Tuesday, August 31, 2010

Harris County Probate Attorney Discusses Protecting The Hearts (and Wallets) of Your Kids

By Kim Hegwood, Harris County Probate Attorney

As a Harris County probate attorney, I know that when a close friend or family member loses their home, or their job (or both), it can be frightening on several levels. You begin to wonder if the same could happen to you. And, as you are probably aware, this fear of economic uncertainty causes anxiety in many children, too.

While it is impossible to shield kids from all that goes on around them, I happen to believe money worries are one of those things we should not share with kids. There are a number of ways to do that -- some very specific, and some more subtle.

Don't Argue About Money in Front of Kids
This one seems the most obvious. When it comes to transferring anxiety over money to your children, there is no faster way than to fight over it with your partner. Asking couples not to argue over money at all is a little unrealistic, so when differences arise, at least try to do it in private and out of earshot of your kids.

Spenders and savers are bound to clash, but when they fight in front of kids they give kids something to worry about beyond Mom and Dad fighting. Will we run out of money? Is Dad losing his job? Will we have to move? Will we have money for food? Even if parents are unsure about the answers themselves, they owe it to their kids to exude confidence when it comes to money. If things really do get bad, emphasize that no matter what, you will all be together and that home is where you make it -- wherever that may be.

Avoid These Phrases: "We Can't Afford That" or "We're Poor"
When kids ask to buy things, and money is tight, try to rationalize with them instead of simply saying, "we can't afford it." Tell kids that instead of spending money on toys this week, you need to focus on buying some basic things like food and gasoline for the car. Ask them to come along to the grocery store to help pick out a few favorites. If you simply say you can't afford something, kids will begin to wonder what else you can't afford, and that is a psychological slippery slope for young minds.

In fact, I, as a Harris County Probate attorney, would go so far as to say this: Don't allow anyone in your house to use the word "poor" when describing your economic situation -- even when times are pretty lean in the household. Families might be broke-- but that does  not mean they are poor! It's more than semantics. The word "poor" seems to connote inferiority, or having some unfortunate circumstance. We do not have to accept that paradigm. Sometimes, families simply spend more money than they earned and have to live on far less to turn things around. They may have been foolish, but they do not have to be poor!

Now, let's shift away from things not to do around kids, and focus on some positive things to teach kids to help them with their own financial futures.

Teaching Kids About Money
When I was growing up, money was taboo. Parents would no more talk about money with their children than their love life. While this is still true to an extent, I think most of us have recognized that kids need to be more aware about the potential financial pitfalls out there than we were.

Start giving kids an allowance to budget their savings, spending and giving. Help them open a savings account and begin to teach the mechanics of a bank account -- completing deposit slips, balancing a checkbook and explaining how compound interest works. As kids get older, introduce them to increasingly more complicated topics like investing, borrowing money, insurance, etc. By the time they are teenagers they should have a good grasp on Personal Finance 101 topics to better prepare them for life.

Encourage Saving Over Spending
As adults, we know it is prudent to put back a sizable emergency fund of several months (I actually recommend a full year) of basic, household expenses. Because kids are not responsible for everyday expenses, it can be hard to get this message across to them. Instead of focusing on saving money for emergencies, teach kids to save money for opportunities.

Foster Entrepreneurialism in Your Kids
My parents and grandparents were probably a lot like yours -- they worked 40-50 hours a week, punched a clock and recharged over the weekends. After doing this for several decades they were given a cheap retirement gift, maybe a small pension, and a retirement send-off.

Well, times have changed.

The recession has underscored the importance of developing an entrepreneurial streak at a young age. Chances are very slim that your child will graduate college, pick one job and stay there for 40 years. More likely, there will be many jobs with many employers, and many periods of being "between jobs" in their lifetime. Wouldn't it be great if they developed a "side hustle" to get them through those periods of unemployment, or to supplement their full-time income all along?

Perhaps you enjoy building things and have turned your one-time hobby into a side hustle building decks and fences on the weekends. Get your kids involved in the process as they grow older, and perhaps you can pass along a valuable trade. Even if they become accountants or fire fighters, having the knowledge and experience of a trade to fall back on could be incredibly valuable to them over a lifetime.

The point is not to stifle your kids' ideas by forcing them into some ideal career path you have selected for them. Allow them to cultivate their own ideas. Over the next few decades, personal branding, and the branding of individual ideas will likely be hotter than any particular industry. Think about it -- iPhone apps may be the next lemonade stand!

In a way, social media, and new media, have greatly expanded the opportunities for kids to create new products, explore new ideas and push new content into the mainstream. There has never been a better time to have an entrepreneurial mindset, and fostering that in your children at an early age is invaluable.

  As a Harris County probate attorney, I am personally dedicated to the success of your family-- and your state of mind! Can other lawyers say that?


PS--If you would like to discuss this or other aspects of your plan, we have space for three 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!

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.

Tuesday, August 17, 2010

Houston Estate Tax Lawyer Reveals Another Issue With Having "No Estate Tax"

By Kim Hegwood, Houston Estate Tax Lawyer

The current environment with no estate tax seems to be causing a bunch of unintended consequences (as if that is a surprise!). Here is another...

A standard estate plan for a married couple, put together by many advisors, uses "A-B" trusts. Upon the death of the first spouse, the single trust is split into the decedent's trust and the survivor's trust. The amount in the decedent's trust is usually equal to the federal estate tax exemption. The remaining assets go to the survivor's trust for the surviving spouse's benefit.

The problem with this setup in 2010 is that a deceased spouse may unintentionally give the surviving spouse nothing. With no federal estate tax, all assets pass to the decedent's trust, leaving nothing for the survivor's trust. The decedent's trust most likely benefits the surviving spouse, but probably has many more restrictions than the survivor's trust.

For example, the surviving spouse may only be an income beneficiary with the remainder going to the children. This setup can also cause a couple to pay more state estate taxes than necessary.

That is why it is important that we schedule a review of your current plan, because even though the estate tax is sure to change, there are so many other aspects of your plan which are affected by our environment. Don't be caught by surprise!  Call me, your neighborhood Houston estate tax lawyer and schedule a free Lifetime Legacy Planning Session so we can give things a look. These sessions are normally $750, but I will waive the fee for the first 10 people that call before August 31st.

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

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 29, 2010

S Corporations in the Cross Hairs

Wednesday, July 28, 2010

Houston Special Needs Planning Lawyer Reveals How to Plan Your Family's Wealth Around a Child With Disabilities

From the desk of Kim Hegwood: Houston Special Needs Planning Lawyer

Here is the standard thinking, in regards to setting up your affairs with children who have special needs:

Families realize that they have to support these children for the rest of their lives. So, they typically write wills and take out significant term life insurance policies. They are careful to name a trust as the beneficiary, because if their child has more than $1,000 in assets upon reaching age 18, he/she will no longer be eligible for some government benefits.

However, while these families are indeed on the right track, parents with special needs children also need to:

1. Set up a second trust. The purpose of this additional trust would be so that friends and family members can contribute to the child's care while the family is still alive--without causing the child to lose eligibility for federal disability benefits.

2. Increase savings. These families need a much larger emergency fund than most, and they also need to create a "reserve fund". They should concentrate on savings--rather than paying off debt--especially if interest rates on loans are low.

3. Plan for three retirements. These families not only have to plan for their retirements, but also for the child's long-term care. They should maximize their savings and take an aggressive approach with their portfolio to maximize returns over the long run.

While I am not a financial planner, per se, I thought that these tips were so important that if you find yourself in this situation, you should raise them with your professional advisor.

And, of course, there's this:
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$750.00 Towards YOUR Lifetime Legacy Plan Audit with a Houston Special Needs Lawyer
Special Gift Certificate
Print this article, and bring it to our office to claim your $750 credit towards a Lifetime Legacy Plan Audit (normally $950)

Expires August 3rd, 2010
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