Wisdom

Wednesday, November 30, 2011

Family Lawyer in Houston Says, "Make These Tax Moves Now Before 2012"

As promised, I have compiled some information on expiring tax breaks for 2011, as well as some suggested moves to make before December sees its ball-dropping end.

Filed under: Increased-Deduction Strategy

With one caveat: increasing deductions could cost you if you end up owing under the Alternative Minimum Tax (AMT).

1. Pre-Pay and Accelerate
Mortgage bills, college tuition, property taxes -- all of these can add deductions to your bottom line, so cherry-pick some 2012 bills if cashflow allows, and you will get to mark them against this year's taxes (only January's mortgage payment counts for this, I should hasten to say).

And you can "accelerate" certain expenses like optional medical procedures (dentistry is always a ripe source for procedures to implement, unfortunately ?), again, doing so if cashflow allows.

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.  If you need any help on recommendations to worthwhile non profits, please let us know!

Filed under: Buying stuff you already need -- and saving on taxes

3. Energy-Savings and Big Cars
The accountants 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 $500 tax credit on your 2011 tax bill! Credits always beat deductions. A solar energy system gets a 30% credit with no upper limit.

How about that fancy new vehicle you have been eyeing? Or that energy-sucking flatscreen? Buy it before the end of the year, and you are eligible for a deduction on the state and local sales taxes.

But you can't deduct both state income taxes and general sales taxes, so the deduction is usually most beneficial to our clients who actually live in the no-income-tax states. By the way, this sales tax deduction is scheduled to expire on Dec. 31.

Filed under: Common sense

4. Please stop loaning extra funds to Uncle Sam

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 tax law changes, payroll calculators may not have time to update by January 1st. This means that even if you request the changes, your withholding may not reflect things until 2012 ... but making the change will still impact your taxes -- it just might not be obvious until next year.

5. Make your family happy  (our specialty)

The clock is ticking on the very generous estate and gift tax exclusions that allow you to give up to $13,000 this year to any number of recipients -- and a total of $5 million over your lifetime -- without owing any federal gift tax. The $5 million lifetime exclusion expires at the end of 2012, and Congress may decide to reset it at a lower level.

While you are at it, you can always do it again on January 1st!

I hope these are easy, and that they give you some good ideas. Remember-- I am in your corner, and not just about generational wealth issues.

Friday, October 28, 2011

3 Gift-Giving Ideas To Curb Materialism In Children

First off, I would like to say, again, that I am not an expert in these matters -- but I have had many conversations with wise clients who have shared a thing or two over the years. I have clients, with great material means, who have children that remain "unspoiled", and don't carry an expectant spirit.

Likewise, I have clients who have shared their struggles with us about their children always wanting MORE MORE! (these are brave and wonderful clients to share such private details), and this, even, when some of these families don't have large incomes.

And then there are the holidays -- coming faster than we all think.

So how do we hold back the flood of consumerism, and teach our children the true meaning of gifts, giving and the upcoming holiday season? Well, some of my wiser clients might say ...

1) Explicitly Limit The Number Of Gifts Given
Parents often tend to go overboard buying presents for their little ones around birthdays and holidays -- after all, it often feels like an overflow of love AND children sure do love it.

But I know families who have always put a stated limit on Christmas and birthday presents -- and yet their children don't seem to act like they feel deprived. Christians can link Christmas gift-giving to the three gifts of the magi; others can find different spiritual reasons to not simply pour a truckload of gifts on their children. The key seems to be in creating a happy atmosphere around it, and remaining consistent.

2) Have Your Children Buy Their Friends Gifts
Why not let your kids experience what it feels like to sacrifice and give? After all, we would all want to give ALL of our friends a gift, but the truth of the matter is that we simply cannot buy a gift for everyone on our list. We have finite resources and have to allocate them accordingly. There is a line that we all have to draw in the sand for who will get gifts and who will get a card.

Giving your children a certain dollar amount to spend on gifts, or simply making them pay for their friends' gifts out of their own pocket, will teach them about making the hard choices of whom to give to, and how much, within their very limited resources.

And, of course, this assumes that they ARE giving gifts! If not, that is a great place to start.

3) Share Pertinent Financial Details
Children should be protected from adult concerns. But  that does not mean that they should be blissfully ignorant about how money works. In fact, we owe it to our children to properly explain where the family's money comes from, how it gets into the bank account, and how expenses and budgets work. With a little explanation about how your family's budget is structured, you may be able to hold back the tide of consumerism.

Again, they don't need to feel a pinch -- but they SHOULD know that gifts and items have a monetary value, and don't just get plucked from the shelves without cost.

These are just ideas to start with. It is extremely hard to curb the allure of consumerism in our culture. But in my opinion, it's a fight that every parent should consider waging in today's society of overspending and consumer debt.

Again, every family has their own approach ... but I do hope that you have thought yours through. To your family's financial health!

Friday, September 16, 2011

Family Lawyer In Houston Offers Tips For The College Student In Your Life

By: Kim Hegwood, Family Lawyer in Houston

Financial independence training is a short-term pain, for a long term gain. Because "untrained" college students are sitting ducks for unscrupulous financial service companies and their own lack of financial sense.

So, with that in mind, here are some off-the-cuff guardrails to consider for your son or daughter entering, or continuing on through college...

1. Make a definite plan to leave college with no consumer debt. And I am talking a real PLAN. Credit cards, car loans -- college kids are ripe for the plucking. Consumer debt is a real killer, simply because it depreciates so much. In a short matter of time, these items lose their value, but the payments and interest continue to inexorably pile up. So set up a clear budget for travel, late-night snacks, and other miscellaneous lifestyle expenses (heck, going through the process might even prompt some lifestyle evaluation!). Tell your child: "You should have an exact answer if I ask about your weekly spending limit." And have them try to earn enough over the summer that they can afford to skip the part-time job during the spring and fall semester.

2. ATM bank fees are killer. Moving to a new city often means the local debit card will likely be charged from $1.50 to $3.00 for every withdrawal from a foreign ATM. Consider an online bank account like Charles Schwab Bank that reimburses all ATM fees or a local bank with easy ATM access.

3. Overdraft fees are as common as hangovers for the college kid -- avoid both. A recent Pew Foundation study found that the median overdraft penalty fee is $35; an additional $25 accrues if this overdraft is not repaid in seven business days. The average bank allows up to four of these overdrafts to occur in one day for a total fee of $140 or more per day. However, if you open a savings account in addition to your checking account, you can apply for overdraft transfer protection. You might even set up a situation where the college student controls the checking account -- but you control the savings.

4. One cell phone bill gone awry can swamp you. New routines in college will likely mean that calling and texting habits will change. Or just one call to that high school sweetie who is spending the semester abroad might necessitate a different plan. If your child doesn't have an unlimited plan, have them make it a habit to review the account online in the middle of each billing cycle. By the way, this is a very good expense to NOT pay for as a parent.

5. Avoid gimmicky credit card offers. Often the first credit card is awarded at a football game where so-called "free" T-shirts are being handed out. Again, college kids are ripe targets. Shop online for the best rates and terms and purchase a dozen dress shirts with the money saved by finding a card with less onerous terms for interest rates and late fees. Focusing on the so-called "rewards" which credit card companies give you is a distraction in your financial life. Like a casino, credit card companies win most of the time -- which is why they stay in business.

And, of course, having children enter into adulthood changes your estate considerations. Let us know if this applies to you -- we are here to help!

Thursday, September 01, 2011

Business Attorney In Houston Answers, "Is It Really Cheaper To Rent?"

By Kim Hegwood, Business Attorney In Houston

Long-time renters often cite all the negatives of home ownership, and there are some to be sure.  But many of these oft-cited reasons have a valid counterargument OR these old paradigms are no longer accurate:

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).

Monday, July 25, 2011

Estates Attorney in Houston Discusses Giving When It Counts, Outside Our Circle

By: Kim Hegwood, Estates Attorney in Houston

When Carol Burnett was graduating from UCLA's theater department, the center of the comedy and musical world was New York City. But the grinding poverty she had known since childhood prevented her from leaving California for the bright lights of Broadway and left her at odds with her career goals.

One night, Burnett and some fellow students were asked to perform a comedy skit at a professor's party. After the performance, an older man and his wife approached her and asked her what she wanted to do with her life.

She told them about her dream of acting on Broadway, and they asked why she wasn't doing it already. Burnett explained that she first had to save enough money to get there and establish herself. The man told her to come see him the following week in his office.

Burnett showed up--guarded and skeptical about why the man wanted to see her. He wrote her a check for $1,000 with these stipulations: She must always keep his identity a secret; she must move to New York to give herself the best chance for success; she had to pay the loan back in five years; and finally that she would help others get their start once she became successful.

Burnett accepted the conditions and moved to New York, where her career in musical comedy took off. After five years passed, Burnett sent a check for $1,000 to her benefactor on the exact anniversary of the loan, and though she had kept all of her promises thus far, she never heard back from him.

However, years later (and after Burnett had now become a household name), she met the couple for lunch and asked whether the gentleman had received her check.

The man answered yes, but didn't say much else. After lunch, the man's wife took Burnett aside and told her that her husband was very proud of what Burnett had done, but was too shy and embarrassed to say so.

The wife also said that in all the years that had gone by, her husband had never told one person of his loan to Burnett. He didn't want anyone to think he was trying to take credit for her success, the wife explained.

Moved, Burnett took the opportunity to kiss her benefactor good-bye and thank him for giving her that all-important start.

Not long after that lunch meeting, she learned that her benefactor passed away. But Burnett continued his largesse by developing young talent on her variety show. And to this day, though she has often recounted this fairy tale-ish turn of events, Burnett has never revealed the identity of the man who launched her career--and her sense of philanthropy.

Now, friend -- who will be your next Carol Burnett? Perhaps it is time we all expand our radar, and find such deserving young people.

Is there any better investment?

And, if you would like to sit down with me to discuss how such giving can be structured within your estate, I am happy to create time for that sort of conversation.

I am right here: 281-218-0880

Monday, July 18, 2011

Asset Protection Lawyer in Houston Discusses The Virtues of Ben Franklin

By: Kim Hegwood, Houston Asset Protection Attorney

He was born into a family of 17 children, the son of a poor soap- and candle-maker. When Franklin was a young man, he didn't practice much of the advice for which he later became famous. But at the age of 20, he decided to change his irresponsible ways and made four resolutions to help guide him through life toward "moral perfection":

1. He would become more frugal so that he could pay money to the people he owed.
2. He resolved to become more honest and truthful in every way he could.
3. He would be as industrious as possible at whatever task was at hand.
4. He vowed to never speak ill of any person, not even if what he might say were true, and to speak of only the good things about the people he knew.

[That last one is especially interesting, and when put into practice -- powerful.]

Franklin believed strongly in self-improvement and worked tirelessly to better himself--mentally, physically, and behaviorally. So, from his four resolutions, Franklin developed 13 virtues to live and perfect during his lifetime.

He numbered the virtues and worked on only one per week. At the end of each week, he would evaluate his progress and then move on to the next virtue. After working on the 13th virtue, he started over again with the first one. Here are his 13 virtues:

1. Temperance. Eat not to dullness; drink not to elevation.
2. Silence. Speak not but what may benefit others or yourself; avoid trifling conversation.
3. Order. Let all your things have their places; let each part of your business have its time.
4. Resolution. Resolve to perform what you ought; perform without fail what you resolve.
5. Frugality. Make no expense but to do good to others or yourself; i.e., waste nothing.
6. Industry. Lose no time; be always employed in something useful; cut off all unnecessary actions.
7. Sincerity. Use no hurtful deceit; think innocently and justly, and, if you speak, speak accordingly.
8. Justice. Wrong none by doing injuries, or omitting the benefits that are your duty.
9. Moderation. Avoid extremes; forbear resenting injuries so much as you think they deserve.
10. Cleanliness. Tolerate no uncleanliness in body, clothes, or habitation.
11. Tranquility. Be not disturbed at trifles, or at accidents common or unavoidable.
12. Chastity. Rarely use venery but for health or offspring, never to dullness, weakness, or the injury of your own or another's peace or reputation.
13. Humility. Imitate Jesus and Socrates.

Franklin may not have achieved all these goals perfectly (and who of us has?), but what noble goals to be pursued! These are some inspiring and worthy ambitions, for sure.

Tuesday, June 28, 2011

Family Lawyer in Houston Offers A Critical Early Life Lesson For Your Children

By Kim Hegwood, Family Lawyer in Houston

One of the key factors in passing your wealth to your children EFFECTIVELY is raising young people to be financially savvy. Many clients have written to say that they read and discuss my financial emails at the dinner table with their children. That's a nice start.

But if you want to raise kids who can create and manage wealth, there are a handful of critical rules that are foundational.

Here is the main one: Postpone spending.

In economics, "deferred consumption" is the very definition of wealth and capital. So ... defer your consumption, kids! Everything you don't spend today is wealth. Only what you don't spend today is available for investing. And since money makes money, what you don't spend today can provide a lifetime of income to spend in the coming days.

Teach them this: Wealth is what you save, not what you spend.

Most of the younger generation is under the false impression that wealth is based on the luck of a big salary. Nothing could be further from the truth. According to the book The Millionaire Next Door by Thomas J. Stanley, the affluent tend to answer 'yes' to these three questions:

1.) Were your parents very frugal?
2.) Are you frugal?
3.) Is your spouse more frugal than you are?

So how did they build their wealth? According to Stanley's research, they did it slowly, living well below their means and investing about 20% of their household income each year. And because money makes money, over time, they grew gradually richer and richer.

Imagine you purchase a pair of shoes for $50 every year. The person that makes do with the old ones and only buys shoes every other year will be able to save and invest the difference. After seven years, their savings will be earning enough interest to pay for a new pair of shoes every other year. After eleven years, the interest from the investment will pay for the cost of buying new shoes every year, forever.

Because being frugal early in life produces great wealth later in life.

Due to the affluence of American culture, it is difficult to learn to distinguish between needs and wants. Very few purchases are needs. Other than food, shelter and clothing, everything else is optional. In the United States, we show our extravagance even in these three essentials.

Practically speaking, you can learn to postpone spending one purchase at a time. When our children were very young, we required them to wait one week before spending money on a toy. Often, after waiting a week, they wanted a different toy instead. Then, they had to wait another week for that purchase.

Simply learning to delay and avoid impulse buying can cut your children's spending in half.

So teach your children: Wait now ... profit greatly later.

Friday, June 10, 2011

When The Rich Act Like They Are Poor (Part 2)

By: Kim Hegwood, Estates Lawyer in Houston

As I mentioned last week, as an estates lawyer in Houston I have made a close study, over the years, of how money "works", and just what it is that propels certain individuals and families into great quantities of resources ... and what also brings them down.

I hate to see those with resources squander them, simply because they fell prey to the rampant fear.

Watch out for it in your own heart, in that of your children and spouse -- and avoid these behaviors of the poor:

*They use credit habitually for "lifestyle" purchases: Delayed gratification isn't something that they have heard of, and if they want something they just put in on credit.  After all -- it's at a 0% interest rate for the first 3 months!   One purchase leads to another, and before they know it they have got thousands in credit card debt.

Debt loads in the wealthy can look different, but the principles remain the same. Avoid leverage these days; keep your powder dry. Your lifestyle is not worth expensive cashflow.

* Always pay more than they have to: Often people who are broke have gotten there because they do not know how to shop for a deal, negotiate or ask for a discount.  You can get a discount on just about anything -- from electronics to health care.  Never pay more than you have to.

Why is it that the wealthy take perverse pride in paying full retail? It goes before the fall, as they say ... so don't become pennywise/pound foolish -- but neither should you eschew effective negotiation in multiple categories.

* Fall prey to lifestyle inflation and "keeping up with the Joneses": This is a biggie for the wealthy. Even people with higher incomes have problems with staying ahead in their budget because they fall prey to lifestyle inflation.  Instead of banking and saving raises, they raise their standard of living -- buying a bigger better house, a new car and a new wardrobe.  They feel like they have to keep up appearances with everyone in their neighborhood.

Take a good hard look at what motivates your purchasing, and clean out the dustbunnies of comparison, lest they fill your brain with poverty-thinking.

 * They rely on others to fix their problems:  We have probably all known someone who is always going to their parents, family or friends to bail them out.  They create a pile of debt, and then rely on the kindness of others to get them out of their bind.

* They forfeit future gains for fun today:  These people often have a hard time visualizing how saving and hard work will pay off down the road, and instead live for the fun and pleasures of today.  They do not realize how saving for tomorrow can improve their quality of life today.

Do NOT sacrifice your retirement (or estate) on the altar of present-ease.

Obviously, I would like to help you move past these behaviors, if any apply. You may not carry every one of these traits, but just one or two can get you into hot water.

If you feel that you are slipping into any of these traps, please do let us know ... we are here to help as your Family's Personal Financial Guide.

Friday, June 03, 2011

Family Lawyer in Houston Discusses When The Rich Act Like They Are Poor (Part 1)

By: Kim Hegwood, Family Lawyer in Houston

In my line of work as a family lawyer in Houston, I get to have deep and meaningful conversations with families about the things which they most care about. I LOVE those conversations, and I believe that understanding these deeper passions is "the only way to fly", when it comes to estate planning.

Now, as I do so, I also run into people's attitudes about their wealth.

I have made a close study, over the years, of how money "works", and just what it is that propels certain individuals and families into great quantities of resources ... and what also brings them down.

You see, sometimes the very wealthy begin to act like they are poor.

It is the beginning of a bad problem. And, it is also something to watch out for in your children -- because it will give you a clear picture about what might happen should you bequest your resources to them without a clear plan. I have compiled a group of behaviors characterizing the financially-strapped.

You may have resources NOW... but are you:

* Spending money on things you really don't need:  I am sure we have all got one of those friends who just loves to spend money, and buy things just to say they have them.  The newest iPhone just came out? They buy it even though they already have an older version.   A new TV came out with a higher refresh rate than their current one? They buy one so they can say they have the newest and latest technology.

That may be fine for a certain amount of time, but there is something deeper happening in the heart, there, which if left unchecked, can signal a decline in wealth. Because it starts with the iPhones ... but where does it end?

* Ignorant about where your money is going: Far too often people who are broke find themselves short because they have never tracked their monthly cash flow and their small expenses are adding up to consume everything they bring in.  They really need to track their expenses for a month or two so that they can set up a plan.

But the wealthy sometimes begin to believe that they are immune to such proletarian concerns, and allow the same bad habit to encroach into their portfolio. Do not let up -- but, of course, do not fall into obsession (e.g., are you checking your accounts every day? That is also a problem!).

* Blaming your problems on outside forces:  People do not like to see themselves as the source of their problems. While people certainly have problems that are not caused by something they have done, far too often they will also try to shift blame when they should be looking at themselves.  They blame their friends, family and the government.  They believe that "the little guy just can't get ahead".

Are you doing the same thing? "It's the market's fault!", "My financial advisor screwed me!", etc., etc. ... again, signals of a deeper problem.

* More interested in having others think you are wealthy, than actually being wealthy: People who are always broke like to be seen as wealthy and successful, even if looking that way to others means that they are actually forfeiting the possibility of being wealthy in reality.

Are you pumping your resources into an image? Are you "investing" in items which, really, are more about how people will see you than how they will help your net worth?

* Not planning ahead: For the poor, money is short because they have not set up a family budget, and a saving and spending plan.  When they set up a monthly cash flow forecast, and know exactly what they are going to spend in what categories--they will do much better.  If you fail to plan, you can plan to fail, right?

Again, many resources can lead to laziness in this area. Do not let up with it.

I will have more to say on this topic next week.

Until then, I do hope you receive this in the affection with which I wrote it.

Thursday, May 19, 2011

Family Attorney in Houston Talks Heart/Money Alignment

By: Kim Hegwood, Family Attorney in Houston

It is a cliche, but it is oh-so-true: Money doesn't buy happiness. Families earning $50,000 a year overspend trying to keep up with those making $100,000 -- who, in turn, attempt to live like those making $200,000. For many families, the lure of consumerism wins out over qualities like foresight and the patience which saving requires.

The Beatles were right too: "Money can't buy you love." You can not pay someone a million dollars to love you more than a million dollars. Money can't buy integrity or friendship either. You can often purchase a cheap imitation of these values but not the genuine article.

But money can be used to clarify and encourage the things already most important to you. It can be used to show your love for someone, keep your integrity or help a friend in need.

So, here is a simple exercise which can help you determine what you value most in life: Look at this list of 15 values:

    Achievement
    Adventure
    Aesthetics and culture
    Authority/Power
    Financial security
    Friendship/Love
    Health
    Independence
    Integrity
    Philanthropy
    Recreation
    Service
    Spiritual growth
    Wisdom
    Work

Cross off 10, and keep the five most important to you. Then rank those five in order of importance. Look at your list and answer this question: Are you living your life and using your money in sync with your values? If you are married, ask your spouse to do the same exercise independently, and then compare your answers.

Now, take these values and give a hard look at where you are spending your money. Does it fit?

Surveys have found that people regret what they didn't do more often than what they did.
Our lives can change course dramatically (and serendipitously) all because of some small decision on our part. How many times have we heard the story of how a happily married couple met, only to be surprised it almost didn't happen?

And, often, these decisions are expressed through how we spend our money.

We each long to participate in something significant and realize our greater passions. But that doesn't just "happen"! It requires foresight, planning and forgoing our momentary desires. The choices we make, every day, determine the ones we will have the opportunity to make in the future. Without those hesitant, often stumbling first steps, we can't even begin the journey. And, of course, the first step is the hardest.

Voicing what we are passionate about can be scary. Beginning to act on our ideas can feel overwhelming. But courage isn't a lack of fear; it's action in spite of fear. And our fear may indicate we are on the quest of our lives.

So again -- I refer you to your list of values, held up against how you are currently spending your money: Are there small changes you can make--which would translate into BIG, passionate goals?

That's why estate (and financial) planning is primarily thinking through how your resources should further the values that transcend the tangible. Going through this exercise may not result in a dramatic career change, but it will help you see ways to align your actions to your goals.

And that, my friend, WILL bring you true happiness.

Thursday, April 07, 2011

Houston Probate Lawyer Answers, "Can Procrastination Be Good?"

By: Kim Hegwood, Houston Probate Lawyer

The most impressive people I know are all terrible procrastinators. So could it be that procrastination isn't always bad?

You see, there are an infinite number of things you could be doing. No matter what you work on, you are not working on everything else. So the question is not how to avoid procrastination, but how to procrastinate well.

In my view, there are three kinds of procrastination. Depending on what you do instead of working on something, you could work on:

(a) nothing
(b) something less important, or
(c) something more important.

That last type, I would say, is good procrastination.

This is the "absent-minded professor," who forgets to shave, or eat, or even perhaps look where he is going while he is thinking about some interesting question. His mind is absent from the everyday world because it is hard at work in another.

That's the sense in which the most impressive people I know are all procrastinators. They are type-C procrastinators: they put off working on small stuff to work on big stuff.

What is "small stuff?" Roughly, work that has zero chance of being mentioned in your obituary. It is hard to say at the time what will turn out to be your best work (will it be your thesis for your PhD, or that detective thriller you worked on at night?), but there is a whole class of tasks you can safely rule out: shaving, doing your laundry, cleaning the house, writing thank-you notes-anything that might be called an errand.

Good procrastination is avoiding errands to do real work.

Good in a sense, at least. The people who want you to do the errands won't think it's good. But you probably have to annoy them if you want to get any real work done. The mildest seeming people, if they want to do real work, all have a certain degree of ruthlessness when it comes to avoiding errands.

Some errands, like replying to emails, go away if you ignore them (perhaps taking friends with them). Others, like mowing the lawn, setting up legal forms or filing your tax returns, only get worse if you put them off. In principle it shouldn't work to put off the second kind of errand. You are going to have to do whatever it is eventually. Why not (as past-due notices are always saying) do it now?

The reason it pays to put off even those errands is that real work needs two things errands do not: big chunks of time, and the right mood. If you get inspired by some project, it can be a net win to blow off everything you were supposed to do for the next few days to work on it. Yes, those errands may cost you more time when you finally get around to them. But if you get a lot done during those few days, you will be net more productive.

So here is where we come in.

Consider us "The Ultimate Procrastination Solution".

Allow us to take the pain away from these second-level tasks (like establishing the most ideal estate plan possible in this environment)--and you go back to writing that killer novel.

And, of course, here is something which will make it even easier...

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Thursday, March 24, 2011

Automatic Investing As The Basis For Real Wealth | Houston Family Lawyer

By: Kim Hegwood: Houston Family Lawyer

Yes, it may be a cliche, but the greatest engine to generate real wealth is saving and investing. And the best way to ensure that your default is saving & investing is to automate the process. Pay yourself first, and your savings will grow exponentially.
 
Effective money management is based on the idea that very small changes can yield enormous gains in your family's finances. This process, both easy and simple, is worth millions. Unfortunately, only a tiny percentage of American families take advantage of the tools available to implement this automated technique.
 
So here is how you pull this off:  Have all income flow into a joint taxable investment account. Make saving and investing your default. Putting all of your money in this account helps ensure that you move only the money intended for some other purpose into a different account.
 
For working families, this means an automatic deposit of paychecks into their joint account. Banks will try to entice you into setting up automatic payroll deposit into their checking account. They will offer you additional interest if you do so. Resist. The additional interest is not worth the failure to not only save but to save and invest. Your taxable investment account should be the default.
 
For retired families, this means an automatic deposit of Social Security checks. It also means their required minimum distributions (RMDs) from their individual retirement accounts (IRAs) should be deposited first into this account.
 
From this account you can then withdraw what you need for daily expenses. Do this by setting up a regular transfer of funds from your joint investment account to your checking account. Make sure the transfer matches the amount you have allocated in your budget, ideally 65% or less of what you need to support your lifestyle. The other 35% should remain in your joint taxable account, much of it to be invested.
 
Part of what remains is the 10% you have designated for "unknown unknowns". In the ideal world, this money will not be needed, but few families can anticipate every possible expense. Each stage of life presents new challenges. Having the financial margin to absorb some of life's shocks is simple wisdom and offers financial peace of mind.
 
Because the time horizon for this emergency money is unknown, invest it in a balanced portfolio. If unused, your emergency money will double in 7 to 10 years and provide a greater safety net for your family. If you have to dip into this fund, keep track of the amount. If it approaches the full 10% every year, you are using your emergency money to extend your budget, not simply for unanticipated expenses.

The less you use this account, the more quickly you will reach financial independence. These funds are mixed with your other taxable investment savings and continue to grow your net worth. If you are meeting all of your expenses without any major surprises, these funds can be used to purchase a home, start a business or for additional charitable giving.
 
Another portion of what remains in your taxable investment account will be the 5% you are specifically designating as taxable savings. Because this 5% gets mixed in with charitable giving that is being invested and your unknown expenses, the entire portfolio should be balanced. If an emergency arises, any portion of the portfolio could be sold to furnish the needed funds. Similarly, when you want to gift appreciated stock, any portion of the portfolio could be gifted.
 
The last portion might be the 10% for funding your retirement accounts each year. Many people put this money directly into a retirement account as part of the payroll process through a pretax deduction. If that is the situation, you don't need to flow anything through your taxable investment account. But you may want or need to fund your retirement outside of a payroll deduction. One example is funding your Roth IRA each year. In this case you may want to collect the money in your taxable investment account and then transfer it to a Roth account.
 
If you want to fund a Roth IRA account for the maximum $5,000 (in TY2011), you could transfer the entire amount once during the year or set up a monthly transfer of $416.66. The money from your paycheck would provide the cash, either letting it build up throughout the year or supply the funds for each month's transfer.
 
Busy people forget to make the necessary transfers each year. That is why a monthly transfer is preferable. Saving and investing should be automated so it occurs regularly without any additional effort. Whatever is in your checking account you are likely to spend. Whatever is in your investments you are less likely to spend.
 
Automating the process of saving and investing is like damming a river to form a reservoir. The alternative is the manual process of hauling buckets of water from your stream to a water tower. You will never grow rich by hauling buckets, and it is much harder work.
 
No matter what income you have, you probably already have enough to grow rich! Saving and investing just $10 a day builds a million dollars over your working career at average market returns. You build wealth by what you save and invest, not by what you spend. Automating the process of saving and investing grows your wealth while you sleep.

Wednesday, February 02, 2011

Family Laywer in Houston Discusses How To Gradually Grow Your Children's Financial Smarts

By: Kim Hegwood, Family Lawyer in Houston

I will spare you the stories, but needless to say: As a family lawyer in houston, I have seen so many otherwise-loving and wise parents somehow forget to ready their children for the financial realities of adult life. Instead, they simply hand them credit cards, pack up their cars and head to school.

I will go out on a limb here, but I believe that it is this deficiency in financial education which has led, in part, to an adult population that spends beyond its means, engages in unsafe borrowing practices, and accumulates record amounts of  debt.

Still, if we decide to instruct our kids how to responsibly manage their money -- much as we teach them how to read, tie their shoes, and ride bikes -- then perhaps they might avoid a Great Recession-like event in their own adult lives.

Sure, that all sounds good in theory, but how do you go about instilling proper financial values into your children?

1) Tackle the task as if you are once again teaching your kids to ride bikes. You first need to let them get comfortable on training wheels, and prepaid cards are the training wheels of personal finance. So co-sign for prepaid cards, load a certain amount of money biweekly and allow your children to spend freely. This will force them to learn how to budget and, since most prepaid cards allow online account management, you will be able to review their purchases with them.

By the way, I did some online searching, and these are some good choices for pre-paid cards for teenagers, etc.

Visa UPside: http://www.upsidevisa.com
MasterCard Facecard: http://www.facecard.com
American Express Pass: http://bit.ly/heWJRS (shortened link) 
Visa Buxx: http://usa.visa.com/personal/cards/prepaid/visa_buxx.html

2) Once you are confident that your kids have exhibited responsible prepaid card use for at least a year, you can graduate to monthly cash allowances. This progression, which is tantamount to taking one training wheel off their bikes, will provide them with greater financial independence (given that you cannot monitor their spending with cash). It will also more thoroughly test their responsibility because the odds of losing money or exhausting too quickly are heightened with a monthly cash allowance.

3) If your kids demonstrate the requisite discipline after a year of cash allowances, you can take the other training wheel off. Do so by co-signing for and opening checking accounts in their names and depositing slightly higher monthly amounts while requiring them to pay for more of their own expenses.

With checking accounts, children will garner much needed experience writing checks and purchasing with debit cards. They will learn how to avoid overdrawing their accounts and bouncing checks --  and if they can't learn these lessons quickly enough, you can screw that training wheel back on and regress to cash spending. After all, when you took that last training wheel off, you didn't let go of the bike completely! You still had a grip on the handlebars and were providing assistance as needed.

4) If your kids' financial balance seems solid after 6-9 months, you can release the handlebars and either co-sign for student credit cards or give them small lines of credit as authorized users on your credit card accounts. Doing so will help teach them the principles of responsible credit use, such as spending within one's means and paying bills in full each month. Remember though that you are simply taking your hands off to see if your kids can ride. If they wobble, catch them.

This financial education progression will instill within your children various skill sets that will surely serve them well when they leave the nest. It's important to employ such a practical approach because it lets kids learn and inevitably falter while the stakes are low. Additionally, you can ensure that your children know how to handle their money before becoming independent, providing yourself with the kind of peace of mind that is valuable to any parent.

So before sending your kids out into the world, make sure they are ready for the financial implications of that independence!

Thursday, January 06, 2011

Estates Lawyer in Houston Discusses How To Set Those Pesky Financial Goals

By Kim Hegwood, Estates Lawyer in Houston

Not to make you feel guilty, but for every seven years you delay saving and investing for the future, you cut in half the income you would enjoy at the end of your life. So, as an estates lawyer in Houston, I want to encourage you to make 2011 the year you get on the right financial course!

Here are some suggestions to get started...

1) Set Realistic Goals First, ask the right questions and stay the course until you have found the answers. Goals that are shared are ten times more likely to be acted on. Don't wait until you have everything set up to seek out accountability.

2) Make those goals concrete and then document them. Set your savings goals as a specific annual percentage of your adjusted gross income (AGI). It is a great idea to save at least 10% of your AGI in tax-free retirement accounts and another 5% toward retirement in taxable investments. If you are behind on your savings, you may want to save even more in order to catch up.

Third, craft the best strategy to implement your goals, including prioritizing the appropriate retirement vehicles. Start by investing just enough to get the entire match from a company's 401(k) plan (if you have one) and then fund your Roth IRA accounts next. After these two, make certain you have enough nonretirement savings.

Fourth--and this is a BIG deal-- automate your plan. Automating putting money in an employer-defined contribution plan is easy. Automating a taxable savings plan is just as painless. Most banks or brokers offer an automatic money link between an investment account and a checking account. They should also offer a monthly automatic transfer between the two accounts.

Going into further detail would actually entail sitting down and creating a true, full financial plan--which is impossible over email!

But I will say one last thing: the most critical component of wealth management in the new year will be tax minimization. With the potential for tax rates to fluctuate even more than the stock market in 2011, it is never been more important to monitor what "Uncle Sam" is seeking to take from your wallet!

Wednesday, December 22, 2010

Wills and Estates Lawyer in Houston Talks Personal Strategy

By: Kimberly Hegwood, Wills and Estates Lawyer in Houston

This was sent to me by a friend, and I thought it worth sharing ... this holiday week, traveling can be chaotic, shopping even worse. Let's all remember to keep our heads about us...

"God, help us remember that the jerk who cut us off in traffic last night is a single mother who worked nine hours that day and is rushing home to cook dinner, help with homework, do the laundry and spend a few precious moments with her children.

"Help us to remember that the pierced, tattooed, disinterested young man who can't make change correctly is a worried 19-year-old college student, balancing his apprehension over final exams with his fear of not getting his student loans for next semester.

"Remind us, Lord, that the scary-looking bum, begging for money in the same spot every day (who really ought to get a job!) is a slave to addictions that we can only imagine in our worst nightmares ...

"Help us to remember that the old couple walking annoyingly slow through the store aisles and blocking our shopping progress are savoring this moment, knowing that, based on the biopsy report she got back last week, this will be the last year that they go shopping together.

"Father, remind us each day that, of all the gifts you give us, the greatest gift is love. It is not enough to share that love with those we hold dear. Open our hearts not to just those who are close to us, but to all humanity. Let us be slow to judge and quick to forgive, show patience, empathy and love. "

Amen.

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, 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, 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.

Thursday, July 01, 2010

5 Things Adult Women Should Know About Houston Estate Planning

As a Houston estate planning lawyer, I can’t stress enough the importance of making an estate plan to systematically and comprehensively protect the people you love following your death or incapacity.

And while woman in general are attune to this “theory” of estate planning as the “nurturers” and even the “protectors” of the family unit, many are simply unaware of its absolute necessity in safeguarding their children—and their livelihood—should something unexpectedly happen to them and/or their spouse.

This is unfortunate, especially considering a recent statistic published in Forbes Magazine that reveals 42% of women age 65 and older are widowed. Essentially, that means in the absence of proper estate planning, 42% of women in this country will lose some portion of the money they were relying on to support themselves through the remainder of their lifetime to taxes, claims from children from prior marriages, legal fees, medical bills, etc.

Yet all of this can be avoided with the implementation of a few basic estate planning tools and strategies designed to protect women and their children financially following the death or incapacity of a loved one.

Of course I can’t cover all of these tools and strategies in this basic article, but I will leave you with 5 important considerations designed to help you lay the foundation for your unique Houston estate plan:

1. Figure out who you trust to make important medical and financial decisions on your behalf if something happens to you. Typically this is a family member or close friend that you trust to respect your wishes or handle your affairs if you are incapacitated. Eventually you will appoint this person to serve as your legal power of attorney if called upon in a time of need.

2. Ponder who could raise your children if something happened to you and/or your spouse. I encourage you to think outside the box and don’t limit yourself to the people who are “financially” able to assume the role as guardian. With proper estate planning, YOU will leave enough money behind to support your children, thus giving you more options as to who can care for your kids in your absence.

3. Do you and your spouse have life insurance? This is a critical consideration in making sure the surviving members of your family are provided for should you or your spouse unexpectedly pass away.

4. Do you have cash in the bank? If not, consider opening a joint account with your spouse dedicated to covering immediate expenses should one of you die or become incapacitated in an accident. This will protect you financially if there is any delay in receiving your inheritance or federal aid.

5. Can you minimize estate taxes by pruning your assets? This is an important consideration, as the federal estate tax is coming back next year at a roaring 55%. So rather than forking over your hard earned cash to Uncle Sam, it’s preferable to start gifting your assets or shield them by way of a trust if it makes financial sense to do so.

Of course there are a number of other questions Texas women must consider as it relates to estate planning, but this brief checklist is a great start.

However, for those women who want to know without a shadow of a doubt how much protection (or lack of protection!) they have should something happen to them or their spouse, call our office and schedule a FREE Lifetime Legacy Planning Session.

Together in this session we will review your current situation (or plan if you have one), your assets and your end-of-life wishes to determine whether or not your family is truly protected should something unexpectedly happen.  I will also teach you how to maximize your current assets and inheritance without sacrificing the ability to qualify for long-term care assistance in the future.

Simply call (281) 218-0880 and mention this article to redeem your free session. These appointments are limited to 10 sessions per month so call today!

Thursday, June 24, 2010

Advice From A Dad

Dads say a lot over the years, giving me some valuable lessons.

I am attempting here to summarize his thoughts...so call this a paraphrase of Dad's Life Wisdom:

* The bank is not your financial security. The best credit line available is the one attached to your emergency savings fund. Remember, the borrower is slave to the lender, and you do not want to be a slave to big banks. Take my word for it!

* Do NOT depend on government for making your life easy. In an emergency, don't be too proud to accept help, but do not make it a way of life.

* You can't depend on schools to provide your full education. You must self-educate beyond the lessons taught in school. Challenge your educators, and challenge your own thoughts. Read books. Read books contrary to your own opinion, so that you may learn another point of view. Read books on subjects you don't think you care about and you just may discover your passion.

* Getting rich rarely comes quickly. Building wealth takes time, and a lot of hard work. If you want to be successful in anything, you must work at it for hours every day - sometimes late into the night, and early in the morning. If you are happy with mediocrity, punch the clock after 8 hours, plop down in front of a television and waste valuable time until you fall asleep. Repeat this process until the weekends when you can do even more of the same.

* Be skeptical. Do not believe everything you read, most things you hear, and even a few things you see with your own eyes. Question everything. Nothing in life is black and white.

And, while we're on the subject of Dads, let me leave you with one final gift:

http://www.youtube.com/watch?v=Nifq3Ke2Q30

Finish the race.

Friday, June 18, 2010

The Mass Media is NOT Your Friend

Life in the modern world is not  always a trip in the sunshine. Especially today.

But as a Texas probate lawyer and someone who cares about families and their emotional health, I believe that it is made so much harder by the tendency of our world to suffocate you with mental junk and global negativity.

I believe that the number #1 danger for families today is allowing today's world to starve your brain with "junk food" and deaden your spirit with the overwhelming feeling that you are small, insignificant ... helpless.

I have learned to avoid the 24-7 news channels. I figure that I will see what I need to when seeking out resources for our clients about current events on the web. But recently, I did, in fact, watch some CNN.

Now, CNN is about as bland as you can get--it is "normal" to "normal" people. But I think we can both agree that we don't want "normal" lives! Those of us who are wanting to go somewhere in life must have better things to do than listen to talking heads opine about dozens of tragedies that we can't (and won't) be able to do anything about.

But right now, especially with the BP spill, the world is SWIMMING in negativity. And you need to be serious and proactive about it. Because -- if you don't -- it will kill your state of mind, kill your desire to succeed, even kill your dreams and everything you really care about.

News-Flash: The mass news media is NOT your friend.

They feed on fear, and they sell paranoia, division and hyperbole. It is what they do.

And not only must you protect YOURSELF from this drip, drip, drip of depression, you need to fight it on behalf of your family.

Tell them what is GOOD. Greet them with a smile and with encouragement. Tell them what they are doing RIGHT. Give them a voice to the hope within their bones--which is too often buried in a junkpile of media-fueled negativity.

You (and they) need to celebrate little tiny victories EVERY DAY.

This is an essential skill for those with a family: when you have a major victory in your life, you need to find encouraging people who will celebrate it with you. Be that person for your family members. Because GOOD NEWS is NEWS INDEED.

EndRant.

I am personally dedicated to the success of your family... Can other lawyers say that?

Warmly,

Kimberly Hegwood, Your Neighborhood Texas Probate Lawyer