Law Office of Sharon C. StodghillHouston Probate Attorney | Texas Estate Planning, Guardianship and Elder Law2024-01-22T19:31:10Zhttps://www.scslawyer.com/feed/atom/WordPress/wp-content/uploads/sites/1301940/2021/04/cropped-favicon-32x32.jpgOn Behalf of Law Office of Sharon C. Stodghillhttps://www.scslawyer.com/?p=498842024-01-22T19:31:10Z2024-01-22T19:31:10ZProtecting your disabled child's assets
As your disabled child ages, you still want them to be able to access government benefits like Supplemental Security Income, which provides guaranteed income, plus other programs such as Medicaid. However, having an income from an estate can negate eligibility for those essential programs. The best way to ensure access is to learn how to provide for a disabled child in an estate plan.
Setting up a special needs trust for your adult child is vital. You can start with any amount of money, as there is no minimum requirement, and slowly add to it. Another helpful tool you can pair with a special needs trust is an Achieving a Better Life Experience account. Your trustee can move money from the trust into the ABLE account, allowing your child to use it for any qualified disability expense. The child can manage the account independently, but you can also specify spending rules, allowing for some autonomy.
Creating your estate plan
When dealing with the possibility of a disabled child outliving you, consider developing your estate plan as soon as possible. You'll need to name a trustee for the special needs trust and should include your adult child as much as possible in the process to make sure that the estate plan meets their needs and wishes. Include a letter of intent or guidance and update it every two years. This document is essential if your child has difficulty communicating, as it can outline their preferences, caregivers, medical providers and others who are a good fit for your child.
Remember that you can add to and update your estate plan anytime. Periodic review is essential to ensure the plan meets your wishes and continues to provide for your child.]]>On Behalf of Law Office of Sharon C. Stodghillhttps://www.scslawyer.com/?p=498822023-11-21T02:38:06Z2023-11-21T02:38:06ZA breach of fiduciary duty
There are several instances when an executor may be making decisions that aren't in the best interest of the estate. For example, making investment decisions that benefit the executor instead of the beneficiaries may constitute such a breach. If assets are distributed before a probate judge says that can happen, an executor may be vulnerable to probate litigation initiated by a beneficiary. Finally, if property is not secured or is lost at any point during probate, that is unlikely to be in the best interest of the estate.
Creditors may also take legal action
Failing to properly evaluate creditor claims can also result in legal action against an executor. Typically, valid creditor claims must be paid out of estate funds before any assets can be distributed. If necessary, assets may need to be liquidated to pay an outstanding credit card, cellphone or medical bill. Estate funds must also be used to pay any state or federal taxes owed.
Honest mistakes may be overlooked
In most cases, an honest mistake won't result in financial or other penalties. For instance, if you were unable to secure your father's second home three states over, you may be given a pass. The same might be true if the estate loses money in the stock market because of an unforeseen economic downturn.
You can make your executor's job easier by leaving clear instructions regarding your final wishes. It is also important to choose someone who can follow instructions and has the time and capacity to carry out the many tasks an executor must complete following your passing.]]>On Behalf of Law Office of Sharon C. Stodghillhttps://www.scslawyer.com/?p=498802023-09-25T03:18:28Z2023-09-23T03:17:30ZHow to ask your parents whether they have a will
Some adult children might not wish to discuss estate plans with their parents because of the uncomfortable nature of talking about mortality. However, there could be disastrous consequences if a parent dies without a will. Intestate laws would guide the probate process, which might not reflect what a parent actually wants. Also, it could lead to hassles and stress for the surviving children and other beneficiaries.
So, those with a stake in their parents' estate may need to ask their parents about estate plans directly. Emphasizing the problems inherent without a will could prompt the parents to take steps to draw the necessary documents.
Other points about estate plans
Estate planning is not always a one-time event and may require updates and adjustments. Sometimes, the parents may have already drawn up a will, but the document is outdated. Reviewing the will and notating elements that require changing could be necessary. Otherwise, problems could arise during probate, such as dealing with an executor who is no longer competent.
Additionally, looking at the estate plan to determine whether it is comprehensive could be wise. Other components, including a financial and health care power of attorney, could be necessary to handle other matters that may arise that are not covered under a traditional will.]]>On Behalf of Law Office of Sharon C. Stodghillhttps://www.scslawyer.com/?p=498792023-07-25T01:04:02Z2023-07-25T01:04:02ZAvoid creating multiple wills
Creating a will gives you control over who receives your assets after you pass away. Having one clear will is incredibly helpful. Aretha Franklin had multiple wills, including a handwritten one found between her couch cushions and a professionally drafted will safely locked away. In Texas, handwritten wills are as valid as ones expertly drafted by a professional.
Make your will's terms crystal clear
Another problem with Aretha Franklin's estate was that her multiple wills had varying terms. One of her wills required a beneficiary complete business courses to receive anything from her estate. That requirement was not in her other will. When multiple wills don't include the same terms, it creates more work and confusion for your beneficiaries.
Don't forget about tax debts
$80 million is an impressive amount of money to almost anybody. When legal teams eventually settled Franklin's estate in 2022, nearly $8 million went to the IRS. After someone passes away, no matter the worth of their estate, they must pay IRS-related tax debts first.
Have an expert help with will creation
Unless you're an expert at estate planning, it's not advisable to write your own will. The confusion created by Aretha Franklin's estate caused her beneficiaries to spend years of waiting wrapped up in a legal nightmare. With unclear will terms and more than one will, Aretha Franklin's estate took four years to settle.
You don't need to be worth anywhere near $80 million to benefit from having an estate plan. Prepare for life's uncertainties by getting your estate in order sooner than later.]]>On Behalf of Law Office of Sharon C. Stodghillhttps://www.scslawyer.com/?p=498782023-05-16T04:15:02Z2023-05-16T04:15:02ZIdentify potential successors
The first step in developing a succession plan is to identify potential successors. These are individuals who have the skills and experience necessary to run your business in your absence. Consider employees, family members or outside individuals who may be qualified to take over the business.
Evaluate potential successors
Once you have a short list of potential successors, evaluate their skills and qualifications to determine who is the most likely to achieve your vision for the business. Consider factors such as their experience, education and leadership qualities.
Develop a training plan
If your chosen successor is not currently equipped with the necessary skills and knowledge to run your business, a training plan can ensure they are fully prepared when their time to take over comes. Training may involve mentoring, seminars or job shadowing.
Determine a transition timeline
A timeline for the transition consists of a plan for how and when your successor will take over your role. Consider factors such as your retirement plans and the needs of the business.
Communicate the plan to key stakeholders
Finally, you must communicate your succession plan to key stakeholders, including employees, investors and your customer base. Open communication will help minimize disruptions to the business by being transparent about the transition plan and address any concerns or questions that may arise as well as any business law issues.
Being proactive about your business's future
Developing a succession will help ensure the future success of your business for years to come. By choosing the right person for the task, you can leave a legacy that will live on in the organization you created through your hard work.]]>On Behalf of Law Office of Sharon C. Stodghillhttps://www.scslawyer.com/?p=498762023-03-15T23:25:15Z2023-03-15T23:25:15ZThe Guardianship Services Program
The DFPS refers two types of cases to the Guardianship Services Program. Adults who are disabled or 65 years of age or older are referred when the DFPS finds evidence of neglect, abuse, or exploitation. Minors receiving care from Child Protective Services are referred when they are approaching the age of majority and may be incapacitated.
Evaluating DFPS referrals
The Guardianship Services Program begins its evaluation process by scrutinizing the evidence of incapacity. When compelling signs of diminished capacity are found, the program determines whether or not less restrictive options than guardianship would serve the individual’s needs. If a guardian is required, the program looks for organizations or individuals that would be willing to serve as the individual’s guardian and capable of providing the required care. If no suitable person or organization is identified, the program may petition the court to be appointed as the incapacitated individual’s guardian.
Last resort
When a guardian is appointed, the ward loses their rights. This is why courts only appoint guardians as a last resort and when all other options have been exhausted. The most common alternatives to appointing a guardian are finding a person who can provide the same kind of help as a guardian but lacks the legal authority to make decisions, identifying organizations that could provide the incapacitated individual with care and assistance and contacting nursing homes or assisted living facilities that provide care to individuals with diminished capacity.]]>On Behalf of Law Office of Sharon C. Stodghillhttps://www.scslawyer.com/?p=498752023-01-17T19:51:42Z2023-01-17T19:51:42ZFailing to update your beneficiary designations
You might change your mind about one or more of your beneficiaries. For example, you might get a divorce and no longer want your ex-spouse on your life insurance, or you might welcome a new grandchild. If a change occurs, the paperwork should reflect the change.
Not choosing a beneficiary
You might skip choosing a beneficiary. Perhaps you want more time to consider your choices or figure you’ll do the paperwork later. But things happen, and you might not get a chance to go back and choose a beneficiary. If you skip this step during estate planning, someone else will decide who receives your assets.
Providing incorrect information
It’s important to provide accurate information on any beneficiary designation forms you fill out. Multiple people in your family could have the same name. Forms must specify who you’re choosing as a beneficiary. Take name changes into account as well. If there’s confusion about who you’ve chosen, it could result in payout delays or litigation.
Failing to consider special circumstances
You may have a beneficiary who shouldn’t have direct access to an asset. People who fall into this category can include children, those with special needs or anyone with a history of bad money management. If you have a legal or financial advisor, you might want to discuss this issue with them.
The importance of beneficiary designations
Choosing one or more beneficiaries gives you control over who receives your assets. Keeping accurate and updated beneficiary designations reduces the risk of mistakes.]]>On Behalf of Law Office of Sharon C. Stodghillhttps://www.scslawyer.com/?p=498692022-11-12T03:18:44Z2022-11-12T03:18:44ZTransferring ownership of assets to a trust
When you create a trust, you can transfer ownership of your assets to the trust. This means that the assets will not be part of your estate and will not go through probate. There are several types of trusts, including revocable and irrevocable trusts. If you want to be able to access the assets in the trust, you should create a revocable trust. If you wish to have the assets distributed according to your wishes after you die, you should create an irrevocable trust.
Giving assets away
Another way to keep your assets out of probate is to give them away while you are alive. You can give gifts up to a certain value each year without incurring any gift tax. If you give someone an asset, such as a piece of property, they will own it and it will not be part of your estate.
Naming beneficiaries
You can name beneficiaries for some of your assets, such as life insurance policies and retirement accounts. When you die, the assets will likely get paid to the beneficiaries and will not go through probate. To get started, you will need to name the beneficiaries on the account or policy. You should also update your beneficiaries if your circumstances change.
Creating a living trust
A living trust is another estate planning document that can help you transfer ownership of your assets to the trust while you are alive. The assets in the trust will not be part of your estate and will not go through probate. You can also name a successor trustee to manage the trust after you die.
While it may take some time to plan, it really is possible to keep your assets out of probate. Just remember that you can use more than one method to keep your assets out of probate to make sure your estate is handled according to your wishes.]]>On Behalf of Law Office of Sharon C. Stodghillhttps://www.scslawyer.com/?p=497552022-09-15T00:05:19Z2022-09-16T00:04:18ZNot having a will
If you die without a will, your estate will be subject to the laws of intestacy, which could result in your assets being distributed in a way that you never intended. This could mean that your loved ones are left without the financial support they need or that your estate ends up going to people you would rather it didn’t.
Not updating your estate plan
Your estate plan should be reviewed and updated regularly as it will need to take into account any changes in your personal circumstances, such as the birth of a child, the death of a beneficiary or a change in your financial situation. Also, if you move to a different state, you may need to update your estate plan to ensure that it complies with the laws of your new state.
Not having a comprehensive estate plan
A comprehensive estate plan should do more than just distribute your assets after you die. It should also take into account your potential incapacity and provide for the care of your minor children. By failing to plan for these eventualities, you could be putting your loved ones in a difficult and stressful situation.
Not using the right estate planning tools
There are many different estate planning tools available, and the right tool for you will depend on your individual circumstances. For example, if you have a large estate, you may need to use trusts to minimize estate taxes. Alternatively, if you have young children, you may want to set up a guardianship arrangement.
In the end, the estate planning mistakes you make could end up costing your loved ones emotionally, financially and legally. It is therefore important to take your time to understand the estate planning process and to take the necessary steps to avoid making these costly mistakes.]]>On Behalf of Law Office of Sharon C. Stodghillhttps://www.scslawyer.com/?p=497402022-07-27T20:26:35Z2022-07-19T02:12:59ZWhat is a power of attorney?
A power of attorney is an estate planning document that gives someone else the authority to make decisions on your behalf. This can be used in a variety of situations, such as if you become incapacitated and are unable to make decisions for yourself.
Types of powers of attorney
There are two main types of powers of attorney: durable and non-durable. Durable powers of attorney remain in effect even if you become incapacitated, while non-durable powers of attorney do not. You can also appoint a springing power of attorney, which only goes into effect under certain circumstances, such as if you become incapacitated.
Finally, you can choose to have a general power of attorney or limited power of attorney. A general power of attorney gives the person you appoint broad authority to make decisions on your behalf. A limited power of attorney, on the other hand, only allows the person you appoint to make specific decisions as laid out in the document.
Benefits of appointing a power of attorney
One of the benefits of appointing a power of attorney is that you can choose who will make decisions on your behalf. This ensures that your affairs will be handled by a person you trust. Additionally, having a power of attorney in place can help to avoid conflict among family members and loved ones.
Another benefit of appointing a power of attorney is that it can help to ensure that your affairs are handled in a timely and efficient manner. If you were to become incapacitated without a power of attorney in place, your loved ones might have to go through the court system to have someone appointed to make decisions on your behalf.
Ultimately, appointing a power of attorney is a personal decision. However, it is important to understand the role and the benefits of doing so to make the best decision for yourself and your estate.]]>