An increasing number of adult children – more than 2 million here in Texas - are caring for their elderly parents and, while few of them would complain about helping their parents in this way, the costs to these caregivers can be significant. Many caregivers reduce their employment hours and experience pay cuts in addition to expending money out-of-pocket to meet their parents’ needs. On the other side of this scenario are elderly parents who recognize the impact of the services their care … [Read more...] about Q&A: Caregiver Agreements
Buying or Selling a Business? Time to Update Your Estate Plan
When you’re purchasing or selling a business, it’s easy to be overwhelmed by the details of the transaction and the transition process, and forget the impact that the sale or purchase has on your overall financial picture as well as your estate planning needs. The purchase or sale of a business always calls for a review of your estate plan, and may require some significant updates. Buying a Business When you’re just taking over a new business, it can be hard to look beyond your immediate … [Read more...] about Buying or Selling a Business? Time to Update Your Estate Plan
Who Will Get Your Personal Possessions When You Pass Away?
When you’re making an estate plan, it’s easy to become so focused on making sure your large assets go to the appropriate individuals that you don’t pay enough attention to what should happen to your personal possessions. After all, your household “stuff” isn’t that valuable, so there’s no real need to address it as thoroughly as you do your big, financial assets, right? Wrong! Even though your personal possessions might not have much monetary value, certain items are likely to have an immense … [Read more...] about Who Will Get Your Personal Possessions When You Pass Away?
You Have a Plan for Your Assets, But What About Your Debt?
As a general rule, you can’t pass on your individual debts to your loved ones when you pass away, but what about joint debts or loans for which a loved one has co-signed? If you pass away, responsibility for paying these debts will fall to the person who signed for the debt along with you. And if this person is your spouse or one of your children, the consequences when you pass away can be devastating. The sad fact is that when a loved one is left on the hook for a credit card or loan … [Read more...] about You Have a Plan for Your Assets, But What About Your Debt?
Avoiding Ancillary Probate
If you own real property or certain types of tangible personal property outside of Texas, your loved ones could be in for an added complication when it comes to settling your estate. In this situation, not only is any Texas property titled in your name subject to probate here at home, but certain out-of-state property will have to go through a probate process – called Ancillary Probate – in the state where it’s located. If you plan ahead, there are ways to avoid Ancillary Probate. Here are a … [Read more...] about Avoiding Ancillary Probate
Qualities to Look for In a Successor Trustee
Your Successor Trustee is the person you’ll appoint to step in and take over the property owned by your Revocable Living Trust in the event of your disability or death. The person you choose will have an important and possibly complex job to do, and you’ll want to make your selection wisely. Here are just a few of the qualities you’ll want to consider when choosing a Successor Trustee: Organized: Your Successor Trustee will likely be in charge of financial accounts and investments as well as … [Read more...] about Qualities to Look for In a Successor Trustee
The Rule of 72
We all know the power of compound interest, and the Rule of 72 is a simple and elegant mathematical expression of that concept. It’s also a quick and easy way to figure out how long it will take an investment to double, and the only information you need to make the calculation is a fixed annual rate of return for the investment in question. How does it work? You divide 72 by the rate of return, and you’ll get a rough estimate of the number of years it will take for your money to double. So, … [Read more...] about The Rule of 72
Advance Planning is Essential for Preserving the Family Farm
How do you ensure that your farm or ranch remains an active operation and stays in the family after you’ve passed away? Perhaps the best way is to have an estate plan, including a succession plan, in place far in advance. It's also important to include your family members in the planning process. What happens without a plan? Simply put, without a plan, the future of your family farm is at risk. For example, as the older generation ages, the need for long-term care becomes an ever-increasing … [Read more...] about Advance Planning is Essential for Preserving the Family Farm
Estate Tax Planning for Nontraditional Couples
Last December, when President Obama signed the Tax Relief Act of 2010 into law, many wealthy and affluent married couples breathed a sigh of relief. One effect of the law was to raise the federal estate tax exemption to $5 million per person. As always, the first spouse to pass away can pass his or her entire estate to the surviving spouse without paying any estate tax (this is known as the unlimited marital deduction). Plus, the law includes a portability provision that allows married couples … [Read more...] about Estate Tax Planning for Nontraditional Couples
Contesting That Will Might Not be as Easy as You Think
Dealing with the death of a loved one is never easy, and the experience can be all the more difficult when you don’t receive the inheritance you were expecting. Estate planning attorneys frequently get phone calls from potential clients who believe they were treated unfairly and want to contest a loved one’s will. However, just being dissatisfied with how you’re treated in the will – no matter how unfair that treatment might be – is not enough to successfully challenge a will. In order to … [Read more...] about Contesting That Will Might Not be as Easy as You Think
