10 Step Planning Process for Families with Special Needs Children
While a typical child could recover from a parents' failure to plan ahead, a child with special needs may never recover. My autistic nephew opened my eyes to the importance of legal planning for families with special needs.
Don't just leave the care of your family and your assets to chance. These 10 steps will help you map out and begin to build a fortress of protection for your child’s future.
Step One: Name Guardians for Both Short Term and Long Term
If you have children under age 18, give clear legal authority for designated caregivers to take custody of your children immediately if there is an emergency. I have named my brother and sister-in-law as my children's guardians, but they live out of state! What would happen to my children while the guardians are frantically trying to travel to my home? Ending up at child protective services or placed into the hands of strangers is the last thing any parent would want to happen to their child. But, if you are in an accident and no plan is in place to locate the person who is legally able to take control of your children and the legal documents authorizing such, this nightmare could become your children's reality.
If your named guardian does not live near you, name a temporary guardian.
Also, make sure the people you've given legal authority to know they are going to be called on if something happens to you and make sure they know just what they should do in that situation!
Step Two: Identify the Need for Future Care Planning
Once you've named guardians for your children, identify whether you need to do future care planning. If your child is an adult with disabilities, you probably have a good idea of both your child's abilities and what kind of assistance they will need. If your child is able to support themselves, you might still need to consider future care planning, but on a more limited scale.
If your child won't be able to be self-sufficient as an adult, you'll need to make plans to secure their future. Leaving the future up to chance is not a good option if you want to be a smart parent. Without a plan, it is possible your child will join the ranks of the millions of people in this country with disabilities who live in poverty. If your child is particularly young, you might not yet have an idea of whether your child will be self-sufficient as an adult. You want to be hopeful, but you know there is a possibility that your child will need assistance. Planning even though your child's future abilities are uncertain will give you the most comfort and the best options. There are professionals in the community who can assess your child's needs and make recommendations. Use them and get the support you need!
Step Three: Consider Adult Guardianship and Alternatives at age 18
When your child reaches age 18, you will no longer be entitled to make decisions about your child's finances or personal care unless you petition a judge to become your child's legal guardian. Although your child might not be capable of making decisions about their wellbeing at age 18, the law presumes that your child is capable.
Guardianship is a legal means of protecting a person who is not competent to make decisions about their personal care and/or finances. Because a full Guardianship takes away your child's rights to make important decisions, the decision to petition for Guardianship of your child at age 18 should not be automatic. If your child is capable of making some decisions, but not others, a limited Guardianship may be more appropriate.
Likewise, there are certain alternatives to Guardianship that may be sufficient. If your child has the ability to make their own decisions, they can empower you to make health care and financial decisions by signing the appropriate legal documents.
Step Four: Plan for and Secure Government Benefits at Age 18
Your child will be eligible for government benefits at age 18, but you must prepare to preserve much needed benefits. There are four programs available for adults with pecial needs--Medicare, Social Security Disability Insurance (SSDI), Medicaid, and Supplemental Security Income (SSI). Medicaid and Medicare provide health insurance; SSI and SSDI provide monthly cash assistance.
SSI and Medicaid are means-tested programs, which means these programs have restrictions and limitations on the amount of income and assets that the special needs recipient can own in order to receive benefits.
Generally speaking, the first and most important means-tested government benefit program for a special needs child is SSI, which is a federal income supplement program administered by the Social Security Administration and is funded by general tax revenues (not by social security or self-employment taxes). SSI is important because in thirty-nine states, including Texas, the recipient of SSI automatically qualifies the SSI recipient to Medicaid benefits.
Medicaid is the portal to healthcare benefits and many other programs that provide a multitude of ancillary services that benefit a special needs child. If your special needs child owns more than $2,000 of non-exempt assets, they will not qualify for SSI, and in turn, not automatically qualify for Medicaid. This is extremely important!
In addition, if you die and your money doesn't go to your child the right way, your child will not be eligible for Medicaid or SSI. Even if you think that your family can provide for your child's lifetime needs, it is probably wise to position your child to qualify for Medicaid. Many programs that enhance the recipient's quality of life--including supported living and work environments--are only open to participants who have a Medicaid card.
Step Five: Prepare a Legal Plan that Will Work
Make the transition of your financial wealth as easy as possible for your family. Without an estate plan in place, your loved ones won't inherit your assets in the way that you want. For families with special needs children, this is especially important because you will also disqualify them for valuable government assistance. Because none of us knows when we might die or become incapacitated, it is important to plan early for your child with special needs, just as you would for any minor child. However, unlike most beneficiaries, your child with special needs may never be able to compensate for your failure to plan. Make sure your estate plan provides for all the people you love. Doing so will ensure that you leave a positive legacy for your entire family.
Step Six: Establish a Special Needs Trust
If your child requires or is likely to require governmental assistance to meet their basic needs, do not leave money directly to your child. Instead, establish a Special Needs Trust. Unless the trust your attorney prepares for your child is designed with your child's special needs in mind, it may render your child ineligible for government benefits. A Special Needs Trust is designed to manage resources while maintaining the individual's eligibility for government benefits. Planning is important because many adults with disabilities will rely on government benefits for support. If the disabled person owns more than the limit (currently $2,000), they will lose eligibility.
Moreover, Medicaid and other public benefits programs will not pay for everything your child might need. A Special Needs Trust can pay for items not provided by government assistance and other resources. But not all special needs trusts are the same. Some require any unused assets in the trust to be paid back to the government upon the death of the beneficiary. This is commonly referred to as a "payback provision." These "pay-back provisions" are necessary in certain types of special needs trusts, but an attorney who knows the difference can save your family thousands of dollars.
Step Seven: Coordinate your Retirement Account Beneficiary Designations
If you name a special needs trust as the beneficiary of your retirement account, you will probably disqualify them from the government benefits. There are ways to ensure your special needs child is able to receive the benefits of your retirement accounts without disqualifying them via a Retirement Benefits Trust that includes Special Needs language. This is a complex area of the law which requires professional advice; however, you could turn your retirement account into a lifetime legacy for the benefit of your family.
Far too often families disinherit the special needs child--the one who needs the family's money the most to help them through life. Instead of disinheriting your child, seek professional advice and ensure your beneficiary designation won't disqualify your special needs child.
Step Eight: Build a Team
During your life, you can manage your child's special needs and be the trustee of a special needs trust. When you are not able to serve as trustee, you can designate who will serve next. You may choose an individual, a trusted team of family members, or a trusted team of professional advisors. Whoever you chose should be organized, comfortable making financial decisions and, most importantly, highly responsible.
Step Nine: Provide Enough Financial Resources
As a parent, it is your responsibility to provide enough financial resources to make sure that whoever is raising your children will not struggle financially. If you don't have sufficient savings and investment resources, then make sure you have enough life insurance. Life insurance is one of the best ways to get money into a Special needs Trust! In fact, many parents purchase life insurance solely for the purpose of funding the trust.
Work with a trusted advisor to determine exactly how much savings or insurance would be sufficient to support your family if something happened to you. Term insurance is inexpensive but it expires after a certain period of time without building up any continued value. Permanent insurance is more expensive, but if you have a child with special needs, you may want to consider it to guarantee that needed resources will be available for your child upon your death. Remember that life insurance passes by a beneficiary designation form, so make sure that form is consistent with your overall plan and designates a special needs trust so government benefits are not lost.
Step Ten: Pass on More than Just Your Money
Think of the knowledge you have gained spending a lifetime caring for your child! Be sure to write or record a complete set of instructions to guide future caregivers and trustees as they take care of your child. Include information regarding residential preferences, medical concerns, preferred doctors and therapists, essential therapies, and social activities. Although such instructions are not legally binding, they can reflect your thinking on a range of issues and provide a plan for the caregivers to follow.
YOU DON'T HAVE TO DO THIS ALONE!
These steps are easy to follow with the right guidance, but it can all be a bit overwhelming at first. Far too many parents put off this planning because they don't know where to start or how easy it can be.
Our law firm helps families every day sort through some very difficult issues. We care about preserving family wealth by ensuring it doesn't leak out to strangers through divorce, lawsuits, Medicaid liens or paybacks. And we understand that family wealth encompasses much more than just financial wealth--it also includes intellectual, human and spiritual assets.
If you are ready to start your family's legal planning now,call 461-1383 to schedule a FAMILY LEGAL PLANNING SESSION .
The Family Legal Planning Session is valued at $550, but we only charge a $50 administrative fee. It's a true working meeting where we discuss your specific family situation and goals.
Prior to coming to your Family Legal Planning Session, you will fill out some information which will help me understand your family better. You and I will go over this information and figure out what type of legal planning is best for your family.
After about a half hour, you will know what it takes to properly protect your family and what the flat fee would be to help you with this planning.
I would love to help your family sort through these issues and plan for its legal future!
Tuesday, December 6, 2011
Tuesday, November 29, 2011
How do you ensure an investor doesn't control management of your LLC?
Within an LLC, how do you clearly communicate to an investor that they only have a profit’s interest and no input on the operations of the company?
One of the many benefits of an LLC is the ability to separate investors from managers. This arrangement is similar to limited partnerships, where the limited partners are mere investors, and the general partner manages the partnership. With an LLC, however, the members can also be involved in managing the LLC as managers, if desired.
LLC operating agreements come in two general forms: (i) member-managed; and (ii) manager-managed. Member-managed is the simplest structure and means that every member has authority to act on behalf of the business. If all your members will have direct involvement in the management of the company, then a member-managed LLC may make the most sense.
With a manager-managed LLC, the members may (but need not) be managers. This form of LLC allows for a separation between ownership and management. A manager-managed LLC is generally used when there are “passive” members in the LLC. Passive means investors in the LLC who do not actively manage or otherwise operate the business of the company. With a manager-managed LLC, the members, by virtue of being members, do not have authority to manage and operate the business of the limited liability company. Instead, the members elect managers and it is the managers who have this authority.
It is important in a manager-managed LLC that the LLC operating agreement have specific rules and processes for the mangers to follow when managing the LLC. The operating agreement is the governing document for the company, the managers and the members. Within the operating agreement is where you can clearly establish the roles of the manager and the members. This is the document in which you can concisely communicate to an investor (who is a member) that they shall only have a profit interest in the entity and not any input in the operation of it.
It is advised that a when forming a new entity that has more than one investor to make sure to work with a competent business law attorney in order to reduce conflicts in the future.
Julia Nickerson is an estate and business law attorney in Austin Texas. She is passionate about building awareness of the importance of thoughtful planning. Julia frequently speaks to groups on estate planning and business planning issues throughout Austin, Texas. Julia makes it easy for your business and family to talk about and plan for tough subjects like money, death and taxes. Visit http://www.julianickerson.com/ for more information or call the firm at 512-461-1383.
One of the many benefits of an LLC is the ability to separate investors from managers. This arrangement is similar to limited partnerships, where the limited partners are mere investors, and the general partner manages the partnership. With an LLC, however, the members can also be involved in managing the LLC as managers, if desired.
LLC operating agreements come in two general forms: (i) member-managed; and (ii) manager-managed. Member-managed is the simplest structure and means that every member has authority to act on behalf of the business. If all your members will have direct involvement in the management of the company, then a member-managed LLC may make the most sense.
With a manager-managed LLC, the members may (but need not) be managers. This form of LLC allows for a separation between ownership and management. A manager-managed LLC is generally used when there are “passive” members in the LLC. Passive means investors in the LLC who do not actively manage or otherwise operate the business of the company. With a manager-managed LLC, the members, by virtue of being members, do not have authority to manage and operate the business of the limited liability company. Instead, the members elect managers and it is the managers who have this authority.
It is important in a manager-managed LLC that the LLC operating agreement have specific rules and processes for the mangers to follow when managing the LLC. The operating agreement is the governing document for the company, the managers and the members. Within the operating agreement is where you can clearly establish the roles of the manager and the members. This is the document in which you can concisely communicate to an investor (who is a member) that they shall only have a profit interest in the entity and not any input in the operation of it.
It is advised that a when forming a new entity that has more than one investor to make sure to work with a competent business law attorney in order to reduce conflicts in the future.
Julia Nickerson is an estate and business law attorney in Austin Texas. She is passionate about building awareness of the importance of thoughtful planning. Julia frequently speaks to groups on estate planning and business planning issues throughout Austin, Texas. Julia makes it easy for your business and family to talk about and plan for tough subjects like money, death and taxes. Visit http://www.julianickerson.com/ for more information or call the firm at 512-461-1383.
Tuesday, November 15, 2011
What is Probate?
Probate is a legal process that takes place after someone passes away in order to legally transfer title.
If someone dies, certain assets may pass to heirs free of court interference; however, many assets do not automatically pass to heirs without a court process. This court process is called probate. If a loved one has died, it is a good idea to meet with your attorney to determine what specifically you need to do to ensure title passes correctly.
During the probate process, if the deceased person created a will during their lifetime, that will is presented to the proper court and certain tasks must be performed. For example, the debts and taxes of the deceased person must be paid, it must be determined what the deceased person owns so that the assets can be divided accordingly. Finally, after all the necessary legal and paperwork has been completed, the property may be distributed as directed by a will or by Texas law.
Probate in the state of Texas can be fairly quick and inexpensive; however, it can also become lengthy, time-consuming and costly if not done properly. The person who is in charge of handling a deceased person’s estate has a fiduciary responsibility to ensure the assets are transferred properly.
Muddling yourself through probate alone can be overwhelming, especially during a time of grievance. Nickerson Law Group assists families with probate matters not only in Austin and its surrounding areas, but also throughout all of Texas. One thing our firm does which our clients have found to truly appreciate is our Probate Binder. This binder is an amazing organizational tool to assist you and us throughout the probate process. Many of our clients have expressed that they wouldn’t have wanted to go through the probate process, not only without us assisting them, but also without our organizational Probate Binder.
“After my father passed, I thought I could handle the probate process myself. I even went to the probate court and tried. I quickly learned that I was over my head and I needed the help of someone who not only is familiar with the process, but who is highly organized. Julia’s systematical approach to making sure every little thing gotten taken care of reassured me and took the stress off my shoulders during a very difficult time of my life.”
Schedule your Probate Planning Session
If your family has recently lost a loved one and needs assistance with Estate Administration or Probate, we can help. Schedule your Probate Planning Session by calling our office at 512-461-1383. Before coming into our office, we will send you our Probate Packet so you know just what to expect and what to bring to your first meeting with us. We look forward to helping you!
Julia Nickerson is an estate attorney and probate attorney in Austin Texas. After giving birth to her oldest son, Nickerson almost lost her own life. She is passionate about building awareness of the importance of thoughtful planning. Julia frequently speaks to groups on estate planning issues throughout Austin, Texas. Julia makes it easy for your family to talk about and plan for tough subjects like money, death and taxes. Visit http://www.estateplanningaustintexas.com/ for more estate planning resources on how to make sure your family wouldn't have a mess on their hands if the "unthinkable" happens to you. Julia also counsels families on probate and estate administration matters and helps families with special needs children set up the correct special needs trust planning.
If someone dies, certain assets may pass to heirs free of court interference; however, many assets do not automatically pass to heirs without a court process. This court process is called probate. If a loved one has died, it is a good idea to meet with your attorney to determine what specifically you need to do to ensure title passes correctly.
During the probate process, if the deceased person created a will during their lifetime, that will is presented to the proper court and certain tasks must be performed. For example, the debts and taxes of the deceased person must be paid, it must be determined what the deceased person owns so that the assets can be divided accordingly. Finally, after all the necessary legal and paperwork has been completed, the property may be distributed as directed by a will or by Texas law.
Probate in the state of Texas can be fairly quick and inexpensive; however, it can also become lengthy, time-consuming and costly if not done properly. The person who is in charge of handling a deceased person’s estate has a fiduciary responsibility to ensure the assets are transferred properly.
Muddling yourself through probate alone can be overwhelming, especially during a time of grievance. Nickerson Law Group assists families with probate matters not only in Austin and its surrounding areas, but also throughout all of Texas. One thing our firm does which our clients have found to truly appreciate is our Probate Binder. This binder is an amazing organizational tool to assist you and us throughout the probate process. Many of our clients have expressed that they wouldn’t have wanted to go through the probate process, not only without us assisting them, but also without our organizational Probate Binder.
“After my father passed, I thought I could handle the probate process myself. I even went to the probate court and tried. I quickly learned that I was over my head and I needed the help of someone who not only is familiar with the process, but who is highly organized. Julia’s systematical approach to making sure every little thing gotten taken care of reassured me and took the stress off my shoulders during a very difficult time of my life.”
Schedule your Probate Planning Session
If your family has recently lost a loved one and needs assistance with Estate Administration or Probate, we can help. Schedule your Probate Planning Session by calling our office at 512-461-1383. Before coming into our office, we will send you our Probate Packet so you know just what to expect and what to bring to your first meeting with us. We look forward to helping you!
Julia Nickerson is an estate attorney and probate attorney in Austin Texas. After giving birth to her oldest son, Nickerson almost lost her own life. She is passionate about building awareness of the importance of thoughtful planning. Julia frequently speaks to groups on estate planning issues throughout Austin, Texas. Julia makes it easy for your family to talk about and plan for tough subjects like money, death and taxes. Visit http://www.estateplanningaustintexas.com/ for more estate planning resources on how to make sure your family wouldn't have a mess on their hands if the "unthinkable" happens to you. Julia also counsels families on probate and estate administration matters and helps families with special needs children set up the correct special needs trust planning.
Tuesday, November 8, 2011
Legal Documents Every Parent Needs Once Your Child Turns 18
Medical Directives are important
As soon as your child turns 18 you may be legally unable to get important information about their medical conditions or be unable to help them.
Consider this true story that happened to a friend of mine. Your child leaves for college in your vehicle. On the drive to campus, your child is in an accident and ends up in the hospital. You, as owners of the vehicle are contacted. You aren’t concerned about your car however. You want to know how your ‘baby’ is. Your child is unconscious and needs serious medical attention, maybe a surgery---it doesn’t matter. You are far away. You are concerned. You want to know what is going on. The hospital refuses to provide you with any information. Why? You aren’t authorized. Your child is now an adult! Legally, you aren’t able to find out.
In the eyes of the government, turning 18 means parents no longer have access to the same legal rights regarding their children. Once your child turns 18, they should have a certain legal documents.
Medical directives name the person you want making health care decisions for you if you cannot make them for yourself. HIPAA is an acronym for a federal statute called the Health Insurance Portability and Accountability Act. The HIPAA Release is a document authorizing someone to actually obtain access to your medical records
Even if you have a medical directive for your 18 year old, without a HIPAA release authorizing you, hospitals and other medical providers are legally unable to let you know what is going on medically with your child. This would make it a little difficult for you to make health care decisions for them if there was an emergency.
I’ve had clients tell me the university nurse or doctor won’t discuss their child’s illness because the medical center’s policies regarding HIPAA.
The third legal document you absolutely need to have in place as an adult is a financial directive. This document names someone to make financial and legal decisions for you if you can't make them for yourself.
It's important for your kids going off to college to have this in place because if they are in an accident you are going to need to take over paying the bills and get access to bank accounts and make legal decisions.
Julia Nickerson is an estate attorney and probate attorney in Austin Texas. After giving birth to her oldest son, Nickerson almost lost her own life. She is passionate about building awareness of the importance of thoughtful planning. Julia frequently speaks to groups on estate planning issues throughout Austin, Texas. Julia makes it easy for your family to talk about and plan for tough subjects like money, death and taxes. Visit http://www.estateplanningaustintexas.com/ for more estate planning resources on how to make sure your family wouldn't have a mess on their hands if the "unthinkable" happens to you. Julia also counsels families on probate and estate administration matters and helps families with special needs children set up the correct special needs trust planning.
As soon as your child turns 18 you may be legally unable to get important information about their medical conditions or be unable to help them.
Consider this true story that happened to a friend of mine. Your child leaves for college in your vehicle. On the drive to campus, your child is in an accident and ends up in the hospital. You, as owners of the vehicle are contacted. You aren’t concerned about your car however. You want to know how your ‘baby’ is. Your child is unconscious and needs serious medical attention, maybe a surgery---it doesn’t matter. You are far away. You are concerned. You want to know what is going on. The hospital refuses to provide you with any information. Why? You aren’t authorized. Your child is now an adult! Legally, you aren’t able to find out.
In the eyes of the government, turning 18 means parents no longer have access to the same legal rights regarding their children. Once your child turns 18, they should have a certain legal documents.
Medical directives name the person you want making health care decisions for you if you cannot make them for yourself. HIPAA is an acronym for a federal statute called the Health Insurance Portability and Accountability Act. The HIPAA Release is a document authorizing someone to actually obtain access to your medical records
Even if you have a medical directive for your 18 year old, without a HIPAA release authorizing you, hospitals and other medical providers are legally unable to let you know what is going on medically with your child. This would make it a little difficult for you to make health care decisions for them if there was an emergency.
I’ve had clients tell me the university nurse or doctor won’t discuss their child’s illness because the medical center’s policies regarding HIPAA.
The third legal document you absolutely need to have in place as an adult is a financial directive. This document names someone to make financial and legal decisions for you if you can't make them for yourself.
It's important for your kids going off to college to have this in place because if they are in an accident you are going to need to take over paying the bills and get access to bank accounts and make legal decisions.
Julia Nickerson is an estate attorney and probate attorney in Austin Texas. After giving birth to her oldest son, Nickerson almost lost her own life. She is passionate about building awareness of the importance of thoughtful planning. Julia frequently speaks to groups on estate planning issues throughout Austin, Texas. Julia makes it easy for your family to talk about and plan for tough subjects like money, death and taxes. Visit http://www.estateplanningaustintexas.com/ for more estate planning resources on how to make sure your family wouldn't have a mess on their hands if the "unthinkable" happens to you. Julia also counsels families on probate and estate administration matters and helps families with special needs children set up the correct special needs trust planning.
Tuesday, November 1, 2011
LLC or Corporation? What is the difference and which one should I set up?
LLC or Corporation? Which one and why?
I get asked this question a lot: which format is better when forming a new entity, corporation or LLC? For many business owners, the most important legal difference between corporations and LLCs has to do with asset protection. In general terms, LLCs have better asset protection than corporations. Why? Corporations don’t provide charging order protections, while LLCs do. (However, the Nevada corporate statute does provide certain types of privately held corporations with charging order protections.) Charging order protection is a critically important type of business asset protection that LLCs provide but that corporations don’t provide. For many owners of family businesses and estate planning entities, they are extremely important.
So what is a charging order and how does it help me if I create an LLC instead of a corporation? A charging order is essentially a judicial order requiring that, to the extent of an unsatisfied judgment held by a creditor against a debtor who is an LLC member, the LLC must distribute to the creditor any distributions it would otherwise have distributed to the LLC member. Charging orders are creditor liens on the right of LLC member-debtors-in-default to receive distributions of LLC profits.
Under most LLC acts, charging orders are the exclusive remedy available to creditors who have unsatisfied judgments against LLC member-debtors-in-default with respect to debts arising outside the LLC’s business. Thus, by reason of LLC charging order provisions, these creditors cannot levy on the voting rights or other membership rights of member-debtors-in-default and thus cannot gain even partial control of the LLC in question.
It is true that general partnerships, LLPs, and limited partnerships also provide charging order protections. However, limited partnership and LLP law is usually less favorable for businesses and for many family entities than LLC law.
The importance of charging order protections is shown in the following hypothetical example:
On January 1, 2011, Jim and Julia form a new company called XYZ. Its initial capitalization is $10,000. Jim is XYZ’s 51% owner; Julia owns 49%. XYZ prospers, and by January 1, 2016, it is worth $10 million. On that date, Jim, while driving his car on non-XYZ business, accidentally but negligently runs over and kills a pedestrian. He incurs a $10 million judgment, which far exceeds his automobile liability insurance coverage.
If, in 2011, Jim and Julia formed XYZ as a state-law business corporation, the estate of the deceased pedestrian will levy on Jim’s stock and will sell its assets in satisfaction of the judgment. This will result in Jim’s loss of employment and in the liquidation of the business.
If, in 2011, Jim and Julia formed XYZ as an LLC, the exclusive remedy for the estate under most LLC acts will be a charging order. If a charging order is in effect, the estate cannot levy on Jim’s XYZ ownership interest and then fire him and liquidate XYZ. Instead, XYZ can elect not to make a distribution to Jim. The debtor has to determination if a distribution is made. His charging order has not real power to obtain the assets of Jim’s or of the XYZ company.
There are numerous reasons to choose an LLC over a corporation. Before setting up your business or changing the formation of an existing business, you should seek the advice of competent legal counsel regarding not only the asset protection issues, but taxation, transferability and other issues surrounding corporate structures.
Julia Nickerson is an estate and business law attorney in Austin Texas. She is passionate about building awareness of the importance of thoughtful planning. Julia frequently speaks to groups on estate planning and business planning issues throughout Austin, Texas. Julia makes it easy for your business and family to talk about and plan for tough subjects like money, death and taxes. Visit http://www.julianickerson.com/ for more information or call the firm at 512-461-1383.
Wednesday, October 26, 2011
10 Warning Signs that Your Elderly Loved One is Being Taken Advantage Of
If someone in your family is elderly, it may be important to help them manage their financial affairs. But, how do you know when to get involved?
Financial abuse of the elderly does exist--and most commonly comes in the form of cashing an elderly person's checks without authorization, forging of a signature or deceiving an older person to sign a document. The elderly are also prone to fraudulent phone scams, especially those who live alone and are starved for conversation.
I personally had the unfortunate experience of advising on a case in which a caregiver stole thousands of dollars from an elderly man. The caregiver took my client's father to the bank weekly to withdraw funds--the elderly man had no idea why he was withdrawing the funds. The bank employees eventually contacted the elderly man's children when they suspected foul play, which is when the children contacted me. Unfortunately, because of how the elderly man's legal affairs were set up, we ended up resolving the matter through court involvement.
The National Center on Elder Abuse lists the following warning signs and symptoms of exploitation and other forms of financial abuse:
1. Sudden changes in bank account or banking practice, including an unexplained withdrawal of large sums of money by a person accompanying the elder;
2. The inclusion of additional names on an elder’s bank signature card;
3. Unauthorized withdrawal of the elder’s funds using the elder’s ATM card;
4. Abrupt changes in a will or other financial documents;
5. Unexplained disappearance of fund or valuable possessions;
6. Substandard care being provided or bills unpaid despite the availability of adequate financial resources;
7. Discovery of an elder’s signature being forged for financial transactions or for the titles of his/her possessions;
8. Sudden appearance of previously uninvolved relatives claiming their rights to an elder’s affairs and possessions;
9. The provision of services that are not necessary; and
10. An elder’s report of financial exploitation.
There are legal ways to help prevent the devastation of an elderly loved one's financial accounts. By being proactive while you are young and mentally alert, you can and should create an estate plan which will help prevent abuse as you age. Your legal plan should be reviewed at least every three years with your attorney to ensure it is up to date and in line with your current needs and desires.
If your family is in a situation where you suspect abuse, then don't wait until it becomes overwhelming---or until thousands of dollars have gone missing. Seek legal counsel to help you work through this difficult situation.
Julia Nickerson is an estate attorney and probate attorney in Austin Texas. After giving birth to her oldest son, Nickerson almost lost her own life. She is passionate about building awareness of the importance of thoughtful planning. Julia frequently speaks to groups on estate planning issues throughout Austin, Texas. Julia makes it easy for your family to talk about and plan for tough subjects like money, death and taxes. Visit estateplanningaustintexas.com for more estate planning resources on how to make sure your family wouldn't have a mess on their hands if the "unthinkable" happens to you. Julia also counsels families on probate and estate administration matters and helps families with special needs children set up the correct special needs trust planning.
Financial abuse of the elderly does exist--and most commonly comes in the form of cashing an elderly person's checks without authorization, forging of a signature or deceiving an older person to sign a document. The elderly are also prone to fraudulent phone scams, especially those who live alone and are starved for conversation.
I personally had the unfortunate experience of advising on a case in which a caregiver stole thousands of dollars from an elderly man. The caregiver took my client's father to the bank weekly to withdraw funds--the elderly man had no idea why he was withdrawing the funds. The bank employees eventually contacted the elderly man's children when they suspected foul play, which is when the children contacted me. Unfortunately, because of how the elderly man's legal affairs were set up, we ended up resolving the matter through court involvement.
The National Center on Elder Abuse lists the following warning signs and symptoms of exploitation and other forms of financial abuse:
1. Sudden changes in bank account or banking practice, including an unexplained withdrawal of large sums of money by a person accompanying the elder;
2. The inclusion of additional names on an elder’s bank signature card;
3. Unauthorized withdrawal of the elder’s funds using the elder’s ATM card;
4. Abrupt changes in a will or other financial documents;
5. Unexplained disappearance of fund or valuable possessions;
6. Substandard care being provided or bills unpaid despite the availability of adequate financial resources;
7. Discovery of an elder’s signature being forged for financial transactions or for the titles of his/her possessions;
8. Sudden appearance of previously uninvolved relatives claiming their rights to an elder’s affairs and possessions;
9. The provision of services that are not necessary; and
10. An elder’s report of financial exploitation.
There are legal ways to help prevent the devastation of an elderly loved one's financial accounts. By being proactive while you are young and mentally alert, you can and should create an estate plan which will help prevent abuse as you age. Your legal plan should be reviewed at least every three years with your attorney to ensure it is up to date and in line with your current needs and desires.
If your family is in a situation where you suspect abuse, then don't wait until it becomes overwhelming---or until thousands of dollars have gone missing. Seek legal counsel to help you work through this difficult situation.
Julia Nickerson is an estate attorney and probate attorney in Austin Texas. After giving birth to her oldest son, Nickerson almost lost her own life. She is passionate about building awareness of the importance of thoughtful planning. Julia frequently speaks to groups on estate planning issues throughout Austin, Texas. Julia makes it easy for your family to talk about and plan for tough subjects like money, death and taxes. Visit estateplanningaustintexas.com for more estate planning resources on how to make sure your family wouldn't have a mess on their hands if the "unthinkable" happens to you. Julia also counsels families on probate and estate administration matters and helps families with special needs children set up the correct special needs trust planning.
Tuesday, October 18, 2011
3 Legal Secrets All Parents Should Know
We all know, at least in theory, that life is unpredictable and that we never know what tomorrow will bring. This eye opening realization was slapped in my face when I almost died in the hospital after giving birth to my first child. I was expecting to hold my baby immediately after his birth, begin breastfeeding and pose for numerous memorable photo opportunities. I had a scrapbook to create after all. Instead, I was rushed into the operating room, intubated, and put on life support. I can remember being so exhausted after this whole ordeal, yet waking up every five minutes to the sound of an alarming blood pressure monitor alerting those who already knew about my unstable condition. After spending the first night after my son’s birth in the ICU, I was given two liters of someone else’s blood transfused into my veins.
I learned later what had happened to me, which was a rare birth complication no one could have expected. But that event, like so many others who have life threatening situations, taught me a lot about life. First, I learned the importance of nurses. I was fortunate enough to have very experienced nurses. Always be extra nice to your nurse—she could save your life.
I learned what every mom at some point recognizes--that the trials and sacrifices we go through for our children transform us into more loving and dedicated mothers.
And, as an attorney, I realized that since I was now a parent, I better get my legal affairs in order. What would have happened to my son if something tragic happened to me? What would happen to your children if something happens to you? This is a tough question that no parent wants to think about. I hope all our tomorrows are filled with joy, educational experiences, dreams and goals. Yet, for those of us who have been faced with life threatening situations, we know how important it is to be prepared.
All parents should know these 3 legal secrets.
Secret #1: Legally Document Your Guardianship Decisions. As parents, the last thing we would want if something happens to us is for our children to be put into a situation in which they feel scared, unloved and surrounded by people they don't know. Don’t ever put your children’s care in the hands of a broken down court system and a judge who doesn’t know your family, your goals or your values. Legally document your guardianship decisions. No one can replace you; however, if you are not here to parent your children, you should be the one who decides the person who has the goals and values to take over.
Secret #2: Have a Plan that Can Actually be Implemented. Legal guardianship documents for minor children sitting on a shelf or in a safe someplace don’t help in an emergency situation. While things are being sorted out with the police, child protective services and the court, your children could be shipped off to a place you never imagined. If your guardians live out of town, name a temporary guardian such as a neighbor. Make sure emergency non-confidential legal documents can be obtained 24/7/365 from anywhere by emergency responders.
Secret #3: Ensure your Children Don’t Receive Their Inheritance at Age 18. If parents leave an inheritance to their children outside of a trust, a court will have no choice but to manage it until the child obtains age 18. At age 18 the children will receive complete access to all the remaining assets---outright and totally unprotected! Ironically, the child would receive such assets during the year in which his or her parents would most likely have wanted their child to begin a college education.
Whether you have thousands or millions, smart parents all need to ensure that their assets are transferred properly upon death. Smart parents prepare trusts to hold assets for the benefit of their children. They name a trusted friend or relative to serve as a trustee. They delay the time when their children are able to receive full access to the trust. They put steps in place to enable their children to get their education and become contributing members of society. They plan to avoid estate tax or to give to charities.
As a mom and an attorney, I know how difficult it can be to make sure all the details of parenting are thought out and planned for—figuring out which camps my children should attend this summer has been a big issue for me. Having a legal plan in place for your children in case something happens to you is one of the most important steps you as a parent can take to protect your children and their future. Remember, Smart Parents Plan Ahead.
Julia Nickerson is an estate attorney and probate attorney in Austin Texas. After giving birth to her oldest son, Nickerson almost lost her own life. She is passionate about building awareness of the importance of thoughtful planning. Julia frequently speaks to groups on estate planning issues throughout Austin, Texas. Julia makes it easy for your family to talk about and plan for tough subjects like money, death and taxes. Visit http://www.estateplanningaustintexas.com/ for more estate planning resources on how to make sure your family wouldn't have a mess on their hands if the "unthinkable" happens to you. Julia also counsels families on probate and estate administration matters and helps families with special needs children set up the correct special needs trust planning.
Tuesday, October 4, 2011
How should you set up your LLC for income tax purposes?
A Limited Liability Company (LLC) is a business structure allowed by state statute. LLCs are popular because, similar to a corporation, owners have limited personal liability for the debts and actions of the LLC. Other features of LLCs are more like a partnership, providing management flexibility and the benefit of pass-through taxation. Owners of an LLC are called members, not shareholders or partners.
The federal government does not recognize an LLC as a classification for federal tax purposes. By default, an LLC with more than one member is considered a partnership for tax purposes. A partnership must file an annual information return to report the income, deductions, gains, losses, etc., from its operations, but it does not pay income tax. Instead, it "passes through" any profits or losses to its partners. Each partner includes his or her share of the partnership's items on his or her tax return.
By default, an LLC with only one member is disregarded for federal income tax purposes as an entity apart from its member. If the member is an individual, then the LLC is taxed either as a sole proprietor, Schedule C in the case of an operating business, Schedule E in the case of rental property or Schedule F in the case of a farm. If the member is a corporation, the income and deductions of the LLC become those of the corporation.
Under the default IRS income tax structures, the IRS treats each LLC member as though the member receives his or her entire distributive share of the LLC profits each year. This means that each LLC member must pay taxes on his or her whole distributive share, whether or not the LLC actually distributes all (or any of) the money to the members. The practical significance of this IRS rule is that, even if LLC members need to leave profits in the LLC -- for instance, to buy inventory or expand the business -- each LLC member is liable for income tax on his or her rightful share of that money.
Depending on the goals of the LLC, it may be wise to change the default income tax status.
Should Your LLC Elect to be Taxed as a Corporation?
Whether the LLC has only one member or numerous members, an LLC can apply to be taxed as a corporation. Corporations are taxed in two different ways—either as a c-corp or an s-corp.
A C-corp is taxed at the corporate level. Shareholders only pay tax when distributions are made to them. If the goal of the LLC is to accumulate earnings and not distribute them to the members, then it may be a good idea for the LLC to be taxed as a C-corporation. If a member of the LLC is also an employee of the LLC, it may be a good idea for the LLC to be taxed as an S-corporation. The LLC can pay the employee-member a fair market value salary (which includes payment of SSI and FICA) and distribute profits to the members in the form of distributions (taxed at a much lower rate than the salary).
There are numerous reasons that go into deciding how to tax an LLC. Before making this important decision, you should seek the advice of competent legal counsel.
Julia Nickerson is an estate and business law attorney in Austin Texas.. She is passionate about building awareness of the importance of thoughtful planning. Julia frequently speaks to groups on estate planning and business planning issues throughout Austin, Texas. Julia makes it easy for your business and family to talk about and plan for tough subjects like money, death and taxes. Visit www.julianickerson.com for more information or call the firm at 512-461-1383.
Friday, September 9, 2011
7 Steps to Probate in Texas
What is probate?
Probate is kind of a mysterious thing. In a lot of states, it is something you want to avoid. I speak with loads of very competent attorneys throughout the United States who only prepare revocable living trusts, and not wills--all so their clients will avoid probate.
In Texas, however, many attorneys prepare wills and know nothing about or just don’t like revocable living trusts. They claim that probate in Texas is not as time consuming or expensive as in other states. Nonetheless, there are numerous reasons why many people would prefer revocable living trusts instead of wills—the avoidance of probate is just one.
So, what is probate? Well, when someone dies, probate is the court process of paying bills and re-titling assets. Often times this becomes a necessity because a bank account becomes frozen by the financial institution upon death and the only way to “un-freeze” the account is to obtain the proper court documentation.
Step 1: Find the Original Will
If the deceased person had a will, the original one should be found. This is important. I once sent what I thought was an original will to court (it was even yellow stained from sitting around for years)—only to find out it didn’t pass the court’s ‘handwriting inspection.’ Evidently, I had a copy instead of the original. Fortunately, my client was later were able to find the original will without too much trouble. Albeit to say, the court wants the original will.
Step 2: Hire a Probate Attorney
It is probably best to bring the original will along with an original death certificate to a competent probate attorney’s office to get started on the probate process. Trying to muddle through the probate process on your own can be an overwhelming task, especially if you are also grieving the loss of a loved one.
Step 3: Prepare the Required Legal Documentation and Attend a Court Hearing
Your attorney will walk you through this stage of the court process. There are certain documents your attorney must prepare in the correct format and file with the probate court. In Texas, probate will occur in the county in which the deceased person resided. Once the documentation has been filed, most likely there will be a court hearing during which the “executor” named in the will must appear before a judge.
Step 4: Notifying the beneficiaries named in the will
In Texas, it is required that proper notice be given to all beneficiaries of the will. Beneficiaries are entitled to receive a copy of the will and an inventory of the assets and liabilities of the deceased person. There are certain time requirements placed on these required notices.
Step 5: Notify creditors
Part of the probate process is publicly notifying creditors of the death so they may have a chance to make a claim against the estate. There are certain time requirements and notice requirements as well. Proof of this notice must be filed with the probate court.
Step 6: Make sure all debts are paid
The deceased person may have had a debt on a home, a car, a credit card (or even multiple credit cards), etc. They will also most likely have to pay income and maybe estate tax. It is important that the debts are paid before making distributions to heirs named in the will.
Step 7: Distributions to heirs
The last thing to do—once all the other requirements have been met and creditors been paid—is to properly distribute the assets. The deceased’s name can come off accounts and titles, replacing it with the rightful heir.
Julia Nickerson is an estate attorney and probate attorney in Austin, Texas.
Probate is kind of a mysterious thing. In a lot of states, it is something you want to avoid. I speak with loads of very competent attorneys throughout the United States who only prepare revocable living trusts, and not wills--all so their clients will avoid probate.
In Texas, however, many attorneys prepare wills and know nothing about or just don’t like revocable living trusts. They claim that probate in Texas is not as time consuming or expensive as in other states. Nonetheless, there are numerous reasons why many people would prefer revocable living trusts instead of wills—the avoidance of probate is just one.
So, what is probate? Well, when someone dies, probate is the court process of paying bills and re-titling assets. Often times this becomes a necessity because a bank account becomes frozen by the financial institution upon death and the only way to “un-freeze” the account is to obtain the proper court documentation.
Step 1: Find the Original Will
If the deceased person had a will, the original one should be found. This is important. I once sent what I thought was an original will to court (it was even yellow stained from sitting around for years)—only to find out it didn’t pass the court’s ‘handwriting inspection.’ Evidently, I had a copy instead of the original. Fortunately, my client was later were able to find the original will without too much trouble. Albeit to say, the court wants the original will.
Step 2: Hire a Probate Attorney
It is probably best to bring the original will along with an original death certificate to a competent probate attorney’s office to get started on the probate process. Trying to muddle through the probate process on your own can be an overwhelming task, especially if you are also grieving the loss of a loved one.
Step 3: Prepare the Required Legal Documentation and Attend a Court Hearing
Your attorney will walk you through this stage of the court process. There are certain documents your attorney must prepare in the correct format and file with the probate court. In Texas, probate will occur in the county in which the deceased person resided. Once the documentation has been filed, most likely there will be a court hearing during which the “executor” named in the will must appear before a judge.
Step 4: Notifying the beneficiaries named in the will
In Texas, it is required that proper notice be given to all beneficiaries of the will. Beneficiaries are entitled to receive a copy of the will and an inventory of the assets and liabilities of the deceased person. There are certain time requirements placed on these required notices.
Step 5: Notify creditors
Part of the probate process is publicly notifying creditors of the death so they may have a chance to make a claim against the estate. There are certain time requirements and notice requirements as well. Proof of this notice must be filed with the probate court.
Step 6: Make sure all debts are paid
The deceased person may have had a debt on a home, a car, a credit card (or even multiple credit cards), etc. They will also most likely have to pay income and maybe estate tax. It is important that the debts are paid before making distributions to heirs named in the will.
Step 7: Distributions to heirs
The last thing to do—once all the other requirements have been met and creditors been paid—is to properly distribute the assets. The deceased’s name can come off accounts and titles, replacing it with the rightful heir.
Julia Nickerson is an estate attorney and probate attorney in Austin, Texas.
Wednesday, July 20, 2011
HUGS without touch, the autistic way
As many of my friends and clients know, I have an autistic nephew, R.E. R.E., who is 9 years old, can repeat an entire movie scene to you about 30 times a day. He can run around and around the exterior of his house without stopping over and over and over again. This boy has A LOT of energy. He also has the sweetest disposition, absolutely adores his sister and cousins, and has eyes which will melt you.
One of my favorite things to do with my own children is to sit with them in my lap and read a book together. I love experiencing the anticipation of the next page and the warmth of my young children bonding while sitting together sharing. My brother doesn't get to sit with RE on his lap reading Dr. Seuss or other childhood tales. R.E., like many autistic children isn't big into physical touch. While RE will give hugs to show his love, they are mostly hugs without a lot of touch. Its just his way.
I don't get to spend as much time as I would like with my brother and his family, as they live in Illinois. Nonetheless, I can see from my window into his life how difficult it is to raise a child with Autism. You have to be "on" all the time! You have to research kid stuff, but on a much greater degree. Special diets, special medications, special education plans, specialty camps, special babysitters--the list can become overwhelming! My kids go to the dentist and we don't plan the one hour activity out for months in advance. R.E. had to have some cavities filled--in the hospital during a 5 hour general anesthetic surgery after months of arrangements with the insurance company.
Parents with "typical developing" children, when you spot a mom with an autistic child having a "melt down" in the HEB or the playground or wherever, remember, that mom is probably one hundred times more exhausted than you--and, she could probably use a hug.
If you want to support Autism, you are welcome to join team Smart Parents, sponsored by the Nickerson Law Group in Austin's Walk Now for Autism Speaks on Saturday September 24. If you can't join the walk, consider a donation to help kids like R.E. You can sign up by clicking this link: Team Smart Parents Walk Now for Autism Speaks Austin September 24, 2011
To learn more about legal planning for families with children who have special needs, visit Julia Nickerson's website for more information or call our office at 512-461-1383.
One of my favorite things to do with my own children is to sit with them in my lap and read a book together. I love experiencing the anticipation of the next page and the warmth of my young children bonding while sitting together sharing. My brother doesn't get to sit with RE on his lap reading Dr. Seuss or other childhood tales. R.E., like many autistic children isn't big into physical touch. While RE will give hugs to show his love, they are mostly hugs without a lot of touch. Its just his way.
I don't get to spend as much time as I would like with my brother and his family, as they live in Illinois. Nonetheless, I can see from my window into his life how difficult it is to raise a child with Autism. You have to be "on" all the time! You have to research kid stuff, but on a much greater degree. Special diets, special medications, special education plans, specialty camps, special babysitters--the list can become overwhelming! My kids go to the dentist and we don't plan the one hour activity out for months in advance. R.E. had to have some cavities filled--in the hospital during a 5 hour general anesthetic surgery after months of arrangements with the insurance company.
Parents with "typical developing" children, when you spot a mom with an autistic child having a "melt down" in the HEB or the playground or wherever, remember, that mom is probably one hundred times more exhausted than you--and, she could probably use a hug.
If you want to support Autism, you are welcome to join team Smart Parents, sponsored by the Nickerson Law Group in Austin's Walk Now for Autism Speaks on Saturday September 24. If you can't join the walk, consider a donation to help kids like R.E. You can sign up by clicking this link: Team Smart Parents Walk Now for Autism Speaks Austin September 24, 2011
To learn more about legal planning for families with children who have special needs, visit Julia Nickerson's website for more information or call our office at 512-461-1383.
Wednesday, July 6, 2011
Supreme Court Finally Ends Anna Nicole Smith Case
It took the United States Supreme Court to hush the cries of a greedy driven estate of a former strip-club dancer. After 15 years, the Anna Nicole Smith case in which she fought for her deceased husband's money, has now come to an end. Anna Nicole's quest has failed.
After meeting J. Howard Marshall, II at a strip-club, Anna Nicole Smith married the 90-year-old Texas oil billionaire before he passed away a year later. Anna Nicole was 60 years younger than Mr. Marshall. Even though she was given over 8 million dollars during the one year marriage, Anna Nicole argued that she was entitled to her late husband's 1.6 billion dollar estate. Mr. Marshall's son claimed otherwise, and the Supreme Court ruled last week that the billionaire's son was the rightful heir.
The case started in Texas probate court and moved up and down various courts throughout the country before the final Supreme Court ruling. The case also survived the death of both the people fighting--Anna Nicole Smith is now dead, and so is Mr. Marshall's son. Anna Nicole claimed that Mr. Marshall's son wrongfully prevented the elderly billionaire from changing his will and trust documents to include Anna Nicole.
There are many lessons we could chose to learn from for this story. Like using a bypass trust to make sure that children aren't disinherited in the event an elderly spouse remarries. And working with an experienced estate planning attorney when a family fight does start to prevent emotions from causing a mere disagreement to blow up into a protracted court fight. And, of course, warning families to be on the look out for undue influence as a means to exploit seniors. Your estate may not be worth billions, but the principles here apply to everyone.
Julia Nickerson is an estate attorney and probate attorney in Austin, Texas
After meeting J. Howard Marshall, II at a strip-club, Anna Nicole Smith married the 90-year-old Texas oil billionaire before he passed away a year later. Anna Nicole was 60 years younger than Mr. Marshall. Even though she was given over 8 million dollars during the one year marriage, Anna Nicole argued that she was entitled to her late husband's 1.6 billion dollar estate. Mr. Marshall's son claimed otherwise, and the Supreme Court ruled last week that the billionaire's son was the rightful heir.
The case started in Texas probate court and moved up and down various courts throughout the country before the final Supreme Court ruling. The case also survived the death of both the people fighting--Anna Nicole Smith is now dead, and so is Mr. Marshall's son. Anna Nicole claimed that Mr. Marshall's son wrongfully prevented the elderly billionaire from changing his will and trust documents to include Anna Nicole.
There are many lessons we could chose to learn from for this story. Like using a bypass trust to make sure that children aren't disinherited in the event an elderly spouse remarries. And working with an experienced estate planning attorney when a family fight does start to prevent emotions from causing a mere disagreement to blow up into a protracted court fight. And, of course, warning families to be on the look out for undue influence as a means to exploit seniors. Your estate may not be worth billions, but the principles here apply to everyone.
Julia Nickerson is an estate attorney and probate attorney in Austin, Texas
Thursday, June 23, 2011
5 Key Things to Do Legally After a Divorce
Yesterday I went to lunch with a friend who had recently divorced. Our luncheon reminded her to get a move on updating her estate plan and other important legal documents. Remember family law attorneys who help clients with divorce most often don't update their clients wills or other estate planning issues. In most cases, divorced couples no longer are interested in their ex-spouse being the beneficiary of their estate. Here are 5 key things to update after your divorce.
1. Update your Beneficiary Designations
Don't run into the trap I have seen happen too many times. Change your beneficiary designations! Remember, certain assets pass to a beneficiary pursuant to a form the company has on file. It doesn't matter what your will says--this form controls! So, make sure you update your beneficiary forms for: retirement accounts, IRAs, life insurance, annuities and health savings accounts.
2. Review Your Bank and Brokerage Accounts
Believe it or not, some of your bank or brokerage accounts may be "Transfer of Death" or "Payable on Death" accounts. This means that at some point in time you listed a person who would inherit your account upon your death. All the bank needs to transfer this account to that person is your death certificate. Verify that you don't have any of these accounts, or if you do have them, make sure the person listed is who you really want to inherit your account.
3. Update your Will
If you had a will before your divorce, most likely you were leaving most, if not all, of your estate to your spouse. Now that you are divorced, that is most likely not the case. Often times your divorce decree may state certain specifics as to leaving assets and if it does, make sure you bring that document when you meet with your estate planning attorney. Your will should be prepared by an attorney who frequently works in the area of law known as estate planning and probate. If you have minor children, your will should have some sort of testamentary trust so that your children don't have to deal with the court and so they don't inadvertently receive assets at age 18 (probably when you want them to go to college, not inherit cash outright with no control).
4. Update Healthcare Powers
After your divorce, you may not want your ex to be the person making medical decisions for you. Make sure you update your medical directives so that you list who you want to make medical decisions for you if you aren't able to make them yourself, who can know what is going on with you medically if you aren't able to communicate, and what to do if your in a terminal condition. Each state has statutory language, so if you have recently moved to a new state, have your attorney updates your medical directives so they are compliant with your state's law.
5. Guardianship of Minor Children . . . Review this Issue!
In a perfect world, if something happened to one parent, the other parent would assume guardianship of the minor child. However, that assumes that the non-custodial parent desires to raise the child and is fit to do so. If the ex-spouse is likely to assume guardianship, they will be responsible for providing a residence for the child, provide for care and support and education. If you are concerned that your ex will not use the money you leave for your children the way you want it, then you can name someone else to serve as trustee of the trust which you set up for the benefit of your children. You can also clarify what you want the trustee to use the money for inside of the trust, such as private school tuition, extra-curricular activities, a car at a certain age, college applications and tuition.
The bottom line . . .
If you are recently divorced, take some time to review your legal documents. If you are not sure everything is set just the way you want it, call your attorney and set an appointment today. Don't put this off for another day because that other day never comes! Many people are fearful of calling an attorney's office. You should feel comfortable when you call and the person speaking with you on the phone should be willing to help you. Don't feel intimidated--lawyers are just people and they are in business to help serve their clients.
p.s. If you or your ex are thinking of remarriage, don't un-intentionally disinherit your children. Without legal documentation to indicate otherwise, a spouse is generally entitled to one-half of the deceased spouse’s estate. Before getting remarried, sit down with a financial advisor and estate planning attorney to assess your options.
1. Update your Beneficiary Designations
Don't run into the trap I have seen happen too many times. Change your beneficiary designations! Remember, certain assets pass to a beneficiary pursuant to a form the company has on file. It doesn't matter what your will says--this form controls! So, make sure you update your beneficiary forms for: retirement accounts, IRAs, life insurance, annuities and health savings accounts.
2. Review Your Bank and Brokerage Accounts
Believe it or not, some of your bank or brokerage accounts may be "Transfer of Death" or "Payable on Death" accounts. This means that at some point in time you listed a person who would inherit your account upon your death. All the bank needs to transfer this account to that person is your death certificate. Verify that you don't have any of these accounts, or if you do have them, make sure the person listed is who you really want to inherit your account.
3. Update your Will
If you had a will before your divorce, most likely you were leaving most, if not all, of your estate to your spouse. Now that you are divorced, that is most likely not the case. Often times your divorce decree may state certain specifics as to leaving assets and if it does, make sure you bring that document when you meet with your estate planning attorney. Your will should be prepared by an attorney who frequently works in the area of law known as estate planning and probate. If you have minor children, your will should have some sort of testamentary trust so that your children don't have to deal with the court and so they don't inadvertently receive assets at age 18 (probably when you want them to go to college, not inherit cash outright with no control).
4. Update Healthcare Powers
After your divorce, you may not want your ex to be the person making medical decisions for you. Make sure you update your medical directives so that you list who you want to make medical decisions for you if you aren't able to make them yourself, who can know what is going on with you medically if you aren't able to communicate, and what to do if your in a terminal condition. Each state has statutory language, so if you have recently moved to a new state, have your attorney updates your medical directives so they are compliant with your state's law.
5. Guardianship of Minor Children . . . Review this Issue!
In a perfect world, if something happened to one parent, the other parent would assume guardianship of the minor child. However, that assumes that the non-custodial parent desires to raise the child and is fit to do so. If the ex-spouse is likely to assume guardianship, they will be responsible for providing a residence for the child, provide for care and support and education. If you are concerned that your ex will not use the money you leave for your children the way you want it, then you can name someone else to serve as trustee of the trust which you set up for the benefit of your children. You can also clarify what you want the trustee to use the money for inside of the trust, such as private school tuition, extra-curricular activities, a car at a certain age, college applications and tuition.
The bottom line . . .
If you are recently divorced, take some time to review your legal documents. If you are not sure everything is set just the way you want it, call your attorney and set an appointment today. Don't put this off for another day because that other day never comes! Many people are fearful of calling an attorney's office. You should feel comfortable when you call and the person speaking with you on the phone should be willing to help you. Don't feel intimidated--lawyers are just people and they are in business to help serve their clients.
p.s. If you or your ex are thinking of remarriage, don't un-intentionally disinherit your children. Without legal documentation to indicate otherwise, a spouse is generally entitled to one-half of the deceased spouse’s estate. Before getting remarried, sit down with a financial advisor and estate planning attorney to assess your options.
Monday, June 20, 2011
Step-Father's Millions . . . Who Will Inherit?
A step-son's tragedy turns into a legal battle
A terrible story came across my desk last week. Bridget Dick in my office got a call from her brother-in-law needing some legal assistance after his step-father's death. Millions of dollars are on the line and it is currently a mystery as to who will inherit.
Mark Stine of Seattle, Washingotn hadn't heard from his step-father, Todd Ray in a couple of weeks. Mark finally decided to take a drive out to his step-father's home to check on him--only to find that he had died. The death occurred some time before Mark found the body and since his step-father lived with no other family, no one realized the death occurred. Mr. Ray was divorced and he had no biological children. He also had no brothers or sisters and his parents had long since passed away. His closest relative was his step-son Mark--but Mark isn't a biological relative.
Eventually Mark began sorting through his step-father's mail. He opened a statement from a brokerage company--to find his step-father had a two million dollar account. Mark remembered his step-father telling him that he would inherit everything from him; but Mark hasn't been able to locate a will.
This matter is now in court in Washington State--where a judge will decide who will inherit the two million dollar, plus estate. If the brokerage account with the two million dollars doesn't have a "transfer of death" designation, then the step-son will most likely not inherit it. Without a will, a descendant's estate transfers to the heirs according to the law. In this case, we must look to Washington state law to determine the 'legal' heir. Because Mark is not a legal descendant of his step-father's, he most likely won't be considered the heir.
Bridget in our office is saddened by this incident because she has the fate of experiencing first hand a family member whose lack of legal planning is causing a major legal battle. Not only is the large amount of money at stake, Mark has to live with the fact that this matter wasn't important enough to his step-father to ensure it was taken care of.
Planning for your family--especially if they are not 'legal heirs' under state intestate laws is not something to put off. If your family doesn't have a legal plan, take the time to get one so your family will know, even in the event of a tragedy, you cared enough to ensure their protection.
You can learn more about Nickerson Law Group and how it helps families throughout Austin at www.estateplanningaustintexas.com. This website offers loads of free informational reports, including THE TEN MOST COMMON LEGAL MISTAKES PARENTS MAKE and THE SPECIAL NEEDS FREEDOM GUIDE. If you have been looking for someone to help your family get its legal affairs in order, the Nickerson Law Group invites you to schedule a personal Family Legal Planning Session today. For more information call their office at 512.461.1383.
A terrible story came across my desk last week. Bridget Dick in my office got a call from her brother-in-law needing some legal assistance after his step-father's death. Millions of dollars are on the line and it is currently a mystery as to who will inherit.
Mark Stine of Seattle, Washingotn hadn't heard from his step-father, Todd Ray in a couple of weeks. Mark finally decided to take a drive out to his step-father's home to check on him--only to find that he had died. The death occurred some time before Mark found the body and since his step-father lived with no other family, no one realized the death occurred. Mr. Ray was divorced and he had no biological children. He also had no brothers or sisters and his parents had long since passed away. His closest relative was his step-son Mark--but Mark isn't a biological relative.
Eventually Mark began sorting through his step-father's mail. He opened a statement from a brokerage company--to find his step-father had a two million dollar account. Mark remembered his step-father telling him that he would inherit everything from him; but Mark hasn't been able to locate a will.
This matter is now in court in Washington State--where a judge will decide who will inherit the two million dollar, plus estate. If the brokerage account with the two million dollars doesn't have a "transfer of death" designation, then the step-son will most likely not inherit it. Without a will, a descendant's estate transfers to the heirs according to the law. In this case, we must look to Washington state law to determine the 'legal' heir. Because Mark is not a legal descendant of his step-father's, he most likely won't be considered the heir.
Bridget in our office is saddened by this incident because she has the fate of experiencing first hand a family member whose lack of legal planning is causing a major legal battle. Not only is the large amount of money at stake, Mark has to live with the fact that this matter wasn't important enough to his step-father to ensure it was taken care of.
Planning for your family--especially if they are not 'legal heirs' under state intestate laws is not something to put off. If your family doesn't have a legal plan, take the time to get one so your family will know, even in the event of a tragedy, you cared enough to ensure their protection.
You can learn more about Nickerson Law Group and how it helps families throughout Austin at www.estateplanningaustintexas.com. This website offers loads of free informational reports, including THE TEN MOST COMMON LEGAL MISTAKES PARENTS MAKE and THE SPECIAL NEEDS FREEDOM GUIDE. If you have been looking for someone to help your family get its legal affairs in order, the Nickerson Law Group invites you to schedule a personal Family Legal Planning Session today. For more information call their office at 512.461.1383.
Wednesday, May 25, 2011
Do You Have An Un-Funded Trust?
Just Because You Have a Trust Doesn't Mean It Will Work the Way It Was Intended
Revocable Living Trusts--they are a popular estate planning vehicle for many reasons. But, many of the benefits are not realized if the trust is never actually funded. Its hard to imagine someone paying a lot of money and spending a lot of time to get a revocable living trust set up only to have it not work the way it was intended. But, I see this happen almost every week. If you have a revocable living trust and want the benefits from it--make sure it is funded.
So, how do you fund a revocable living trust? First, you don't necessarily need an attorney to do most of your funding. In my office, we prepare an instruction manual to help each client who has a revocable living trust go through the process. You will have to take certain trust documents to your bank and have the banker there change the ownership on your accounts from you to you as trustee of your revocable living trust. You will also need to do this with your brokerage accounts. You will transfer real estate using a deed--which will have to be prepared by your attorney. Remember to re-title all the real property you own, even a time share.
Determining which asset should be re-titled and which assets should not be re-titled is a vital discussion you should have with your attorney.
If you have a revocable living trust and are not sure if you have it funded correctly, schedule a meeting with your estate planning attorney. Your attorney will be able to go over your assets and advise you what you need to do to make sure your planning is funded, up to date and current.
Julia Nickerson is an estate and probate planning attorney in Austin, Texas
Revocable Living Trusts--they are a popular estate planning vehicle for many reasons. But, many of the benefits are not realized if the trust is never actually funded. Its hard to imagine someone paying a lot of money and spending a lot of time to get a revocable living trust set up only to have it not work the way it was intended. But, I see this happen almost every week. If you have a revocable living trust and want the benefits from it--make sure it is funded.
So, how do you fund a revocable living trust? First, you don't necessarily need an attorney to do most of your funding. In my office, we prepare an instruction manual to help each client who has a revocable living trust go through the process. You will have to take certain trust documents to your bank and have the banker there change the ownership on your accounts from you to you as trustee of your revocable living trust. You will also need to do this with your brokerage accounts. You will transfer real estate using a deed--which will have to be prepared by your attorney. Remember to re-title all the real property you own, even a time share.
Determining which asset should be re-titled and which assets should not be re-titled is a vital discussion you should have with your attorney.
If you have a revocable living trust and are not sure if you have it funded correctly, schedule a meeting with your estate planning attorney. Your attorney will be able to go over your assets and advise you what you need to do to make sure your planning is funded, up to date and current.
Julia Nickerson is an estate and probate planning attorney in Austin, Texas
Monday, May 23, 2011
WHICH ASSETS ARE PROTECTED AGAINST CREDITORS?
What can I do to make sure I am protected in case I get sued?
I've received a lot of questions lately about asset protection. What assets are protected from creditors and what assets aren't protected? As a brief overview, here is what is protected, in general terms, in Texas: your homestead, your retirement accounts, your investments in life insurance, annuities, and $60,000 of personal property.
If you have filed for a homestead exemption in Texas, creditors are not able to seize your home with a judgment. This is not the case in many states though. In many states throughout the country, your homestead is not 100% exempt from creditors. Texas’ statutes are powerful when it comes to homesteading—you not only get a reduced property tax, you also get 100% creditor protection.
Both IRAs and employer sponsored 401(k) plan accounts are 100% protected from creditors by both federal and Texas state law. Some states don’t protect IRAs from creditors. Remember OJ Simpson and his NFL pension, well there is one example of creditor protection on retirement benefits.
Only $60,000 worth of personal property is protected from creditors via Texas statute. If you have a non-retirement brokerage or bank account above $60,000, that amount over the 60k is not protected from creditors. If you are personally liable, a creditor could obtain a judgment and collect on that amount.
Many of my litigator attorney friends will tell you to make sure you have an adequate insurance umbrella policy to protect yourself from creditors. If your 16-year-old child is starting to drive, if you own property where people could accidentally get injured, or if you are just concerned about the potential of future creditors, then make a call to your insurance agent to verify your umbrella coverage. This type of insurance coverage is fairly inexpensive and should be your first line of defense in an asset protection arena. If you are still concerned about leaving your assets open to creditors, give my office a call to schedule some time to review your options.
Julia Nickerson is an estate planning and probate attorney located in Austin, Texas. You can reach her at Julia@julianickerson.com .
I've received a lot of questions lately about asset protection. What assets are protected from creditors and what assets aren't protected? As a brief overview, here is what is protected, in general terms, in Texas: your homestead, your retirement accounts, your investments in life insurance, annuities, and $60,000 of personal property.
If you have filed for a homestead exemption in Texas, creditors are not able to seize your home with a judgment. This is not the case in many states though. In many states throughout the country, your homestead is not 100% exempt from creditors. Texas’ statutes are powerful when it comes to homesteading—you not only get a reduced property tax, you also get 100% creditor protection.
Both IRAs and employer sponsored 401(k) plan accounts are 100% protected from creditors by both federal and Texas state law. Some states don’t protect IRAs from creditors. Remember OJ Simpson and his NFL pension, well there is one example of creditor protection on retirement benefits.
Only $60,000 worth of personal property is protected from creditors via Texas statute. If you have a non-retirement brokerage or bank account above $60,000, that amount over the 60k is not protected from creditors. If you are personally liable, a creditor could obtain a judgment and collect on that amount.
Many of my litigator attorney friends will tell you to make sure you have an adequate insurance umbrella policy to protect yourself from creditors. If your 16-year-old child is starting to drive, if you own property where people could accidentally get injured, or if you are just concerned about the potential of future creditors, then make a call to your insurance agent to verify your umbrella coverage. This type of insurance coverage is fairly inexpensive and should be your first line of defense in an asset protection arena. If you are still concerned about leaving your assets open to creditors, give my office a call to schedule some time to review your options.
Julia Nickerson is an estate planning and probate attorney located in Austin, Texas. You can reach her at Julia@julianickerson.com .
Thursday, January 13, 2011
2010 Tax Relief Act Dramatically Increases Estate Tax Exemption Limit
The New Five Million Dollar Estate Tax Exemption Limit in Effect for the Next 2 Years
If you have not heard yet, on December 17, 2010 Congress and President Obama reached a deal on the extension of the Bush era tax cuts. The "2010 Tax Relief Act" changed the estate tax and gift tax for the next two years. For anyone dying in 2011 or 2012, the estate tax exemption amount has increased dramatically to $5 million.
Also starting in 2011, the gift tax is unified with the estate tax. This means that the $5 million estate tax exemption will also be available for gifts made during life. Families who have a desire to gift to their children, grandchildren or other loved ones during their lives now have much more powerful gifting options available than in previous years.
The issue remains of how much longer after 2012 the $5 million extension will last. Don't expect an answer to that question until after the 2012 elections, as this topic is highly political.
If you have concerns about your estate tax planning, please set up an appointment to meet with me to review your specific situation and how it fits into the 2010 Tax Relief Act.
Julia Nickerson is an estate planning attorney in Austin, Texas with a focus on helping families and small business owners plan their legal affairs.
If you have not heard yet, on December 17, 2010 Congress and President Obama reached a deal on the extension of the Bush era tax cuts. The "2010 Tax Relief Act" changed the estate tax and gift tax for the next two years. For anyone dying in 2011 or 2012, the estate tax exemption amount has increased dramatically to $5 million.
Also starting in 2011, the gift tax is unified with the estate tax. This means that the $5 million estate tax exemption will also be available for gifts made during life. Families who have a desire to gift to their children, grandchildren or other loved ones during their lives now have much more powerful gifting options available than in previous years.
The issue remains of how much longer after 2012 the $5 million extension will last. Don't expect an answer to that question until after the 2012 elections, as this topic is highly political.
If you have concerns about your estate tax planning, please set up an appointment to meet with me to review your specific situation and how it fits into the 2010 Tax Relief Act.
Julia Nickerson is an estate planning attorney in Austin, Texas with a focus on helping families and small business owners plan their legal affairs.
Wednesday, October 20, 2010
UNCERTAINTY OVER ESTATE TAX EXEMPTION CONTINUES
As the end of 2010 approaches, I am often getting asked, "What are the 'Bush Tax Cuts?'" and "Do these have an effect on MY estate plan?"
The "Bush Tax Cuts" have been getting a lot of press lately. It seems like every time I listen to the news or read the paper someone is talking about why or why they should not be extended. Here is a little history and some information about why you may be concerned about this issue.
In 2001, President George W. Bush signed into law the "Economic Growth and Tax Relief Reconciliation Act." This law became commonly known as EGTRRA and reduced income tax rates and increased the estate tax exemption limit (the amount someone can die with and not pay estate tax).
In order to get EGTRRA passed through Congress, it had to have a 'sunset provision.' On January 1, 2011 we will revert to what the law would have been if EGTRRA had never been passed (a one million dollar exemption amount and an estate tax of 55%.
Following President Bush's reelection in 2004, efforts were made to make EGTRRA permanent, but those efforts failed. At this time with the budgetary restrictions of PAYGO requiring that reductions in revenue be offset by corresponding reductions in expenditures, it would require bipartisan support in the Senate to avoid a complete sunset of EGTRRA in 2011.
We keep reading and hearing about whether Congress will vote on this issue before the mid-term elections this November. Well, Congress recessed without voting. This means that in all probability 2011 will bring the return of a $1 million estate tax credit, with anyone dying with over that amount being taxed at a rate of 55%.
According to most professionals in the estate planning industry who are following this issue on a daily basis, there are just too many winners and not enough losers if EGTRRA is allowed to sunset.
This means that the uncertainty over the estate tax exemption amount will continue.
Fortunately, you have me to keep you updated on this issue. If you have any concerns, I recommend that you meet with me sometime next year to make sure your plan stays current.
With proper estate planning, estate taxes can be significantly reduced, if not eliminated.
The "Bush Tax Cuts" have been getting a lot of press lately. It seems like every time I listen to the news or read the paper someone is talking about why or why they should not be extended. Here is a little history and some information about why you may be concerned about this issue.
In 2001, President George W. Bush signed into law the "Economic Growth and Tax Relief Reconciliation Act." This law became commonly known as EGTRRA and reduced income tax rates and increased the estate tax exemption limit (the amount someone can die with and not pay estate tax).
In order to get EGTRRA passed through Congress, it had to have a 'sunset provision.' On January 1, 2011 we will revert to what the law would have been if EGTRRA had never been passed (a one million dollar exemption amount and an estate tax of 55%.
Following President Bush's reelection in 2004, efforts were made to make EGTRRA permanent, but those efforts failed. At this time with the budgetary restrictions of PAYGO requiring that reductions in revenue be offset by corresponding reductions in expenditures, it would require bipartisan support in the Senate to avoid a complete sunset of EGTRRA in 2011.
We keep reading and hearing about whether Congress will vote on this issue before the mid-term elections this November. Well, Congress recessed without voting. This means that in all probability 2011 will bring the return of a $1 million estate tax credit, with anyone dying with over that amount being taxed at a rate of 55%.
According to most professionals in the estate planning industry who are following this issue on a daily basis, there are just too many winners and not enough losers if EGTRRA is allowed to sunset.
This means that the uncertainty over the estate tax exemption amount will continue.
Fortunately, you have me to keep you updated on this issue. If you have any concerns, I recommend that you meet with me sometime next year to make sure your plan stays current.
With proper estate planning, estate taxes can be significantly reduced, if not eliminated.
Monday, August 2, 2010
Congress Causes Huge Disparity in Estate Tax Controversy
New York Yankees owner George Steinbrenner is the fourth known U.S. billionaire to die during 2010. Why is this significant? Because there is no estate tax for those who die in 2010, causing a huge disparity between those people who can transfer their wealth to their heirs estate tax free in 2010 and those who will pay a 55% estate tax upon death next year. It also means that the U.S. Treasury lost billions in tax revenues because Congress couldn’t get its act together to pass a law in 2009.
Steinbrenner was worth an estimated $1.5 billion. His heirs could save as much as $600 million in taxes because he died this year. Steinbrenner's wealth could pass to his wife tax-free even if the estate tax were in effect, but this year she might have an incentive to disclaim or turn down any bequest, which would allow the assets to pass to Steinbrenner's four children free of federal estate tax. The federal estate tax has historically been 45 to 55% of assets above $1 to $3 million. Steinbrenner's family would have to pay a huge capital gains tax if it were to sell any highly appreciated assets, since along with the disappearance of the estate tax, there is no "step-up" in the cost basis of inherited assets during 2010.
The other billionaires to die in 2010 are Texas pipeline magnate Dan Duncan ($9.8 billion), Janet Morse Cargill of the family that founded Cargill Inc. (net worth: $1.6 billion), and California real estate mogul Walter Shorenstein ($1.1 billion). By rough calculation, their deaths in 2010 have cost the government some $6.5 billion in lost revenues from estate tax.
What is really a shame however is that people who die next year will have to pay a 55% tax on any amounts owned above one million dollars. I have numerous clients who have worked all their lives to build up an estate worth one million dollars and if they die next year, will have to pay 55% on everything owned above that amount. Even for those like myself who counsel clients on how to limit estate tax, it doesn’t seem like Congress got it right by letting the estate tax slide this year, creating quite an extreme disparity between those billionaires who didn’t have to pay the tax this year and those barely millionaires who will pay the tax next year.
Julia Nickerson is an estate planning attorney located in Austin, Texas. You can reach her at Julia@julianickerson.com .
New York Yankees owner George Steinbrenner is the fourth known U.S. billionaire to die during 2010. Why is this significant? Because there is no estate tax for those who die in 2010, causing a huge disparity between those people who can transfer their wealth to their heirs estate tax free in 2010 and those who will pay a 55% estate tax upon death next year. It also means that the U.S. Treasury lost billions in tax revenues because Congress couldn’t get its act together to pass a law in 2009.
Steinbrenner was worth an estimated $1.5 billion. His heirs could save as much as $600 million in taxes because he died this year. Steinbrenner's wealth could pass to his wife tax-free even if the estate tax were in effect, but this year she might have an incentive to disclaim or turn down any bequest, which would allow the assets to pass to Steinbrenner's four children free of federal estate tax. The federal estate tax has historically been 45 to 55% of assets above $1 to $3 million. Steinbrenner's family would have to pay a huge capital gains tax if it were to sell any highly appreciated assets, since along with the disappearance of the estate tax, there is no "step-up" in the cost basis of inherited assets during 2010.
The other billionaires to die in 2010 are Texas pipeline magnate Dan Duncan ($9.8 billion), Janet Morse Cargill of the family that founded Cargill Inc. (net worth: $1.6 billion), and California real estate mogul Walter Shorenstein ($1.1 billion). By rough calculation, their deaths in 2010 have cost the government some $6.5 billion in lost revenues from estate tax.
What is really a shame however is that people who die next year will have to pay a 55% tax on any amounts owned above one million dollars. I have numerous clients who have worked all their lives to build up an estate worth one million dollars and if they die next year, will have to pay 55% on everything owned above that amount. Even for those like myself who counsel clients on how to limit estate tax, it doesn’t seem like Congress got it right by letting the estate tax slide this year, creating quite an extreme disparity between those billionaires who didn’t have to pay the tax this year and those barely millionaires who will pay the tax next year.
Julia Nickerson is an estate planning attorney located in Austin, Texas. You can reach her at Julia@julianickerson.com .
Tuesday, July 27, 2010
74th Wealthiest Man in the World Dies—But No Estate Tax
Another Billionaire Able to Pass on his Fortune to Heirs without any Estate Tax
Billionaire Dan Duncan started his business with two propane trucks and built it into a $9 billion network of natural gas processing plants and pipelines. He became the wealthiest man in Houston and the 74th wealthiest man in the world. He died in March 2010 of a brain hemorrhage and his will is on file at the Harris County Probate Court in Houston. The bulk of his estate is left to his four children and grandchildren. Because he died in 2010, the year in which all estates have a free pass from estate tax, his financial legacy will pass to his heirs estate tax free.
If Mr. Duncan would have died three months earlier, his estate would have been subject to extensive estate taxes. If Mr. Duncan would have lived for 9 more months, his estate would also have been subject to even higher estate taxes.
Everyone can die with a certain amount of wealth—and usually anything over that amount is taxed. But the United States Congress allowed the estate tax to lapse for one year—for deaths occurring in 2010, all estates have a free pass from estate tax. Democrats and Republicans in Congress tried to reach a compromise in late 2009 to establish what the estate tax level would be in 2010; however, they were unable to reach a consensus. Little did they know that someone like Mr. Duncan would die in 2010.
The governmental policy behind the tax, which was enacted in 1916, is to prevent our society from becoming a group of haves versus have-nots, encourage tax-free charitable giving and to help pay for government programs. Opponents claim it is unfair because it taxes the same income twice—once when it is earned and again when it passes to heirs. Whatever your point of view, the tax savings for the children and grandchildren of Mr. Duncan is sure to be unsettling to those who have paid estate taxes on more modest wealth. Next year, in 2011, the estate tax is 55% of any wealth over one million dollars.
There was some discussion by members of Congress earlier this year about the possibility of a new law that will be retroactive to January 2010. Many opponents have argued that a retroactive law would be unconstitutional. Mr. Duncan’s heirs certainly have the financial ability and the motivation to challenge the constitutionally of any retroactive tax.
It should be noted that even though there is no estate tax in 2010, there are limits to the amount of a stepped-up basis an estate receives for a death in 2010. This could lead to capitol gain tax—which is at a much lower rate than the estate tax.
We have yet to see if Congress will be able to pass a new law before the end of 2010. If nothing is passed, the 2011 estate tax exemption amount is one million dollars and the tax rate is 55%.
Julia Nickerson is an estate planning attorney in Austin, Texas with a focus on helping families and small business owners plan their legal affairs.
Billionaire Dan Duncan started his business with two propane trucks and built it into a $9 billion network of natural gas processing plants and pipelines. He became the wealthiest man in Houston and the 74th wealthiest man in the world. He died in March 2010 of a brain hemorrhage and his will is on file at the Harris County Probate Court in Houston. The bulk of his estate is left to his four children and grandchildren. Because he died in 2010, the year in which all estates have a free pass from estate tax, his financial legacy will pass to his heirs estate tax free.
If Mr. Duncan would have died three months earlier, his estate would have been subject to extensive estate taxes. If Mr. Duncan would have lived for 9 more months, his estate would also have been subject to even higher estate taxes.
Everyone can die with a certain amount of wealth—and usually anything over that amount is taxed. But the United States Congress allowed the estate tax to lapse for one year—for deaths occurring in 2010, all estates have a free pass from estate tax. Democrats and Republicans in Congress tried to reach a compromise in late 2009 to establish what the estate tax level would be in 2010; however, they were unable to reach a consensus. Little did they know that someone like Mr. Duncan would die in 2010.
The governmental policy behind the tax, which was enacted in 1916, is to prevent our society from becoming a group of haves versus have-nots, encourage tax-free charitable giving and to help pay for government programs. Opponents claim it is unfair because it taxes the same income twice—once when it is earned and again when it passes to heirs. Whatever your point of view, the tax savings for the children and grandchildren of Mr. Duncan is sure to be unsettling to those who have paid estate taxes on more modest wealth. Next year, in 2011, the estate tax is 55% of any wealth over one million dollars.
There was some discussion by members of Congress earlier this year about the possibility of a new law that will be retroactive to January 2010. Many opponents have argued that a retroactive law would be unconstitutional. Mr. Duncan’s heirs certainly have the financial ability and the motivation to challenge the constitutionally of any retroactive tax.
It should be noted that even though there is no estate tax in 2010, there are limits to the amount of a stepped-up basis an estate receives for a death in 2010. This could lead to capitol gain tax—which is at a much lower rate than the estate tax.
We have yet to see if Congress will be able to pass a new law before the end of 2010. If nothing is passed, the 2011 estate tax exemption amount is one million dollars and the tax rate is 55%.
Julia Nickerson is an estate planning attorney in Austin, Texas with a focus on helping families and small business owners plan their legal affairs.
Monday, July 5, 2010
Legal Planning for the Family Vacation Home
Make Your Family Vacation Home Into a Legacy for Generations to Enjoy
Julia Nickerson is an estate planning attorney in Austin, Texas with a focus on helping families and small business owners plan their legal affairs.
For many of us, the family beach home, ranch or mountain condo is an integral part of our summer traditions. These real estate assets are treasured parts of our family bonding, yet are often under-planned for. I have a dream that our family vacation home will remain part of my children’s lives and remain a positive tradition for generations to come. Yet, without effective legal planning, this dream might as well be just that—a dream and not reality.
I believe properly titling the family vacation home is imperative to creating a legacy that will last for generations to come. When an entity, such as an LLC owns the vacation home, each member of the LLC owns an interest in the home and its furnishing.
The LLC’s Operating Agreement governs and controls the rights, responsibilities and obligations of the various members. It is a well drafted legal document that controls what happens if some of life unexpectencies occur. For example, the operating agreement talks about what happens if one of my children divorces or dies before his or her spouse dies. What if one of my children can’t afford the maintenance? What if one my children has creditor problems or wants to sell his portion? Transfer restrictions should be put into place to protect your family.
The last thing any parent wants when trying to build a legacy and create a place of enjoyment for future generations is to inadvertently create divisive family arguments. If you have a family vacation home or are planning on creating such a legacy for your family, then think about investing in a legal plan that will protect your family from outsiders as well as from themselves.
I believe properly titling the family vacation home is imperative to creating a legacy that will last for generations to come. When an entity, such as an LLC owns the vacation home, each member of the LLC owns an interest in the home and its furnishing.
The LLC’s Operating Agreement governs and controls the rights, responsibilities and obligations of the various members. It is a well drafted legal document that controls what happens if some of life unexpectencies occur. For example, the operating agreement talks about what happens if one of my children divorces or dies before his or her spouse dies. What if one of my children can’t afford the maintenance? What if one my children has creditor problems or wants to sell his portion? Transfer restrictions should be put into place to protect your family.
The last thing any parent wants when trying to build a legacy and create a place of enjoyment for future generations is to inadvertently create divisive family arguments. If you have a family vacation home or are planning on creating such a legacy for your family, then think about investing in a legal plan that will protect your family from outsiders as well as from themselves.
Julia Nickerson is an estate planning attorney in Austin, Texas with a focus on helping families and small business owners plan their legal affairs.
Monday, June 28, 2010
A Caution About Internet Wills
An Overall Plan is Worth the Professional Fees
Internet and box wills are being advertised a lot lately. In a way this is good because it encourages people to start planning. However, an internet will won’t be an effective estate plan for most people. One reason in particular is that a will doesn’t control property subject to beneficiary designation or right of survivorship.
Many people are surprised to learn that their will controls a relatively small percentage of their overall estate. Life insurance and retirement plans are controlled by beneficiary designations, not a will. Many bank accounts are also controlled by designations outside the will. For many people, these assets equal a large portion of their overall estate.
For example, many married couples have a will that includes trust planning--either for estate tax savings, asset protection or to ensure the children aren’t disinherited if a surviving spouse remarries. If the primary beneficiary of the life insurance is the spouse, this completely contradicts the trust planning. No money from the life insurance will be able to be funded into the trust.
A surprising number of people with minor children name the children as contingent beneficiaries. BAD IDEA! This form of designation would necessitate a court-supervised, expensive, burdensome guardianship to control the proceeds if the couple dies together.
Proper estate planning will coordinate your will with the beneficiary designation forms for your life insurance policies, retirement plans, and bank and brokerage accounts.
Julia Nickerson is an estate planning attorney in Austin, Texas with a focus on helping families and small business owners plan their legal affairs.
Internet and box wills are being advertised a lot lately. In a way this is good because it encourages people to start planning. However, an internet will won’t be an effective estate plan for most people. One reason in particular is that a will doesn’t control property subject to beneficiary designation or right of survivorship.
Many people are surprised to learn that their will controls a relatively small percentage of their overall estate. Life insurance and retirement plans are controlled by beneficiary designations, not a will. Many bank accounts are also controlled by designations outside the will. For many people, these assets equal a large portion of their overall estate.
For example, many married couples have a will that includes trust planning--either for estate tax savings, asset protection or to ensure the children aren’t disinherited if a surviving spouse remarries. If the primary beneficiary of the life insurance is the spouse, this completely contradicts the trust planning. No money from the life insurance will be able to be funded into the trust.
A surprising number of people with minor children name the children as contingent beneficiaries. BAD IDEA! This form of designation would necessitate a court-supervised, expensive, burdensome guardianship to control the proceeds if the couple dies together.
Proper estate planning will coordinate your will with the beneficiary designation forms for your life insurance policies, retirement plans, and bank and brokerage accounts.
Julia Nickerson is an estate planning attorney in Austin, Texas with a focus on helping families and small business owners plan their legal affairs.
Friday, June 25, 2010
It doesn’t matter what stage of life you’re in, you'll always need some legal planning
BUSINESS AND ESTATE PLANNING IS ESSENTIAL FOR ALL SMART FAMILIES
If you’re getting married (or remarried). . .
Texas is one of a handful of community property states. This means that once you’re married everything you earn is legally half yours and half your spouse's. Half your salary is your spouse’s. Half your spouse’s salary is yours. If you don’t like this automatic default, you can change it by entering into a separate property agreement.
What if you have significant assets that you earned before marriage? Well, those assets are your separate property; however, if you mix them with community property they will become tainted and the separateness of them will be hard to verify.
What if you earn a nice income from your separate property (i.e. investments or a business)? The income and the appreciated growth from separate property in Texas is community property!
If you are getting married (or remarried) and you have significant separate assets, you might want to think about planning ahead legally. Smart and successful people who are also very committed to each other enter into separate property agreements all the time.
If you’re having a baby . . .
Smart parents know that legally they need to plan ahead to provide for their children. What if something happens to you and you aren’t there for your child? What if one parent decides to stay at home with your baby . . . and something happens to the working spouse? What if something happens to both of you?
All parents should prepare a will and a legal guardianship document naming who they choose to become the guardian of their child if they aren’t available anymore. But, there are some common mistakes that many parents make when preparing their wills and naming their guardian—the primary one is naming your guardian inside of your will. Your will is a private document that no one but you, your spouse and your attorney needs to have access to. Your guardianship document though is an emergency document. If you aren’t available to take care of your child, your guardian should have access to that document immediately.
Your will shouldn’t be a slapped together template from an online sight. Rather, smart parents think about their goals and values when preparing their wills and incorporate these into the legal document. If done properly, your will should be a unique document unlike no one else’s.
If you’re child is turning 18 . . .
Once your ‘child’ turns 18, they’re considered a legal adult. Federal laws prevent doctors, hospitals and other medical care providers from giving medical information to parents of adults. If your 18 year old is in an accident, you may not be legally eligible to know what is going on medically. You are still able to pay for their medical bill, but you won’t be able to inquire about what procedures were performed.
Consider this story that happened to a friend of mine: Your child leaves for college in your vehicle. On the drive to campus, your child is in a car accident and must be hospitalized. You, as owners of the vehicle are contacted. You aren’t concerned about your car — you only want to know how your ‘baby’ is. You are far away. You are concerned. You want to know what is going on.
Your child is unconscious and needs serious medical attention, maybe even surgery — it doesn’t matter. The hospital refuses to provide you with any information.
Why? You aren’t authorized. Your child is now an adult! Legally, you aren’t able to find out. In the eyes of the government, turning 18 means parents no longer have access to the same legal rights regarding their children.
Don’t be left without a legal plan for your young adult child. Do some legal planning for your 18 year old and stay in the know.
If you’re starting a business . . .
Every business needs to be set up correctly and maintain its records correctly. Have you ever heard of piercing the corporate veil? This legal term happens when a business fails to maintain its corporate formalities. Instead of being able to hide behind the corporate shield, individual investors in the business are held personally liable for the business’ debts.
If you are starting a business, a ‘dba’ (doing business as) may not be enough. Setting up the proper legal structure and maintaining the corporate books are vital to ensuring you and your business stay protected.
When your business becomes successful . . .
If you own a business with other investors, it is important to think about what happens if someone dies, divorces or becomes incapacitated. Consider this scenario, which happens all too often: You’re in business with your long time friend You both built the business from an initial $1,000 investment. Your business is now worth $2 million. Last year your friend took a loan from the business to buy a lake home. You didn’t legally document the loan---knowing that it was to your good friend and that he or she would pay it back. Your friend just died. Their spouse’s estate attorney wants to see your corporate records. Your friend’s spouse is entitled to your friend’s portion of the business.
Do you have a right of first refusal to purchase your friend’s portion of the business? Can you afford to buy out the spouse? Since you never documented the loan for the lake house, how will that affect the value of your partner's portion? Since you never thought about these things, will you now be forced into business with your friend’s spouse? Or (possibly) worse, litigation? Smart business owners plan for these things and legally document them.
If you’re getting divorced . . .
Most of us know that after getting a divorce you should update your will. Another key legal step to take after getting divorced is to change your beneficiary designation forms on your life insurance and retirement plans (i.e. IRAs and 401(k)s). These assets don’t pass pursuant to the terms of your will.
Imagine your family in this litigation battle: You get divorced. You never change your beneficiary designation forms which listed your ex-spouse as your primary beneficiary. You die. Your ex-spouse inherits the life insurance pay out and your retirement accounts.
If you’re getting divorced or recently got divorced, your divorce documentation may require you to name your spouse as your primary beneficiary for a period of time. If not, call your benefits department and your life insurance carrier and update those beneficiary designation forms.
If you’re a smart family . . .
Smart families plan ahead. We plan our weddings, our children’s birthday parties, our vacations, our corporate sponsorships. We also need to remember how important it is to be educated on some legal basics and to plan ahead legally.
If you’re getting married (or remarried). . .
Texas is one of a handful of community property states. This means that once you’re married everything you earn is legally half yours and half your spouse's. Half your salary is your spouse’s. Half your spouse’s salary is yours. If you don’t like this automatic default, you can change it by entering into a separate property agreement.
What if you have significant assets that you earned before marriage? Well, those assets are your separate property; however, if you mix them with community property they will become tainted and the separateness of them will be hard to verify.
What if you earn a nice income from your separate property (i.e. investments or a business)? The income and the appreciated growth from separate property in Texas is community property!
If you are getting married (or remarried) and you have significant separate assets, you might want to think about planning ahead legally. Smart and successful people who are also very committed to each other enter into separate property agreements all the time.
If you’re having a baby . . .
Smart parents know that legally they need to plan ahead to provide for their children. What if something happens to you and you aren’t there for your child? What if one parent decides to stay at home with your baby . . . and something happens to the working spouse? What if something happens to both of you?
All parents should prepare a will and a legal guardianship document naming who they choose to become the guardian of their child if they aren’t available anymore. But, there are some common mistakes that many parents make when preparing their wills and naming their guardian—the primary one is naming your guardian inside of your will. Your will is a private document that no one but you, your spouse and your attorney needs to have access to. Your guardianship document though is an emergency document. If you aren’t available to take care of your child, your guardian should have access to that document immediately.
Your will shouldn’t be a slapped together template from an online sight. Rather, smart parents think about their goals and values when preparing their wills and incorporate these into the legal document. If done properly, your will should be a unique document unlike no one else’s.
If you’re child is turning 18 . . .
Once your ‘child’ turns 18, they’re considered a legal adult. Federal laws prevent doctors, hospitals and other medical care providers from giving medical information to parents of adults. If your 18 year old is in an accident, you may not be legally eligible to know what is going on medically. You are still able to pay for their medical bill, but you won’t be able to inquire about what procedures were performed.
Consider this story that happened to a friend of mine: Your child leaves for college in your vehicle. On the drive to campus, your child is in a car accident and must be hospitalized. You, as owners of the vehicle are contacted. You aren’t concerned about your car — you only want to know how your ‘baby’ is. You are far away. You are concerned. You want to know what is going on.
Your child is unconscious and needs serious medical attention, maybe even surgery — it doesn’t matter. The hospital refuses to provide you with any information.
Why? You aren’t authorized. Your child is now an adult! Legally, you aren’t able to find out. In the eyes of the government, turning 18 means parents no longer have access to the same legal rights regarding their children.
Don’t be left without a legal plan for your young adult child. Do some legal planning for your 18 year old and stay in the know.
If you’re starting a business . . .
Every business needs to be set up correctly and maintain its records correctly. Have you ever heard of piercing the corporate veil? This legal term happens when a business fails to maintain its corporate formalities. Instead of being able to hide behind the corporate shield, individual investors in the business are held personally liable for the business’ debts.
If you are starting a business, a ‘dba’ (doing business as) may not be enough. Setting up the proper legal structure and maintaining the corporate books are vital to ensuring you and your business stay protected.
When your business becomes successful . . .
If you own a business with other investors, it is important to think about what happens if someone dies, divorces or becomes incapacitated. Consider this scenario, which happens all too often: You’re in business with your long time friend You both built the business from an initial $1,000 investment. Your business is now worth $2 million. Last year your friend took a loan from the business to buy a lake home. You didn’t legally document the loan---knowing that it was to your good friend and that he or she would pay it back. Your friend just died. Their spouse’s estate attorney wants to see your corporate records. Your friend’s spouse is entitled to your friend’s portion of the business.
Do you have a right of first refusal to purchase your friend’s portion of the business? Can you afford to buy out the spouse? Since you never documented the loan for the lake house, how will that affect the value of your partner's portion? Since you never thought about these things, will you now be forced into business with your friend’s spouse? Or (possibly) worse, litigation? Smart business owners plan for these things and legally document them.
If you’re getting divorced . . .
Most of us know that after getting a divorce you should update your will. Another key legal step to take after getting divorced is to change your beneficiary designation forms on your life insurance and retirement plans (i.e. IRAs and 401(k)s). These assets don’t pass pursuant to the terms of your will.
Imagine your family in this litigation battle: You get divorced. You never change your beneficiary designation forms which listed your ex-spouse as your primary beneficiary. You die. Your ex-spouse inherits the life insurance pay out and your retirement accounts.
If you’re getting divorced or recently got divorced, your divorce documentation may require you to name your spouse as your primary beneficiary for a period of time. If not, call your benefits department and your life insurance carrier and update those beneficiary designation forms.
If you’re a smart family . . .
Smart families plan ahead. We plan our weddings, our children’s birthday parties, our vacations, our corporate sponsorships. We also need to remember how important it is to be educated on some legal basics and to plan ahead legally.
Friday, June 18, 2010
Asset Protection and Estate Planning
ASSET PROTECTION SHOULD BE PART OF YOUR ESTATE PLAN
We spend a lot of time on building and learning how to build our fortunes; unfortunately, we spend very little time and very little is ever taught on the subject of legally protecting our fortunes. Every family should have at least some basic knowledge of how to legally protect your assets.
Your primary line of defense for protecting your assets is and always will be your insurance coverages. But, what if your insurance doesn’t cover everything?
Certain of your assets are protected against creditors by operation of law - these are what we call exempt assets. For example, in Texas, the law exempts your entire homestead and up to $60,000 of personal property per family, ($30,000 for single persons). Federal law exempts ERISA regulated retirement plan contributions. In a few states, like Texas, not only are life insurance proceeds protected from the creditors of the insured and the beneficiary, but also the cash value of life insurance is protected (with no dollar limit) from claims of creditors of the policy owner.
Your remaining assets are non-exempt assets and have exposure to creditors. These include your bank and brokerage accounts and non-homestead real estate owned in your own name. However, you can legally arrange your non-exempt assets to protect them from the claims of future potential creditors. Look for coming articles in which Legal Smarts will discuss various techniques (as opposed to gimmicks) for legally protecting assets.
We spend a lot of time on building and learning how to build our fortunes; unfortunately, we spend very little time and very little is ever taught on the subject of legally protecting our fortunes. Every family should have at least some basic knowledge of how to legally protect your assets.
Your primary line of defense for protecting your assets is and always will be your insurance coverages. But, what if your insurance doesn’t cover everything?
Certain of your assets are protected against creditors by operation of law - these are what we call exempt assets. For example, in Texas, the law exempts your entire homestead and up to $60,000 of personal property per family, ($30,000 for single persons). Federal law exempts ERISA regulated retirement plan contributions. In a few states, like Texas, not only are life insurance proceeds protected from the creditors of the insured and the beneficiary, but also the cash value of life insurance is protected (with no dollar limit) from claims of creditors of the policy owner.
Your remaining assets are non-exempt assets and have exposure to creditors. These include your bank and brokerage accounts and non-homestead real estate owned in your own name. However, you can legally arrange your non-exempt assets to protect them from the claims of future potential creditors. Look for coming articles in which Legal Smarts will discuss various techniques (as opposed to gimmicks) for legally protecting assets.
Monday, May 24, 2010
Asset Protection for Doctors
Asset Protection for Doctors
Legally Protect Your Assets
Doctors and lawyers aren’t able to hide behind a corporate shield and as such, have additional challenges in protecting their assets. As small business owners and professionals, we are at risk of losing our business assets, savings, and livelihood with one malpractice case.
Worrying about a risk can be as catastrophic as the risk itself. There are plenty of doctors unable to sleep at night worrying that their assets are on the line if something goes wrong in surgery.
We spend a lot of time on building and learning how to build our fortunes; unfortunately, we spend very little time and very little is ever taught on the subject of legally protecting our fortunes. Every family should have at least some basic knowledge of how to legally protect your assets.
Your primary line of defense for protecting your assets is and always will be your insurance coverages. But, what if your insurance doesn’t cover everything?
Certain of your assets are protected against creditors by operation of law - these are what we call exempt assets. For example, in Texas, the law exempts your entire homestead and up to $60,000 of personal property per family, ($30,000 for single persons). Federal law exempts ERISA regulated retirement plan contributions. In a few states, like Texas, not only are life insurance proceeds protected from the creditors of the insured and the beneficiary, but also the cash value of life insurance is protected (with no dollar limit) from claims of creditors of the policy owner.
Your remaining assets are non-exempt assets and have exposure to creditors. These include your bank and brokerage accounts and non-homestead real estate owned in your own name. However, you can legally arrange your non-exempt assets to protect them from the claims of future potential creditors. That what the field of law called asset protection is all about.
At our office, we’ve developed programs to legally protect assets from lawsuits, plaintiffs’ attorneys, the IRS, second spouses, children’s divorces, and anyone else outside of your immediate family.
Asset protection planning can reduce uncertainty about what will happen if you are sued. Knowing that you have done whatever you reasonably can do not only protects your assets but brings significant relief for those sleepless nights.
Legally Protect Your Assets
Doctors and lawyers aren’t able to hide behind a corporate shield and as such, have additional challenges in protecting their assets. As small business owners and professionals, we are at risk of losing our business assets, savings, and livelihood with one malpractice case.
Worrying about a risk can be as catastrophic as the risk itself. There are plenty of doctors unable to sleep at night worrying that their assets are on the line if something goes wrong in surgery.
We spend a lot of time on building and learning how to build our fortunes; unfortunately, we spend very little time and very little is ever taught on the subject of legally protecting our fortunes. Every family should have at least some basic knowledge of how to legally protect your assets.
Your primary line of defense for protecting your assets is and always will be your insurance coverages. But, what if your insurance doesn’t cover everything?
Certain of your assets are protected against creditors by operation of law - these are what we call exempt assets. For example, in Texas, the law exempts your entire homestead and up to $60,000 of personal property per family, ($30,000 for single persons). Federal law exempts ERISA regulated retirement plan contributions. In a few states, like Texas, not only are life insurance proceeds protected from the creditors of the insured and the beneficiary, but also the cash value of life insurance is protected (with no dollar limit) from claims of creditors of the policy owner.
Your remaining assets are non-exempt assets and have exposure to creditors. These include your bank and brokerage accounts and non-homestead real estate owned in your own name. However, you can legally arrange your non-exempt assets to protect them from the claims of future potential creditors. That what the field of law called asset protection is all about.
At our office, we’ve developed programs to legally protect assets from lawsuits, plaintiffs’ attorneys, the IRS, second spouses, children’s divorces, and anyone else outside of your immediate family.
Asset protection planning can reduce uncertainty about what will happen if you are sued. Knowing that you have done whatever you reasonably can do not only protects your assets but brings significant relief for those sleepless nights.
Monday, May 10, 2010
Welcome to Estate Planning Austin Texas
Welcome to Julia Nickerson’s legal and estate planning blog. I am an estate planning attorney in Austin, Texas with a focus on helping families and small business owners plan their legal affairs.
Our firm represents families of all ages and all financial backgrounds by helping them eliminate taxes, avoid probate and provide for their families. I represent many physicians who are concerned about doing all they can legally to keep their assets protected from creditors and potential litigation. I also help business owners navigate the legal concerns of daily legal problems, whether it be implementing a new business structure, formulating an exit strategy or dealing with issues of potential litigation.
Since I was a child, I’ve always had an interest in the law. I grew up spending a lot of time at my father’s law firm and learning about how a lawyer and a law practice works through him. After graduating from law school and passing the bar in 1997, I worked at a boutique firm where we represented numerous physician practices. It was there where I learned the legal end of asset protection and its importance. I have represented clients before the Southern District of California, the Northern District of California, Ninth Circuit, the Fifth Circuit, the United States Supreme Court, and numerous state courts.
In 2000, I gave birth to my first child—and almost died during delivery. This event made me realize how important it is that every family have a legal plan to protect themselves in the event of life’s uncertainties. I am passionate about educating families about why it is important to plan their estates and to leave a legacy for their family. I strongly believe that if families educate themselves about the importance of legal planning, they will begin to know why it is so important. Our firm’s motto is “Smart Families Plan Ahead.”
This blog will post real life legal issues in an easy to read format. It is meant to be a resource for families, physicians and business owners regarding estate planning and asset protection.
If you have legal concerns that need to be addressed, I welcome you to contact me.
Our firm represents families of all ages and all financial backgrounds by helping them eliminate taxes, avoid probate and provide for their families. I represent many physicians who are concerned about doing all they can legally to keep their assets protected from creditors and potential litigation. I also help business owners navigate the legal concerns of daily legal problems, whether it be implementing a new business structure, formulating an exit strategy or dealing with issues of potential litigation.
Since I was a child, I’ve always had an interest in the law. I grew up spending a lot of time at my father’s law firm and learning about how a lawyer and a law practice works through him. After graduating from law school and passing the bar in 1997, I worked at a boutique firm where we represented numerous physician practices. It was there where I learned the legal end of asset protection and its importance. I have represented clients before the Southern District of California, the Northern District of California, Ninth Circuit, the Fifth Circuit, the United States Supreme Court, and numerous state courts.
In 2000, I gave birth to my first child—and almost died during delivery. This event made me realize how important it is that every family have a legal plan to protect themselves in the event of life’s uncertainties. I am passionate about educating families about why it is important to plan their estates and to leave a legacy for their family. I strongly believe that if families educate themselves about the importance of legal planning, they will begin to know why it is so important. Our firm’s motto is “Smart Families Plan Ahead.”
This blog will post real life legal issues in an easy to read format. It is meant to be a resource for families, physicians and business owners regarding estate planning and asset protection.
If you have legal concerns that need to be addressed, I welcome you to contact me.
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