, this can be cumbersome, time-consuming, expensive, and an emotional trauma--all added on to a family's time of grief and vulnerability. Con artists and others have been known to use their knowledge about the contents of a will to prey on survivors. This, as you can imagine, must be avoided at all costs.

What is great about a Living Trust, is that it actually avoids probate and keeps everything totally private--because your property is owned by the trust. That way, technically there is nothing for the probate courts to administer! Whomever you name as your "successor trustee" gains control of your assets and distributes them exactly according to your instructions.

And one more big thing: a will does not take effect until you die, and is therefore no help to you with lifetime planning. As we all start to live longer, this is an increasingly important aspect of these considerations. A Living Trust can help you preserve and increase your estate while you are alive, and offers protection should you become disabled.

A few questions I often receive as a trusts lawyer in Houston:

"Who are the trustees for my Living Trust? Can I be one?"

YES. In fact, most Living Trusts have the people who created them acting as their own trustees. If you are married, you and your spouse can act as co-trustees. And you will have absolute and complete control over all of the assets in your trust. In the event of a mentally disabling condition, your hand-picked successor trustee assumes control over your affairs, not the court's appointee. That's nice peace-of-mind!

"Does a Living Trust help me to avoid income taxes?"

NO. You see, the purpose of creating a Living Trust is to avoid living probate, death probate, and reduce or even eliminate federal estate taxes. It is not a vehicle for reducing income taxes (see an accountant for that!).

In fact, if you are the trustee of your Living Trust, you will file your income tax returns exactly as you filed them before the trust existed. There are no new returns to file and no new liabilities are created.

We manage these trusts for our clients -- and we update them too! ( More on that in a  future Note, perhaps.) So, if you want to set one up (and I don't blame you), send me an email, or give us a call: 281-218-0880 -- and we will get this process started for you.

Thursday, January 20, 2011

Harris County Estate Planning Attorney Discusses Naming Separate Guardians For Your Kids

As a Harris County estate planning attorney, I work with parents all the time to make sure their minor children will be protected if the death or incapacity of one or both parents should occur.

One of the ways we do this is to name short-and long-term guardians, who are essentially the people with legal permission to take custody of your children if tragedy strikes.

Yet in my work as a Harris County estate planning attorney, I can honestly say that making a guardianship nomination legal is the easy part!  It’s choosing the actual people you feel comfortable with to provide your kids long-term care which is the hardest decision for most Houston area parents.

Not to mention the complications (and stress) that can arise when it becomes clear that the kids would fare better if left in the care of different guardians (and yes, perhaps even be separated from one another) if the death of one or both parents occurred.

Of course this is a decision that’s not to be taken lightly, but legally, there is nothing stopping you from leaving your children to the care of different people if it seems necessary for their future well-being. 

If in your conversation with a Harris County estate planning attorney you feel such a move is necessary, I urge you to make your wishes known and don’t feel bad or even guilty about your decision. Sometimes it’s clearly for the best.

Not sure when this would be an appropriate choice for your family? Let me give you an example as to when the decision to name separate guardians would come into play.

Let’s say you are a mother of 3 children.  You have two girls from your first marriage and your third child, a boy, is from the 2^nd. If something unexpectedly happened to you, the law dictates that your youngest son would be placed in the care of his father, provided he is still living. 

Yet you know that living with your current husband would not be the best arrangement for the girls.  The girls have never been close to your new husband and you can’t imagine the situation getting any better if you were gone.  Worst of all, the girls have no relationship with their biological father.  In fact, he signed over his rights in lieu of paying child support years ago.    So in your mind, leaving the children to him is not an option either.

Based on this scenario, you decide to make your sister the guardian of the girls, while your husband would continue to raise your son if something happens. 

Of course that’s just one of MANY examples in which the decision to appoint separate guardians for your children comes into play.  As I tell parents all the time, YOU and only you know what is best for the physical and emotional well-being of your children in a time of need.   While the ideal situation is to leave the kids together if possible, family dynamics or life circumstances may dictate that alternative plans be made.

Fortunately, that’s the beauty of estate planning.  It gently forces you to think about such situations in advance so your kids are given the best chance to thrive if something unexpectedly happens to you.  You can then document your wishes so there is no question as to who you want to care for your kids in your absence.

Haven’t made plans yet to legally appoint someone to care for your minor kids if something happens to you?

Then give us a call at (281) 218-0880 and request a Lifetime Legacy Planning Session. These sessions are normally $750, but you can come in free with the mention of this article.  However, these appointments are limited to 10 per month so call today!

Wednesday, January 12, 2011

Will Lawyer in Houston Explains Why You Need An Estate Plan NOW

By: Kimberly Hegwood, Will lawyer in Houston

As a will lawyer in Houston, I know most of us spend a considerable amount of time and energy in our lives working for our families and accumulating wealth.

But unless you are careful, all of it will be going to waste.

That is why a well-crafted estate plan is so critical. It ensures that your hard-earned wealth (including intangible, non-financial assets) can pass intact to those you intend to be your beneficiaries, instead of being siphoned off to government processes and bureaucrats or even being lost. We all dislike handing over our resources to those who don't have our best interests in mind.

Our estate plans guarantee that this will NEVER happen to your family!

"But Kimberly, what happens if I don't create an estate plan? Doesn't the judicial system have easy steps in place for families?"

Yep, and it is called "probate" (Latin for "prove the will"), and it is an ugly process.

You see, "Harris County probate" guarantees government interference in how you transfer your estate (however large or small). Documents must be filed and approval must be received from a court to pay your bills, pay your spouse an allowance, and account for your property. Oh, and even worse--it all takes place in the public's view.

If you fail to plan your estate, not only do you lose the opportunity to protect your family from an impersonal, complex governmental process (that is a burden at best) but it is slapped across the public domain for all to see.

Then, of course...there's taxes. You think the government is incentivized to keep those low on your behalf? There is a variety of solutions for each family's particular situation...but the plain fact is that working without a plan is U-G-L-Y no matter how you slice it.

When it comes right down to it, planning is a gift for your family (the people you love most) because if you don't take care of things while you are living and able, they will have a mess to clean up when you are gone.

Next week, I will give you a very simple tool, which will help you put a good plan in place.

But, if you want a head start (and I don't blame you), send me an email, or give us a call: 281-218-0880 -- and we'll get this process started for you.

Wednesday, January 12, 2011

Texas Estate Planning Attorney Discusses Naming Separate Guardians For Your Kids

As a Texas estate planning attorney, I work with parents all the time to make sure their minor children will be protected if the death or incapacity of one or both parents should occur.

One of the ways we do this is to name short-and long-term guardians, who are essentially the people with legal permission to take custody of your children if tragedy strikes.

Yet in my work as a Texas estate planning attorney, I can honestly say that making a guardianship nomination legal is the easy part!  It’s choosing the actual people you feel comfortable with to provide your kids long-term care which is the hardest decision for most Houston-area parents.

Not to mention the complications (and stress) that can arise when it becomes clear that the kids would fare better if left in the care of different guardians (and yes, perhaps even be separated from one another) if the death of one or both parents occurred.

Of course this is a decision that’s not to be taken lightly, but legally, there is nothing stopping you from leaving your children to the care of different people if it seems necessary for their future well-being. 

If in your conversation with a Texas estate planning attorney you feel such a move is necessary, I urge you to make your wishes known and don’t feel bad or even guilty about your decision. Sometimes it’s clearly for the best.

Not sure when this would be an appropriate choice for your family? Let me give you an example as to when the decision to name separate guardians would come into play.

Let’s say you are a mother of 3 children.  You have two girls from your first marriage and your third child, a boy, is from the 2^nd. If something unexpectedly happened to you, the law dictates that your youngest son would be placed in the care of his father, provided he is still living. 

Yet you know that living with your current husband would not be the best arrangement for the girls.  The girls have never been close to your new husband and you can’t imagine the situation getting any better if you were gone.  Worst of all, the girls have no relationship with their biological father.  In fact, he signed over his rights in lieu of paying child support years ago.    So in your mind, leaving the children to him is not an option either.

Based on this scenario, you decide to make your sister the guardian of the girls, while your husband would continue to raise your son if something happens. 

Of course that’s just one of MANY examples in which the decision to appoint separate guardians for your children comes into play.  As I tell parents all the time, YOU and only you know what is best for the physical and emotional well-being of your children in a time of need.   While the ideal situation is to leave the kids together if possible, family dynamics or life circumstances may dictate that alternative plans be made.

Fortunately, that’s the beauty of estate planning.  It gently forces you to think about such situations in advance so your kids are given the best chance to thrive if something unexpectedly happens to you.  You can then document your wishes so there is no question as to who you want to care for your kids in your absence.

Haven’t made plans yet to legally appoint someone to care for your minor kids if something happens to you?

Then give us a call at (281) 218-0880 and request a Lifetime Legacy Planning Session. These sessions are normally $750, but you can come in free with the mention of this article.  However, these appointments are limited to 10 per month so call today!

Thursday, January 06, 2011

Houston Probate Attorney Discusses How to Protect Your Inheritance if Your Beneficiary Dies Before You

By: Kim Hegwood, Houston probate attorney

As a Houston probate attorney, I help families every day choose who they want to be the beneficiary of their estate when they pass away.  While this may seem like an easy task, it can actually get quite complicated if you have very specific wishes as to whom you want to receive your assets upon death.

For example, you may specifically want your house to go to your oldest child, an expensive jewelry collection to your favorite niece, journals and memoirs to a granddaughter and a modest financial gift to your favorite charitable organization.  You’ve thought long and hard about this and you know you want theses wishes to be carried out upon your passing, no matter what.

Yet despite your best intentions, have you thought about what would happen to such assets if your chosen beneficiary was not living at the time of your death?  

I can tell you in my experience as a Houston probate attorney that most people don’t, and this oversight could easily result in someone you would never want to inherit your estate when you are gone (which is exactly why DIY wills are so dangerous—it often takes an attorney to point out things you should be adding to your estate plan for maximum protection).

Fortunately there is an easy solution to this, and that is naming alternative beneficiaries to inherit your estate if a chosen beneficiary precedes you in death.

So let’s say for example that you want to leave one of your properties to a very close family friend, Hector.  Yet at the same time, you do not want the property going to Hector’s heirs or anyone else for that matter if he dies before you.  In this case, you would then name an alternative beneficiary, your niece Mary, if Hector is no longer alive to inherit the asset.

As you can see, this clears up any confusion and will ensure your inheritance does not wind up in the hands of someone you would never want if your original beneficiary dies before you.

Yet I realize many people avoid taking this extra step to name alternative beneficiaries because it can be painful to think about.  This is especially true for parents who want to leave everything to their children and can’t bear the thought of a child dying before them.

Of course as a Houston probate attorney, I understand and sympathize with this fear, but it’s also important to remember that you are doing your surviving heirs a huge favor by dealing with this issue so they don’t have to.  You certainly don’t want a judge who doesn’t know you or your family deciding what to do with your estate if you fail to name alternative beneficiaries.

So if you have a will that does not list alternative beneficiaries in the event your chosen beneficiary precedes you in death, I urge you to meet with a Houston probate lawyer to discuss how to update your estate planning documents.   By simply mentioning this article, you can come in for a Lifetime Legacy Planning Session (normally $750) free of charge at our Houston office. Simply call (281) 218-0880 to reserve your spot.

Tuesday, December 28, 2010

Houston Asset Protection Lawyer Discusses Generation-Skipping Gifts Opportunity

By: Kimberly Hegwood, Houston Asset Protection Lawyer

The practice of giving (tax-free) gifts to your children, in advance of estate transfers, has been around for a while. But any gift of over $13,000 has always been subject to the "Generation-Skipping Transfer Tax". This tax was set up in the eighties to prevent asset transfer for the purpose of avoiding said estate tax. It is typically the same rate as the estate tax. So, any gift over $13K would be taxed at those rates.

But not right now, it's not.

You heard me right.

With the (recently-signed) tax agreement, the tax rate is ZERO for any "generation-skipping" transfer made by 12/31/10.

Now, this won't apply to everyone, of course, but this is a welcome opportunity for the right situation. And you will need to act quickly, because beginning January 1, 2011, the tax rate for these transfers will be 35% (the same as the new estate tax rate). Further, that rate is set to go back to 55% in two years, unless Congress changes it again.
 
The best part? Even if you don't yet have grandkids, you can take advantage of this "loophole" by setting up the right vehicles now.

But you will have to act quickly. These sort of moves are what we routinely "pull off" on behalf of our Houston Asset Protection clients, and if you contact us quickly (281-218-0880 or by sending me an email), we can put the papers together to make it happen for you.

Again, this won't apply to everyone ... but if you think a friend might be interested, feel free to send them this article and have them contact us.

And, on the early note -- let me wish you a premature Happy New Year, 2011!

Wednesday, December 22, 2010

Texas Wills and Estates Lawyer Discusses How a Texas Divorce Affects Your Will and Trust

While I’m not a divorce lawyer, I know that getting a divorce in Texas can be an overwhelming process.  There are so many decisions to make and things to do that it’s hard to keep everything straight.  But as a Texas estate planning lawyer, I also know there is one thing that divorcing couples must remember to do—and that is getting your will or trust updated.

Forgetting about your estate plan is understandable from any perspective.  You’re so busy thinking about living arraignments, finances and custody agreements that you simply forget to contact an estate planning lawyer to make sure your spouse will no longer be the beneficiary of your estate once the divorce is final.

And while I admit estate planning is easy to overlook, it’s still something that must be taken care of either before you file or immediately after your divorce is complete.

This is especially true if you have a life insurance policy, retirement accounts, investments, property or even a joint trust with your current spouse.  If you fail to take steps to create a single person trust or designate new beneficiaries on your other assets, your ex-spouse will still receive everything you own—even after you are legally divorced.

Similarly, if you don’t create an updated power of attorney and living will, your soon-to-be ex-spouse will be the only one with legal permission to make decisions for you if you are permanently or temporarily incapacitated.   For most people, the thought of their soon-to-be ex making decisions such as medication administration, life-support or nursing home vs. home health care is frightening.  Also, the ex most likely does not want that responsibility any longer.  That is why it is critical to get these issues addressed at some point before or after the divorce proceedings.

However, there are strict time-frames as to when you can update/amend your estate planning documents during a divorce in Texas, so please make yourself familiar with the following guidelines:

Updating Your Estate Plan Before Filing Divorce in Texas

As a Texas estate planning lawyer, I highly recommend you consider revoking and restating all of your estate planning documents before filing for divorce.  This includes updating your advanced healthcare directive (also known as a living will) and financial power of attorney so someone other than your spouse has the ability to make financial or medical decisions on your behalf if you are unable.   This is especially true if you’re gearing up for a messy divorce which could likely drag on for a number of years. 

You’ll also want to change the beneficiaries on your life insurance policy, retirement accounts and other investments.  If you have a joint trust with your spouse, you’ll need to talk with your Texas will and trust lawyer to find out whether you must provide notice to your spouse before it is revoked. 

Updating Your Estate Plan During Divorce Proceedings in Texas

During your divorce proceedings, the ability to revoke your trust or name new beneficiaries on certain accounts can be halted.  What’s known as an Automatic Temporary Restraining Order (ATRO) will kick in to ensure your assets and ownership interests stay the same until an official division of assets and ownership interests takes place.  Therefore, it’s important to note that if you pass away during this time, your soon-to-be ex-spouse will still become the beneficiary of your estate.  You can, however, update your will, power of attorney and living will during this time to minimize the amount of power your ex-spouse would have if something unexpectedly happens to you.

Updating Your Estate Plan After a Divorce in Texas

After the divorce proceeding, you are considered a single person in the eyes of the law.  You are free to update, revoke and amend your estate planning documents as you see fit.  However, as a Texas will and trust lawyer, I’ve come to find that many people falsely believe their spouse is no longer entitled to their assets once the divorce is officially granted.  While it’s true that some estate planning powers may be automatically revoked after the divorce (such as the ability to speak for you medically if you were in an accident), if you have outdated legal documents in place that still include your ex-spouse, he or she will still be the legal beneficiary of your estate or specific assets upon your death.  Therefore, it’s important to make sure every legal document you have is updated immediately following your divorce.

When to Get Help

I always advise people in Texas to at least meet with a Texas estate planning attorney, in addition to their divorce attorney before ultimately filing for divorce. That’s because it’s important for you to know exactly how the divorce proceedings will affect you and/or your children, especially if you become incapacitated or pass away suddenly during the process.

With so much going on during divorce it is difficult to think about adding another legal process.  However, it is critical to make sure your estate plan reflects your new circumstances to avoid everything you own going to your future ex-spouse if you pass away or avoid having him or her legally responsible to make medical or financial decisions for you in the event of incapacity.

Thursday, December 16, 2010

Why To Give, No Matter The Benefit

I know as an estates lawyer in Houston, when we set up GRAT's (a Grantor Retained Annuity Trust), or other mechanisms for clients to deliver their philanthropy, there is much discussion about the benefits of the gift.

But what about for the giver?

This does not quite work, when the giver is an estate--but since I am not writing to a bunch of estates (I am writing to real people!), I will proceed with some strong words about WHY you should be giving, no matter how effectively your money is spent by the charity!

1. Tax Rate Leapfrogging.
You can bump yourself into a whole different (lower) tax rate, at times, by reducing your taxable income. This is something to consult with your CPA about, if you wonder if you are on the fence.  (If you need a recommendation for a qualified local tax pro, just let me know in the comment section below.)

2. Your heart changes.
Studies show (http://www.livescience.com/health/080320-happiness-money.html) that when individuals spend money on gifts for friends or charitable organizations, their happiness increases -- while those who spend on themselves get no such boost. Even Scrooge can agree that everyone wins.

3. You can double your money without doing any work.
Instead of simply sending off your money, why not find out if anyone is offering to match? Sites like www.DonationDoubler.org have lists of companies that will match your charitable contribution. Find one you like and suddenly you contribution goes twice as far!

4. You're just going to blow it on something dumb anyway.
As pious as you are, there is still extra money in your budget somewhere. Create a budget for charity donations, then take some of your extra money (each month or each year) and donate it to charity. Use your spending money to make a difference instead of spending it on Brookstone junk you'll use once. And if you think you do not have enough, take that extra 2% you'll be earning next year and put that toward a charity fund. For someone making $30,000, that is about $500!

5. Face it: If you don't help now, you never will.
Don't pretend that instead of giving money, you are going to donate time. When was the last time you volunteered at a soup kitchen? Don't let your mind fall for this trick. Send the money now or you will end up giving nothing.

6. Be a leader, not a follower.
This is the biggie, in my opinion. There is just something that happens in your psyche when you cut a big (or relatively big) check to someone in need, or to a charity organization. You feel more powerful--more dynamic. You signal to your own unconscious: "Money does not rule me. I have more than enough, so much more than enough that I am giving it away." Then, of course, something special often happens: more money seems to find itself in your hands.

I am not advocating a mystical pay-it-forward scheme; I am simply making the observation over years of being a student of how money "works". And, it just seems to find itself in the hands of those who give it away.

So--was any of this convincing? Did it help you see things in a new light? Let me know...

As your estates lawyer in Houston, I hope this was simple and straight--as usual.

Thursday, December 16, 2010

Houston Wills Lawyer Offers Important Considerations for Snowbird Season

‘It’s the time of year…time for all the snowbirds to take flight,’ says Houston Wills Lawyer

By: Kimberly Hegwood, Wills Lawyer in Houston

Snowbirds are traditionally known as people who take flight every winter heading south to a warmer climate.  However, in today’s mobile society, more and more retired people reside in more than one state during the year for reasons other than the weather.  Who can resist those grandchildren?!

If you fall into the “snowbird” category, it is important for you to think about whether your estate plan is going to work for you as you planned.  When it comes to planning for a duel residence client, it is important to address issues and develop a plan that will work effectively in both states.

Most people are aware of how critical it is to have up-to-date advance medical directives, durable power of attorney, designation of a health care advocate and a living will.  However, what you may not know is that each state has its own set of laws and rules which may mean that your documents won’t work as you planned in another state.  Even if the documents meet the technical requirements of the other state, a hospital or doctor may not choose to honor the documents which may mean your decisions regarding end-of-life or disability care may not be honored.

If you are a dual resident, it is important to talk with an experienced Houston estate planning attorney so that they can provide specific direction regarding individual state requirements. So if your will or trust was created before you owned property in another state, be sure to call and make an appointment with your Houston wills attorney to go over your will or trust to make sure that it will work just as you planned.

Wednesday, December 08, 2010

Will Lawyer in Houston Encourages You to Take One Day And Save

It's true: as a will lawyer in Houston, I know inactivity is costly.

You see, if you are like most people, I bet that when you get your house insurance renewal notice, you quickly glance at the price -- and renew it.  You renew it simply  because you do not have the time to search around for better prices.

In my experience as a will lawyer in Houston, working with family finances for YEARS, I have learned that most people have a good sense of what needs to be done to improve their finances but they simply cannot find the time.

So here is my proposed solution for you:  Take a day off work.

In fact, many financial tasks simply cannot be completed in the evening or on the weekend.  By taking a day off work, you can contact people who may only be available at regular business hours.

On top of the true bottom-line impact a day like this could create, there is, of course, the "mental health" aspect of it all. HR professionals often recommend taking a mental health day, from time to time--well, call this your "Fiscal Health" Day!

Possible tasks to consider accomplishing on your day off:

1. Dump your savings account with a puny interest rate and open a high yield savings account.
2. Get quotes for cheaper insurance: health, life, auto, house, and any other insurance. And you can even do a little calculating to determine how much you could save by changing your deductible.
3. Complete the most important (but not obviously-pressing) financial tasks like making a will. Best done with a professional, by the way! (Yes, I am biased--but I have also seen a lot of probate, and a lot of poorly-constructed wills!)
4. If you're carrying credit card debt, call the companies and ask them to reduce your credit card interest rates. Believe it or not--they will often say yes! Take time to develop and formulate a good plan to get out of credit card debt.  Find or prepare a debt reduction plan.
5. Apply for a cash back debit card. Here's a good one: http://www.perkstreet.com/default.aspx?PerkStreetCode=3721477
6. Get more organized with your finances by shopping around for and using a good personal finance software program.  
7. Review your budget, get caught up on your budget, or learn how to budget.
8. Shop around for the best online broker.  Be sure you are getting the best price for your stock trades.
9. Make energy efficient changes to your home and lifestyle.
10. Find a good second hand store to shop at instead of the local department store.
11. Set up automatic payments for your bills to be sure you avoid late payments.
12. Google It.  Use the phrase "how to save money", and then fill in the blank "on groceries", "on gasoline", "on kitchen expenses", "on babies" ...
13. Sell stuff on Ebay. Look for junk lying around the house and list it on Ebay.

Undoubtedly, there are more things which can go on this list, if you are industrious about it. But simply put, I am hoping to give you "permission" to see your financial health in a similar light as you see your mental health.

I hope this was simple and straight--as usual.

Wednesday, December 08, 2010

Avoid Probate in Harris County Using Transfer on Death (TOD) Agreements

By Kim Hegwood, Harris County Probate Lawyer

Avoiding probate in Harris County is a very real concern for people who want to make sure certain assets such as stocks, bonds, brokerage and bank accounts automatically pass to their heirs upon their death.

In such a scenario, Transfer on Death Agreements (also known as TOD’s) can be a very useful and convenient estate planning tool in making sure your loved ones are financially taken care of in your absence.

Essentially, Transfer on Death Agreements allow you to pass ownership of your accounts directly to a beneficiary of your choosing when death occurs.  Without such designations, each account would have to go through the probate court before it can be distributed to your desired heirs. 

Yet you may be wondering, “What’s wrong with going through Harris County probate and why bother with tools such as TOD’s to avoid it?”

Well for starters, many people wish to avoid involvement with the Harris County probate court simply because it could take a year or longer before the funds actually reach your desired beneficiaries.  This is problematic for families who desperately need the assets to pay for burial expenses, outstanding medical bills, mortgage payments, and general living expenses.

Not to mention, the value of your assets passing through probate may be reduced by as much as 5%, as mandatory attorney and court fees will be taken directly out of the estate.

Finally, one of the greatest drawbacks of probate is that the value of your assets will be made public for the whole world to see. This aspect of Harris County probate is especially troublesome for people who do not want every scam-artist or busybody in town knowing what their heirs stand to inherit upon their passing.

Yet it is important to remember that while TOD agreements will help you avoid probate on some of your assets, it won’t help you avoid probate on the rest of your personal effects such as jewelry, collections, family heirlooms, the contents of your home, etc.

Nor will TOD agreements help you minimize the amount of estate taxes your family might have to pay upon your passing or protect your assets if incapacity and not death occurs.

That’s why it’s so important you speak with a Harris County probate attorney before making any decisions about your financial or legal affairs.  While a TOD is indeed a useful estate planning tool that can help you avoid probate, it may not be the best – or the only tool your family needs to ensure they are protected should something unexpectedly happen to you.

Fortunately, we’ve made the process of meeting with a Harris County probate lawyer easier than ever by offering free Lifetime Legacy Planning Sessions (normally $750) to anyone that takes the time to read this informational article.  However, these sessions are limited to 10 per month, so call (281) 218-0880 to reserve your spot today.

Thursday, December 02, 2010

Estate Planning Lawyer in Houston Reveals Best Holiday Tax Moves

As an estate planning lawyer in Houston, I obviously pay close attention to the estate tax situation. Still waiting for Congress on that one!

But whatever they do, I am all for my clients keeping their tax bill low, and I pay close attention to the tax code for all of our estate planning decisions.

But the problem for many families is that many tax advisors make things so complicated! (Of course, many situations are, indeed, complicated...but come on--plain English sometimes would help.)

So, I thought I would chime in, and translate some of the CPA gobbledy-gook into simple steps which will keep your tax bill from biting you in the rump come tax time...

1. Sell certain (appreciated) assets
Right now (until Dec. 31 at least), the long-term capital gains tax rates are at historic lows. Come January 1, there is a very good chance they could be slightly--or significantly--higher.  So you will pay less taxes if, by Dec. 31, you sell stock and other assets that have appreciated and which you have owned for more than a year.

If you are in the 25 percent tax rate bracket or higher, your long-term capital gains rate is just 15 percent. If you are in the 15 percent income tax bracket or lower, you will not owe any capital gains taxes.

2. Donate
It is not just because 'tis the season, but often (if we are all honest) because the year-end is so close. So, obviously, when it comes to taxes, giving to a nonprofit can be like a money-saving gift to yourself. If you itemize your deductions, you can claim your charitable donations, both of cash or goods.

In fact, if you are *close* to being able to itemize deductions, making some nice gifts this month can push you over the top into some major tax-savings. And, of course, there is the added benefit of what happens to YOUR mindset when you give.

What is even better, in 2010--and this year only (at least for now)--there is no itemized deduction limit for anyone. So everyone who itemizes deductions, regardless of how much they make, gets to claim all of their itemized deductions.

But one caveat: increasing deductions could cost you if you end up owing under the alternative minimum tax.

3. Make the switch to Roth
Changing a traditional IRA to a Roth is even better this year because the $100,000 income threshold is gone. (However, taxes still will be due on any converted money that was not previously taxed.)

Even better: if you make the traditional-to-Roth IRA switch by Dec. 31, you can defer payment of the associated taxes until you file your 2011 and 2012 tax returns.

The same thing applies to certain 401(k) accounts too ... you can defer tax payment over the next two years.

4. Put Those New Windows In!
Many "tax people" have been pounding this drum for a while, for the simple fact that (because of the last "stimulus" package) replacing windows, doors, and HVAC  systems-- as well as installing new insulation--could net you a $1,500 tax credit on your 2010 tax bill! Credits always beat deductions. Note, however, that if you claimed the full credit on your 2009 return, you don't get it again this tax year.

5. Adjust your withholding
Do you intentionally get a big refund each filing season? Quit that! You are providing Uncle Sam an interest-free loan of your money.

Submit a new W-4 now so that your payroll withholding is more closely in line with your future IRS bill. It could even give you a few extra dollars at the end of the year to spend on holiday gifts!

Oh, and just so you know, it is growing very likely that whatever Congress decides on the tax cuts, payroll calculators may not have time to update by January 1st. So, keep that in mind as well, if you are on a payroll.

I hope this was simple and straight--as usual.

Thursday, December 02, 2010

Houston Wills and Estates Lawyer Answers, ‘Will Filing Bankruptcy Jeopardize the Inheritance Left to Me By a Loved One?’

By Kimberly Hegwood, Houston wills and estates lawyer

Perhaps you saw it on the news a few weeks ago that economists on Wall-Street declared the recession officially over. 

I’m not sure how they came to such conclusions, but I look around and still see far too many friends and family struggling to recover from the chaos to really consider it over.   And while I acknowledge things may be improving on some fronts, I still find it hard to objectively look at a father who can’t find work or a mother who’s lost a huge chunk of her 401(k) plan to say our Country is officially in the clear.

I’m equally saddened by the number of bankruptcies taking place right now.  For many families, bankruptcy is the only way to break free from the mountain of debt that constantly rests on their shoulders.  Of course that’s not to say this decision is ever taken lightly by those who file, as the consequences of bankruptcy are long-lasting and sometimes severe—especially if you stand to inherit money.

Let’s say for example that you had a family member pass away who left you a cash gift in their will or trust.  On the surface it seems like this would be a much needed and timely relief for a family going through bankruptcy.  However, Federal bankruptcy rules declare that if you inherit money from a person who dies within 180 days of the date you filed for bankruptcy, you must tell the courts.   In simple terms, that means the inheritance now becomes a part of your bankruptcy estate and will be distributed to your creditors as the courts see fit.

This also applies to items that you may inherit such as cars, jewelry or furniture.  All of these items are subject to the administration of the bankruptcy estate.  However, this doesn’t mean that items like this are certain to go up on the auction block.  You can claim exclusion on certain things and the bankruptcy trustee has a certain amount of discretion in choosing what to liquidate. However, it can be extremely stressful to think about a family heirloom that has been in your family for years going to your creditors.

Hopefully your loved one had a Houston wills and estates attorney who knew a thing or two about protecting their inheritance from things like bankruptcy, creditors, divorce and the like. Ideally, your loved one would have been advised to set up a trust so any inheritance passed down to their family members would be out of reach from creditors and the courts.  If they did not, and you have not filed bankruptcy yet, this may still be an option if your loved one is willing to have their plan looked at by a qualified Houston wills and estates attorney.

Planning to avoid giving your hard-earned wealth to creditors is not illegal or immoral either.  You should think of it the same way you would when considering tax planning.  Tax planning is fine, but tax evasion is not.  The difference is whether you play by the rules and are honest.  For example, not telling the courts you received an inheritance is illegal and you could face serious consequences.  However, you are not skirting the rules if you are the recipient of a spendthrift trust.  That wasn’t your choice.

If you or your loved one needs help facilitating such a trust to protect your inheritance from the claims of creditors, simply call our Houston wills and estates office at 281-218-0880 to schedule a Lifetime Legacy Planning Session at no charge ($750 value).  We will walk you through the necessary steps that must be taken to protect your inheritance from a bankruptcy filing or any other creditor’s claim. However, these appointments are limited to 10 per month so call today!

Wednesday, November 24, 2010

Houston Trusts Lawyer Reveals the Privacy Advantages of a Living Trust

By Kimberly Hegwood, Houston trusts lawyer

I find as a Houston trusts lawyer that many people don’t realize the privacy issues that will face their family should they die without a living trust.  That’s simply because upon your death, everything you are leaving behind to your loved ones automatically becomes a matter of public record—even if you have a will or other estate planning documents in place!

While this may feel like a huge violation from a privacy perspective, it also presents a safety issue to those inheriting your estate.  There are a lot of unscrupulous people who prey on widows and other beneficiaries and try to separate them from their inheritance.

So why does the County make this information available to the public?

The lack of privacy is understandable if you know the true purpose of probate.  One of the primary purposes of probate is to make sure the creditors of the deceased person have an easy way to collect any debts they are owed from their estate. For that reason alone, the probate process must be open and public.

This information is also made public so the creditors of your beneficiaries have notice that they are inheriting an estate.  Under this scenario, the creditors could bring an immediate claim against your beneficiary, which may ultimately result in your beneficiary never receiving the inheritance you wanted to leave them.

However, to be clear, I am in no way advocating that debts go unpaid.  In fact, you should instruct your executor to pay your debts.  But, wouldn’t you rather direct how this process goes rather than leaving it to the courts?

One way to do that while simultaneously stopping the violation of privacy and loss of control of your estate is to create a living trust.

Unlike a will, a living trust is a private document that will not become a matter of public record because it does not have to be filed with the probate court.  Therefore, you can name beneficiaries and provide gifts while still attaining privacy since only the trustees and those involved in trust administration will know the contents of a living trust.  This means that no creditor of yours or your beneficiaries, no disgruntled relative, no scam artist, and no nosey neighbor will ever know the details of your financial history.

Remember, there are people out there who make a living preying on young or vulnerable people that have just inherited something from an estate. They troll these public records daily looking for victims of their next heist or scam.  Fortunately, with a bit of planning, you can protect your family from such privacy violations that accompany the probate process.  I recommend talking to your Houston trusts lawyer about living trusts and how they can help your family if something unexpectedly happens to you.

Fortunately, we’ve made that process easier than ever by making 10  free Lifetime Legacy Planning Sessions available to readers of our blog.  Simply call (281) 218-0880 and mention this article to reserve your spot.  Your family will thank you for it.

Thursday, November 18, 2010

Estate Planning Attorney in Houston Discusses a Will vs. a Trust

I know as an estate planning attorney in Houston, parenting is more than reading to your children or getting them to eat their vegetables. It is also about securing their financial future.

But, many parents are confused about exactly how to decide whether they should do this. They hear the "trust fund baby" conversation, and they assume it is only for the uber-wealthy.

Not true. In fact, for some "uber-wealthy" it may be the WRONG tool! And, alternatively, for some in the "middle class", it is still quite a useful legal instrument.

So, as an estate planning attorney in Houston, I am going to put the kibosh on all of the confusion out there, and lay this out, real simple-like. Here are the questions to consider:

Do you foresee leaving your children more than just a modest amount of money?

A trust may not be worth the effort if you think you will only be leaving a child (or children) $100,000 or less. But don't write yourself off too fast! Because if you are leaving life insurance money to cover four years of school and you own a home, there is a good chance a trust would make sense for you.

Do you want to have control over *exactly* how the money is spent?

A trust allows you to restrict spending to basic support, including food, clothing, education and health care. This is something that can't be done with a custodial account. If the custodian has a soft touch, he could end up lavishing your child with designer jeans and a fancy car, leaving very little for the college years. Even worse, if the custodian is also the guardian, he could start writing himself large "support" checks to help cover his other expenses.

Would you prefer that your children not inherit the money when they turn 18 or 21?
If you think giving a high-school senior a large sum of cash is a recipe for disaster, then you should consider a trust. The ability to delay inheritance is the main draw for couples who decide that their children should be eased into significant financial decisions.

Do you want the money to be only used for a certain purpose?
Like many parents, if you specifically bought life insurance so that there would be enough money to help fund college in the event of your death, then you will definitely want to delay the age at which your kids inherit your money. Otherwise, your child could think a red Ferrari is a better investment than a crimson Harvard diploma, or some such.

Would you like your children to have recourse if their money is mismanaged?
One more benefit of a trust that you don't get with a custodial account is that a trust is a legal contract; the trustee has an obligation to follow your directions and act in a reasonable and prudent manner. If the beneficiary feels the trustee spent the money frivolously, he can demand an accounting, and can sue for reimbursement if the trustee acted improperly with the funds. It may be pretty tough to prove illegal or improper actions with a trust, but just the threat of a possible lawsuit can keep someone in line.

So, to make that that decision an easier one to make...

+++++++++++++++++++++++++++++++++
$750.00 Towards YOUR Lifetime Legacy Planning Meeting
Special Gift Certificate
From Kimberly Hegwood, Estate Planning Attorney in Houston
(281) 218-0880
Print This Email, and bring it to our office to claim your $750 credit towards a Lifetime Legacy Planning Meeting.

Expires November 19th, 2010 -- extended!
Not valid with any other offer
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Thursday, November 18, 2010

Houston Estate Tax Lawyer Offers Gift Suggestion for Your Grandchildren

By Kimberly Hegwood,  Houston estate tax lawyer

As your Houston estate tax lawyer, I’d like to ask how your holiday shopping is going?  If you are like me you are trying your best to fit that in with all of the other holiday planning and day-to-day obligations.  What if I told you to skip the malls when looking for a holiday gift idea for your grandkids?  What if you give them a family limited partnership instead?

Huh? 

Let me explain…

While the estate tax lapse seems to be hogging the spotlight this year, there is also a lesser-known gap that is offering many people a tax-free way to pass on some of their wealth to their grandchildren.  

The generation-skipping transfer tax, or GST, has also been repealed for 2010.  This means that you can leave outright gifts to your grandchildren as long as those gifts meet certain conditions.  The definition of a “gift” is fairly broad, but one way to take advantage of this is to set up a partnership and then give away units to your grandchildren. This will mean that you can put funds into a family limited partnership and transfer them tax-free but also transfer it in a way to keep the kids from getting control of the assets all at once and possibly squandering them.

The GST is different than income, estate and gift taxes.  The purpose of this tax is to keep people from transferring property many generations down without paying any tax.  So, the GST is imposed if the transfer avoids gift or estate tax.

So, say a man dies with a large estate and leaves his property in a trust with the income payable to his children.  At his death, his trust assets go to his children.  The man’s estate would then owe estate tax.  But when his children die, the trust property would not be taxable in their name so the family will have avoided paying for a generation of estate tax. In this instance, the GST would apply.

It is important to point out that the GST applies to anyone, not just family, so this would apply to unrelated beneficiaries as long as they were at least 37 and one-half years younger than the deceased.

There are limits to what you can exempt in generation skipping gifts and you are only allowed to use them in certain circumstances.  So, it is important to talk to an experienced Houston estate tax attorney when considering this. 

So, as you are pondering your holiday list you might want to consider this for your grandchildren.  This will be a gift they will remember (and thank you for!) for the rest of their lives!

Wednesday, November 10, 2010

Young, Hip, and Vulnerable – Houston Estate Planning Attorney Discusses 4 Reasons That Young Professionals Need an Estate Plan

By Kimberly Hegwood, Houston estate planning attorney

As a Houston estate planning attorney, I know Generation Y has a lot to think about…starting their careers, buying their first home, starting a family.  All of these things are beginnings, so it’s a rare day when someone in this generation wants to think about The End.  But there are 4 reasons that they might need to.

A lot of people think that youth is an excuse for putting off doing a will or trust.  But estate planning is not just about planning for your death.  It is also prepares you in the event you experience an incapacitating injury and are unable to make your own financial or medical decisions.  While the odds are certainly in your favor that you will not need an estate plan, you should still consider these four scenarios…

1. You need a plan in the event that you become disabled or incapacitated.
   Unfortunately tragedies happen every day.  And you are not immune to them because you are young.  If something happens to you and you are no longer able to make decisions regarding your own financial, legal, and medical affairs you’ll need to make sure that there are basic documents in place such as a medical directive, power of attorney and HIPAA authorization so someone can.
2. You need to pass your assets. You might be asking, “What assets?”  Even if you do not yet own your own home, you need to consider IRAs, retirement accounts and life insurance accounts offered through your employer. You need to make sure that beneficiaries are named in the right way to make sure that the people you want to leave them to get maximum benefit.
3. You need to name guardians for your kids. If you have children, you simply must name guardians.  You should be the one who decides who will raise them if you are no longer around.  You do not want this decision left to squabbling relatives or to a court system who doesn’t know you or your child.
4. You need to plan for your pets. If you have a pet, chances are they are a big part of your life.  They are totally devoted to you and also totally dependent on you.  Have you stopped to think what might happen to them if something were to happen to you?  If you want to make sure your companion is cared for if the unexpected happens, you could choose to put together a plan for their continued care.  The plan may include directions about feeding, medical care and other needs along with funds necessary to provide for your pet’s support and to compensate the caretaker. 

The scenarios above are just a few to consider when deciding if you need a will or trust.  I encourage you to talk with a Houston wills and trusts lawyer.  Only then will you have the peace of mind of knowing that you are fully protected.

Wednesday, November 03, 2010

Houston Elder Lawyer Discusses ‘What is Long Term Care and Why Do I Need To Think About It Now?’

By Kimberly Hegwood, Houston elder lawyer

As a Houston elder lawyer, I help people plan for long-term care costs on a regular basis.

Long-term care can include any service that helps people who have a prolonged illness. The illness can be a physical disability or a cognitive impairment such as Alzheimer’s disease or Dementia.  The services may include help with activities of daily living, home health care, adult day care, hospice care, nursing home care, or care in an assisted living facility.  The level of assistance required can include physical therapy, administration of medication, and help with daily activities such as bathing, eating, and dressing.

Paying for long-term care can be financially devastating to families. Contrary to what many people believe, Medicare coverage will not pay for most of the long-term care they will need if they suffer from a long-term illness. According to the U.S. Department of Health and Human Services, the average costs in the U.S. (in 2009) are:

• $198/day for a semi-private room in a nursing home
• $219/day for a private room in a nursing home
• $3,131/month for care in an Assisted Living Facility (for a one-bedroom unit)
• $21/hour for a Home Health Aide
• $19/hour for a Homemaker services
• $67/day for care in an Adult Day Health Care Center

It’s easy to fall into the trap of thinking that because you are now young and healthy you don’t need to worry about long-term care, but consider this:

• Life expectancy after age 65 has now increased to 17.9 years, up from 1940 when life expectancy after 65 was only 13 extra years.  The longer people live, the greater the chance they will need assistance due to chronic conditions.
• 44% of people reaching age 65 are expected to enter a nursing home at least once in their lifetime and 53% of them will stay for one year or longer.

So, the bottom line is that millions of us are going to need long-term care.   It is important to put an estate plan in place that will protect your assets if you become disabled.  I’ve seen too many instances where a family has waited until a crisis strikes to take action.  Most of the time it’s then too late to save their assets and income from the hands of such a facility.  

But instead, you can talk to an estate planning attorney now to ensure your bills will be covered in the long-run without losing your house, your assets or other income sources in the process.   To get started, simply call me, your neighborhood Houston elder attorney at 281-218-0880 for a free LIfetime Legacy Planning Session.

Together we’ll walk through the complicated world of long-term care planning to ensure your family is protected when they need it the most.

Tuesday, October 19, 2010

Harris County Estate Planning Lawyer Discusses Protecting Your Kids Should Something Happen to You

One of my greatest passions as an Harris County estate planning lawyer is educating parents about how important it is to prepare for their untimely death. Not a fun topic I realize. But it just takes one sad circumstance of parents passing away and leaving the kids to deal with squabbling relatives to understand how critical this is for their well-being.

The possibility of leaving this world can be difficult to accept and many people choose to not think about it. Unfortunately, this fear often prevents people from taking the proper precautions they need to take.

I speak at various groups around Harris County, Texas and usually deliver this message in an upbeat and cheerful way so people can see that preparing their estate plan for their family is a positive and joyful experience.  But for today’s post I’m going to give you the real-deal about Harris County estate planning. Blunt, and to the point.

Essentially, it’s critical for everyone to understand the importance of estate planning for those we love – especially our children. As you can imagine, children are incredibly vulnerable if you die while they are still minors due to the simple fact that they are unable to take care of themselves.

Here are a few cold-hard facts about what could happen if you passed away suddenly without a will or trust in place.

1. A judge that doesn’t know you or your children will decide who raises them.

If something happens to you, who is going to step up?  Is it the person that you want to raise your children?  If you don’t have an estate plan in place, will your relatives squabble over who is or isn’t responsible for raising them? Do you really want to put your children through that?

1. The person who the judge picks to raise your kids will also be responsible for their financial well-being.

If something happens to you, all of your assets will be handed to the guardian (that you didn’t select) to be managed for them. The obvious fear is that this person could possibly use the funds for something other than the care of your children.  However, there are many other things to consider.  Does the person that the judge picked have the same financial values that you do?  For example, you may feel strongly that you would like your children to attend high-end sports clinics to help develop their athletic skills.  But, will the guardian see the value in this?  What if they think spending money on what you would have wanted is a total waste?  The potential for trouble is endless.

1. All of the money left from your estate (assuming there IS any) may go to your child in a lump sum when he is 18 years old.

Think about this one.  What would you have done if you had been handed a bunch of money at that time in your life?  Scary thought, huh?  The hard truth is that most 18 year olds are simply not mature enough to properly handle finances at that level.  I have heard story after story of kids who should have been fine financially, but weren’t because they decided to buy cars and clothes instead of investing in their future by going to college. So sad!

So, there you have it - some cold, hard questions for you to ponder. My hope for those of you reading this is that you have already taken care of naming guardians for your children and put your estate plan in place and that you are keeping it up-to-date as the circumstances of your life change.  But, if you are not, I would be happy to offer you a free Lifetime Legacy Planning Session to start you on the path. 

Don’t worry if you aren’t sure who you would pick as guardian.  I’ll help you with that.

Don’t worry if you think you can’t afford planning.  I’ll work with you on that.

Don’t put this off because you don’t have the time.  Think about how your kids will spend their time if something happens to you and you haven’t made these decisions for them.

Call our Harris County estate planning office today and make an appointment for a free Lifetime Legacy Planning Session ($750 value) and you’ll experience a peace of mind that you didn’t even realize you were lacking.

Thursday, October 14, 2010

Houston Estates Lawyer Reveals Three Things For Parents to Know Right Now

As a Houston estates lawyer, I want you to  lay aside the taxation issue in estate planning, for a moment.

Because this issue is so much bigger than how much money Uncle Sam gets to take from an estate. You see, when I think about what frightens parents most, seeing their children in a vulnerable position pretty much tops the list--whether it is at home, at the pool, or any other place in public.

What exacerbates this further is knowing the fear which children themselves feel when they are surrounded by people they do not know and do not know just how much love their parents have for them.

Put the following steps into place, and you will eliminate at least some of these dangers...

#1: Identify a Clear Plan for the Care of your Children.
Did you know that 74% of parents have not named guardians? Worse, of the 26% who have, most have made 1 of 6 common mistakes that leave their kids at risk.

When you name short AND long-term guardians for the care of your children, you must give clear guidance to your caregiver and everyone you have named to care for your children, in written form. Just by naming these guardians (both short and long-term), your children never have to be put in a situation in which they would be taken out of your home and into the hands of strangers if something happens to you.

An even better step, if your children are old enough for this discussion, is to tell them this plan. Do not make a big deal of it...you don't want to frighten your kids at the prospect of your loss. But they will feel better knowing that you have selected people they can trust and love to care for them well.

#2: Properly Document Your Decisions
Parents often have discussed and agreed upon a guardian for their children and have even made their wishes known to their families; however, not documenting these decisions can result in your wishes not being followed when it really is too late.

You see, if you don't communicate your wishes in a legally-binding document, you are placing your children in a "free for all".  Without clear, legal guidance, every family member has equal priority of guardianship and the decision about the care of your children will be left in the hands of a broken-down court system and some judge who does not know you or your kids.

This legal documentation is particularly important if you intend for a friend to care for your children as courts will almost always choose a family member over a friend.

Also, don't forget to be sure to leave behind specific guidance about how you want your children raised.  Education decisions, healthcare decisions, discipline decisions ... these are all things you care a lot about and would want made consistent with your opinions for how your kids are raised.
 
#3: Don't Neglect Their Financial Future
Sure, there is different schools of thought on this issue. Some parents don't want to overwhelm their children with too much in their bank accounts at once, which is understandable.

But, regardless of how you structure this provision, providing sufficient financial resources for your children's care is your responsibility. And, as a responsible parent, you must take steps to protect what your children will receive ... whether it is through life insurance, savings or some other means.

To do so, establish a living trust, to receive any life insurance benefits your children would receive so that they don't get access to your assets at the age of 18; and make sure your living trust holds on to the title to any assets that would go through probate in the event of your death. And, if your estate is large enough, you will want to plan to avoid estate taxes as well.

All of these issues, are things we routinely secure on behalf of our clients. If you have not yet set any of these items  into place, call me, your neighborhood Houston estates lawyer, right away (281-218-0880)  and we will be in touch!

I hope this helps!

Thursday, October 14, 2010

Check The Oil, Rotate the Tires, and Update Your Estate Plan, Says Houston Wills Lawyer

By Kim Hegwood, Houston wills lawyer

If you own a car, you know it requires a regular maintenance in order to perform well and be reliable. When you purchased your car, you most likely received a recommended schedule for service.  If you follow that schedule, most likely your car will continue to work well.  If you don’t follow that schedule, you are taking the chance that your car will let you down.

Did you know that your estate plan also needs to be “serviced” on a regular basis?  Your estate plan is a snapshot of your life the way it was at the time it was created.  However, over time your family structure, your assets and the tax laws change so you should set a schedule to have your plan reviewed to make sure it doesn’t let you down.

So, when should you have your estate plan serviced? Any change in your personal, family, financial or health situation should prompt you to review your estate plan. But, in general, I recommend that you pick a date that you will remember to review the plan each year.  Your cue to remember this might be a birthday or anniversary…just any date that will jog your memory and allow you time to sit and read through your plan.

If you think a change is needed, do not write on your estate plan.  You should contact your <insert city> wills lawyer.  Hopefully your attorney operates like us and does not charge for quick questions such as these.  You should be able to pick up the phone and speak to your attorney to ask whether your plan needs a tune-up.

You should also make sure that your Houston wills lawyer will review your plan with you at no charge at least every three years.  There are some things that might impact your plan that you don’t know about such as changes in federal or state laws.

As a guide, I have given you a few events where you might want to review your plan:

You and Your Spouse

• You marry, divorce or separate
• Your or your spouse's health declines
• Your spouse dies
• Value of assets changes dramatically
• Change in business interests
• You buy real estate in another state

Your Family

• Birth or adoption
• Marriage or divorce
• Finances change
• Parent/relative becomes dependent on you
• Minor becomes adult
• Attitude toward you changes
• Health declines
• Family member dies

Other

• Federal or state tax laws change
• You plan to move to a different state
• Your successor trustee, guardian or administrator moves, becomes ill or changes mind
• You change your mind

I hope that this list gives you an idea of whether you need your plan reviewed.  If you are no longer in touch with your Houston wills lawyer, I welcome you to call our office at 281-218-0880 and let Lorraine know that you need an Estate Plan Checkup and I’ll be happy to review it with you at no charge.

Monday, August 23, 2010

Houston Estate Planning Lawyer Talks Anna Nicole Smith & The Cost of An Outdated Estate Plan

By Kim Hegwood, Houston Estate Planning Lawyer

Just when you thought the world was finished with Anna Nicole Smith’s legal woes and the troubled actress could finally rest in peace, another ugly court battle is underway.    Only this time it involves the trial of her doctors and former boyfriend, who are accused of illegally providing Anna Nicole with the prescription drugs that led to her untimely death.

This latest court battle comes on the heels of a devastating blow to her estate (and the financial security of her daughter), as the  U.S. Court of Appeals ruled in March that she was not entitled to any of her ex-husband’s (oil tycoon J. Howard Marshall) estate. 

Of course Ms. Smith believed right up until her death that she was entitled to half of his fortune, claiming Marshall promised it to her when they got married.  However, Marshall had not updated his will and trust so the entire estate was awarded to Marshall’s son.

And as in the case of most estate planning nightmares, (which also happens to every day people like you and me!) all of this drama regarding Marshall’s estate plan could have been avoided with a simple update to his will and trust.

According to a Wills & Estate Planning survey conducted in conjunction with Lawyers.com in December 2009, only 35 percent of adult Americans have wills, 29 percent have a power of attorney document and 18 percent have a trust.  And those numbers would likely dwindle substantially if you took out the number of people who have outdated documents.

That is a lot of money going to the court system, lawyers…and quite frankly, down the drain!

The Lawyers.com survey also found that 71% of Americans believe that given today’s economy, it is more important to focus on saving money than to spend it on long-term planning for their estate.  But, as the story of Anna Nicole Smith shows us, the cost to resolve an out of date estate plan can be far greater in the long run.

The only way to know the real cost of leaving behind an outdated, or even no estate plan, would be to meet with an experienced Houston estate planning attorney.  We’ve made that process easier than ever by offering 10 free Lifetime Legacy Planning Sessions (normally $750) to the first people who call our office each month.   These appointments do go very fast, so if you are ready to protect your family, wishes and assets should something happen to you, secure your spot by calling (281) 218-0880 today.

Monday, August 16, 2010

Building Real Trust With Your Prospects and Clients

We're in a crisis that is MORE than just about the numbers. "Lazy" businesses, who neglect building trust and *real* relationships with their clients are gonna get smoked by this current environment.

As a business owner and entrepreneur myself, I pay attention to politics and to the drift of the nation with a great deal of interest--and to understand what your clients are thinking about. And there is a lot of talk these days about this recession, of course.

One of the political commentators I have read (though I do not always agree with her analysis) is Peggy Noonan--a former Reagan speechwriter, she is now a commentator on MSNBC and writes a weekly column in the Wall Street Journal. She is a great writer--elegaic, and she isnot afraid to let her personality shine through.

(Incidentally--isn't that the mark of great writing, especially sales writing? We tend to gravitate and read people who stand for something, and do it with their own unique style...not the bland junk which puts us all to sleep. There is a lesson there for you and your business...if you see it.)

But my point is not just about her style--it is about what she said in her column from some time ago. Noonan describes the deep uncertainty which many of your clients (and, perhaps, you) were and ARE STILL feeling about the economy and our country. The Dow is sinking, nobody is sure about the "stimulus" yet...but it seems to be more than that.

[Her column is here: http://online.wsj.com/article/SB123508142847026881.html]

However, at the end of the piece, she says something which I believe is deeply true--and strikes a note of hope for you, Paula, if you are willing to see it.

Noonan writes:

"Dynamism has been leached from our system for now, but not from the human brain or heart. Just as our political regeneration will happen locally, in counties and states that learn how to control themselves and demonstrate how to govern effectively in a time of limits, so will our economic regeneration. That will begin in someone's garage, somebody's kitchen, as it did in the case of Messrs. Jobs and Wozniak.

"The comeback will be from the ground up and will start with innovation. No one trusts big anymore. In the future everything will be local. That's where the magic will be. And no amount of pessimism will stop it once it starts."

Did you catch that? "No one trusts big anymore."

There is a lot to consider there, but here is my primary point:

Are you "big" to your clients? Or, does your business have a "face"...a personality and a relationship with your customers and prospects?

Obviously, I take my own advice to heart here--it is one big reason I take time each week to write you these notes. But businesses that neglect their relationships with their clients...hoping that clients will remain loyal to a business which presents itself as a *big* "company" (instead of a place with real people and personality) won't survive this recession.

It us a by-product of the Internet age...and you have gotta pay mind to it. Do not get seduced by the siren-call of "professionalism" in communication. That is another word for "boring" and will put your customers to sleep.

Give your clients a "face"...and you will be left standing--and thriving--when the dust of this economy settles, while your bland, "professional" competitors will never know what hit them.

You will have a relationship built on trust...not just a transaction.

Thursday, August 12, 2010

Houston Elder Lawyer Reveals Your Most Critical Skill In This Economy

By Kimberly Hegwood, Houston Elder Lawyer

How can you maintain your sense of personal peace in this environment...while NOT simply "ignoring" everything? I've got four suggestions for you.
 
1) Firstly, DO be very selective about (even, yes, choosing to ignore) certain media elements that have an agenda of spreading fear. 24-7 news would make no money if it stopped preying on people's fear. (You realize the news networks are not a public service, right? They are in the business of getting ratings to sell advertising. Period.)

Have you ever noticed your feelings after watching just 20 minutes of CNN Headline News? Everything is going to pot. You'll find negative stories on the environment, war, disease, crime, and of course... the economy. It is laughable what they will come up with just to broadcast some bad news. A few weeks ago I spotted this "headline" story on the tube along with some sad-faced puppies: "PETS: Feeling the Foreclosure Boom!"

Everyone is selling crisis! This is true, from the media to the politicians. So stop watching CNN all day, refuse to participate in this circus, and instead start planning your first (or next) million. Seriously.
 
2) Look for the good news. Now, I am very careful here, because I am aware that some of my Houston estate planning clients and friends really are feeling the pinch, but let's ALSO look at the bigger picture, especially in comparison to the early 80's or 30's.

This was the topic of last week's p0st, and, again, I can send to you if you missed it. Short version: We are NOT in the Great Depression (by the numbers).

You can always find doom and gloom if you want to. So turn off your TV and focus on other activity. It will significantly help your inner peace!
 
3) Get out and do something profitable. That may mean actually starting that exercise regime you've been putting off. Take up a new hobby. ANYTHING to get your mind in a more "profitable" mode! Go do it.
 
These steps will NOT solve the problems in your wallet, and in the economy. However, how you choose to respond will affect your peace, and, actually...this WILL impact how you spend your money. Please, for your sake, tune OUT the fear, and tune IN to smart preparation.

4) Stave off fear by knowing actual numbers. The great problems many businesses and families face when money's "tight" is SIGNIFICANTLY compounded by not knowing. Any number of pessimistic scenarios play out in your head.
 
So here is how to fix that. Sit down with an advisor, get the real facts-and if they are bad, you can still come up with a plan. You will find that laying out action steps with somebody competent changes everything.

And, of course, we can sit with you, if you would like in this process--or point you in the direction of a highly-competent advisor.

I am personally dedicated to the success of your family -- and your state of mind! Can other lawyers say that?

Warmly,

Kimberly Hegwood, Houston elder lawyer

PS--If you are wondering if your Houston estate plan is up to date, we have space for TWO families to meet with us to review their plans. Call our office right away (281-218-0880) or send me an email to set up one of these special sessions. You will NOT be sorry!

PPS- Read more on Houston Elder Law here.

Friday, August 06, 2010

Texas Estate Plan Problems: It's About More Than Tax Avoidance

The typical "estate planning" experience is one in which people go in and meet with an Texas estate planning attorney, sign some documents, put them on a shelf or in a drawer, and never look at them again.

IF your parents went through this process, and this sounds familiar, I have got some bad news: it probably won't work when you need it (death or incapacity). When these plans have not been reviewed after a couple years, it is likely that you could be dealing with the Harris County probate court or receive your inheritance in the wrong way.

With the much-publicized "pause" of the estate tax, many families mistakenly believe they have nothing to be concerned about in regards to setting up their estate. Nothing could be further from the truth.

This happened for a friend of mine, who happened to be a very successful lawyer in her own right!

When her father-in law passed away, even though they had set up a trust, her father-in-law's lawyer never transferred his assets into the trust and never made sure her in-laws did it themselves either!

You see, unfortunate as it is, your parents' estate plan is likely to fail.

You might think that the scenario above sounds like legal malpractice. Actually, I am very sad to say, this is NOT malpractice; it is "all-too-common practice". And, it means your parents' estate plan, like my friend's in-laws', is likely to fail.

Not to mention, your parents' estate plan most likely leaves your inheritance to you completely unprotected.

I know of a client who inherited over a million dollars. Shortly afterwards he was sued and had a million dollar judgment levied against him. He never saw a penny of that million dollar inheritance. By the time he paid off the judgment, it was gone. Ouch.

Your parents' estate plan leaves your inheritance at risk.

If you inherit funds, it is common practice to integrate those funds directly into the family accounts. But what happens if there is divorce? Well, those funds will be split evenly...which may not have been the intent of your parents when they left you the money.

Your parents' estate plan leaves you unable to do what they'll need you to do.

I know of a client who called her lawyer for help when her mom was on life support (not us). Mom had planned back in 1997--and always intended to update her planning documents. She never got around to it. Sadly, her health care directive did not have the most up-to-date provisions, which meant that this client could not get access to her mom's medical records. Because of this, it took 3 weeks to get her mother moved to a respiratory center where they could have possibly weaned her off life support had she gotten moved more quickly. Would Mom have lived if she had been moved sooner? We'll never know.

What I do know is that you never want to be rendered helpless because your parents' documents are outdated. And it doesn't have to be this way.

Get a guarantee your parents' plan will work when you need it most.

When you have your parents' estate plan reviewed by our Houston estate planning law firm, you will know with certainty you will have everything you need if you have to take care of your parents. You will know that you will not have to deal with a long, expensive court process in the event of their death or incapacity and that dealing with things after they are gone will be as easy as possible.

Plus, you can ensure that what you receive from them is totally protected from divorce, lawsuits and estate taxes. What could be better than that?
 

Thursday, August 05, 2010

The Increasing Need for Special Needs Care and Special Needs Attorneys in Houston Texas

By Kim Hegwood, Houston Special Needs Attorney & the Wealth Advisor

Chances are there is or will be someone in your family (child, grandchild, nephew, niece, parent, grandparent) who will need long-term help managing personal care and/or finances.

A quick look at the following statistics confirms that the need for special needs care and special needs attorneys in Houston and planning is increasing:

• In 1992, there were 15,580 children ages 6-22 who were diagnosed as having what is now called an Autism spectrum disorder. In 2006, the number was 224,594.
• In 2006, there were an estimated 24.9 million adults in the United States with Serious Psychological Distress.
• An estimated 4.4 % of U.S. adults may have some form of bipolar disorder during some point in their lifetime.
• In 2006, an estimated 22.6 million people in the U.S. (9.2% of the population age 12 or older) were substance dependent or abusive in the previous year.

Because many of the conditions causing a need for special care do not decrease life expectancy, families are seeking answers on how to provide the best quality of life for their loved ones for the rest of their lives . . . which, for a young child, could be 70 years or longer.

Fewer Programs Are Available

At the same time that the need for support services is increasing, government and non-government programs are being reduced and even eliminated due to the strain on state and local budgets and pressures to reduce deficit spending at the federal level. Once a program benefit is lost, for whatever reason, it may be difficult if not impossible to get it back.

Many families with special loved ones are losing faith that these programs will be there to provide the needed benefits in the future. They are wisely (and often fearfully) looking at alternatives to provide those services. Common concerns are:

• Who will care for my loved one when I am gone?
• Who will be my loved one's advocate?
• Where will my loved one live?
• How much independence can my loved one maintain?
• Will the money I provide last for my loved one's lifetime?

Preserving Government Benefits/Special Needs Planning Today

Are government benefits for a special needs person worth preserving? For families of modest or limited means, the answer is almost always, "Yes."

However, for more affluent families, the answer may be, "Maybe not." In the past, many planners focused exclusively on preserving public benefits at all costs. Today, special needs planning is not necessarily "poverty planning."

The proper focus today is how to provide the best quality of life throughout the person's lifetime. It may be better to privatize some special needs care instead of spending thousands to protect a benefit that has a low probability of being available in the future.

Careful planning is necessary to craft a plan that will supplement government benefits that are worth preserving, is flexible enough to adjust to changes in future benefits, will preserve and expand assets, will make sure this person receives proper care, and may even save taxes.

It Takes a Team

For a special needs trust, the proper funding, implementation and periodic review are especially critical because it may have to last a lifetime and often cannot be replaced. Once the plan is in place, it will be need to be managed.

Who should do that? The ideal trustee would:

• use discretion, acting in the best interest of the disabled beneficiary;
• understand public benefits and keep up with changes in the law;
• wisely invest and conform to all statutory fiduciary requirements;
• understand taxes;
• keep perfect books;
• provide advocacy and prevent abuse; and
• be immortal.

Since no one person can meet all of these requirements, often the most effective solution is to divide the responsibilities into areas and have a team of professionals work together. For example:

• A Corporate Fiduciary Trustee (bank or trust company) keeps perfect books; carries insurance, is bondable or has deep pockets; is immortal.
•  A Care Manager uses discretion and acts in the best interest of the beneficiary; understands public benefits; provides advocacy and prevents abuse.
•  A Financial Advisor invests wisely; conforms to all statutory fiduciary requirements; understands taxes.
•  A lawyer skilled in special needs matters keeps up with the ever-changing laws and regulations and provides wise counsel to the family and the other team members.

Often a professional trustee will manage the funds, make distributions, prepare tax returns and keep the records, but will be directed by a Trust Advisory Committee that makes distributions, can amend the trust or replace the trustee. A care manager can be on this committee or be appointed by the committee.

Another alternative is to have a trustee manage the funds but be directed by a care manager who interacts with the beneficiary. A trust protector or advisor would oversee the trustee and care manager from a distance and would be able to replace either for any reason.

Planning Tip: Many parents think a sibling would be the best trustee, but this is rarely a good idea. Most individuals are just not prepared to handle the responsibilities. A professional trustee likely will, in the long run, be less expensive than the mistakes that are often made by a well-meaning but inexperienced family member. Also, some siblings may be torn between using the trust assets to provide for the beneficiary and preserving the assets, especially if they will inherit the assets after the beneficiary dies. It is usually better to have a professional as trustee, and have the family member be on the Trust Advisory Committee or to be the trust protector.

Planning Tip: The role of the care manager is critical. In most families, one person has been a fierce advocate, actively seeking benefits and supervising the special needs person's care and progress. The care manager will assume that role and will become the beneficiary's advocate, seeking and evaluating benefits and programs, supervising the person's care and preventing abuse. Selecting a care manager while the current advocate is living will give families peace of mind that their loved one will have the quality of life they so strongly desire.

Managing the Trust Assets

Careful investment of the trust assets is critical, since loss of these assets could be catastrophic for the beneficiary. The assets will need to earn or grow enough to provide for or supplement the beneficiary's care. Trust income can be distributed in such a way that it is taxable to the beneficiary (because the beneficiary will typically be in a much lower tax bracket than the trust itself), but without unintentionally jeopardizing any public benefits the beneficiary may be receiving. This can often be accomplished by having the trustee make direct payments to the providers for care and/or supplemental benefits.

Planning Tip: Insurance on the life of a parent or grandparent is often used to fund these trusts. Using a separate, stand alone trust (instead of a parent's revocable living trust) will also allow other family members to make gifts to support the beneficiary.

Planning Tip: Tax planning combined with special needs planning can present some unique opportunities. For example, using qualified plans to fund these trusts can offer tax advantages. Charitable trusts can also be used to benefit both the beneficiary and an organization. Families are often grateful to organizations that have provided assistance and benefits to the family member and to them, and often want to help make sure these organizations can continue to provide services to not only their loved one but to other families in the future. 

Planning Tip: Families with affluent means will be able to provide more opportunities for their special needs beneficiary. For example, purchasing a home in a residential community will guarantee your loved one will always have a familiar, safe home.

Conclusion

If you or someone close to you has a loved one with special needs, we can help with all phases of the planning and implementation. Contact our office to schedule with me, your neighborhood Houston Special Needs Attorney, a free Lifetime Legacy Planning Session (normally $750) with the mention of this article. Simply call 281-218-0880 to reserve your spot.

Monday, August 02, 2010

Houston Probate Lawyer Reveals Why Planning Should be a Family Affair After Heiress Leaves Millions to Her Dogs

From the desk of Kim Hegwood, Houston Probate Lawyer

In a bizarre estate battle out of Florida, Brett Carr, the only surviving child of Heiress Gail Posner claims his mother’s staff manipulated her to leave millions of dollars and a lavish mansion to her pet dogs and the people who continue to care for them following her death in March.

Carr on the other hand was only left with $1 Million—a tiny fraction of Posner’s overall estate.

Here’s a snippet of the story from the TODAY show website:

“The bizarre will Posner left behind when she succumbed to cancer at age 67 in March is front and center in a lawsuit Carr filed against the estate, claiming his mother’s staff drugged and brainwashed her into signing over the biggest chunk of her holdings to them and her pets.

‘They saw a frail woman who was vulnerable, who had a delusional ego; she thought she was a movie star,’ Carr told Matt Lauer on TODAY Monday.

Slowly, they got into her world. And they saw, ‘OK, it’s working and it’s growing,’ and they completely took advantage.

(You can continue reading the full story here.)  http://today.msnbc.msn.com/id/37820841/

Carr further offers home videos showing his mother’s aides in action and an admission from the heiress herself regarding the aide’s “control” over her affairs as proof that she was manipulated into give the majority of her estate to her dogs and the staff would continue to care for them following her death.

And despite whatever proof or knowledge of his mom’s “real” wishes he may claim to have, Carr will be stuck battling this out in court for months, or even YEARS until a judge can determine if that is indeed what the heiress wanted done with her estate.

That is why as a Houston Probate Lawyer, I can’t stress enough the importance of children staying involved with (and even coordinating) their parent’s end-of-life care and estate planning needs so these surprising and unexpected consequences are avoided at their time of death.

And I want to make it clear that these ‘surprises’ are not limited to the ultra-rich either!  If you don’t keep your documents updated as your life (and the law) changes through the years, your estate (or that of your parents) could end up going outright to an ex-spouse, a child with a serious addiction or money problems or even someone you named YEARS ago but forgot to remove after you fell out of relationship with him or her.

So moral of the story? 

Have your documents reviewed often and make sure the estate planning process stays a family affair.  Do what you can to ensure there are no post-mortem surprises and that your will, trust and other estate planning documents will work exactly as you want them to should the unexpected occur.

Of course if it has been awhile since your estate planning documents (or those of your parents) have been reviewed, call me, your neighborhood Houston Probate Lawyer,  at (281) 218-0880 and schedule a Free Lifetime Legacy Planning Session (normally $750) with the mention of this article.  However, these appointments are limited to 10 per month so call today!

Thursday, July 22, 2010

You Are Unique: Your Houston Estate Plan Should Be Too

Here's what I have discovered, after years of working with families, preparing plans: Personal dynamics are more important than avoiding probate and estate taxes. Part of what I am often discussing with my clients is beneficiary, guardian and trustee decisions--and each of these require a conversation.

But here are a few thoughts for you, as to why you need a personalized plan, as well as a few other quick tips:

There are very few "simple  Houston estate plans."

For example, another Houston wills and estates attorney related to me the story of a man who wanted a so-called "simple" estate plan drawn up for him and his wife. In the first 15 minutes, the estate planner learned the client was a citizen of the UK, his 25-year-old son had bipolar disorder and the son was actually not his biological or adoptive child, although he and the young man's mother have been married for 23 years.

In another case, a very wealthy man was seeking "a simple estate plan" for him, his wife, and his family. But he was in a second marriage, had three children from his first marriage, his new wife had four children from her first marriage and one of his daughters was in prison for kidnapping.

Now, obviously these are NOT your circumstances. But you are unique. So, here are some of the questions you may answer in a unique way:

•  Do you donate regularly to charity? Or make substantial gifts to family members? Do you want those gifts to continue if you lose capacity?
•  Do you own a business?
•  Do you own property that should not be sold?
•  Do you have a beneficiary who is likely to cause trouble or owes you money?
•  Do you want to provide for the continuing care of a pet?
•  Do you have a working farm or farm animals?
•  Do you want to be cared for at home regardless of the cost?
  

Your Houston estate plan should be carefully crafted to address your specific needs and circumstances. The more tailored your plan, the less room there is for family disagreements.

Next, you must have an up-to-date plan. Too many people either fail to prepare an estate plan or let their plan become outdated. Changes in the law occur frequently. As Will Rogers said, "The only difference between death and taxes is that death doesn't get worse every time Congress meets."

Plus, your circumstances can change. Toward the end of your life they seem to change faster. Between ages 40 and 65, have a new estate plan drawn up every decade. In your 70s and 80s, consider revisions every 12 months.

Third, be careful not to change your plan inadvertently. Suppose, for example, you have a will that provides for your estate to be distributed equally among your three children, and you have named your daughter Pamela as your executor.

To make it easy for Pamela to access your bank accounts in the event of a medical emergency, you have added Pamela's name to all of them. What you have done without realizing it is to change your plan. Under the law in many states, those bank accounts will belong to your daughter at your death and will not be shared by your other two children. As a result, your estate might be distributed differently than you intended. It can also result in family feuds or adverse tax consequences.

Before doing any self-help planning--even something as simple as adding a child's name to a bank account--check with a professional to see how it impacts your plan.

Finally, use your discretion, but consider telling your family in advance what arrangements you have made. Explaining your plan to your family upfront gives you the opportunity to address any concerns, answer questions and clear up misunderstandings. Once you lose capacity or die, it is too late. Many family fights could have been avoided with an open and frank discussion, so everyone is best prepared to handle a loved one's loss of health or life. Eliminating surprises helps eliminate family fights.

In summary, most people who plan do pay enough attention to concerns such as probate and estate tax avoidance.

But the best estate plans are uniquely drafted with YOUR family harmony as a priority.

Tuesday, July 20, 2010

A Straight Shootin’ Wake Up Call From Your Neighborhood Houston Will Lawyer

If you didn’t come home tomorrow—what would happen to your children?  A straightforward article by Houston Will Lawyer, Kim Hegwood, on the realities of dying without a proper estate plan in place.

From the desk of Kim Hegwood, Houston Will Lawyer

As a Houston will lawyer, I am absolutely passionate about educating parents on the importance of having their legal and financial house in order should death or incapacity unexpectedly occur.

As a mom myself, I realize the thought of checking out early can be hard to swallow, let alone plan for.  Yet on the flip side, those feelings can easily lull parents into paralysis and prevent them from taking the proper steps necessary to protect their loved ones should something tragic occur.

Contrary to popular belief, Houston estate planning in general can be a positive, interactive and joyful experience. It is amazing how empowered people feel when they leave my office knowing their children will be legally and financially protected should the unthinkable happen.   

But for today’s post, I am going to be blunt and to the point.

Simply put, it is the responsibility of every parent to get their legal and financial house in order to ensure their children stay protected, no matter what. As you can imagine, children are extremely helpless and vulnerable in emergency situations, so it is up to YOU to put safeguards in place so your kids are never left at the mercy of a judge or in the arms of someone you would never want to raise them in your absence.

Let me give you a few cold-hard facts about what would happen to your kids if you died tomorrow without a will or trust in place:

1. A judge who doesn’t know you or your family will be forced to make painful custody decisions on your child’s behalf.

If something happens to you, who is going to step up?  Is it the person that you want to raise them?  If you do not have an estate plan in place, will your relatives fight over who is or isn’t responsible for raising them? Do you really want to put your children through that?

2. The person who the Judge picks to raise your kids will also be responsible for their financial well-being.

If something happens to you, all of your assets will be handled by a guardian (that you did not select) to be managed for them. The obvious fear is that this person could possibly use the funds for something other than the care of your children.  However, there are many other things to consider.  Does the person that the Judge picked have the same financial values that you do?  For example, you may feel strongly that you would like your children to attend high-sports or music clinics to help develop their skills.  But, will the guardian see the value in this?  Maybe they think spending that much money is a waste.

3.  All of the money left from your estate (assuming there IS any) may go to your child in a lump sum when he or she is 18 years old.

Think about this one.  What would you have done if someone handed you a bunch of money at 18 years old?  Scary thought, huh?  The hard truth is that most 18 year olds are simply not mature enough to handle finances at that age.  I have witnessed case after case of kids who should have been well-off financially, but were not because they decided to buy cars and clothes instead of investing in their future by going to college.

So, there you have it.  Consider this a virtual smack in the head for those that need it.  My hope is that you will see this article as an urgent wake-up call and do what it takes to make sure your family is protected, no matter what.  To help you do just that, I will give you a Lifetime Legacy Planning Session (normally $750) as a reward for stepping up and doing what is right by your family.

Simply call me, your neighborhood Houston Will Lawyer at (281) 218-0880 to reserve your spot. However, this offer is limited to the first 10 appointments so don’t wait….protect your family today!

Thursday, July 15, 2010

A Homerun for the Steinbrenner Family, But Your Family Could Be Out At First Base, Warns Houston Estate Tax Lawyer

From the desk of Kim Hegwood, Houston Estate Tax Lawyer

George Steinbrenner, the fiery owner of the New York Yankees, passed away on July 13. Mr. Steinbrenner became one of the most recognizable professional sports owners in America after having paid around 10 million dollars for ownership of the Yankees in 1973. While often controversial, Mr. Steinbrenner was also hugely successful and made the Yankees worth anywhere from 1.5 to 4 billion.

Several sources have claimed that the heirs of George Steinbrenner’s estate would have to pay in the neighborhood of 500 million in the estate or “death” tax. But because of lapse in the estate law anyone who dies in this calendar year will not have to pay the estate tax.

Steinbrenner’s heirs will receive his entire estate – tax free.

George Steinbrenner is not the only billionaire to avoid the estate tax this year. Texas billionaire Dan L. Duncan also died this year, leaving his 9 billion dollar estate to his heirs without being taxed. Both these two men avoided the estate tax, but the lapse in the law that made this possible will be corrected by January 1, 2011 if the Congress does not elect to extend it.

In 2001 President Bush put in this lapse as part of his tax cuts. Democrats were unable to come to an agreement after promising to fix the glitch, so the lapse went into affect on the 1^st of this year. The lapse in the estate tax will end on January 1, 2011 and will actually rise to 55%, which is higher than 2009 max which was 45%.

Congress is discussing repealing the tax break for 2010, which could be retroactive and the family of George Steinbrenner, and others, would then be required to repay the amount they would have paid if the lapse never existed.  Ouch!

While Congress can potentially prolong the estate tax break into next year, but that is highly unlikely. The estate tax impacts individuals who are worth over 1 million dollars, but that can include, bank accounts, retirement accounts, mutual funds, and other assets. It adds up faster than you think!

That means if something happens to you in 2011 your family could lose up to 55% of your assets to taxes. 

If you don’t plan to die in 2010 but also don’t want to hand 55% of your assets over to the government, there are alternatives available to you.Proper estate planning can save your family thousands.  By working with an experienced Houston estate tax lawyer you are taking a big step toward protecting your family. That is why I invite 10 families per month to come in for a Lifetime Legacy Planning session at no-charge (normally $750).  Make your appointment today by calling 281-218-0880 so you can be sure that your assets stay in your family and not given over to the government.

Tuesday, July 13, 2010

4 Ways a Houston Probate Lawyer Can Help You Protect Your Family and Assets Should the Unthinkable Happen

From the desk of Kim Hegwood, Houston Probate Lawyer:

As a Houston probate and estate lawyer, I realize no one wants to think about, (or let alone plan for!) their own death or incapacity.  

However, death is something everyone must think about, especially as it relates to protecting your family physically, financially and emotionally should the unthinkable happen to you.

Yet contrary to popular belief, getting your affairs in order and proactively planning for death, incapacity and end-of-of life care can be an extremely empowering and rewarding experience.  Here are a few reasons why:

• You’ll rest easy knowing your children will never be taken into the arms of strangers or left at the mercy of a judge assigned to make painful custody/ financial decisions on their behalf.
• You’ll feel confident knowing that your family will not struggle financially or be forced sell off everything they own just to provide for your care if you were incapacitated or placed in a nursing home.
• You’ll have the peace of mind knowing your assets will be distributed privately and in a way that won’t be lost to bankruptcy, divorce or reckless spending upon your passing.

To that end, here are a few roles that a Houston estate planning attorney will play in helping you through the process:

Houston Guardianship Attorney. It's awful to think of dying before your time, but if you are a parent, you must think about who will care for your children should something happen to you. Ideally, the responsibility would fall to the spouse but what if (heaven forbid) something were to happen to both you? If nothing is documented, the state will step into the role. Yet with a good plan, you can make sure your children go to a family member or friend you trust.

Houston Asset Protection Lawyer. With a proper plan, you can protect your assets from nursing homes, creditors, etc - and avoid some of the taxes that can eat up large portions of your estate. With the help of a lawyer, you can make sure your assets go exactly where you want them…which is most likely into the hands of your loved ones.

Houston Living Will Attorney. What if you were unable to communicate or incapacitated in some manner? If you cannot make decisions, you will need someone who can in your stead.  That is where a living will comes in. You must document your wishes and appoint someone you trust to make medical decisions on your behalf so there is no question about the level of care you would want in an emergency.

Houston Executor Attorney. An executor is the one that handles your estate after you die, and by allowing this impartial attorney handle the division of the estate, you avoid the emotions and family ties that can lead to bias and strife. Impartiality will allow everything to transition smoothly.

These are just some of the areas that a Houston probate lawyer can assist you with in protecting your family, and your assets, should the unthinkable happen. However, depending on the size and complexity of your personal estate, it could require much more consideration. 

Yet it all starts by setting up an appointment with a qualified probate and estate planning attorney. We’ve made the process easier than ever than offering free Lifetime Legacy Planning sessions to readers of our blog (normally $750). However, these sessions are limited to 10 appointments per month so call 281-218-0880 to secure your spot today.

Monday, June 28, 2010

Choosing an Executor for Your Estate

Whether you are dealing with significant sums, or with a more modest estate, choosing the person to handle these transaction is a critical decision for EVERY family.

Our clients, of course, have our trained staff handle every aspect of these concerns on their behalf (and much more, of course). But, if you choose to "go it alone" for some reason, here is what you need to keep in mind:

An executor must:

* Obtain certified copies of your death certificate
* Locate Will beneficiaries
* Examine and inventory your safe deposit boxes
* Collect your mail
* Cancel credit cards and subscriptions
* Notify the SSA and other benefit plan administrators of your death
* Learn about your property, which may involve examining bank statements, deeds, insurance policies, tax returns and other records
* Get bank accounts covered by the Will released
* Place notices in newspapers so creditors can make claims
* Hire a probate attorney

Either the executor or the probate attorney must:

* File court papers to start the probate process and obtain legal authority to act as your executor;
* Manage your assets during the probate process, which can take six months to a year;
* Handle court-supervised probate matters, including transfer of property to your beneficiaries and making sure your final debts and taxes are paid; and
* Have final income tax forms prepared, and, if necessary, have estate tax returns for your estate prepared and filed.

Of course, the open probate process is something we try to minimize and even avoid on behalf of our clients.

What To Look For in an Executor

Your executor is what is called a "fiduciary" which means he or she must act in good faith when handling your affairs. He or she cannot take advantage of his or her position or unfairly profit from financial transactions from your estate. The executor will meet the standard of a fiduciary duty if he or she does a competent, honest job.

You want your fiduciary to be both trustworthy and capable of handling the tasks. You have to have complete faith in him or her. Make sure he or she understands the responsibility of the job and is willing to accept it. This requires a discussion before you make your Will.

It sounds a bit strange, but name someone who is healthy and likely to be around after your death. To be secure, you should definitely select at least one successor executor to serve if your first choice is unable or unwilling to do so when the time comes.

For many people, the choice is obvious-their spouse. Others select a close friend, a grown child or other close relative. If no obvious person comes to mind, make a list of your possible selections and use common sense (and this article as your guide) to make the wisest choice.

Friday, June 11, 2010

There Is No Replacement For The Personal Touch, Warns Harris County Probate Lawyer

[Company] has been reviewed by legal authorities in California, and in many other states, and we have never been found to be in violation of the law. Visitors to our web site with more complex problems can find a listing of attorneys through [Company]'s Attorney Connect service, which is featured on our home page.

Now, it is perhaps too much schadenfreude to pile on much more than what the suit already lays out...and the response speaks for itself.

But I WILL say this: There is no substitute for a Harris County probate lawyer who digs deeply into what you care most about as a family, and acts accordingly. Yes, it is tempting to go with the "cheapest" option to ensure your family is well-prepared for the future, but "cheap" does not always mean "best option", especially when it comes to protecting your family's wealth and legacy.

Do not get seduced by the allure of "cut and paste". It is not what your family deserves.

And of course, if you have already completed your estate planning documents through an online service such as the one described above, call our Harris County Probate law firm at 281-218-0880 to recieve a complimentary Lifetime Legacy Planning Session ($750 value), which includes a full estate plan review.  These session are limted to 10 appointments a month so call today!

Tuesday, June 01, 2010

Avoiding a Vacation Nightmare--- A Texas Will Lawyer 's Take

From the desk of Kimberly Hegwood, Texas Will Lawyer

When planning your fun-filled itinerary, the last thing you want to do is worry about any financial loss that might occur as a result of a missed flight, an injury or illness, lost baggage, or any other unforeseen incident. To "insure" your peace of mind while away from home, many companies provide several different types of traveler's protection plans to help ease the burden.

Without insurance, a traveler can lose nonrefundable deposits and prepayments that can add up to hundreds, or even thousands, of dollars. A good, comprehensive travel insurance plan will often reimburse a traveler for all pre-paid, nonrefundable expenses for a covered loss.

Here are some general types of coverage you may want to consider before heading out for this summer's vacation:

Travel Arrangement Protection - This covers you in case of trip cancellation, interruption, or travel delays (these can include inclement weather, lost or stolen passports, quarantine, hijacking or natural disaster).

Medical Protection - Despite having health insurance at home, the moment you set foot on foreign soil or even set sail on a cruise, many health plans are considered null and void, so be sure you get travel medical protection to cover emergency medical expenses, such as illness and accident expenses, and emergency medical transportation to the nearest medical facility. ( And of course, be sure to consult with a Texas will laywer if you do not have the traditional planning documents in place such as health care directives, a will, trust and power of attorneys!)

Baggage Protection - Not only do you want coverage for lost, stolen or damaged baggage, but many plans offer reimbursement for the purchase of essential items if baggage is delayed.

Worldwide Emergency Assistance - If traveling outside of the country, make sure you purchase a policy that covers international emergencies. This can include emergency cash transfer assistance, legal assistance, and lost travel documents assistance.

The cost of travel insurance is based, in most cases, on the value of the trip and the age of the traveler. Typically, the cost is 5-7 percent of the trip cost. Like most every other type of insurance, be it automobile, medical, or homeowner's, you hope you never need to use it. But it can be a relief to have it when you do need it.

The bottom line is: Before embarking on your next trip, do your homework! Talk to your insurance agent - or call me for a recommendation - and learn more about all the different insurance options available to you, so you can make the best choice for your peace of mind!

Tuesday, May 25, 2010

The Distribution Of Your Inheritance CAN Hurt Your Kids, Reveals Texas Will and Estate Planning Lawyer

From the desk of Kimberly Hegwood, Texas Will and Estate Planning Lawyer

If you are reading this Texas will and estate planning blog right now, chances are you concerned about what would happen to your assets, investments and total inheritance when you die.  I am sure like most people, you want to leave an inheritance to your children in a way that’s safe, secure and free from the red-tape of probate.

Yet what most well-intentioned parents fail to understand is that it is the way their inheritance gets passed down to family members that can have detrimental and  life-altering consequences—which are far worse than having money tied up in probate.

For that reason, I want to share some of my knowledge as an Texas will and estate planning lawyer and give you a brief overview of the 4 ways your inheritance can be passed down to your children and how you can ultimately protect your inheritance from impulse spending, divorce, bankruptcy or poor decision making with proper education and a bit of planning:

1. Outright Distribution:  An outright distribution is just that, mom and dad die and the children receive their inheritance outright, in one lump sum.  Simple, clean, but dangerous.  Statistics show that an inheritance will be gone within 18 months of a child receiving it.  And it does not matter how old the child is or how much the inheritance.  If a child gets divorced or goes bankrupt, the inheritance could be lost. 
2. Convenience Trust:  With this arrangement, the inheritance is distributed to a trust, but the child can withdraw the trust assets at any time and for any reason, just by requesting it.  There may be an independent trustee managing the trust, or the child may be their own trustee or co-trustee.  Since no one can force the child to withdraw the income and principal from the trust, the convenience trust offers some creditor protection, and perhaps a mental barrier to withdrawing the trust’s assets, but not much else.  This also can act as a separate property trust, so that the child's spouse cannot access the inheritance.
3. Step-Distribution:  This method is a more commonly used way of leaving money to your heirs.  I call it the “speed-bump” approach.  With this type of distribution, the inheritance flows into a trust, usually with an independent trustee, which is managed and controlled for the child.  At certain intervals in the child’s life, a portion of the trust’s principal is released in a lump sum to the child.  For example, one third of the principal is paid to the child at age 30, one third at 35 and the remainder at 40.  They still have access to income and principal for health, education and other guidelines you structure, but you can leave your children a powerful message with this type of trust – “don’t blow the inheritance!”  The idea is that if they blow it the first time, they may not get any future distributions.  This may act as an incentive to the child to manage their money well, but it still adds little asset protection, and once the principal is gone, it’s out of the bloodline and gone forever.
4. Lifetime Trust:  This type of trust holds and manages the child’s inheritance for the life of the child.   An independent trustee is usually chosen to manage the trust and many times the child can serve as co-trustee.  Principal and income may be distributed according to various guidelines and incentives that the parent provides in the trust document.  These guidelines act as a spigot or faucet:  adhere to the guidelines and philosophies of the trust and assets will flow; get into trouble and the trustee can turn the spigot off.

Once the child dies, any remaining assets in the trust can pass to the child’s heirs or other individuals or entities.  The lifetime trust provides the most flexible vehicle for values-based legacy planning.  It also provides the greatest degree of asset protection, including protections against divorce, bankruptcy and lawsuits such as malpractice or personal injury.   This is by far the most popular choice of trust arrangements among my clients, as it provides the greatest amount of asset protection and guidance for beneficiaries throughout their lives.

So now that you have read the 4 most common ways to pass an inheritance on to family members, I encourage YOU today to get clear on how you would like your inheritance distributed when you die.  Do you understand the potential consequences of turning your inheritance over to a child not ready for the responsibility? Are you concerned that your money or assets may one day be lost in a messy divorce or bankruptcy proceeding?    Are you simply unsure of the best way to protect  your money—and your children—when you die?

If so, I would like to extend the opportunity for you to schedule a Lifetime Legacy Planning Session ($750 value) at no-charge with our office.  Here a Texas will and estate planning lawyer will help you work through such hard questions and ultimately create a rock-solid plan for distributing your assets in a way that aligns with your core values, but also meets your children’s long-term financial needs.

However, we only have 10 such Lifetime Legacy Planning Sessions available each month, so call (281) 218-0880 to immediately schedule an appointment with Texas will and estate planning lawyer, Kimberly Hegwood before they are gone!

Thursday, May 20, 2010

Do More Than "Just" Avoid the Estate Tax as Part of Your Texas Estate Planning

It is an all-too-common misconception that smart estate planning in Texas is all about avoiding the “estate tax".And, if that were the case, only the very wealthy would be affected by it--since (until this year, with no current legislation in place) only those with estates carrying over $3.5 million in value were not exempt.

You may fall into that category, but even if you DON'T (and if you do), you should be considering the following questions as a family as part of your overall Texas estate plan. You see, regardless of what is happening in Congress, you should focus your attention on what issues you can deal with now:

• What are your values and goals?
• The key question to ask is, "How do you want your success to affect your children and grandchildren?"

Every family has a different answer to that question, and it is an extremely important--foundational--component of how we work with our client families.  Some planning only takes "money" into consideration. And while that is certainly an important item to consider, the money is really only there to create a specific destiny, and style-of-life that you would want to see carried into successive generations.

And it does not require a lot of "it" [money] for you to be able to pass along your most precious values. I often urge my clients and friends to actually take the time to consider this question, because it may seem obvious on its face...but your answers will often surprise you.

And we are here to provide any kind of support along the way which you might require. We're pretty practiced in helping families cut through the clutter of financial statements--and find the hidden gems of core values and relationships.
And THOSE are the only things which really do last forever.

Let's talk more, if you want to explore these issues. Because regardless of how Congress eventually acts, walking without the right kind of estate plan in Texas can create an even worse mess when the time comes--and it's not just about the money.

With that, I will leave you until next week. But to make the process even easier...well, see below:

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Thursday, May 06, 2010

Life Changes That Affect (Or Jeopardize!) Your Texas Estate Planning

If you’ve tackled your Texas Estate planning and now have a will, trust and other directives in place to ensure your family is protected when they need it the most, congratulations! 

You may find in a time of crisis or emergency that this was the best decision you’ve ever made.

On the flip side, your Texas estate planning could turn out to be the biggest nightmare you’ve ever faced if you fail to update those documents with your Texas Estate Planning Lawyer as your life and the law changes through the years.

So to help ensure your Texas Estate Planning documents stay effective and relevant to your asset protection and child protection needs, here are 10 ‘life events’ which warrant an immediate review of your current Texas estate plan:

• Marriage
• Remarriage
• Divorce
• Birth of a child
• A child becomes handicapped or diagnosed as special needs
• Your original guardians are no longer a good fit or your first choice to care for your kids
• You are in a same-sex relationship with property or children in common
• Purchase of life insurance
• Purchase of real property
• Sale of real property

Of course if you have experienced any of the above life changes and now need a Texas Estate Planning Lawyer to review and update your current estate plan, simply mention this article and receive our Lifetime Legacy Planning Session ($750 value) at no charge.  We do limit these in-depth review sessions at 10 per month, so be sure to call (281) 218-0800 to immediately secure your spot!

In addition to her thriving Houston Estate Planning Law firm, Texas Will and Trust lawyer, Kimberly Hegwood of Hegwood & Associates proudly assist clients with Wills, Trusts, Pet Trusts, Special Needs Planning, Elder Law and Medicaid Planning, Probate/Estate Administration and veterans benefits in Houston, TX as well as Katy, Webster, League City, Seabrook, Kemah, Pasadena, Friendswood, Dickinson, Bacliff, La Porte and Deer Park in Harris County and Galveston County.

Thursday, April 22, 2010

Your Parent's Estate Plan In Focus: Understanding the Responsibilities that Accompany a Will in Houston, Texas

Executing a will in Houston, Texas and crafting a thoughtful estate plan can make your heirs' lives easier. But it is your parents' estate planning that will make YOUR life easier and it is important that we discuss their needs in this week’s blog post.

As a Houston will and trust lawyer, I learned over the years that not every family has fostered the ability to speak openly in love with respect to these issues.  But, if you have begun that process, here is an outline of what grown children need to know about their parents' affairs. In fact, adults of any age should update their estate plan every year.

Children may wish to ask their parents about their financial status but worry about being overly intrusive. Or they fear their elders may perceive their questions as motivated by self-interest. They may conclude mistakenly that their parents would prefer to keep their finances private.

However, whether it's our parents or ourselves, we are all certainly mortal, so planning for the future is always wise. Estate planning in Houston is just as critical when we are young as when we get older. And if you think estate planning information is hard for you to pull together, imagine how challenging it would be for someone else who may have to step in for you during a family crisis.

As a parent, if you are willing to share some of this information with your children--especially if one of them is also the executor of the estate--they will appreciate having the facts and be more prepared emotionally when the time comes. They will know your wishes ultimately anyway, and good communication will lessen any surprises ahead of time. They will benefit from knowing the answers to the following questions:

• Do you have enough saved for a comfortable retirement? Many financial planners use a safe withdrawal rate by age to make sure their clients will still have enough money toward the end of their retirement. But this is not always the case, and it's worth looking into.
• If your spending is under this withdrawal rate, you have more than enough and probably can leave a legacy to your heirs. But if you are over this rate, you may run out of money and have to compromise your standard of living abruptly. It may be uncomfortable, even embarrassing, for parents to share their finances with their children, but grown children often want to know how their parents are doing.
• Where are the important documents? The six documents your children should be able to retrieve quickly are a Texas will, a living will, a statutory durable power of attorney medical power of attorney, a directory of basic information and the latest end-of-year financial statements.

The directory of information should list the assets of your estate along with account or policy numbers and contact phone numbers. It also helps to indicate your intentions for the distribution of each asset, which will help confirm you have the correct titling and beneficiary designations on every portion of your estate.

You may have structured your will in Texas to divide your estate equally among your children. But if you have tried to make it easy for one child to access your bank accounts by adding his or her name, you have overridden your estate plan and left that child joint tenancy with complete rights of survivorship. This can be a problem.

Titling and beneficiary designations are legal estate planning actions. It is best to review them with your will and trust lawyer in Texas. Various types of assets are best designated differently in the estate plan. This is not the occasion for do-it-yourself thrift. It is a rare family that has compiled and reviewed a complete list of estate assets: bank accounts, investment accounts, retirement account, real estate holding, life insurance, health savings accounts and so on.

Are there any special bequeaths? Any promises you want kept should be documented. Your good intentions will not matter if you are not around to implement them. If you have promised money to a charity and want that obligation kept, document it. If you have promised to loan a child money, document it. If you have promised to help fund your grandchildren's college education, document that. Without documentation, none of these promises can be kept if you aren't around to make the decisions.

Are there plans to remarry? If parents have remarried, intergenerational estate planning is even more critical. Prenuptial agreements and careful estate planning in Houston are required in the case of second marriages to avoid disinheriting children or grandchildren from the first marriage. The default is rarely a good option.

Do you have any prepaid funeral arrangements? Do you want to be buried or cremated? Do you have any preferences for a memorial service? Although it may seem macabre to plan your own funeral, a memorial service takes time and thought. It will be that much more special and comforting to your family when it is filled with your favorite music and readings.

Encourage your children's interest in your estate planning. Most of the time, their intentions are honorable. They may simply want to understand your values and therefore your wishes.