Craig W. Watson, Attorney at LawCraig W. Watson, Attorney at Law2024-03-05T05:11:22Zhttps://www.craigwatsonlaw.com/feed/atom/WordPress/wp-content/uploads/sites/1201020/2019/10/cropped-site-identity-32x32.jpgOn Behalf of Craig W. Watson, Attorney At Lawhttps://www.craigwatsonlaw.com/?p=490312024-02-28T05:11:41Z2024-03-05T05:11:22ZYou may believe that it’s time for your parents to move into a nursing home. But do they agree? This can be a difficult conversation to have, as people are often resistant to change and may feel that they are losing their freedom.
That said, it could be a health and safety issue, so this is an important conversation. Here are some tips that can help you as you go through it.
Guide the conversation without dominating it
One expert suggests that you should always go back to this simple question: “What do you think?” Even if you make a suggestion, give your parent a chance to respond and give you their input. You’re still guiding the conversation in the direction that you want, but they feel that they are also part of it.
Consider external situations
Moving into a nursing home isn’t just a health issue. You also have to consider other factors that are going to play into how open they’ll be to this idea. If both of your parents are still alive, could they ever provide assistance to one another? How much money have they saved for retirement and will they be able to afford a nursing home? Use this conversation to gather as much information as you can.
Focus on trying to help
The thing that you need to focus on is expressing that you just want what is best for your parents and that you are trying to help. Be respectful. Be empathetic. Express your concerns about their health conditions or how safe they are living on their own. This shows them that you truly care about them and think that this may be the best option for their future.It’s a complicated time when moving a parent into a nursing home. Be sure you are aware of all of your legal options.
]]>On Behalf of Craig W. Watson, Attorney At Lawhttps://www.craigwatsonlaw.com/?p=490302024-02-15T05:24:47Z2024-02-21T05:24:34ZUnderstand the current laws regarding taxes
The federal estate tax exemption currently sits at a generous $13.61 million per individual, or $27.22 million for married couples, for the tax year of 2024. In contrast, Texas has no state estate tax at all. However, it's important to stay informed about potential changes to avoid estate planning errors that would make your estate vulnerable to hefty tax bills.
Leverage existing exemptions
You can maximize the current high federal exemption by making lifetime gifts to loved ones by using the annual gift tax exclusion of $18,000 per person per year to gradually transfer assets without incurring gift taxes. You can also take advantage of the unlimited marital deduction, allowing spouses to transfer assets to one another tax-free.
Consider establishing a trust
By transferring ownership of assets to a trust, you remove them from your taxable estate and potentially reduce future estate taxes. They also provide flexibility in terms of distribution and can protect assets from potential creditors.
Some of the fundamental ones to consider are living trusts, irrevocable life insurance trusts and charitable remainder trusts. If you are married, a spousal lifetime access trust (SLAT) could also be a useful tool in reducing your taxable estate, especially if the federal estate tax exemption decreases in the future.
Review your beneficiary designations
Life insurance policies, retirement accounts and bank accounts with payable-on-death (POD) or transfer-on-death (TOD) designations bypass probate. However, if it isn't clear who you want to receive these assets after your death, they may end up in court as part of your estate.
Explore charitable giving
Donations to qualified charities can significantly reduce your taxable estate in Texas. They also provide a way to support causes that are important to you. Consider establishing a charitable trust or foundation or simply leaving a portion of your estate to charity in your will.
At the end of the day, strictly following the estate planning process will give you peace of mind, knowing that your assets and loved ones are in safe hands after your passing. It also minimizes the potential for conflicts, delays and unnecessary expenses in distributing your assets.]]>On Behalf of Craig W. Watson, Attorney At Lawhttps://www.craigwatsonlaw.com/?p=490282024-02-13T05:17:49Z2024-02-17T05:17:35ZBeing the executor (or personal representative, as it’s known in Texas) of an estate can be a thankless and difficult job. That is true whether you were designated by the deceased in their estate plan or appointed by a probate judge.
You may have to deal with family members who are sure their loved one meant for them to have more than the will or other document states. You may have beneficiaries trying to tell you how to do your job, pushing you to hurry things along or interfering where they shouldn’t. It can be even more difficult when they’re also your family.It can be especially disconcerting to have someone threatening to have you removed from your role and replaced with someone else. It’s important to remember, however, that getting a personal representative removed (or even petitioning to do so) isn’t as easy as many people think. There need to be solid grounds and evidence for doing so, based on state probate law.
Grounds for removing a personal representative in Texas
A beneficiary can petition to have a probate judge remove an executor (or a judge may do it themselves) for any of the following reasons:
They’re guilty of “gross misconduct or mismanagement in the performance of any duties.”
They’ve “misapplied, embezzled, or removed [estate property] from the state.”
A personal representative may also be removed if they have failed to settle the estate after three years – unless, of course, the court has granted an extension.Basically, as long as you’re fulfilling your fiduciary duty to the estate and its beneficiaries, there’s likely little that family and others can do to remove you. They can, however, make your job more difficult. Having sound legal guidance as you settle an estate can help you ensure that you’re successful in handling the crucial responsibility you’ve been given.]]>On Behalf of Craig W. Watson, Attorney At Lawhttps://www.craigwatsonlaw.com/?p=490272024-02-02T05:25:31Z2024-02-08T05:25:19ZIf you’re making an estate plan as a new parent, one of your major areas of focus may be on choosing a guardian for your child. If something unexpected happens, you want to know that someone is there to care for them. Perhaps this is even what spurred the estate planning initially.
But what should you look for when choosing a guardian? This is an important decision, so here are some things to keep in mind.
Health, age and ability
To start with, it’s often not wise to pick elderly parents. They feel like a natural fit because they are your parents, and they love their grandchildren. But due to their age, they could have health complications in the future that make it difficult for them to actually have the ability to care for your child long-term.
Similar values
Additionally, you want to find someone who is going to raise the children similarly to you. They should have similar values, whether that means education, health, religion or something else entirely. It can be hard to find a perfect fit because no one is going to raise your child exactly like you would. But you should find someone who is at least similar so it is not as drastic of a transition for the children.
Financial means
Finally, it can be helpful to think about money. Raising a child is incredibly expensive. Does the person you’re choosing even want that responsibility? Do they have the financial means to cover the costs of raising your child? If you’re picking someone who already has their own children, how would your child fit into their family?Once you determine who the right person is, it’s time to take the proper legal steps to set up a guardianship as part of your estate plan.]]>On Behalf of Craig W. Watson, Attorney At Lawhttps://www.craigwatsonlaw.com/?p=490232024-01-17T10:33:41Z2024-01-22T10:33:09Zsteal a deceased person’s identity or scam surviving loved ones. Among the things they can do with personal information included in an obituary are:
Access the deceased person’s accounts before they’re closed
Obtain credit cards in the decedent’s name
Break into the deceased’s home
Contact surviving loved ones claiming the deceased owed them money or that they left them money via a life insurance policy (and ask for their bank information)
Unfortunately, if even one surviving loved one believes a scammer is legitimate, they may give them information (including contact information for other relatives) that allows them to defraud multiple people.
What kind of information is useful to fraudsters?
Even people who wouldn’t normally fall for these scams may be taken in at a time when they’re grieving and not thinking clearly. Further, with enough information about the deceased gleaned from an obituary, a scammer can come up with a believable story. This includes information like the deceased’s:
Full name, maiden name and nicknames
Birthplace and where they grew up
Alma mater(s)
Previous residences
Former employers
Membership in groups/organizations
Military service
Relatives’ names and locations
Pets’ names
Favorite vacation spots and interests
It may feel like you’d be left with nothing to say if you couldn’t include this information. However, if you think of an obituary as less of a biography (or autobiography) and more of a legacy statement, you’ll probably find plenty to write about.
If you’re the personal representative (executor) of a loved one’s estate, you can protect their assets by notifying the Social Security Administration, credit reporting agencies, financial institutions and credit card companies of their death as soon as possible. It’s also crucial to secure their home and stop their mail.
It’s a lot to think about. Seeking legal guidance no matter where you are in the estate planning or administration process is always a good way to protect yourself and your loved ones.]]>On Behalf of Craig W. Watson, Attorney At Lawhttps://www.craigwatsonlaw.com/?p=490212024-01-04T04:57:36Z2024-01-10T04:57:21ZIt can be difficult to know when it’s time for elderly parents to move into a nursing home. And every family situation is unique. Family members have to consider factors like the type of care the person needs, the proximity of other family members and the cost.
The best thing to do is simply to start looking for signs indicating it may be time to consider a nursing home. Below are a few examples to keep in mind.
An increase in injuries
First off, if the elderly person begins to suffer accidental injuries, they could be a danger to themselves or their physical condition could be deteriorating. For example, many injuries happen in falls.
Necessary assistance with daily tasks
Elderly people can often live alone, even when they need assistance with things like running errands. But if they need help with basic daily tasks – like getting dressed or using the restroom – then a nursing home may be necessary.
Increased phone calls
Some claim that an increase in phone calls can signify that an elderly person doesn’t feel comfortable at home alone. It may be better for them emotionally and psychologically to be in a group setting.
Necessary medical care
Finally, nursing homes can provide some level of medical care, such as distributing medications. When the needs become too much for family members to assist with on their own, the safety and health of the elderly person has to take precedence.There are a lot of things to consider when looking into nursing homes. Families that are involved in this process need to understand all of the proper legal steps to take.]]>On Behalf of Craig W. Watson, Attorney At Lawhttps://www.craigwatsonlaw.com/?p=490202023-12-22T04:35:43Z2023-12-28T04:35:13ZSome people create an estate plan, put it somewhere safe, and never look at it again. Unfortunately, having an out-of-date estate plan can be almost as bad as not having one at all.
Your life changes, and your estate plan needs to reflect those changes. Here are the key times in your life that you should consider updating your plan.
Change in marital status
Marriage and divorce are two significant life events that should trigger a review of your estate plan. You may need to update your will, designate new beneficiaries and possibly name a new power of attorney.
Addition to the family
The birth or adoption of a child is a time for celebration and also a time to update your estate plan. You will want to name guardians for your minor children if something happens to you and your spouse. You may also want to establish trusts to manage your child’s inheritance.
The death of the executor
If the executor of your estate passes away, it’s crucial to name someone else to ensure your estate is handled according to your wishes.
Change in financial situation
Receiving a large inheritance or buying or selling a business can impact your estate plan. You may need to change how your wealth is distributed or name a successor for your company.
Moving
Estate laws can vary between states. If you move to a different state, you must ensure your estate plan complies with state laws.
Every few years
Even if nothing changes, you should review your estate plan to ensure it complies with state and federal regulations. You have already done the hard work of creating your estate plan. But it’s important to remember that it is not a one-time task. Your plan should reflect where you are on your life’s journey.]]>On Behalf of Craig W. Watson, Attorney At Lawhttps://www.craigwatsonlaw.com/?p=490182023-12-18T08:44:48Z2023-12-21T08:43:59ZReviewing your parent's estate plan
After accepting the important role of an executor, communicating and reviewing estate plans are vital. These reviews let your parents detail their final wishes regarding their wills, trusts and similar matters. This time is also ideal for asking questions, raising concerns and anything else that needs discussing. Getting clarification on all matters helps you do the best job as an executor.
Completing the probate process
Unless your parents have all their assets in a trust, being an executor typically means helping to carry out the probate process. However, probate is a requirement when a will is present and for asset distribution purposes.
Settling debts of an estate
Almost everyone passes away with bills due. Some people will also receive payments sent to them after passing away. As an executor, setting up a bank account in the name of the estate you're managing provides a place for payments and a way to resolve debts. These debts are typically final monthly bills and tax-related expenses.
Dispersing assets to beneficiaries
After settling the debts of an estate, an executor can help ensure that the deceased person's beneficiaries receive their assets. What you disburse depends on the decedent's terms outlined in their will. This process can involve money, stocks, bonds, property and anything else of value.
Being named an executor means taking care of many crucial matters. Before accepting this position for your parents, ensure that you're capable of taking on this role.]]>On Behalf of Craig W. Watson, Attorney At Lawhttps://www.craigwatsonlaw.com/?p=490162023-12-07T06:24:02Z2023-12-12T06:23:21ZIt is true that estate planning often starts with asset distribution. You may be making your plan because you want to leave financial assets to your heirs and beneficiaries. You also want to divide things like sentimental assets or tangible items that you own. It’s wise to make a plan so that your family members know what you wanted and how this distribution should be done.
However, the mistake that some people make is thinking that asset distribution is all they need to consider when making an estate plan. The truth is that it can go far beyond this, and there are many other tools to consider.
Making future medical decisions
For example, medical complications are common when someone is growing older. As part of your estate plan, you may want to focus on making future decisions in case you are incapacitated and cannot do so yourself.One option to do this is by listing instructions in an advanced directive. A common example is a Do Not Resuscitate order, which tells the medical team not to resuscitate you after you have stopped breathing or your heart has stopped beating. People will sometimes also indicate that they don’t want to be kept on life-support or that there are certain medical treatments they would like to opt out of.Another option to make these decisions, though, is a medical power of attorney. Rather than directly making healthcare decisions in advance, you choose an agent who can make them for you. If you’re incapacitated, then your estate plan gives power to this person to work with your medical team.Both of these examples show just how useful estate plans can be. Take the time to carefully consider all of your options when drafting one.]]>On Behalf of Craig W. Watson, Attorney At Lawhttps://www.craigwatsonlaw.com/?p=490142023-11-21T06:11:13Z2023-11-24T06:10:37ZProtecting your loved ones
One of the primary motivations for seniors to engage in estate planning is to save their loved ones from stress. By clearly defining how assets should be distributed, you can prevent potential family conflicts and better ensure that your beneficiaries receive their rightful inheritance. A well-drafted will is the bedrock of any estate plan because it outlines how your assets will be distributed and allows you to appoint guardians for minor dependents (if necessary).
Preserving your medical preferences
Incorporating healthcare directives into your estate plan is crucial. Clearly articulating your medical preferences can help to ensure that your treatment aligns with your wishes, sparing your family from difficult decisions during challenging times.
Ensuring decision-making continuity
Granting a power of attorney is a critical aspect of estate planning for seniors. It allows a trusted individual to take over decision-making regarding your health and finances if you become incapacitated. This can ensure seamless decision-making continuity and avoid legal complications.
Estate planning is not a task to be postponed or taken lightly, especially for seniors. It is a proactive measure to help secure your legacy, protect your loved ones and navigate the complexities of asset distribution. By seeking legal guidance proactively, seniors can better ensure that their wishes are honored and that their interests are protected.]]>