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, 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 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, June 09, 2010 Tips From A Texas Probate Lawyer on Protecting Your Child Medically This Summer
From the desk of Kim Hegwood, Texas Probate Lawyer
Every year, my children spent a few weeks without me at their grandparent’s house in Mississippi when they were younger. It was a nice family tradition and something my kids looked forward to each and every summer.
Perhaps your children have a similar tradition where they stay with close friends or family during the summer months.
Or maybe your children’s “home away from home” during the summer is an intense sports camp, a fun summer camp or missions program.
Whatever the situation may be, parents must understand the importance of naming someone to make medical decisions on their child’s behalf should they become seriously ill or injured while away from home.
In the case of my children, I ALWAYS provided their grandparents with a Designation of Healthcare Agent for Children form, which gives them permission to make immediate and life saving medical decisions in my absence.
Without such documentation, important life-saving procedures or interventions that I would no doubt want for my children may get put on hold until someone can reach me by phone for approval.
But as we all know, every second in an emergency counts, and that is why it is extremely important that someone you trust has permission to call the shots medically if your kids are hurt while traveling without you.
Another important thing I do for my children and the children of my estate planning clients is to create a “minors matter card” though Docubank which holds the child’s shot records, allergies and all known medical conditions. This helps emergency personnel make the right decisions in a situation where there is very little time (and sometimes no ability) to get the child’s prior medical history.
Of course there other steps you can take to protect your child while away from home, but essentially, the more comprehensive you can make your child’s legal “travel kit”, the more likely your child will get the appropriate care he or she needs while away from home.
Yet timing is of the essence in making sure your children are protected before they go away this summer. Good planning ideally requires you to meet with a Texas probate and estate planning lawyer 3-4 weeks prior to your child’s departure date for best results.
So if you are running short on time and realize your kids are not protected in the event of an emergency, I invite you to come in for a Lifetime Legacy Planning Session at our Texas probate and estate planning office (limited to 10 per month). These planning sessions are normally $750, but you can receive it at no-charge with the mention of this newsletter.
Simply call 281-218-0800 to set up your appointment today! Tuesday, April 13, 2010 Remembering Terry Shiavo: How Two Simple Documents Can Protect You From Unwanted Medical Intrusions in Texas
Last week, the nation stopped to remember Terry Shiavo, a 41-year-old woman who was removed from her feeding tube and tragically left to die against the wishes of her family and friends.
Shiavo, who was in a permanent vegetative state after suffering heart failure in 1990, did not have advanced health care directives allowing her parents to intervene medically on her behalf. Sadly, her estranged husband and the U.S. Court system made the final decision to remove Shiavo from her tube in which she ultimately starved to death over a two-week period.
Sadly, very few lessons were learned by Shiavo’s high profile death, as many Texans are still without necessary medical directives which state their end-of-life wishes and who can legally intervene on their behalf.
As a Houston estate planning lawyer specializing in medical directives and living wills, I deal with the unfortunate consequences of this every day in my practice.
Many times families come to me after a loved one is incapacitated or in a vegetative state following an accident. By the time they get to my office, the family is torn apart and battling over issues such as life support, long-term care, what he or she “would have wanted” if they could speak, how to access the injured’s finances to pay for their expensive treatments….and the list goes on.
And of course it breaks my heart to tell these families that their options are now very limited because the injured party did not properly protect themselves or document their wishes in the event of an accident (and I’m not talking about documenting with a will either…a will does not help your family if you don’t actually die).
But the good news is that every Texan over 18 years of age can protect themselves from such unwanted intrusions into their medical care (whether that be from family members or the courts) with two simple documents:
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A medical power of attorney—which gives the appointed guardian of your choice permission to make medical decisions on your behalf; and
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A directive to physicians – which allows you to instruct physicians not to use artificial life-saving methods if you are severely injured in an accident.
If you haven’t already executed these directives and would like to properly document your end-of-life wishes once and for all, please call our office to talk about setting up advanced medical directives and a medical power of attorney in Houston, TX.
These planning sessions typically cost $750, but if you mention this article when you call, we’ll waive the fee, as you’ve already taken a big step in the right direction of educating yourself on proper end-of-life care.
So don’t wait—call me, your personal Houston will and trust lawyer Kim Hegwood at (281) 218-0880 to get started. |