Tag: Trusts

Houston Special Needs Lawyer: Basics of a Special Needs Trust

For families that have loved ones with a disability, ensuring the care for their loved one once the caretakers are gone is of the utmost priority. The loss of specialized care and Medicaid or SSI benefits is a very real danger if proper special needs planning is not put in place, which is why Houston special needs lawyers often share the benefits of special needs planning involving Special Needs Trusts.

What is a Special Needs Trust?

Since even a small amount of cash assets can disqualify individuals with a disability from the care and assistance they need, it is important to not let these assets pass directly to them upon your passing. A Special Needs Trusts is the best way to ensure your loved one with disabilities keeps their care and assistance while also benefiting from the legacy you leave behind. Houston special needs lawyers design these Trusts in such a way that the assets in it do not belong to your child; instead, they are owned by the Trust and managed by a Trustee of your choosing who will direct the assets to be used for the benefit of your loved one with a disability. Medicaid and SSI will ignore the assets in the Special Needs Trust as they are not directly owned by your special needs loved one.

How may the assets in a Special Needs Trust be spent?

Assets in a Special Needs Trust can be spent in a number of ways which benefit the individual with a disability. These include education, recreation, vacations, home improvement, and certain out-of-pocket medical expenses. These expenses are considered “non-countable” by Medicaid and SSI since they do not count as the special needs individual’s personal assets. Houston special needs attorneys caution that assets in a Special Needs Trust may not be given directly to the individuals with disabilities, as this will oftentimes disqualify them from receiving state assistance.

What if I do not have a Trustee or I am not leaving behind a large sum of money?

In cases where a suitable Trustee cannot be chosen or a small or moderate sum of money is being left behind, Houston special needs lawyers often direct their clients towards Pooled Trusts. Pooled Trusts are typically run by non-profits. The non-profit will assign a Trustee who is responsible for managing the assets on behalf of the individual with special needs and the benefit of such an arrangement is that the Trustee and the non-profit are both heavily involved in the special needs community and understand the care and compassion needed to look after your loved one. While there are fees and different types of services attached to Pooled Trusts, they are often a good alternative to an individual Special Needs Trust in certain situations.

If you have any questions about how a Special Needs Trust can benefit you and your loved ones, please contact us at (281) 218-0880 to schedule a consultation.

Congratulations on starting your medical career! Now go protect your financial future!

Years and years of school, and hours upon hours working through your residency is now paying off. You have officially become an MD here in Texas. Congrats!

With the excitement of your new career, and maybe some anxiety about juggling your home life and work life, you may not be thinking about taking steps to protect your financial future. But, unfortunately your new career puts you at risk of being sued.

The statics are astounding; according to the American Medical Association, 61% of physicians surveyed had been sued by the end of their career. These scary statistics are a very good reason to get your comprehensive asset protection plan in place now before you need it.

Any asset protection attorney in Houston will tell you that a solid plan will allow you to build a wall around your personal money and property so that they cannot be subjected to lawsuits and risks related to your medical practice.

For new doctors and seasoned physicians alike, there are several asset protection strategies that can be employed. For example, you may choose to put all of your assets in irrevocable trusts. By putting your assets in a trust, they are owned by the trust. Since you no longer own the assets, they are not vulnerable to lawsuits. A properly created corporation, such as an PC, LLC or LLP may also be necessary to separate the assets of your “business” from those of your personal use (such as your family home).  Again, a qualified asset protection attorney here in Houston can help you work through all of your options based on your practice needs and desires.

Asset protection is the specialty of the law that addresses many of the concerns physicians have. There are several other strategies that you may choose to employ to organize your financial and business matters to minimize liability and lawsuit risks. There are several technical issues involved so it is always best to work with a qualified and experienced asset protection lawyer.

We invite you to contact our office at (281) 218-0880 and let us know that you are just starting your career and we’ll offer you a free consultation. Together, we’ll explore the strategies available to protect the assets you have now, and any that you will acquire in the future.

Complete a Complete Estate Plan

When it comes to planning, the focus is typically on making you better prepared for the future. That means limiting taxes, creating wiser investment strategies, knowing when it’s best to claim Social Security and developing sustainable retirement income plans. All of these help you on the path to your financial future and your long-term goals. But The Brainerd (MN) Dispatch reports in “3 common estate planning questions, answered,” that there is, however, one exception. That’s estate planning. While much of financial planning primarily benefits you, your estate planning primarily benefits your family and loved ones. 11-14-16

The basic component of your estate plan is your will but there may be other parts you need. Depending on your estate, you may want to consider a trust, in addition to healthcare directives, powers of attorneys and guardian designations. You should also remember that your will isn't necessarily the only instruction when it comes to distributing your assets. The beneficiary designations on your retirement and brokerage accounts, and the life insurance policies you own will take precedence over what you say in your will. Review beneficiary designations regularly to be sure the money in your accounts or the death benefit on a life insurance policy goes to the right person.

A trust can be complicated, so talk with an estate planning attorney to see if it makes sense and whether you'll actually benefit from using a trust. If most of your assets are covered by beneficiary designations or owned in joint tenancy, those assets are already exempt from probate, so they won’t necessarily benefit from a trust strategy.

The executor or the personal representative is the person who will be responsible for carrying out the instructions in your will, settling your debts and paying taxes on your estate. As far as selecting an executor, it should be someone with the capacity to carry out the needed tasks of the position. It also needs to be someone who is willing to serve and is familiar with your situation such as a family member or a close family friend.

If you don't spend every last dollar you have to your name on the day you die, you'll need to have an estate plan. Speak with an experienced estate planning attorney to develop one.

Reference: The Brainerd (MN) Dispatch (Sept. 23, 2016) “3 common estate planning questions, answered”

Librarian’s Estate Plan Includes $4 Million Gift to School

 

A former University of New Hampshire librarian’s $4 million gift to the school has received considerable attention due to the way the school opted to use the funds. This uproar is a reminder that estate planning is important, especially if you’re particular about the way you want your money used. 11-02-16

This is the message in the credit.com article “The Lesson We Can All Learn From the Librarian Who Left a Fortune to His Former Employer.”

Robert Morin, a university librarian for nearly 50 years, gave his entire estate to the school when he died in 2015. He designated that $100,000 go to the library but didn’t say how the remaining money should be spent, according to UNH. The school said it plans to spend $2.5 million of the proceeds on a student career center, and another $1 million on a video scoreboard for the school’s football stadium.

The scoreboard upset some people. They said using 10 times the amount dedicated to the library for a scoreboard goes against Morin’s interests—especially his austere lifestyle—which is the reason he could save such a large sum of money.

Think about the amount of flexibility we have in dictating our wishes when it comes to leaving money to others in our estates. A will or living trust can give instructions to do anything that’s not illegal, so you can put in pretty much anything you want.
Here are a few things to consider when deciding who will receive proceeds from your estate and how much:

Specific Amounts. Use caution when stating specific dollar amounts in your will or trust, especially when coupling charities and family as beneficiaries. An estate can lose value over time, so the $100,000 you want to leave to the Alley Cat Allies can sound terrific when your estate is valued at $1 million. However, if it plummets to $150,000, it will leave little for your family. Instead, use a percentage of the estate instead of a specific dollar amount and add a restriction that the amount is not to exceed a specific dollar amount.

Name Charities as Beneficiaries. Rather than mixing charities and family members in your will, make a charity a beneficiary of a retirement account. The money will then go to the charity tax-free, and, if you want to change which charity receives your donation, you only need to change the beneficiary on your IRA or 401K instead of rewriting your will.

As with most estate-planning issues, it’s smart to speak with a qualified estate planning lawyer instead of trying to do it yourself—especially if you have substantial assets and/or multiple beneficiaries.

Reference: credit.com (Sept. 19, 2016) “The Lesson We Can All Learn From the Librarian Who Left a Fortune to His Former Employer”