What is a special needs trust in a will?
February 9, 2010
A third party special needs trust ("SNT"), generally included in a person's will, is a supplemental needs trust established by a person for the benefit of someone who is disabled. In a will, property that would otherwise have been distributed to the disabled beneficiary outright will instead be held in a SNT for his or her benefit. More »
What changes have been made in dealing with estates?
February 9, 2010
Under the now-repealed estate tax laws, property passing from a decedent used to receive a step-up in cost basis equal to the property's fair market value as of the decedent's date of death. That tax benefit has been eliminated for persons who die in 2010, and instead, the basis of property acquired from a decedent will be the lesser of the decedent's adjusted basis or the property's fair market value on the decedent's date of death. More »
What changes have been made to the Federal generation skipping transfer tax?
February 9, 2010
Like the estate tax, the skipping transfer tax has been repealed the 2010 tax year. Under the old law, each person could give away during lifetime or at death up to $3,500,000 (the "GST exemption") without owing the generation skipping transfer tax. More »
What changes have been made to the federal gift tax?
February 9, 2010
Contrary to what many think, the Federal gift tax has not been repealed. However, the gift tax rate has been lowered to 35%, down from the 45% rate in 2009. Under the current gift tax law, each person may give away (during his or her lifetime) as much as $1, million in cash or other property without paying any gift taxes.
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Do I need to file gift tax returns?
February 9, 2010
Gifting property to children can be a great way to reduce your estate tax burden, but when you make gifts that exceed a certain threshold amount, you will want to file a gift tax return. More »
What is an ILIT?
February 9, 2010
An Irrevocable Life Insurance Trust, or ILIT, is a way to avoid estate taxes by removing life insurance proceeds from your estate. By giving an existing life insurance policy to this Trust or by giving cash to the Trust which is ultimately used to purchase a life insurance policy, you should effectively remove the proceeds of the insurance from your estate according to the IRS. More »
What is the status of the estate tax currently?
February 9, 2010
As of January 1, 2010, the Federal estate tax has been repealed -- but only for one year. As part of the 2001 tax act, Congress increased the amount persons could give away tax-free at death (the "Exemption Amount"),. This amount increased each year over a 10 year period. More »
Key Elder Law Numbers for 2010
February 9, 2010
ElderLaw Answers released a short summary of the key elder law numbers for different federal tax and benefit programs for 2010. The summary is much better than sifting through the various governmental portals for this information. More »
What is a pourover will?
February 9, 2010
When someone has created a revocable trust, we usually create a pourover will. This will protects the individual or couple in case there is property that does not get contributed to the revocable trust. More »
What is a medical directive?
February 9, 2010
A Medical Directive (or Directive to Physicians) allows you to state whether you want or do not want life-sustaining treatment to be utilized to keep you alive if faced with a terminal or irreversible medical condition. It is much better for you to make your end of life decisions made in advance so that your loved ones, your doctors, and your medical power of attorney knows your desires. More »
What is a codicil?
February 9, 2010
A codicil is a legal document that amends your existing Will without revoking the Will in its entirety. Codicils can be used to an existing will provision, a new will provision, or delete an existing will provision. More »
Planning for Your Elder Years
October 24, 2009
If we were to ask an older person what his or her most important concerns for aging are, we would probably get a variety of different answers. According to surveys frequently conducted among the elderly, the most likely answers we would receive would include the following three principal concerns or life wishes: 1. Remaining independent in the home without intervention from others 2. Maintaining good health and receiving adequate health care 3. Having enough money for everyday needs and not outliving assets and income To address these concerns or wishes and maintain the quality of life wanted in the elder years, it simply takes a little preplanning. More »
Who Was Supposed To Be Watching Grandma?
December 10, 2009
There is a popular tune played this time of year called "Grandma Got Run Over by A Reindeer" which relates that Grandma -- after drinking too much eggnog -- went out into the winter cold to get her medication and was run over by a reindeer. The question is, "Who was supposed to be watching Grandma?" More »
PreNeed (Pre-Paid) Funeral and Burial Plans
September 24, 2009
One way to plan in advance for the end of one's life is to sign a formal contract called a "preneed funeral plan." With this plan, money to pay for a funeral and/or burial is held in a trust, in an escrow account or paid through an insurance policy on the life of the person desiring the plan. Parts of or all of the funeral service and burial are designed in advance and pre-funded in advance and the family has little to do but show up. More »
Estate Tax under Obama's Budget
April 2, 2009
Folks have been worried for some time about the changes to the current estate tax system with the change in President. President Obama's current budget does make a couple of significant changes to the current estate tax system. More »
Little Known Government Program Pays the Cost of Elder Care
March 24, 2009
WHAT IF 33% OF ALL SENIORS IN THIS COUNTRY could receive up to $1,949 a month in additional income from the government to help cover their elder care costs? THEY CAN! More »
To Will or Not to Will
December 8, 2008
The Texas Bar Journal has a new client page that contains very basic information about why everyone should have a will. More »
Long Term Care Insurance
March 19, 2008
Why buy long term care insurance? 1. It will help you keep your independence and dignity and allow you to make choices. When the time comes for paying for your long term care needs, you may end up spending your savings and then relying on Medicaid for assistance. Medicaid typically pays for a semi-private room in a nursing home, but not all nursing homes take Medicaid. In many states it is not easy to get Medicaid to cover home care or pay for assisted living. Many people want to stay at home, but with Medicaid may not be able to. Insurance allows you to have a choice of where you want to live. More »
Should I use a Living Trust or a Will?
July 20, 2007
Both living trusts and wills are used to accomplish the same thing -- transfer your assets on your death. Thus, there is no right or wrong answer to this question, at least in Texas. For the most part, the costs to probate in Texas are not very great (unlike many other states), which is why there is no right or wrong answer. More »
Do I get a tax break for officing at home?
June 27, 2007
If you use a portion of your home regularly and exclusively for business purposes, you may be able to take a percentage of your expenses as a home office deduction. Expenses may include the business portion of real estate taxes, mortgage interest, rent, utilities, insurance, depreciation, painting and repairs. More »
Practical real estate advice
November 1, 2006
While looking for some ideas on future blog entries, I came across this excellent, starightforward blog entry from a real estate agent in Sugarland, Texas. More »
What will my business pay under the new Texas Franchise Tax?
October 30, 2006
Every business is obviously different, so it is hard to answer. But, the Texas State Comptroller has just released a new calculator that can help you figure out what your business can expect to pay under the new Texas Franchise Tax More »
Social Security cost of living increases announced
October 29, 2006
The Social Security Administration announced that social security and SSI recipients will have a 3.3% increase in their benefits. This increase is a cost of living adjustment. If you receive social security or SSI, you will see a slight increase in your checks. More »
Who makes medical decisions for me if I cannot make them myself?
October 11, 2006
With a Health Care Power of Attorney, you can decide exactly who will make health care decisions for you if you cannot. The Health Care Power of Attorney is a legal document that designates what family members or friends that you want to make critical health care decisions for you if you are incapacitated. You can even designate in what order those individuals will serve. The Health Care Power of Attorney ends the guessing game about which family member will make decisions at the hospital when time is of the essence. No more family disagreements about who will make that decision. Instead, one person is clearly designated to make decisions for you. More »
Do I need a will?
October 9, 2006
I recommend that my clients have a will for several reasons. First, with a will, you decide who inherits your money and possessions. Without a will, a Texas statute and the court will make that decision. Many times your wishes would not have been the same as what the statute and courts provide. More »
Medical Power of Attorney
October 6, 2006
We get a lot of calls at the office about drafting wills, but no one ever calls about powers of attorney. Also, we have lots of clients that come in with a poorly drafted will that was done by some cheap lawyer or by the client himself, but give me a blank stare when I ask about powers of attorney. If you take nothing else from this post, please remember this: IF YOU PLAN FOR DEATH ONLY (AND NOT DISABILITY) YOU HAVE ONLY DONE HALF THE JOB. More »
I heard that the estate tax is being repealed. Do I really need to plan for estate taxes in my will?
October 6, 2006
This is another common misconception that is spread around (and quite frankly asked about by my clients in our initial estate planning conferences). More »
