Planning for the welfare of your children may be at the forefront of your mind in the midst of the present COVID-19 pandemic and volatility of this world. The decision you have been putting off may feel more pressing than ever. Specifically, who would care for your minor children if you and a co-parent become unavailable? Now is a vital time to carefully consider your intentions and document them in writing with an estate plan.

A few points to consider:

Consider naming separate individuals

Legally, stand-ins for parents fall into two separate roles. A guardian of a minor is responsible for making any legal and medical decisions on behalf of the minor, and generally is the person who cares for and raises a child on a day-to-day basis. A guardian of the estate is responsible for managing assets and financial affairs on behalf of a minor (or otherwise incapacitated person). Both are nominated in your Will or separate document referred to as a Declaration of Guardianship and you may consider naming separate individuals for each of these roles.

It may be easier to narrow down individuals who would be well-suited for each role separately based on their respective strengths and other various determining factors. Delegating these roles separately may also place less of a burden on each individual you name. Also, separating these roles can provide checks and balances between them.

Think about alternatives

As you plan for the possibility that you could become unavailable to care for your children, consider also that your first choice for guardian could become unavailable too. If you are fortunate enough to have multiple people in your life whom you would feel comfortable entrusting with your children, you may name them as successors or alternates in your legal documents.

It’s also worth considering circumstances under which you may not want your first choice candidate to serve in the role you’ve nominated them for. For example, if you are naming your sibling and his or her spouse as guardians for your minor children, would you want your in-law serving as sole guardian in the event of your sibling’s death, or would you prefer that another individual or couple step into the role? Be explicit about any pertinent contingencies in your documents.

Get in step with your co-parent

If you presently share custody with another person, it’s important that you get on the same page. In the event that all custodians are unavailable, conflicting appointments of a guardian will likely require court intervention.

Carefully consider your choice of guardian

Selecting the right person to name as guardian of your children is no easy task. After all, nobody can ever fill your shoes as parent and raise your children exactly as you would.  Ideally, you have someone in your life who shares your values, and a similar parenting style and morals. Your ideal candidate will likely be financially stable with no major medical concerns. Geographic location may be an important factor as well.

Don’t forget to consider whether your ideal candidate is even willing to accept the responsibility of serving as guardian. Does he or she already have or want a family, or are they childless by choice?  Age and life expectancy should factor in as well. For example, while you may trust your own parents more than anyone else to raise your children, they are more likely to face physical limitations, medical issues, and possible mental deterioration over time, making them less than ideal candidates.

Consult an estate planning attorney

Your estate planning attorney will prepare or update a Will and/or Guardianship Declaration, if appropriate, that accurately reflects your intentions, is legally enforceable, and compliments the rest of your estate plan. If you are struggling in your decision making, an estate planner may also help you weigh your options.

If you have any estate planning questions, Weldy Law, PLLC is here to help, contact our office to schedule a consultation.

The above blog is for informational purposes only and is not legal advice nor does any information or communication with this website create an attorney-client relationship.

In a time of uncertainty, many people find comfort and peace in creating an estate plan that will help to ensure that their legacy is protected. Now is a good time for those without estate plans to have basic plans put in place and those who already have plans to ensure those documents (which may have been drafted many years ago) correctly reflect their current wishes.

A basic estate plan typically includes five instruments: a Will, a Trust, various Guardianship documents, and powers of attorney for health care and property, each of which serves an important purpose in the overall plan.

Will

The main purpose of a Will is to distribute property that is not included in a trust and remains part of the probate estate at death and declare who will be in charge of distributing your assets. In general, Texas is a relatively easy state to probate a Will and therefore many Texans see the value in having an up-to-date Will.

Trust

A Trust is an important part of a substantive estate plan. A trust is a legal device used for the management of property.  In a trust, legal title to the property — the right to manage the property — is held by one person, called a trustee, while another person, called the beneficiary, has the beneficial right to the use and enjoyment of the property.

Guardianship Designations

Under Texas law, people can designate another person to serve as their guardian if the need arises. Parents of minor children are also able to name a designated guardian for their minor aged children if a parent passes away.

Powers of Attorney

The Durable Power of Attorney and Medical Power of Attorney address situations where an individual is alive but not able to act for her or himself. The Durable Power of Attorney allows the person appointed by the individual (an “agent”) to deal with the individual’s various financial and legal matters in the event the individual is not able to do so because of illness or other incapacity. Similarly, the Medical Power of Attorney allows an agent appointed by the individual to make health care decisions for the individual.

For individuals who already have the benefit of an estate plan in place, now is an excellent time to review current documents to confirm that the provisions reflect their current desires and adequately address recent family circumstances. In particular, individuals should review their current asset values, titling, and beneficiary designations. In addition, individuals should confirm that those named as their executors, trustees and agents under powers of attorney remain appropriate.

At Weldy Law, we regularly engage with clients looking to create a solid estate plan, asset protection, or an established trust. Ready to set up a consultation? Contact Weldy Law, PLLC and we’ll discuss Texas estate laws, how our process works, and discuss questions you might have.

The above blog is for informational purposes only and is not legal advice nor does any information or communication with this website create an attorney-client relationship.

Did you know we’re living longer these days? As Americans, our average life expectancy has moved into the high 70s or low 80s.

People living longer also means more medical costs and more dependency on retirement investments and savings to sustain their lifestyles. In some cases, Americans are working further into their “retirement years” to meet new financial challenges. As a society, we may need to consider how to stretch the money we have to comfortably live out those golden years.

Rising Healthcare Cost

A problem is health spending continues to outpace basic inflation and economic growth, so the “new normal” we’ve adjusted to is not sustainable. Instead, we will need to be vigilant in exploring all our healthcare options, compare prices, and do more work on our end to make sure we can manage the cost. While thinking about your estate plan, you may need to include resources for an unexpected short or long term disability or major medical issue for you and your spouse.

Savings

How much do you have tucked away in your savings account right now? If it’s less than $500, you aren’t alone. Recent studies have shown that 6 out of 10 Americans do not have enough money saved up to handle a $500 emergency and its created a financial stress on many communities. Americans are facing new challenges and management of finances – and especially once they enter retirement and are living on a fixed income- are a valid concern for most Americans. It’s prudent to consider all your options now or in the early stages of adulthood to protect yourself against the unexpected. Setting up a trust or financial management tool can help ensure your spending stays on track and that you are adequately preparing for an enjoyable retirement.

Retirement

For most, starting your investment journey and learning how investments work is difficult—terminology can be frustrating, constant fluctuations in the stock market, mutual funds, and the economy is intimidating, and figuring out how much of your income to put towards retirement is hard. Of course, investments can be done through many avenues and a financial advisor can help connect the links as far as information and knowledge go. Even if investing is intimidating, starting sooner rather than later can be advantageous and even low-risk investments are better than none. An aging U.S. population will rely on those retirement funds more and more.

Plan Well

How does this impact your estate plan? Aside from draining your estate before there’s a chance to pass it down to the next generation, most Americans need to consider all their options and how best to set up their will to accommodate their lifestyle and provide the legacy they hope to pass on to future generations—you can change your family tree and a well drafted estate plan can help you achieve those goals.

At Weldy Law, we regularly engage with clients looking to create a solid estate plan, asset protection, or an established trust. Ready to set up a consultation? Contact Weldy Law, PLLC and we’ll discuss Texas estate laws, how our process works, and discuss questions you might have.

The above blog is for informational purposes only and is not legal advice nor does any information or communication with this website create an attorney-client relationship.

The purpose of this blog is to describe a trust and its various uses in estate planning. Trusts can be extremely helpful in advanced planning to help address many issues faced by people in all walks of life. Trusts can help those with vast estates including multiple pieces of property and other valuable assets, but trusts can also benefit individuals with small estates and limited assets. Below you will find a brief overview of trusts including commonly used terms and elements needed for a trust to operate.

In its most simple terms, a trust is a form of contract. The main players are: the person who creates the trust, the Grantor, requests another person, the Trustee, to hold property for the benefit of a third person, the Beneficiary. A trust is typically set out in a Will or Trust Agreement and is not restricted to any particular terms or language. If a Will or other document which describes the trust relationship leaves out the Trustee’s powers, then Texas law as found in the Texas Property Code provides those powers and provisions that should control the trust relationship.

The Makeup of a Trust

Generally, a trust includes the following: name of the Grantor, name of the Trustee (including Alternate Trustees), identifies the Beneficiaries, provides for distributions and is funded (the grantor must contribute some value or property in order for the trust to exist). The trust also identifies the Trustee’s powers and typically includes a spendthrift clause.

The Creation of a Trust

A trust can be created during someone’s lifetime or created upon her death. If the trust is created during the grantor’s lifetime, the trust is an inter vivos trust. A trust that is to be created upon the grantor’s death is a testamentary trust.

Of course, this is not an exhaustive list of ins-and-outs of trusts, but it is a starting point. If you have any estate planning questions, Weldy Law, PLLC is here to help, contact our offices to schedule a consultation.

The above blog is for informational purposes only and is not legal advice nor does any information or communication with this website create an attorney-client relationship.

Relationships can be the most difficult part of our lives and for many people familial relations are the most strained relationships. For countless reasons, your relationship with family can be complicated. Maybe your family disproves of your lifestyle–or vice versa. Perhaps you were the child of a chaotic and messy divorce and haven’t spoken to the “other” parent in many years. Maybe one of you ended up in a relationship that has driven a wedge between the family. No matter the reason, every family can be subject to the strong feelings that these issues can bring. Occasionally, things get so bad that it’s simply easier to not communicate with the other family member rather than deal with the issues.

For those who break ties–whether permanently or temporarily–your decision may have legal implications. First, understand that the law routinely gives certain rights to close family members if the need arises. For example, when there is no advanced planning, certain relatives may be allowed to make emergency medical decisions for you if you unable to do so for yourself. In addition, if you unexpectedly die without any planning (like a Last Will & Testament), your heirs (which may include those from whom you’re estranged) may inherit your property, while others friends and family that you remain close with receive nothing. While there are certainly exceptions and intricacies to the law, if you’re in a situation like this you should simply focus on the fact that a person you’re estranged from could be in the position of making important legal decisions on your behalf or even inheriting your property and for many people this thought is cringe worthy.

Fortunately, there is a solution to solve this issue. If you’re an adult, you have the right to execute legal documents which will allow you the right to indicate your preferences through strategic estate planning. You may choose to expressly disqualify immediate family members from serving as your guardian, inheriting from you, or even serving as the personal representative (e.g., executor) of your estate when you pass away. Even if you don’t plan on getting married, you may designate your significant other to be the person who is responsible for you or your property. Basic estate planning is simple, typically low cost, and will resolve issues like those discussed in this blog.

The above blog is for informational purposes only and is not legal advice nor does any information or communication with this website create an attorney-client relationship.