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:
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Can you get your money back if you change your mind?
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Does the money you invest earn interest? If so, who gets it?
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What happens if the funeral home goes out of business?
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Can the plan be moved if you move to a different state?
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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.
Friday, October 28, 2011 Long-Term Care Awareness Month: Facing the Facts and Being Prepared
Long-term care is an issue most people avoid like the plague. No one likes to think about getting old, losing their independence or having to spend any length of time in a nursing home or other long-term care facility.
Because of these fears, many people tune the issue of long-term care planning out all together. They plug their ears to the warnings of their financial advisors, doctors and even close family and friends that the time to plan for the inevitable is now.
I believe that’s why a national observance was dedicated to this very topic: far too many people are in denial, and therefore unprepared, for the transitions that quickly happen in the later stages of life.
We all know that sickness, mobility issues, disability or even incapacity can strike without warning. Even degenerative diseases like Alzheimer’s can progress so rapidly that your family’s hands could be tied regarding your care.
For example, you may not want to go into a nursing home, but have you provided your family with any legal and financial tools that give them any other choice?
Have you investigated exactly what type of coverage Medicare or Medicaid provides, and whether you will even be eligible for such coverage should an immediate need for long-term care present itself (99% of people are shocked by these findings).
Most importantly, have you put the right legal documents in place that allows someone to quickly step in and handle your finances and medical needs in an emergency, or will your loved ones be blocked by strict HIPAA laws, ultimately leaving you in the lurch?
These are all important issues that must be addressed sooner, rather than later, if you want some control and flexibility during the final years of life.
With that said, I encourage you to take some time this week and weigh your options about things such as long-term care insurance, financial planning and supplemental government aid. Talk to your attorney about documenting your choice of health care agent, power of attorney and additional steps you can take to protect your assets should the need for long-term care ever arise.
Just start by getting the facts. Then once you are armed with the right information, take proactive steps to make a plan. The independence and quality of life you enjoy in the golden years depends on it.
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:
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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.
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Prepare a list of all of your assets including your home, your financial accounts, insurance policies and any personal possessions.
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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.
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Plan for how you would like your pets cared for if something should happen to you.
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Make a list of passwords, PIN numbers and other codes that someone might need.
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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.
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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!
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.
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