JMD Blog

What You Inherit Can Affect Your Taxes in 2025

Fri, 13 Jun 2025 21:31:14 GMT

Here’s What You Need to Know

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Can You Contest a Will? Here’s What the Law—and Common Sense—Says

Fri, 30 May 2025 22:13:50 GMT

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A Summer Estate Planning Wake-Up Call

Fri, 23 May 2025 20:06:22 GMT

May is here, June is near, and summer is practically knocking on our door. For many of us, this signals a time of transition—school is winding down, vacation plans are gearing up, and the slower pace of the season starts to take hold. I’m the first to admit: relaxation is vital. It helps us recharge, realign, and return to our responsibilities with renewed clarity. But while I’ll never discourage a healthy dose of leisure, I’ve also seen how the laid-back mindset of summer can lull us into dangerous patterns—especially when it comes to something as critical as protecting our families through proper estate planning.

When Summer Relaxation Becomes a Risk

As routines fade, so can our discipline. We justify delay with phrases like “I’ll get to it in the fall” or “It’s not urgent.” But the truth is, when we allow ourselves to completely unplug from the habits that keep our lives on track, we risk more than just momentum—we risk security. Let me explain using a story from my friend and mentor, Richard James.

The Radiator and the Flood: A Lesson in Focus

Years ago, Richard owned a funeral home in an old building in Scranton, Pennsylvania. The heat was powered by radiators, and when the system failed, he had to head to the basement and manually turn a knob to let water in. The catch? You had to keep your hand on the knob—turn it too long, and you’d flood the whole building. One day, while filling the radiator, a customer call pulled him away. Hours later, the horror hit: he had forgotten the water. He ran back in, shut it off, and rushed upstairs. Every floor was drenched. All because he took his hand off the knob.

What’s Your “Knob”?

This story sticks with me because I’ve seen what happens when families take their hands off the knob of estate planning. We get busy. We get distracted. And we think there’s always tomorrow. But what if there’s not? Recently, a close family member’s husband suffered a traumatic tear in his aorta—a terrifying, life-threatening event known as a "widow-maker." By the grace of God, he’s recovering. But that event was a wake-up call. No one is promised tomorrow.

Estate Planning Isn’t Just Paperwork—It’s Protection

Now is the time to review your estate plan. If you have college-aged children heading off for the summer or school in the fall, do they have healthcare powers. And if your family has changed—new children, marriages, or even business ventures—your plan needs to reflect that. Confession time: my wife and I just recently updated our own documents to include our two daughters, now 7 and 8. Yes, the estate planning attorney was late to his own paperwork party. But we’re catching up—because their future matters more than our excuses.

This Summer: Relax—but Don’t Procrastinate

It’s possible to enjoy the slower pace of summer without losing sight of what matters. Schedule a time—yes, even between beach trips and backyard barbecues—to meet with your estate planning attorney. Review your will. Update your trust. Make sure your healthcare directives are current. There is no greater peace of mind than knowing your family is protected.

Ready to Reclaim Control?

If you’re realizing it’s time to get your house in order, we’re here to help. Contact us today to schedule a conversation. We’ll walk you through what needs to be updated, what may be missing, and how to make sure your family isn’t left unprotected.

Because life doesn’t always wait. And the best time to keep your hand on the knob… is now.

The One Back-to-School Task Every Parent of College-Bound Teens Shouldn't Overlook

Thu, 15 May 2025 22:58:04 GMT

Don't let them go until they sign these documents

As parents, sending your child off to college marks a pivotal moment—equal parts pride, excitement, and nerves. You’re likely consumed with the practicalities: move-in checklists, course registrations, and late-night Target runs for dorm essentials. But amid the whirlwind of logistics and emotional goodbyes, there's a critical legal step that often gets overlooked—one that can profoundly impact your ability to help your child in times of need.

Before they leave the nest, every young adult should execute three essential legal documents: a Durable Power of Attorney, a Designation of Health Care Surrogate, and a HIPAA Authorization.

Turning 18 Changes Everything

When your child turns 18, they’re legally an adult. That milestone doesn’t just mean they can vote or sign contracts—it also means that, under the law, you no longer have automatic rights to make decisions for them, even in a crisis.

Many parents are shocked to discover that, despite footing the tuition bill or keeping their child on the family health insurance plan, they are legally barred from accessing medical information or stepping in during a health or financial emergency. In most states, physicians are prohibited from discussing a patient’s condition—even with parents—without explicit permission. The consequences can be heart-wrenching.

A Real-Life Wake-Up Call

Consider the story of Thomas, a sophomore at Penn State who fell seriously ill after spring break abroad. When his father rushed to be by his side, the university infirmary refused to disclose any medical information. Why? Thomas hadn't executed a health care proxy or HIPAA release. Ironically, Thomas’s father is an estate planning attorney himself—a poignant reminder that even those who live and breathe these documents can overlook them when it comes to their own families.

Fortunately, Thomas made a full recovery. But the emotional toll and helplessness his parents experienced were preventable.

The Three Documents Every College Student Needs

Let’s break down the legal tools that ensure you can step in when it matters most:

1. Designation of Health Care Surrogate (Health Care Proxy)

This document appoints someone—typically a parent—to make medical decisions if your child is incapacitated. It also grants access to medical records and, if combined with a living will, allows your child to articulate their wishes regarding life-sustaining treatments.

2. HIPAA Authorization

HIPAA—the Health Insurance Portability and Accountability Act—strictly protects patient privacy. A HIPAA release allows healthcare providers to share medical information with designated individuals, such as parents. Without it, you may be left completely in the dark during an emergency.

3. Durable Power of Attorney

This legal instrument authorizes a trusted person (usually a parent or close relative) to handle financial and legal matters on your child’s behalf. That includes managing bank accounts, filing taxes, accessing academic records, and signing leases or other documents. It can be drafted to take effect immediately or only under certain conditions, such as incapacity.

Beyond Emergencies: Everyday Usefulness

These documents aren’t just for worst-case scenarios. Consider their practical utility:

Your child is studying abroad and loses their passport.

You need to transfer funds or resolve a banking issue.

A lease needs to be signed while your child is away.

The school refuses to share grades—even when you're footing the bill.

A properly executed power of attorney can streamline all of these situations.

Choosing the Right Agents

While parents are often the default choice, some students may prefer to name another trusted adult—an older sibling, aunt, or uncle—particularly in strained parent-child relationships. What’s crucial is that your child trusts the person they appoint. Always name a backup (successor agent) in case the primary agent is unavailable.

Overcoming Hesitation

Convincing a teenager to sign legal documents might feel like an uphill battle. Start with an open conversation about responsibility and readiness. Some parents take a firmer stance, making it a condition of financial support or car ownership.

You might also consider involving a professional. I frequently meet with families to provide a tailored "college legal readiness" package, explaining the documents and ensuring everyone understands their rights and roles. Often, a brief consultation with a knowledgeable estate planning attorney is enough to put the importance of these documents into perspective.

An Invaluable Gift of Preparedness

In a sea of back-to-school expenses, these documents are a modest investment—typically just a few hundred dollars—that can spare you immense stress and cost down the road. They don’t just grant legal authority; they offer peace of mind.

After nearly three decades in estate planning, I’ve learned this: no parent wants to be on the sidelines when their child is hurting or in need. With these documents in place, you won’t have to be.

If you’d like to prepare a Back-to-School Legal Readiness Package for your college-bound student, our office is here to help.

They Turned 18! Now What??

Fri, 25 Apr 2025 18:42:51 GMT

Don't let them leave for college before reading this

If you’re like many of my clients, this season brings a new chapter—one that’s marked by Target runs, dorm room checklists, and the bittersweet feeling of watching your son or daughter pack up and head off to college.

It’s exciting. It’s nerve-wracking. And yes, you’ll worry—because that’s what good parents do. You’ll wonder if they’re eating enough vegetables, if they’re studying more than they’re streaming Netflix, and if they’re sleeping in beds instead of on beanbags. But while those are normal worries, there’s one major concern that too many parents overlook: what happens if your child has a medical or financial emergency while away at school?

Here’s the kicker: once your child turns 18, the legal rules of parenting change entirely.

They may still be on your insurance plan. You may still be footing the tuition bill (and the Uber Eats account). But in the eyes of the law, they are now an adult—and that means you are no longer automatically entitled to know what’s going on in their life. Especially when it comes to their health and finances.

Let me paint you a picture…

The College Emergency That No One Warned You About

Your child ends up in the emergency room after a bike accident on campus. You get a call from a friend or roommate, and you rush to call the hospital to find out more.

What do you hear?

“I’m sorry, we can’t release any information about that patient.”

It doesn’t matter that you’re the parent. It doesn’t matter that you’re paying the bills. The HIPAA law—a well-meaning federal law that protects patient privacy—forbids doctors from sharing any medical information about your adult child without their explicit consent.

Even in an emergency. Even if your child is unconscious. Even if they need life-saving decisions made on their behalf.

The Simple Solution Every Parent Should Have in Place

Now, I’m not here to scare you—I’m here to prepare you. Because the solution is simple, inexpensive, and critically important. Every college-bound student should have the following three documents in place before they ever leave home:

HIPAA Release Authorization

This gives you legal permission to receive medical information about your child in case of an emergency.

Designation of Health Care Surrogate (also known as a Medical Power of Attorney)

This allows you to make medical decisions on their behalf if they are unable to.

Durable Power of Attorney

This enables you to help manage your child’s finances—whether that’s accessing their bank account, helping with tuition payments, or resolving issues with their landlord.

These documents put you back in the role of trusted decision-maker—not because you’re controlling, but because you care.

What’s a Parent to Do? Let’s Talk.

If you’re reading this and feeling that familiar parental tug—that urge to do something smart for your kid’s future—you’re in the right place.

I’ve created a free, easy-to-follow guide that walks you through what these documents are, why they matter, and how to get started. You’ll find the QR code below—scan it and download the guide in under a minute.

And if you’re ready to take the next step? Call my office. We’ll walk you through the process and help you get everything in place before your young scholar heads off to conquer the world.

Because you may not be able to control how many classes they skip or whether they eat enough protein, but you can make sure that if the worst happens, you’re ready.

Warm regards,

Joseph Michael Dickerson

Board-Certified Estate Planner

The J.M. Dickerson Law Firm

P.S. Got more than one child heading to college? Let’s get a family plan in place. This isn’t one of those “maybe someday” items. It’s an easy win for your peace of mind today. Let’s get it done.

Do You Really Need an Estate Plan? Absolutely—And Here’s Why

Fri, 11 Apr 2025 20:02:04 GMT

What you really need to know about estate planning

By Joseph Michael Dickerson, Board-Certified Estate Planning Attorney

Let’s set the record straight: you don’t need a mansion in Beverly Hills, a fleet of exotic cars, or a rare wine cellar to justify having an estate plan. If you’re a hardworking Texan with a home, a savings account, and people you care about—you need one.

I’ve had countless clients ask me, “Do I really need an estate plan?” And my answer is always the same: Yes. You absolutely do.

Why? Because estate planning isn’t about how much you have—it’s about what happens to what you do have. It’s about creating certainty, avoiding chaos, and making life easier for the people you love most.

W hat Is an “Estate,” Really?

Let’s demystify the word. Your estate is simply everything you own when you pass away. That could be a modest home, a truck, a retirement account, and a few family heirlooms. It could also be a business, investments, or real estate. Whether your estate is simple or complex, it still needs to be managed—and without a plan, the government and the courts will step in to do it for you.

I’ve seen what happens when folks leave things to chance. Court involvement, higher attorney’s fees, delays, disputes among family members. And all of it could’ve been avoided with a well-drafted estate plan.

No Plan = Big Problems

If you pass away without a plan in Texas, the legal system doesn’t just shrug and walk away. It steps in—and often in ways that can surprise and burden your family.

For example, your loved ones may be required to go through dependent administration, a court-supervised probate process that’s expensive, slow, and stressful. They may need to obtain a bond, appear in court multiple times, or hire multiple professionals to sort through things. It can drag on for months—or years.

And if you’ve got a blended family, things get even more complicated. Did you know that in some cases, your stepchildren could inherit part of your estate—including rights to the family home—if you don’t have a plan? That could leave your surviving spouse in a legal bind, unable to sell or refinance without their consent. I’ve seen this happen, and it’s heartbreaking—but it’s also entirely preventable.

Estate Planning Is an Act of Love

Let’s be clear: estate planning isn’t just a legal process—it’s a gift to your family. It gives them clarity, direction, and peace during a time of grief. It saves them money. It avoids conflict. And it gives you peace of mind knowing that your wishes will be honored and your legacy protected.

Texas law actually makes things easier for families with a solid plan. There are streamlined options like independent or summary administration—but only if you set things up properly ahead of time. That’s where the guidance of an experienced estate planning attorney makes all the difference.

The Bottom Line

You don’t need to be rich to need an estate plan. You just need to care about what happens to the people and things you leave behind.

Estate planning is about making smart, thoughtful decisions now so that your family doesn’t have to make difficult, expensive decisions later. It’s about putting a plan in writing while you’re alive and well, so that your wishes—not the state’s—are the ones that matter when the time comes.

If you haven’t created an estate plan yet, I encourage you: don’t wait. This is one of the most important steps you can take to protect your family, your assets, and your legacy.

Let’s get your affairs in order—so you can get back to living with confidence.

Molding Your Financial Future in 2025

Fri, 17 Jan 2025 23:34:50 GMT

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As we step into the new year, I find myself reflecting on the countless entrepreneurs, professionals, and business owners I’ve worked with throughout my career. Helping clients mold a shield of protection around their assets has been one of the most rewarding aspects of my practice. Time and time again, I’ve witnessed that success isn’t reserved for geniuses, nor does it require a fancy degree. The secret lies in action, strategy, and discipline—traits anyone can cultivate to achieve and maintain wealth.

The Myth of Instant Wealth

How often have we heard someone say, “When I win the lottery, I’ll finally be set”? It’s a common refrain, but let’s examine the reality. Imagine winning $10 million in the lottery. After choosing the lump sum option and paying taxes, you might walk away with only a fraction of that—perhaps $2 million. Without a solid financial plan, it’s no surprise that many lottery winners end up broke within a few years.

True wealth isn’t about luck or flashy possessions. It’s about what you do with your resources and how you protect them. If you look around your community, the truly wealthy aren’t necessarily the ones with the biggest houses or newest cars. They’re often the ones who’ve taken calculated risks, lived within their means, and built unglamorous but steady businesses. These individuals mold the clay they’re given, creating shields of protection around their assets that ensure their financial stability for generations.

The Trap of Looking Rich

We’ve all seen it—the big house, luxury car, and designer wardrobe. But appearances can be deceiving. Many who look wealthy are drowning in debt, spending more than they earn, and chasing the illusion of success. As my wife lovingly calls it, Dickersonism #7: “Looking rich does not MAKE you rich.”

True wealth is built on a foundation of solid, income-generating assets, not consumables. Falling into the trap of “keeping up with the Joneses” (or Kardashians) often leads to financial instability and missed opportunities to create lasting wealth.

The Cost of Inaction

One of the greatest obstacles to wealth and protection is inaction. Henry Ford famously said, “If you think you can, you can. If you think you can’t, you can’t. Either way, you’re right.” Inaction is the path of least resistance, but it’s also the path to missed opportunities and unfulfilled potential.

Some hesitate out of fear or over-analysis, a condition I call “analysis paralysis.” It’s easy to get caught up in what could go wrong, but this mindset keeps you stagnant. Every successful person I’ve worked with has one thing in common: they took action. They understood the risks but focused on the rewards, moving forward despite uncertainty.

Setting Your Course for 2025

If you haven’t taken steps to mold your financial future, now is the time. Ask yourself: Where do you want to be a year from now? In five years? In ten? Define your goals and begin building the path to reach them.

Just as importantly, protect what you’ve built. Not having a plan to shield your assets is like running exposed electrical wiring—sooner or later, you’ll face unnecessary risks. A board-certified estate planning attorney can help you design a plan to safeguard your wealth, ensuring it stays secure for you and your loved ones.

Take Control of Your Future

Success doesn’t just happen—it’s molded. Listen to trusted advisors, but remember that the final decisions are yours to make. Clarify your vision, take bold steps, and build the life you’ve always dreamed of.

At The J.M. Dickerson Law Firm, we’re here to guide you every step of the way. Whether in person, by appointment, or via Zoom, we’re committed to helping you create a legacy of success and security.

South Texas: 956-791-5422 Central Texas: 830-302-4577

Let’s make 2025 your year of action, growth, and protection.

Embracing the Holidays as a Time for Estate Planning

Fri, 20 Dec 2024 23:59:54 GMT

Asset Protection for the New Year

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Start the New Year Strong: Four Steps to Success

Fri, 13 Dec 2024 21:07:56 GMT

Take time to assess and reflect on 2024

As the end of the year approaches, it’s easy to feel the weight of unfinished tasks and the hustle of the holiday season. Between wrapping up work projects, preparing for family gatherings, and making plans for the future, this time of year can feel overwhelming.

But amidst the busyness lies a valuable opportunity—the chance to press reset and prepare for a fresh start. The New Year offers a clean slate, making it the perfect time to reflect, reorganize, and refocus your goals. By dedicating some time to the right activities now, you can set yourself up for success in the months ahead.

Here are four key steps to help you start the New Year on solid footing.

Step 1: Reflect on the Past Year

As the calendar flips to a new year, many of us naturally find ourselves looking back at the previous 12 months. This is the perfect moment to assess your professional and personal accomplishments, challenges, and growth.

Ask yourself:

• What were my biggest successes this year?

• What goals did I miss, and why?

• What strategies or habits worked well for me?

• Where can I improve moving forward?

Reflection isn’t just about identifying wins and losses; it’s about understanding the “why” behind them. Seek feedback from colleagues, mentors, or trusted peers to gain new perspectives. The more honest and thorough your evaluation, the more valuable it will be as a foundation for future planning.

Step 2: Create a Game Plan for the Year Ahead

Reflection is only the beginning. To make real progress, you need a clear and actionable plan for the year ahead.

Start by defining your big-picture goal for the next 12 months. What’s the most important outcome you want to achieve? Once you have that, break it down into smaller, measurable objectives. For example, if your goal is to expand your business, your smaller objectives might include increasing marketing efforts, attending networking events, or launching a new service.

Outline the steps needed to achieve each objective and set realistic timelines for completion. Revisit your goals regularly—at least quarterly—to ensure you’re staying on track or to adjust for any changes in your circumstances. Flexibility is key to maintaining momentum throughout the year.

Step 3: Declutter Your Inbox

An overflowing email inbox can be a constant source of low-grade stress. Ending the year with a streamlined and organized inbox can give you a fresh sense of control as you head into January.

Here’s how to tackle it:

• Respond immediately to any urgent or unresolved messages.

• Delete emails that are no longer relevant.

• Unsubscribe from newsletters or mailing lists you no longer find useful.

• Create folders and filters to better organize incoming messages moving forward.

To keep your inbox manageable, schedule regular cleanups throughout the year. Whether monthly or quarterly, these maintenance sessions will prevent clutter from building up again.

Step 4: Knock Out Small Tasks

The small, unfinished tasks lingering on your to-do list can be more draining than you realize. Use this time to cross off as many as possible before the New Year begins.

• File paperwork that’s been piling up.

• Respond to emails you’ve been avoiding.

• Wrap up loose ends on ongoing projects.

Completing these small but nagging tasks will give you a sense of accomplishment and free up your mental bandwidth for bigger goals in the New Year. Starting January with a clean slate will allow you to hit the ground running.

Your Fresh Start

A new year is a chance to realign your priorities, set meaningful goals, and approach your work with renewed focus. By reflecting on the past year, setting actionable goals, decluttering your space, and tying up loose ends, you’ll create the foundation for a successful year ahead.

Whether you spread these steps out over a few weeks or tackle them all in one day, the most important thing is to commit to the process. A little effort now can make a big difference in how you start the year—and how you finish it.

Here’s to making the most of your fresh start!

Protecting Your Family’s Legacy: The Importance of a Challenge-Proof Will

Fri, 22 Nov 2024 23:40:00 GMT

Who can challenge your Will?

Thanksgiving is a time to gather with loved ones, express gratitude, and reflect on what truly matters. As we celebrate the blessings of family and the joy of togetherness, it’s also the perfect opportunity to think about protecting the future of those we hold dear. Ensuring that your will and estate plan are secure from potential challenges is one of the most meaningful gifts you can give your family.

As a Board-Certified Estate Planning Attorney, I often remind clients that a well-crafted will is more than just a legal document—it's a reflection of your values and your desire to provide for and protect your family, even after you're gone. However, without proper precautions, your carefully made decisions could be contested, leading to disputes, delays, and unnecessary expenses.

Let’s explore who can challenge your will, the grounds they may use, and practical steps you can take to safeguard your estate plan this holiday season.

Who Can Challenge Your Will?

Heirs at Law:
These are individuals who would inherit under state intestacy laws if you didn’t leave a will. They typically include spouses, children, parents, and other close relatives. Even if you leave them something in your will, they may challenge it in an attempt to secure a larger share.
Beneficiaries:
Beneficiaries are individuals named in your will to receive a gift. If they feel their share is unfair or suspect undue influence, they may contest the will.
Others with Legal Standing:
In some cases, ex-spouses, business partners, or creditors may have grounds to challenge a will, especially if it conflicts with other legal agreements or obligations.

Common Grounds for Will Contests

Invalid Will: Failing to meet your state’s legal requirements for signing and witnessing can render your will void.
Lack of Capacity: A will can be contested if the testator lacked the mental capacity to understand the extent of their assets, who their family members are, or the nature of the will itself.
Undue Influence or Coercion: Claims that someone manipulated the testator to leave them a disproportionate share can lead to challenges.
Mistakes of Fact or Clerical Errors: Inaccuracies in the will, such as disinheriting a child based on incorrect assumptions, can also be grounds for disputes.

Steps to Protect Your Will

Thanksgiving is a time for gratitude and preparation. Consider these steps to ensure your will truly reflects your intentions and prevents unnecessary conflict among your loved ones:

Include a No-Contest Clause:
A no-contest clause discourages challenges by threatening to disinherit anyone who contests the will. While not enforceable in every state, it can be a powerful deterrent.
Update Your Estate Plan Regularly:
As life changes, so should your estate plan. Review and revise your documents after major life events like marriage, the birth of a child, or significant changes in your assets.
Communicate Your Wishes:
Clear communication with your family can prevent misunderstandings. Let your loved ones know why you made certain decisions to reduce the likelihood of disputes.
Work with an Experienced Attorney:
A skilled estate planning attorney can ensure that your will complies with state laws, anticipate potential challenges, and craft an airtight plan to protect your legacy.
Consider a Trust:
If you’re concerned about disinheriting a child or how an inheritance will be managed, a trust can provide structure and conditions for distributions while avoiding the probate process.
Secure Your Documents:
Store your will and estate planning documents in a safe yet accessible location. Inform your executor or a trusted family member where to find them.

This Thanksgiving, Plan for Peace of Mind

Thanksgiving reminds us of the importance of family and the legacy we leave behind. By taking steps now to secure your estate plan, you can ensure your wishes are honored and your loved ones are spared unnecessary stress and conflict.

If you’d like to learn more about creating or updating your will, or if you have concerns about potential challenges, contact my office by calling 956-791-5422 in Laredo. Together, we can protect your family, your assets, and your peace of mind—this Thanksgiving and beyond.

Warm wishes for a joyful and safe Thanksgiving,
Joseph Michael Dickerson
Board-Certified Estate Planning Attorney

Discover Your CTA Risk in 10 minutes here

Mon, 11 Nov 2024 12:04:39 GMT

Not sure? Contact us today!

Beginning January 1, 2024, the Corporate Transparency Act will require most entities formed or registered in the United States to provide detailed information about their beneficial owners, that is, the people who own or control the company, to the U.S. Financial Crimes Enforcement Network (FinCEN).

What happens if a business owners fails to report beneficial ownership information to FinCEN or fails to update or correct the information in a timely manner?

There are both civil and criminal penalties for individuals who intentionally provide false information or fail to report complete or up-to-date beneficial ownership information to FinCEN. Penalties for noncompliance are strict and include fines of $500 per day, per entity, and up to two years in prison.

Learn more about how to protect yourself from costly fines or even jail time for missing the deadline of this new federal law. Click here to schedule a 10-minute discover call today!

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Business owners! Register for our live events in Nov. and Dec.

Mon, 11 Nov 2024 11:39:37 GMT

This is your chance to learn all you need to know about the CTA deadline!

What happens if a business owners fails to report beneficial ownership information to FinCEN or fails to update or correct the information in a timely manner?

Register for our free events in November and December to learn more about how to protect yourself from costly fines or even jail time for missing the deadline of this new federal law. Click here to register today!

https://lp.dickersonlaw.com/ctaliveevents

Keeping It Simple: How Organizing Your Documents Can Save the Day

Fri, 08 Nov 2024 19:01:13 GMT

A well-organized plan can make a difference

Managing your estate doesn’t have to be overwhelming. A well-organized plan ensures your wishes are carried out efficiently, sparing your loved ones unnecessary delays, confusion, and expense. At The J.M. Dickerson Law Firm, we understand that meticulous recordkeeping is key to achieving this goal. By keeping your estate documents well-organized, you set a clear path that empowers your loved ones to navigate even the toughest times with ease.

Here’s a comprehensive guide to managing your estate planning records so they’ll be ready precisely when they’re needed:

✅ Centralized Document Storage

First and foremost, gather your essential documents—such as your will, trust agreements, powers of attorney, and healthcare directives—in one secure but accessible place. It’s important to inform your executor or a trusted family member where this location is. The right organization will reduce the likelihood of missed documents or misunderstandings, making it easier for those managing your estate to proceed efficiently.

✅ Digital Backups

We live in an increasingly digital world, and electronic copies of key estate documents have become essential. Secure online storage solutions provide a dependable way to back up critical records, ensuring they’re accessible even if originals are lost or damaged. Grant your executor or a trusted individual access to these backups to keep the process streamlined.

✅ Regular Updates

An estate plan is a living document—it should grow and adapt as your life circumstances change. Major life events, like a marriage, the birth of a child, or acquiring new assets, are all moments that may require updating your estate plan. Establish a routine for reviewing and updating your documents regularly. Document these updates, keeping a log of revisions and review dates, so your plan is always current and accurate.

✅ Comprehensive List of Assets and Debts

An estate plan without a clear list of assets and liabilities leaves room for error. Compile a comprehensive list that includes your bank accounts, investments, real estate, and outstanding debts, like loans or mortgages. To avoid delays in estate administration, provide clear instructions for accessing these accounts, including login details, while maintaining the necessary security.

✅ Contact Information for Advisors

Make sure that your executor or trusted family members have the contact information for key advisors, such as your attorney, accountant, and financial advisor. This step minimizes delays and ensures your loved ones can seek professional guidance when they need it, making the estate administration process much smoother.

By following these steps, you establish a plan that’s both thorough and accessible, granting peace of mind to those who’ll manage it. Organized records are a priceless gift you can give your family, allowing them to carry out your wishes with dignity and without additional stress. At The J.M. Dickerson Law Firm, we’re dedicated to educating families and providing tailored solutions to safeguard what matters most—your legacy and those you love. For more information on simplifying and securing your estate plan, please contact us. If you would like to know more about asset protection, reach out to The J.M. Dickerson Law Firm. Contact us today by calling 956-791-5422 in Laredo today.

Do you really NEED an Estate Plan?

Fri, 01 Nov 2024 20:03:33 GMT

Are you asking the right questions?

You don’t need a mansion in Beverly Hills or a pricey wine collection to justify having an estate plan. If you’re a regular, hardworking Texan, you might be thinking, "Do I really need an estate plan?" The answer is yes. Whether you have significant wealth or not, an estate plan is essential. Many people assume estate planning is only for the wealthy, but that’s simply not true. Estate planning is about providing certainty and security for your family and ensuring that even a modest estate passes smoothly to those you care about. Here’s why taking action now on an estate plan matters, regardless of your net worth.

What is an Estate?

Don’t let the term “estate” mislead you. An estate isn’t reserved for the ultra-wealthy or those with vast assets. By definition, your “estate” is simply everything you own at the time of your death. For some, an estate might include yachts, multiple homes, or rare collectibles. For you, it might be a family home, a car, your savings, and personal possessions. And that’s perfectly fine. It doesn’t matter how large or small your estate is—it still needs to be managed and distributed when you’re gone.

Establishing a well-drafted estate plan ensures your assets, modest or grand, are handled according to your wishes. This reduces the likelihood of court involvement, minimizes attorney’s fees, and significantly cuts down on delays and costs for your family. An estate plan is about efficiency and protecting what you’ve worked hard to accumulate, making things as easy as possible for your loved ones.

The Risks of Not Having an Estate Plan

If you pass away without an estate plan, the distribution of your assets becomes far more complicated and costly. Here in Texas, your family may face extra legal hurdles—often expensive, lengthy, and, at times, contentious. Without a plan, the court might require additional steps to identify your heirs, which may include obtaining a bond, and if disputes arise among family members, court oversight could become more involved. All these extra steps drive up attorney’s fees, court costs, and delay the resolution of your estate.

For families with stepchildren, the lack of an estate plan can lead to further complications. In certain situations, state law may entitle children to a significant portion of their deceased parent’s estate, sometimes including ownership rights to a jointly-owned family home. This can leave a surviving spouse unable to sell the family home without the stepchildren’s consent—an issue that can be avoided entirely with a tailored estate plan.

Take Action Now to Ease the Burden Later

A solid estate plan doesn’t just help you—it’s an act of care for your family. Many states, including Texas, offer streamlined options for well-organized estates, such as “independent” or “summary” administration, which can simplify the process for your loved ones when the time comes. Yes, creating an estate plan requires a small investment now to engage an attorney for guidance, but that initial cost is likely to save your family considerable stress, time, and money down the line.

Starting your estate plan sooner rather than later provides both peace of mind and a practical legacy of stability. You’ll know your affairs are in order and that your loved ones are protected, allowing you to live with the confidence that your wishes will be honored when it matters most. Contact us today, in Laredo, to find out more by calling 956-791-5422.

Webb County Notice: Navigating the Renewed Geographic Targeting Orders (GTOs) for Real Estate Transactions

Fri, 25 Oct 2024 18:12:21 GMT

What title companies and real estate agents need to know

In October 2024, FinCEN (Financial Crimes Enforcement Network) renewed Geographic Targeting Orders (GTOs) targeting specific U.S. counties and regions with heightened regulatory scrutiny in real estate transactions. As part of FinCEN’s ongoing efforts to combat money laundering and illicit financial activity, these GTOs require businesses involved in certain residential real estate transactions to collect and report critical information about the individuals and entities purchasing properties. The terms of this Order for purchases in all counties covered by this Order are effective beginning October 16, 2024, and ending on April 14, 2025.

The most recent renewal continues to cover several jurisdictions across the country, including counties in Texas (Webb, (Laredo), Bexar (San Antonio), Dallas, Harris (Houston), Montgomery, Tarrant (Fort Worth), and Travis (Austin); California, Florida, New York, and other high-activity real estate markets. The aim is to curtail the misuse of U.S. real estate as a vehicle for hiding illicit funds, particularly through shell companies and anonymous entities.

As the author of The 3 Bucket Method for Asset Protection, I emphasize how this regulatory requirement intersects with broader concerns about safeguarding assets, maintaining privacy, and ensuring that clients navigate real estate transactions legally and efficiently.

Geographic Scope and Jurisdictional Impact

The renewed GTOs apply to specific counties within several states, including:

Texas: Bexar (San Antonio), Dallas, Harris (Houston), Montgomery, Tarrant (Fort Worth), Travis (Austin), and Webb (Laredo) counties.
California: Los Angeles, San Diego, San Francisco, San Mateo, and Santa Clara counties.
Florida: Miami-Dade, Broward, Palm Beach, and other populous counties.
New York City: All five boroughs—Bronx, Brooklyn, Manhattan, Queens, and Staten Island.
Plus, counties in Colorado, Hawaii, Illinois, Maryland, and beyond.

These regions have been targeted for a reason: they are known for high real estate transaction volumes and attract international investments, making them vulnerable to money laundering activities.

If you’re involved in real estate transactions within these areas, this should be on your radar. Whether you're a real estate investor, developer, title insurance company, or a business facilitating transactions, failure to comply with GTO requirements can lead to significant legal and financial consequences.

What Does a "Covered Transaction" Mean?

A "Covered Transaction" under the GTOs refers to any residential real estate transaction involving the purchase of property using certain forms of payment that FinCEN considers to be at higher risk for illicit activity. Specifically, this includes purchases made without external financing or those that utilize methods such as:

Cash
Cashier’s checks
Certified checks
Money orders
Virtual currency (e.g., Bitcoin)
Funds transfers

FinCEN also defines "residential real property" as property designed primarily for the occupancy of one to four families, including individual condominium or cooperative units. Therefore, whether you are buying a single-family home or a condo unit, these transactions fall within the GTO’s scope.

The Burden of Compliance on "Covered Businesses"

Businesses involved in these transactions—referred to as "Covered Businesses"—must follow specific steps to ensure compliance. Covered Businesses include title insurance companies and other businesses directly or indirectly involved in facilitating the transaction. The burden of compliance can be substantial, as these businesses must:

Identify Beneficial Owners: For any Legal Entity purchasing property, a Covered Business must identify and report information about the "Beneficial Owners" of the entity. This means determining who directly or indirectly owns 25% or more of the purchasing entity’s equity interests.
Verify Ownership: Businesses are required to verify the identity of these Beneficial Owners through valid identification documents, such as a driver’s license or passport. Businesses can rely on third-party information provided by agents or representatives of the purchaser, but they remain responsible for the accuracy of the reports they submit to FinCEN.
Report to FinCEN: If the transaction meets the criteria outlined in the GTOs, the business must electronically file a Currency Transaction Report with FinCEN, detailing the information about the Legal Entity and its Beneficial Owners.
Retain Records: Businesses are required to retain all records related to compliance with the GTOs for at least five years after the GTO expires. This means even after the GTOs are renewed or lifted, businesses must keep these records for potential future review.

Intersection with the Corporate Transparency Act

It's crucial to note that the GTO reporting requirements are separate from the obligations imposed by the Corporate Transparency Act (CTA). The CTA, effective starting January 1, 2024, requires most corporations, LLCs, and other similar entities to report their beneficial ownership information to FinCEN. However, compliance with the CTA does not exempt businesses from reporting similar information under the GTOs.

For example, if a Legal Entity purchaser has already reported its Beneficial Owners under the CTA, the Covered Business involved in the real estate transaction must still report the same information under the GTO requirements. Essentially, there is no "double counting" exemption—both sets of rules must be followed.

How Does This Affect Asset Protection?

For those of you familiar with my book, The 3 Bucket Method for Asset Protection, you know that protecting your assets isn’t just about having the right legal structures in place—it’s about understanding how to navigate a complex web of regulations that can impact your financial security. The GTOs are a perfect example of this intersection. They are designed to ensure transparency in real estate transactions and reduce the opportunities for hiding assets behind anonymous shell companies.

However, transparency doesn’t have to mean the loss of privacy or protection. The key is ensuring that your legal entities are properly structured, your beneficial ownership is clearly defined, and you’re following both state and federal laws. By working with experienced legal counsel, you can ensure that your transactions are not only compliant but also structured in a way that maximizes asset protection.

Challenges and Opportunities for Investors

The renewed GTOs also present unique challenges for real estate investors. For those operating in jurisdictions under GTOs, transactions can now face greater scrutiny, potentially slowing down the purchasing process. Investors may find themselves needing to disclose more personal information than they anticipated, particularly if they are using legal entities to purchase properties.

However, for those who are prepared and well-advised, there is an opportunity to stay ahead of these regulatory changes. Proactively ensuring compliance with both the GTOs and the CTA can minimize disruptions and safeguard your investments. In the long run, transparency and compliance could serve as assets themselves, as more international buyers and businesses seek out partners who are fully compliant with U.S. law.

Final Thoughts

The renewed Geographic Targeting Orders reflect an ongoing effort by U.S. regulators to combat money laundering and illicit finance in the real estate sector. While these measures increase the reporting burden on businesses involved in real estate transactions, they also emphasize the importance of transparency and compliance.

For those looking to protect their wealth and investments, navigating these regulations is a critical part of a broader asset protection strategy. By understanding the requirements and working with experienced professionals, you can stay compliant while protecting your assets and financial future. And as always, the best protection comes from being proactive and informed—don’t wait for problems to arise before seeking advice.

If you have any questions about how these GTOs may impact your real estate transactions or broader asset protection strategy, feel free to reach out. Let’s make sure your assets are protected in today’s regulatory landscape.

What You Inherit Can Affect Your Taxes

Fri, 11 Oct 2024 21:46:33 GMT

What you need to know about the three primary types of taxes that could apply

When you receive a bequest from a loved one or a friend, you might be concerned about the tax implications. There are three primary types of taxes that could potentially apply: capital gains tax if you sell the asset, inheritance tax, and estate tax. While you won’t pay the estate tax directly, it can reduce the overall value of your inheritance since it must be paid by the estate before any distributions are made.

Taxes at the Federal Level

At the federal level, the IRS is primarily concerned with any capital gains tax you may owe if you later sell the inherited asset. Fortunately, the federal government does not impose an inheritance tax, and inheritances are generally not subject to income tax. So, if a relative leaves you $50,000 in cash, the IRS doesn’t consider it taxable income, which means you receive it tax-free. The catch? Any capital gains down the road could be taxable.

State Inheritance Taxes

You’re likely in the clear when it comes to state inheritance taxes as well. Only six states currently impose this tax: Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. If the deceased lived or owned property in Texas or any one of the other 44 states, you won’t owe any inheritance tax, regardless of where you live.

Even if the decedent resided in one of the six states that do collect inheritance taxes, property passing to a surviving spouse is exempt across the board. And only Nebraska and Pennsylvania tax inheritances passed on to children and grandchildren. Depending on your relationship to the decedent, you might not owe inheritance tax even in these states.

State and Federal Income Taxes

Inheritances themselves are not considered taxable income at either the federal or state level, so you don’t need to report the gift on your income tax returns. However, certain inherited assets, such as traditional IRAs or 401(k)s, come with built-in income tax consequences. When you take distributions from these accounts, you’ll have to include those amounts in your ordinary income for tax purposes.

The Capital Gains Tax

This tax comes into play when you sell an inherited asset. If you sell it for more than its value at the time of inheritance, you’ll owe capital gains tax on the difference. If you sell it for less, no tax is due. For example, let’s say you inherit a house valued at $250,000 when your relative passes away, and you sell it a few years later for $275,000. You’d owe long-term capital gains tax on the $25,000 profit. Thankfully, long-term capital gains are usually taxed at a lower rate than ordinary income, and the good news is that inheritances receive a "stepped-up basis." This means that even if the property was originally purchased decades ago for $100,000, your gain will be calculated using the value at the time of death—$250,000—reducing the taxable gain significantly.

State Estate Taxes and Federal Estate Taxes

In some cases, both federal and state estate taxes might come into play. The 2018 federal estate tax exemption is set at $11.18 million, meaning most estates won’t owe federal estate tax unless they exceed this threshold. However, 12 states and the District of Columbia also impose estate taxes, with exemptions often much lower than the federal threshold. States such as Oregon and Massachusetts, for example, only offer a $1 million exemption. If you’re inheriting from someone who lived or owned property in one of these states, the estate may owe state estate taxes before you receive your inheritance, and the amount you inherit could be reduced accordingly.

The Bottom Line

There are many misconceptions when it comes to taxes and inheritances. Proper estate planning can help mitigate many of these taxes and preserve your wealth. If you’re unsure about the tax consequences of an inheritance, it’s crucial to consult with an estate planning attorney or accountant as soon as possible. This will ensure you comply with all federal and state laws and minimize your tax burden. Please note that this article is not intended as tax or legal advice. Always consult with a professional for up-to-date guidance specific to your situation. State and federal tax laws change frequently, and it’s essential to stay informed. Contact if you would like to know more about your specific situation.

Molding Your Financial Future: The Power of Asset Protection

Fri, 27 Sep 2024 20:36:25 GMT

Your path to success is yours to shape

As an attorney with years of experience, I’ve had the privilege of helping many successful individuals devise robust plans to protect their assets. One key insight I’ve gleaned is that success and wealth do not hinge on genius or prestigious degrees. While a high income often accompanies wealthy professionals and business owners, it’s their ability to create a protective shield around their money that truly defines their lasting success.

The Lottery Illusion

I often hear the refrain, “When I win the lottery, I’ll be just like your other clients.” But is the lottery a reliable path to wealth? I wouldn’t recommend it as a sound investment strategy. Winning a lottery jackpot, say $10 million, sounds enticing, but you’d quickly realize that after taxes—approximately one-third goes to the IRS—your lump sum could drop to around $2 million.

Shockingly, many lottery winners end up broke within just a few years. Why? Because they lack the financial discipline and planning necessary to manage newfound wealth.

The Real Wealth Builders

Take a look around your community, and you might notice individuals who are truly wealthy yet may not have formal college education. These are not lottery winners; instead, they recognize overlooked opportunities and take calculated risks. They build strong asset protection structures and operate unglamorous businesses while living within or below their means. Their wealth isn’t defined by flashy displays but by smart financial strategies and a disciplined approach to spending.

Don’t be deceived by appearances. Many who flaunt big houses, luxury cars, and exclusive memberships often carry heavy debts. Material possessions can create an illusion of wealth, but true prosperity lies in solid, appreciating assets. As my wife likes to say, “Looking rich does not MAKE you rich.”

Taking Action: The Key to Wealth

So, why aren’t more people molding their financial future? The answer often boils down to inaction. As Henry Ford famously stated, “If you think you can, you can. If you think you can’t, you can’t. Either way, you’re right.”

Inaction is the path of least resistance, but it leads nowhere. Instead, you must take deliberate steps toward your goals. Over-analysis can be just as paralyzing as inaction, causing many to hesitate while missing out on opportunities.

The key is to evaluate risks without becoming consumed by them. Many shy away from potential investments because they fixate on what could go wrong rather than the rewards. If someone were to ask about investing in rental properties, they might say, “Why would I want to deal with fixing toilets at midnight?” Yet, they’ve likely never explored the benefits of real estate ownership.

Crafting Your Path to Success

If you recognize that you’ve been hesitant to take action in shaping your financial future, ask yourself: Where do I want to be in a year? Five years? Ten years? By setting measurable and attainable goals, you create a clear path forward.

Once you have a vision, take the necessary steps to achieve it, and build your asset protection strategies. Think of this protection as insulating electric wiring—without it, your assets are exposed to unnecessary risks. A qualified estate planning attorney can help you establish and maintain these protective measures.

While it’s wise to consider the advice of experienced professionals, remember that the final decisions rest with you. Mold your own plan, and don’t let others dictate the course of your financial journey. Your path to success is yours to shape, and with the right strategies in place, you can secure your wealth for the long term. Want more information? Contact us today.

Underrated steps to take before getting sued

Fri, 20 Sep 2024 21:57:59 GMT

How to use insurance in your asset protection mix

As an attorney who has seen firsthand the damage that lawsuits can inflict on unprepared individuals, I want to emphasize a critical yet often overlooked step in protecting your assets: obtaining sufficient insurance coverage before a lawsuit ever becomes a reality. You don’t anticipate getting sued, but life is unpredictable. You might find yourself in a car accident, dealing with property damage, or facing accusations from a former business partner. In those moments, your assets—your bank accounts, wages, real estate, and personal items—are at risk if a judgment is made against you.

At the heart of asset protection is not just moving money or creating complex legal structures but taking practical, proactive steps to mitigate risk. One of the most effective ways to do this is through insurance coverage. Many people don’t realize that, in addition to planning for various financial and legal risks, having adequate insurance could be the one thing that saves them from financial devastation.

How Can Insurance Protect You?

For most individuals, two types of insurance are paramount: automobile liability insurance and homeowners insurance. These policies can defend against many lawsuits and help satisfy judgments within the limits of the coverage. But the key here is making sure you have enough coverage—because the bare minimum often isn’t sufficient.

Automobile Liability Insurance

Auto liability insurance protects you in case you’re involved in an accident and are held liable for bodily injury or property damage. I always advise clients not to settle for the state’s minimum required coverage. You might think you’re saving money on premiums, but in the long run, inadequate coverage could cost you dearly. Aim for coverage that reflects the value of your assets. If your assets total $500,000, consider insurance that covers up to that amount to ensure you’re adequately protected in the event of a lawsuit.

It’s also crucial to understand your policy’s limits and exclusions. Policy exclusions—like those for certain drivers or business use—can leave you vulnerable. If you use your car for business or have someone in your household who drives but isn’t covered, you may need to amend your policy.

Homeowners Insurance

Homeowners insurance doesn’t just protect your home from fire, theft, or natural disasters—it also shields you from liability if someone gets injured on your property. From a neighbor slipping on ice to a tree falling on their house, lawsuits can arise from everyday occurrences. The liability portion of your homeowners policy can help cover legal fees and judgments, protecting your personal assets.

Again, understanding exclusions is critical. If you run a business from home, ensure you have either a separate business insurance policy or an endorsement on your homeowners policy to cover potential claims.

Umbrella Liability Insurance: Extra Protection

An umbrella liability policy offers additional coverage beyond your home and auto insurance policies. This is an affordable way to protect yourself from catastrophic judgments that exceed your other insurance limits. For example, if you have a $1 million auto policy and are hit with a $2 million judgment, an umbrella policy could cover the excess.

Before purchasing umbrella insurance, most companies require that you max out your underlying home and auto policies. It’s an additional layer of security that’s often overlooked but can be a lifesaver when large lawsuits come your way.

Additional Types of Coverage

Other types of insurance, such as life insurance and long-term care insurance, play important roles in asset protection. Life insurance ensures your loved ones are taken care of in case of your death, while long-term care insurance protects your assets from being depleted by costly healthcare needs in your later years.

One additional type of coverage that business owners may not have considered is Employment Practices Liability Insurance (EPLI).

EPLI protects business owners from lawsuits brought by employees over issues such as wrongful termination, discrimination, sexual harassment, and other employment-related claims. With the increasing complexity of labor laws and the rise in workplace litigation, even small businesses are vulnerable to costly legal battles with employees or former employees.

For example, if a former employee sues you for discrimination or claims that they were wrongfully terminated, EPLI can cover legal defense costs, settlements, and judgments up to the policy limits. This type of insurance is particularly important for business owners because even a single employment lawsuit can cause significant financial strain on a company, especially if the business doesn’t have large reserves. By adding EPLI to their coverage, business owners can protect themselves from the financial fallout of employment-related legal claims—an often overlooked but crucial aspect of comprehensive asset protection.

The Bottom Line: Asset Protection Is Risk Management

Ultimately, asset protection boils down to managing risk. While no plan is foolproof, being proactive with your insurance coverage can significantly reduce your exposure to potential lawsuits. Consulting with an attorney, accountant, or financial advisor can help you understand the right mix of insurance policies for your specific situation, ensuring that when life throws the unexpected your way, your assets—and peace of mind—remain intact.

Asset protection requires time and investment, but when done right, it’s one of the best investments you can make to safeguard your future. Contact us today to learn more.

Do Inactive Business Entities Need to File a BOI Report?

Fri, 13 Sep 2024 22:04:11 GMT

What you need to know about the BOIR updates

Many business owners are wondering if they need to file a beneficial ownership information (BOI) report if their business ended before the BOI reporting rules started on January 1, 2024. The Financial Crimes Enforcement Network (FinCEN) has provided some clarity on this issue.

What You Need to Know

Businesses Dissolved Before January 1, 2024
If a business completely ended and formally dissolved before January 1, 2024, it does not need to file a BOI report. Since the company was no longer active before the new rules took effect, it is exempt from reporting.
Businesses That Stopped Before January 1, 2024, but Dissolved Later
If a business stopped operating before January 1, 2024, but only completed its formal dissolution after that date, it must file a BOI report by January 1, 2025. This applies if the company is classified as a reporting company.
New Companies Created in 2024 or Later
Companies formed in 2024 or after must file their BOI report even if they dissolve before their first report is due. The reporting requirement stands, regardless of whether the company ceases operations before the report deadline.

Updates from FinCEN

On July 8, 2024, FinCEN updated its FAQs about BOI reporting. Here’s what they’ve clarified:

Is a company required to report its beneficial ownership information if it ceased to exist before January 1, 2024?
No, if a company fully and officially dissolved before January 1, 2024, it does not need to report its beneficial ownership information. The company was never subject to these reporting rules if it ended before the deadline.

How does a company formally and irrevocably dissolve?
Typically, this involves filing the right paperwork with the relevant authorities, getting confirmation of dissolution, paying any owed taxes or fees, stopping business activities, and closing all accounts.

What about companies that were active after January 1, 2024?
If a company continued to exist on or after January 1, 2024, it must report its beneficial ownership information, even if it stopped business operations or completed its dissolution before the reporting deadline.

Do new companies need to file reports if they dissolve before their initial report is due?
Yes. Companies created in 2024 need to file their BOI report within 90 days of their creation or registration notice. For companies created in 2025 or later, the report is due within 30 days. This requirement remains, even if the company dissolves before the report is due. Once a report is filed, no additional report is needed if the company later ceases to exist.

For more specific details on how to determine when a company ceases to exist legally, check the laws of the jurisdiction where the company was formed or registered. Administrative dissolutions or suspensions usually don’t count as a complete end unless they become permanent.

If you need help understanding these requirements, reach out to The J.M. Dickerson Law Firm. We’re here to assist you with navigating these new rules and keeping your business compliant with our Business Minder Pro Plan service. Want to find out more? Contact us today and CLICK HERE for more information.

Embracing the Awkward of Writing Your Will

Fri, 23 Aug 2024 21:47:55 GMT

It's National Make-A-Will Month in August

As August comes to a close, it brings with it more than just the sweltering heat and the promise of impending fall. It’s National Make a Will Month—a time dedicated to encouraging us all to confront a topic many of us would rather avoid: creating a will. As an attorney and author with a deep understanding of the probate process, I’m here to share why this month is the perfect opportunity to tackle the important task of will-making and to dispel the myths that might make this task seem daunting.

The Myth of Bad Luck and Mortality

One of the most common fears surrounding will-making is the belief that drafting a will might invite bad luck or hasten one's demise. This superstition, though rooted in historical anxieties, has no bearing on reality. Creating a will is not a harbinger of ill fate; rather, it’s an act of wisdom and foresight.

Let’s be clear: a will is not an omen of impending death but a vital tool for managing your estate. It’s about ensuring that your assets are distributed according to your wishes and that your loved ones are taken care of after you’re gone. The process of drafting a will should be seen as a proactive measure, not a morbid preoccupation.

The Importance of a Will

Why should you prioritize creating a will? The answer lies in the control it gives you over your estate and your legacy. Without a will, your assets will be divided according to state laws, which may not align with your wishes. This could lead to unnecessary disputes among your heirs, delays in asset distribution, and additional stress during an already difficult time.

A well-crafted will allows you to:

Specify Your Wishes: Clearly outline how you want your assets distributed, which can prevent family disputes and ensure your estate is managed as you intend.
Appoint Executors and Guardians: Designate individuals you trust to manage your estate and care for any minor children, providing peace of mind that your affairs are handled by those you choose.
Minimize Probate Complications: A will can streamline the probate process, reducing potential legal battles and minimizing the time and expense involved.

Overcoming the Fear of Will-Making

Addressing the fear of will-making requires a shift in perspective. Many people avoid this task because they’re uncomfortable with discussions about death or feel overwhelmed by the legal jargon. However, embracing the process with a clear mindset can transform your approach.

Recognize the Value: Understand that creating a will is a responsible step toward ensuring your estate is handled according to your desires. It’s an opportunity to make thoughtful decisions about your legacy and the future well-being of your loved ones.
Seek Professional Guidance: If the legal aspects seem daunting, consult with an estate planning attorney. A professional can help you navigate the complexities, provide tailored advice, and make the process less intimidating.
Start Small: If the idea of drafting a will seems overwhelming, begin by listing your assets, beneficiaries, and any special instructions. Taking small steps can make the process more manageable and less daunting.

The Practical Aspects of Will-Making

Creating a will doesn’t have to be an arduous or expensive process. In fact, many people find that it’s an empowering experience. Here are some practical steps to guide you:

Inventory Your Assets: Make a comprehensive list of your assets, including property, investments, and personal belongings. This inventory will help you make informed decisions about distribution.
Choose Your Beneficiaries: Decide who will receive your assets and in what proportions. This could include family members, friends, or charitable organizations.
Appoint an Executor: Select someone responsible to oversee the distribution of your estate. This person will ensure that your wishes are carried out according to your will.
Draft the Document: While templates are available online, it’s often best to work with an attorney to ensure that your will is legally sound and reflects your intentions accurately.
Review and Update Regularly: Life circumstances change, so it’s important to review and update your will periodically, especially after major life events such as marriage, divorce, or the birth of a child.

Embracing the Peace of Mind

As we embrace National Make a Will Month, it’s essential to focus on the peace of mind that comes from having your affairs in order. The act of creating a will is not just about facing the reality of mortality; it’s about taking control of your legacy and ensuring that your wishes are honored.

I tell my friends and clients, approaching will-making with a positive and proactive attitude can transform it from a daunting task into a powerful act of care and responsibility. By dispelling myths and focusing on the benefits, you can make informed decisions that will provide security for your loved ones and ensure that your estate is managed according to your wishes.

So, as August winds down, take this opportunity to make a meaningful decision. Confront the fear, embrace the process, and create a will that reflects your values and priorities. Your future self—and your loved ones—will thank you.

Joseph Michael Dickerson
Attorney and Author of The Texans Guide of the Probate Process – click here for your free book.

Birthday Month Reflections

Fri, 16 Aug 2024 21:41:35 GMT

Another year around the sun

Looking back over the year and doing a retrospective over what’s gone on is important to do on regular intervals. I like doing it on my birthday because it happens every year, so I am very clearly reminded of the date. It’s a good time to look back and see where I was last year, what our sales looked like, what our team looked like, how many people we had in our firm, how many people were working with us that maybe aren’t working with us anymore, or how many new people have we added to our team since last year. It’s a good place to have a mile marker to see kind of where I’m at. Also, I want to see how I'm doing on my numbers. How are the finances going in my business? Am I growing or staying flat? Is there something that I can do to get out of that plateau? Is there something that might be missing that I know needs to happen, but I just haven’t gotten around to it because I’m too busy doing urgent things that aren't important? So that’s something that's really important to handle and take a look back, take a deep breath, and say, "OK, next year I’m going to do this." Tomorrow is the first day of the next year.

The other thing that’s important to do is to get your numbers as far as your physical side. Make sure you’ve gone and gotten your annual health check. Make sure your blood pressure is in check, make sure your cholesterol is in check, make sure all of your sugar and all the other key indicators of good health are under control or are within the numbers that are healthy. It’s one of those things that can be very easily prevented to stay ahead of the game, and it will let you know if you’re sliding into a danger zone.

It’s time to make some changes and adjustments. So, you want to make sure that you look at those signposts that come along the way and tell you that you need to make these changes in your life.

You should also take into account how your relationships with your loved ones were last year to this year. How would you get along with your spouse if you’re married or your significant other if you have a partner? How do you get along with them? What is your relationship like? Have you developed a deeper trust? Do you know your partner better than you did before? Have you learned new things about their personality, good and bad? And do you embrace both the good and the bad? Those are things to look at to see which way you’re going in your interpersonal life.

How about your kids? You may have small kids or adult kids. What’s your relationship with them like? It’s important to see how you are handling the relationships with your adult children. Are you their mentor, are you their sounding board? Do they feel comfortable being able to talk to you and tell you the issues that they’re facing and to let you know, “hey, I have this problem and I know you’re going to tell me the way it is and no, I can’t trust anybody else to tell me the truth.” So, you want to be that sounding board and you want to do it in a way that is loving but yet honest. Make sure that you can be there for your adult children like that. Develop that relationship by being a sounding board, listening without judging, and taking a deep breath before you respond when they tell you something that you just get very frustrated about.

For your young children, if they’re little, you want to be their hero. You want to make sure that they know that they’re safe with you, that you are the person who will always have their back. Yes, sometimes you need to be the person who issues punishment, but it’s because you love them, and you want them to grow in a way that is not going to create problems for them in the future.

For the hardest part, the teenagers, you’ve got to thread a thin line because you want to be there for them, you want to let them know that you are open to their ideas, you’re open to their questions, you’re open to them pushing the boundaries but at the same time, you have to put the boundaries, you have to have the guardrails to say, “Look, you’re not quite an adult yet, you can do certain things, but here’s the parameters you need to stay within.” They’re not going to show you, but once they’ve developed these good habits, of following healthy parameters, they’re going to be thankful that these systems were introduced to them and became part of their day-to-day life.

So, not to get too sentimental, but I hope that you’ll take this month and share my birthday by taking a retrospective of what’s gone on in your life in the past year, what’s been the highs, and lows, to embrace the good as a blessing and the bad as a lesson. You're never at a loss as long as you’re learning from whatever problem arises. You only learn again. Reach out to me in Laredo, Texas for asset protection, estate planning, probate and business formation. Until next time!

Failing to adequately protect your children has consequences

Fri, 02 Aug 2024 23:24:24 GMT

Your children need you to think estate planning through

If you have kids, they’re probably the most important thing in your life. In fact, children are arguably the most important reason to put together an estate plan with the help of a professional. The reality is that having children dramatically complicates the estate planning process. Particularly if you have children from multiple spouses, or if you and your spouse have separated or divorced. It’s critical to ensure that your children are properly provided for, and that an appropriate guardian - of your choice - is named in your estate plan. What happens if you don’t take these important steps?

When you use a DIY resource or online tools, these options typically don’t have the appropriate provisions for guardianship and allocation of financial resources for your children. They may lack any mention of this altogether, or they may take a “one size fits all” approach that simply doesn’t apply to your family or doesn’t address your situation. When this happens, the decision of what to do with the kids is left up to the courts.

Do you really want to trust a court with the question of who will raise your children? If you need an example of exactly how devastating this can be, take a look at the case of Michelle and Cary Baker. These All-American parents had a tragic car accident, which their three little boys survived - but they didn’t. Court documents have shown that Michelle and Cary had talked about naming guardians for their boys, but they simply hadn’t gotten around to putting their decision in writing. After all, we always think we have more time, and they were healthy, happy adults with three small boys at home. Estate planning is often something we think of later in life, so it’s not surprising they didn’t feel any particular urgency to create their plan.

Unfortunately, the Bakers had no idea how much conflict would be involved in naming a guardian for their boys. In the four years following their death, thousands of court documents have been filed in their case, nine lawyers have been involved, and the costs have totaled in the tens - or hundreds - of thousands of dollars. In the meantime, the boys went into the foster care system for a short time, while police worked to locate family members. Would you want your kids going to strangers after a tragedy like that? When family was finally located, the boys went to live with one of their aunts, who allegedly prevented the rest of the family from having any contact with the boys. Not only were their parents tragically ripped away from them, but they were denied the comfort of the rest of their family, too! In the end, the Court will be responsible for appointing a legal guardian for the boys. This person may or may not be the person the Bakers would have chosen. They’ll never have a chance to say who they want to raise their kids, or have any say at all in their children’s lives - because they thought they’d have more time, so they didn’t put together a plan. Don’t be be like the Bakers.

Your children are too important to trust to the court system, or to risk on DIY resources that may not adequately arrange for the protection of your children. Take the fate of your children in your own hands, and craft a detailed estate plan to ensure they’re protected and loved the way you want them to be.

If you have questions about taking care of your children and having adequate estate planning protection, give our office a call at and contact us today to discuss further by calling 956-791-5422 in Laredo.

Helping Seniors Qualify for Government Benefits

Fri, 07 Jun 2024 23:07:18 GMT

Qualified Income Trust or Miller Trust - What You Should Know

Something I want to talk to you today is a thing called a Qualified Income Trust. Now, the common everyday term for this is also a Miller Trust, and it nothing to do with the beer. This is an estate planning strategy I employ for my clients that helps them receive government benefits when they have a higher income. This type of trust allows certain people to be able to qualify for government benefits, such as nursing homes benefits and things of that nature.

Miller Trust - So how does it work?

Well, first you create the Miller Trust. Within this trust, there are certain restrictions placed on what the money can be used for. Money is essentially set aside only for the benefit of that person and only certain things can be paid for with those funds. The reason I employ this estate planning strategy is because the income cap that the government imposes can be one of the reasons that prevents people from receiving benefits. The current income cap is around $2000 and change in monthly income. So, the way this trust helps is by assigning the income stream to the trust and the trust, not the person, basically gets the income. It's an irrevocable trust, meaning it cannot be changed. It cannot be modified. As a result, it has the ability to “push” the income out of the person's name, reducing their income, thus allowing them to qualify for benefits.

Getting all your questions answered

When I meet with my clients, we discuss what would be most beneficial and advantageous to them and their situation. It is important for us to meet because everyone is different, and I need to help them plan according to their needs and the goals they are trying to achieve. They might want to put all of their income or just some of their income into the Miller Trust. But I recommend to my clients who may benefit from this strategy that they will want to put enough the trust to be sure they qualify for the benefits that they need.

Next steps...

Once the Miller Trust is in place and their monthly income is being streamed to the trust, they can run the benefits application again and now that income that has been moved out of the person’s name and into the trust, so it is no longer counted. Now that my clients qualify under the income test, the Miller Trust has done its job.

What's the "down side"?

Now, here's kind of the other shoe that has to fall. So, the downside of a Miller Trust is that all of the accumulated funds in the trust have to go to repay the government for whatever benefits were paid out. So, if over time, if there is $10,000 has accumulated in the Miller Trust, those $10,000 dollars, upon the death of the individual, will go to the state. Now, in most cases, it is a better bargain to do the Miller Trust and go ahead and have the income pushed out and possibly lost in the future because the benefit of having the government pay for nursing home benefits is much more valuable in the moment of need.

What are other things to consider?

Another important thing to keep in mind is that you can do some of this estate planning ahead of time. If you plan for “what if I become incapacitated?” there are certain types of trusts that we can put in place. There could be some revocable trusts that could be started and then they become irrevocable upon a disability. So, as you can see, there's lots of different things that we can do if we have more “runway” or time to let the plan evolve.

The other thing that's important is that there's a five-year look back, which means the government can look back five years and say, “Hey, during these five years, you still had these assets, so you don't qualify”. Now, that's more along the lines of the assets, and that's beyond what the trust does. The Miller Trust will only help my clients qualify under the income test; it doesn't do anything to qualify under the asset test.

Bottom line, the more time you have to plan for the future, the much better off you will be in being able to protect your assets and provide funds for your family once you pass, instead of it going straight to repay the government.

If you would like to take some time to find out more, contact us today to discuss further by calling 956-791-5422 in Laredo, Texas.

Nearing the Midpoint of the Year

Fri, 24 May 2024 20:01:50 GMT

This is a great time to assess if you are on track

As I write this to you, we deep in the second quarter of 2024. We are heading towards the middle of the year. This is a time to get our bearings. Assuming you did set goals at the beginning of the year, which I always recommend; where are you now? Whether you are on track, above, or below where you wanted to be, all of this is important to know and get a handle of as we enter the second half of the year. Armed with this knowledge we can look back over this first half of the year, so far, and see what trajectory the outcome of our goals has taken. This is the time to asses where we are in relation to that trajectory. Are we going down? If so, what can we do to change that trajectory? Should you pivot and increase marketing? Though counter intuitive, when you are in downward slump, this action just may be what is needed to turn things around.

If you are on track, then how can you tweak your plan for more growth or how are you sure you stay on track? And if you are blessed to be doing better that expected in your plan, it is critical to figure out how you accomplished getting to the top.

By reviewing where you are and your journey getting there, you will be able to see patterns that you can stop, modify, or accelerate in order to improve the next two quarters of 2024.

I also strongly suggest you meet with your tax advisors to see what steps you can take to help you have a better tax outcome at the end of the year. Ask them to help you identify some tax-deductible expenses you should take advantage of? Have you set aside enough to pay for those taxes when they come due? By the way, how much will they be if you keep on this path? Knowing this will help you get through the rest of the year and help you to be set up to start the coming year on the right foot.

I like to have a holistic approach and look at the big picture to ensure longevity, professionally and personally. That being said, its a good idea to also evaluate your personal and health goals. Are those on track? Are you ready for your annual heath check up? How are your vitals, blood pressure, heart rate, blood work? I am in overall good health, but I have noticed that I have been letting exercise go to the sidelines. So, to make this last half of the year count, I will set some goals to accomplish for the last two quarters of 2024. I am confident that with these goals and a plan, my overall health will be improved and this is a good way for me to be my best professionally, with less stress.

Let’s make the last half of 2024 count! Let’s close the gap to meet or exceed our goals for the end of the year, whether it is your health or your business. Behind your successful goals is the professional and personal profit you need to keep you going. Until next time, stay safe and know where you stand. And as always, contact me or my team for more asset protection, estate planning, business formation and title services questions.

Until next time!

Understanding Will Contests: What You Need to Know

Fri, 17 May 2024 22:15:10 GMT

Invalidating may be harder than you think

Are you considering contesting a loved one's will? It's important to understand that challenging a will isn't a simple matter, and it can be a complex and expensive legal process. In most states, there are four primary legal reasons for contesting a will, and proving any one of them can be challenging. Let's delve into these reasons and what they entail.

1. Failure to Meet Signing Requirements

Every state has specific laws regarding how a will must be signed. The testator and witnesses must typically be present together, and each must sign the will while the others are witnessing. Even if a will is drafted by an estate lawyer, it's not guaranteed to meet these requirements. Failure to adhere to signing laws is a common reason for contesting a will and often leads to its invalidation.

2. Lack of Testamentary Capacity

Testamentary capacity refers to the testator's ability to understand the nature and value of their assets and who should inherit them. State laws set the threshold for proving lack of testamentary capacity, which isn't always high. Even individuals with some signs of dementia may still be considered to have testamentary capacity. Proving lack of capacity usually requires strong evidence, such as testimony from witnesses.

3. Undue Influence

As individuals age, they may become more susceptible to undue influence from others. Undue influence occurs when someone exerts extreme pressure on the testator, causing them to succumb to the influencer's will rather than making their own decisions freely. Proving undue influence can be challenging and typically requires evidence such as consultations with the testator's attorney, financial transactions, and isolation from family and friends.

4. Fraudulent Procurement

A will procured by fraud occurs when the testator is misled into signing a document under false pretenses. For example, they may be told they're signing a deed or power of attorney when, in fact, it's a will. Proving fraudulent procurement requires examining the circumstances surrounding the signing and obtaining testimony from witnesses. However, this can be difficult if the testator is unavailable to provide their account.

Contesting a will should not be taken lightly. Without substantial evidence of one of these four reasons, it can be challenging and costly. Blatant lies, multiple instances of wrongdoing, or explicit medical evidence of incompetence can strengthen a case for contesting a will. However, in the absence of such evidence, it's essential to weigh the potential costs and complexities involved in pursuing a will contest.

If you're considering contesting a loved one's will, it's advisable to seek guidance from a qualified estate planning attorney, someone who is board-certified. They can assess your case, provide legal advice, and guide you through the process, helping you make informed decisions regarding your next steps. Remember, contesting a will is a serious matter, and understanding the legal grounds and potential challenges involved is crucial before proceeding. Contact me to find out more.

6 Do-It-Yourself Disasters to Avoid

Fri, 15 Mar 2024 20:12:19 GMT

When doing it yourself may not be the answer

A good estate plan is a tremendous gift to your loved ones and to yourself. It will ensure your assets pass to the people you want to benefit and to the causes and organizations that matter to you. It can minimize probate costs, reduce taxes, and insulate inheritances from creditors. It can provide a succession plan for a family business. It can protect you if you are incapacitated, ease the emotional burdens on your family, and give you great peace of mind. In contrast, lack of an estate plan or an ill-conceived estate plan may mean that taxes and fees eat deeply into your estate, probate drags on, the wrong people inherit, and your family suffers turmoil. Many families have been destroyed by bickering over what a departed loved one would have wanted when he or she left no estate plan or a defective one. Of course, you can go online and find a template that may or may not suit your needs, and to tell you the truth, we fix a lot of DIY estate plans, but I highly advise against going at this alone. Today, I want to share with you six “Do It Yourself Disasters” that you should steer clear of when creating your estate plan.

#1. RELYING ON A HANDWRITTEN WILL OR LETTER EXPRESSING YOUR WISHES.

Sometimes people leave a handwritten will or letter to their loved ones expressing their intentions for the disposition of their estate. Some jurisdictions accept handwritten wills (called holographic wills) for probate even though they are not properly witnessed, but not all do. If you live in a jurisdiction that does not, your handwritten document will have no effect on the disposition of your estate.

Handwritten wills, even where legal, are more likely to provoke contests and be denied probate than typed or printed wills because they often have flaws that raise questions about their authenticity and validity. For example, they may be unsigned or signed “Bob,” ”Dad,” or “Grandma” rather than with the testator’s full name; they may not be dated; they may not clearly state that they are intended to be wills; they may have strike outs, insertions, and other obvious alterations creating ambiguity or even raising the possibility of forgery.

#2. DRAFTING YOUR OWN WILL.

Regardless of whether a will is handwritten, typed, or prepared with a preprinted form, self-drafted wills are notorious for mistakes. Some common problems include:

Making a gift of one or more specific assets to a particular person without considering what will happen to that person’s inheritance if you no longer own the asset when you die. As a general rule, if your will attempts to give away an asset you no longer own, the gift lapses and the beneficiary isn’t provided with an alternative gift. However, the result may depend on how a court in your state would interpret the language of your will. For example, suppose you leave your home, which you describe in your will by its street address, to your daughter. At the time of your death, you have a different home at a different address. Does your daughter get nothing, or does she get your current home? There is a correct way to provide either option. Your estate planning attorney will know how to word your gift of a specific asset to account for your wishes should you no longer own the asset when you die.

Not providing alternative beneficiaries who would take if the first named person predeceases you. In this case, do you want the deceased beneficiary’s gift to go to his or her heirs or to someone else? For example, suppose you provide that your estate is to be shared equally between your two children. If one of your children predeceases you, do you want your deceased child’s share to go to your other child or do you want it to go to your deceased child’s children (your grandchildren)? If your deceased child has two children, do you want them each to take a quarter of your estate with your surviving child receiving half or do you want your two grandchildren and your surviving child to each get a third of your estate? An estate planning attorney will discuss these issues with you and include the appropriate language in your will to ensure your wishes will be carried out.

Failing to provide for what should happen to property in your estate that you have not specifically mentioned in your will. The property could be omitted through oversight; it could have been acquired after the will was drafted; or its intended beneficiary could have predeceased you and you did not name an alternate. The solution is to include a residuary clause in your will. A residuary clause is a provision in a will that disposes of any property in your probate estate that is not disposed of by other provisions in your will. Your will needs a residuary clause even if you think you have dealt with all your property. If you omit a residuary clause from your will, any assets in your estate that have not been disposed of will pass to your heirs pursuant to the laws of intestacy just as though you did not have a will.

Failing to provide for the possibility that you may have more children after executing your will. States have laws designed to protect children born after a will is executed from being unintentionally disinherited. These laws vary and are not guarantee. The safest approach to ensuring an after born child gets a share of your estate is to update your estate plan after the birth. To guard against the possibility that, for whatever reason, you neglect to update your estate plan, you can include language in your estate planning documents to the effect that you intend for any children born to or adopted by you after the date you execute your will to share in your estate to the same extent as your other children.

#3. RELYING ON A WILL OR TRUST KIT YOU PURCHASED AT A STORE OR ON THE INTERNET.

There are a lot of do-it-yourself options when it comes to drafting estate planning documents, including a will. Most of these do-it-yourself options are internet-based companies that advertise full completion of your documents by just filling out some online fields. Others offer kits where you complete your will on forms. However, writing your own will and/or estate plan is not a good idea. Unfortunately, estate planning is not a one size fits all model. Just as everyone’s fingerprints are different, so are everyone’s estate planning needs. What will work for you and your family will most likely be different from what will work for your brother, parents, co-worker, or friend.

These do-it-yourself forms, whether found in books or online, are generated by estate planning computer soft- ware that is designed to cover only the most basic of estate planning needs. These forms also deliberately keep it as simple as possible in order to comply with the laws of all 50 states and the District of Columbia. Each of these print and online resources comes with a disclaimer, “The information contained in this book/program is not legal advice and is not a substitute for legal advice. For legal advice, consult with an attorney.” The reality is that even books and programs about estate planning recommend that you seek the expertise of an experienced estate planning attorney.

#4. ATTEMPTING TO DISPOSE OF PROPERTY IN YOUR WILL THAT IS NOT PART OF YOUR ESTATE.

If you own property (e.g., real estate or bank accounts) in joint tenancy with right of survivorship, on your death, your interest in the property belongs to the surviving co-owner. You cannot pass your interest to anyone else in your will. Any attempt to do so is void. If you don’t want your co-owner to succeed to your interest, you will have to take steps to sever the joint tenancy while you are still alive. Similarly, you cannot dispose of property in your will that passes by beneficiary designation.

#5. NOT EXECUTING YOUR ESTATE PLANNING DOCUMENTS WITH THE LEGALLY REQUIRED FORMALITIES.

Even if you have professionally prepared estate planning documents, all your planning can be for nothing if the documents are not executed correctly. A document that is improperly executed is not valid.

Each state has its own requirements, but in most states, a will must be written and show the testator’s intent to make a will; the testator must have testamentary capacity; the will must be signed by the testator in the presence of two witness who watch the testator sign the will and then sign it themselves. The witnesses must also be disinterested parties, which means they are not beneficiaries under the will.

Other estate planning documents require similar execution procedures. For example, financial powers of attorney typically have to be signed and notarized and living wills and medical powers of attorney typically have to be signed before two witnesses or a notary.

Many estate planning attorneys offer to hold a signing ceremony at their offices so that they can supervise the execution of the documents. It’s a good idea to take advantage of this opportunity.

#6. ATTEMPTING TO REVISE OR AMEND YOUR ESTATE PLANNING DOCUMENTS YOURSELF.

For the same reasons that you should hire a qualified estate planning attorney to draft your initial estate plan, you should also hire a qualified estate planning attorney to revise or amend your estate plan. There are rules about how documents can be revised. Often the best procedure is to revoke the old document and replace it with a completely new updated one. If revisions are done improperly, your efforts to update your documents can invalidate not only the changes you wish to make, but even the original document.

For example, people often try to make changes to their wills by crossing out provisions they no longer want and handwriting in their changes. You should never attempt to amend your will this way. After you make the handwritten changes, the will would need to be re-executed in front of witnesses, which rarely happens. The net effect may be that the deletions are valid (because you can revoke a will by defacing it), but the additions are not, so you end up with no will or a will that you never intended to make.

You play a crucial role in developing a good estate plan. You have to take the initiative to find the right estate planning professional to work with. And you need to be engaged in the planning process every step of the way. One of the most important things you can do is educate yourself. Although you do not need to understand all the technicalities involved in estate planning, you need a basic understanding of what can be achieved given the extent of your estate and the needs of your loved ones. Contact my office for more information, we would be happy to help.

Avoiding Trouble After a Second Marriage

Fri, 01 Mar 2024 20:46:46 GMT

If you don't have a plan, the government has one for you

Some of you, me included, have been married more than once. Some of you, me included, have children from each of those relationships. And although we have been in communication over the years through this newsletter and other instances, some of you still don’t have a Will.

If this describes you, guess what?! The Texas Legislature has prepared your estate plan for you, and it probably is not what you want, and guess what? The state's plan will most likely lead to litigation and fighting among your spouse and children.

To help you better understand how this works, I will use the following example throughout. Able is our decedent. He was married to Betty and they had 2 children, Charles and Daisy. Adam and Betty divorced. Adam then marries Esther and they have one child, Frank. Adam dies without a Will.

Section 201.002 of the Texas Estates Code, directs where Adam's separate property will go, and it will be distributed as follows: 1/3 of the personal property and a life estate in the Adam's land goes to Esther, his surviving spouse, 2/3 of the personal property and the remainder of the land goes to Adam's children, Charles, Daisy and Frank.

Section 201.003 of the Texas Estates Code, also directs where the community property of Adam and Esther will go: Esther will keep her ½ of the community estate and Adam's children, Charles, Daisy and Frank will share Adam’s ½ of the community estate.

As you can see, there will be quite an issue between Esther and Charles and Daisy, when it comes to the house. Esther will get to stay there, in addition, Charles, Daisy and Frank will need to wait for Esther to pass away to get access to their share of the real estate. Likewise, the furniture, vehicles, etc., would need to be divided 1/3 and 2/3. These divisions can create a lot of interfamily tension.

There is a solution, an alternative to the Legislative estate plan. By drafting a Will, your decision, your plan is what will control. Why not have your plan control the way your assets will pass? There are many different combinations of how assets can be distributed. It is important to meet with a board-certified estate planning attorney to see how to best distribute your estate.

In summary, you deserve to choose how your estate is distributed, not the state. As you can see, not making a choice still is a choice (though not a good one). If you are interested in preparing your will, or reviewing your current will, simply reply to this email and my team will coordinate a time and day that works best for you to visit with us and make sure you really get what you want and not leave it to the government.

Affidavit of Heirship and Small Estate Affidavit: What You Need to Know

Fri, 05 Jan 2024 23:03:04 GMT

Be in the know

There are several significant differences between an Affidavit of Heirship and a Small Estate Affidavit in Texas.

Here are some basics you should know about.

Affidavit of heirship

This affidavit is used when a person dies without a will, and the assets comprise mainly real property titled in the decedent’s name. The document identifies the heirs to real property the deceased has left.

The affidavit of heirship is filed with deed records in the county where the real property of a passed-away individual is located. Although the document does not transfer title to real property, Texas Estates Code 203.001 states it becomes evidence about the property after five years it has been on file. The affidavit of heirship composes a transparent chain of title transfer to the successors.

Small Estate Affidavit

Unlike the affidavit of heirship, the small estate affidavit only transfers the title of the decedent’s homestead. Only a surviving spouse or minor child can inherit property through this affidavit type. The other types of the deceased person’s real property cannot be transferred by submitting a small estate affidavit.

The successors can obtain ownership of the decedent’s homestead by listing the real property and its legal description in the affidavit, together with the other owner’s assets. Then, the form must get approval from the judge. Once an approval is obtained, a certified copy of the document and the court order approving it should be filed with the real property records.

What is a Small Estate Affidavit anyway??

Many people do not own a substantial estate or compose a will. When an individual who passes away has assets, including a family home and an average bank account, undergoing probate proceedings seems rather a waste of time, effort, and resources. In such cases, a small estate affidavit can save family members from a painstaking process if the inherited estate qualifies according to Texas intestacy law.

What is a small estate affidavit used for in Texas?

A small estate affidavit is a legal form that is used to transfer property to the decedent’s successors, avoiding formal probate. However, only strictly specified circumstances allow heirs to use a small estate affidavit. The deceased owner’s property must match the requirements established in the Texas Estates Code Chapter 205.

When do you need a Small Estate Affidavit?

If your loved one who has passed away owned a small homestead and a modest bank account, you can use a small estate affidavit form to transfer property without going through a formal probate process. To file the form, you need to match the following basic conditions:

The property owner hasn’t left a will.

The total estate value is $75,000 or lower.

Then, you can download and fill out this free small estate affidavit Texas form and submit it to your local authority. Ultimately, your family estate can be settled without the expensive court proceeding.

Does a small estate affidavit need to be notarized in Texas?

The laws in Texas, specifically Texas Estates Codes section 205.002, require the small estate affidavit form to be sworn to by two witnesses and the distributees or heirs. To swear a document, a person must sign it before the Notary Public.

How do I notarize small estate affidavit?

To notarize your small estate affidavit in Texas, you must obtain the signatures of two disinterested witnesses and the distributees or heirs. The document needs to be witnessed in front of the notary. To simplify and speed up the process, you can contact my team and we can help assist with the process and notarize your documents, so you can leave the worry behind and the preparation work to the experts.

If you would like to hear more about how our firm can help you plan for the future, contact us today. We would love to help.

We provide estate planning services to clients throughout South and Central Texas. Please contact us today, we are happy to share our expertise with you so you can make the best decisions for passing on your financial legacy. We are available in person, by appointment or by Zoom. In South Texas, call us at 956-791-5422.

Why Real Estate Agents Should Consider a Fee Attorney for Title Closings

Sat, 30 Dec 2023 00:21:48 GMT

Now Offering Fee Attorney and Title Closing Services in 2024

Real estate agents, let me tell you that I am an escrow officer, and as a fee attorney, can handle the work involved in closing a real estate transaction with additional benefits. Read on to find out how my team and I at The J.M. Dickerson Law Firm can help you with your next real estate closing or transaction.

A Fee Attorney Can Prepare Documents In-House

A delay at the closing table can cause sellers and buyers to sit at the closing table for what seems like hours, nervously waiting for something good to happen to speed up the closing. Real estate agents know from experience that closings can be delayed because the lender or outsourced doc prep firm for the title agency did not prepare an important document in advance. Most often, this document is the deed itself, which is sometimes prepared by the lender’s attorney and sometimes by the doc prep firm on retainer by the title agency. Instead, rely on The J.M. Dickerson Law firm where my team can save everyone precious time with document preparation that is done in-house and where all documents are carefully accounted for ahead of time.

A Fee Attorney Can Dispense Legal Advice

Escrow officers who don’t work closely with a fee attorney’s office might not have all of the right answers when a transaction turns complicated. As a fee attorney, I can give my clients the option of consulting directly with me and provide them guidance on execution and acceptance of powers of attorney, affidavits of heirship, and other vehicles for closing transactions in which parties on title are deceased or unavailable. You can trust me and my team to resolve even the most complicated issues that arise. Other common complications include active probates, boundary line disputes, and unrecorded easements and we have got you covered. At my office, I will be able to resolve even the most complicated issues that may arise. Other common complications include active probates, boundary line disputes, and unrecorded easements and my team and I will have you covered.

Fee Attorneys Can Represent a Party if Necessary

Sometimes there can be issues that require a buyer or seller to hire an attorney to represent them in a limited capacity. This is in addition to representation by a realtor. When this happens, it is better to reach out to a fee attorney to get involved, as long as there is no conflict and all parties agree to the limited representation. This option can be less expensive than your client finding an outside attorney, and limits the number of people whose involvement in the transaction is necessary. Contact me, Attorney Joseph Michael Dickerson. I am on your side, ready to help to negotiate or solve problems on your client’s behalf and giving real estate agents one less thing to worry about.

How does it work?

If you require a customized document, closing with a fee attorney gives you assurance that an experienced attorney is on team to draft whatever is required. These documents are available immediately and without fuss, since no outside doc prep firm needs to be contacted. If a lender’s document package comes in right before closing but missing a deed, the fee attorney can draft it immediately with no wait and no hassle. This means happy buyers and sellers – plus more referrals for the agent! Plus, getting custom documents drafted is much easier when you close with a fee attorney rather than simply a title agency.

The benefits to using a fee attorney’s office, like The J.M. Dickerson Law Firm for your next closing are numerous, and our office is ready to help you in any way possible. The J.M. Dickerson Law Firm is an authorized closing office for Texas Lone Star Title. I also work with many realtors to facilitate smooth closings of their residential and commercial transactions. In addition, my office provides transactional document preparation and compliance guidance for sellers, buyers, investors, and lenders in the State of Texas. Contact us for more information in 2024 and we wish you a very happy new year!

The Basics of Designating a Beneficiary

Fri, 22 Dec 2023 23:42:41 GMT

Know your options

Did you know you can designate an individual, a group of individuals such as your children, a charity, a trust, or your estate as a beneficiary? One of the great advantages of passing assets by beneficiary designation is that they pass outside of probate unless the beneficiary is your estate. Thus, your intended beneficiaries have access to the funds within a short time after your death. They will not have to wait months or sometimes years until probate concludes for their inheritance. Typically, you should avoid naming your estate as the beneficiary because of the need for probate. Naming your estate may also have adverse tax consequences and expose the asset to creditors’ claims. Listed below are some of the beginning, basic steps for completing a beneficiary designation:

1. Make sure you complete the beneficiary designation forms. If you don’t complete beneficiary designations, the financial institution or state or federal law will determine who gets the asset on your death. Without a properly completed beneficiary designation form, life insurance proceeds will likely pass to your estate. Similarly, if you are the sole owner of other financial accounts, they will probably be paid to your estate when you die. Your family will have to probate your estate to get these funds. Retirement accounts will likely pass to your spouse if you are married or to your estate if you are not married. Distributions from retirement accounts to your estate will need to be probated and will get unfavorable income tax treatment. Assuming these accounts contained tax-deferred contributions, a lump sum distribution to your estate means the entire amount is taxable. Alternatively, distributions and tax can be spread over five years. Distributions of tax-deferred retirement accounts to individuals are also taxable but can be spread out over much longer periods.

2. Name both a primary beneficiary and a contingent beneficiary. The primary beneficiary is the “first in line” of who will receive the asset upon your death. You can name a contingent beneficiary who is “next in line” to receive the asset if the primary beneficiary dies before you. A married person with children will commonly name the spouse as the primary beneficiary, and the children as the contingent beneficiaries. If you don’t name a contingent beneficiary and your primary beneficiary predeceases you, the asset will most likely be paid to your estate.

3. Do not name minors (under age 18) as direct beneficiaries. An insurance company or other financial institution cannot legally write a check to a minor. If a minor is named on a policy or account, then a court proceeding to nominate a conservator to manage the child’s money is likely to be needed. A conservatorship adds costs and delays. One possible solution is to name a custodian to manage the child’s money pursuant to the Uniform Transfers to Minors Act (UTMA). A drawback to both conservatorships and UTMA accounts is that they end when the child turns 18 or 21 and the child gets the funds outright.

A better solution, particularly if the payout is substantial, may be to create a trust to receive the asset on your death. You can choose the trustee who will look after the money and specify the ages at which your child should receive lump sum distributions. Common ages are 25 and 30. Simply creating a trust does not automatically mean that life insurance and other financial assets will pass into it on your death. You must complete the beneficiary designation form naming the trust as the beneficiary. An estate planning attorney can provide the proper language for naming a trust as a beneficiary.

If you would like to hear more about how our firm can help you plan for the future, contact us today. We would love to help.

Bulletproof Your Legacy for 2024

Fri, 08 Dec 2023 20:58:57 GMT

Simply having a will does not avoid probate

Did you know simply having a will does not avoid a costly probate proceeding? A will is a document in which you will be able to state who your heirs are. You can also state how you want to distribute your estate and you’ll also be able to appoint whoever the executor is to be along with any alternates, The executor’s job is to take the will to probate, get court appointed, collect the assets, make an inventory, and then distribute the assets pursuant to the statement of the will. So that’s fairly straightforward.

The problem is, a lot of times when clients are looking at doing a will, they don’t realize that it is really a two-step process. Step one happens while you’re alive. You prepare the will now. The will, while you’re alive doesn’t have any kind of power or authority. Once you pass away, then the will has potential, but it doesn’t have power or authority until it is admitted to probate by the appropriate court.

So that means we still have the second step. So, a lot of times when our firm is hired to do a will, I know that that there will be work coming up for the future for that case. How does a will work? How do you probate the will? Once a person dies, like when you don’t have a will, the process is similar, except it’s much more efficient when there is a will. We still have to file an application to probate the will. We’ll need to file the original will and original death certificate and that will need to be posted for at least 10 days. After those ten days, the court will give us a hearing. That hearing can also be anywhere from two weeks to two months, sometimes more, depending on the court’s docket.

The cost savings here is that there won’t be a need for attorney ad litem like in the previous example, with no will at the hearing. Then, the executor will need to be appointed and they will have thirty days to file a notice to creditors and 90 days to file an inventory of the estate. They can also file an affidavit in lieu of inventory. However, they’ll need to provide the inventory to everyone who would take under the will and have them confirm a receipt and acknowledge that there are no objections to the inventory. Now, once that inventory is approved and filed, then the executor can begin distributing the estate.

As you can see, this is still a little bit lengthier process. It could take four to six months before the assets can be distributed. Although it doesn’t sound like a long time, when there aren’t any funds that are available to pay for regular ongoing bills for the family, it could be a burden and it could create some risks of foreclosure and other situations like that. So, although the will does provide more efficient means for transferring, it still requires going to court and having the probate process.

Now, any time that we have a court process, it opens up the opportunity for there to be litigation. If one of the heirs is not happy with the way the distribution is laid out there, there could be a will contest. Typically, that can result because everyone is treated equally and one of the family members feels like they were always there for mom and dad. Maybe the other siblings were out of town and they never came in and never visited. So, the siblings that were closer to the parents geographically feel they’re entitled to a larger piece of the pie because they were there for their parents. So, if they’re treated equally, they could contest and argue this fact.

On the other hand, there could be an argument in the other direction. If the child that’s locally available and attends to the parents gets a larger piece of the estate, the other the other children could argue, hey, wait a minute, we’re also equally their child and we should be entitled to exactly the same. They might feel that they should all be treated equally. There could be different arguments that can be made and brought up before the court.

The one thing that that they can be certain of is that those arguments will be brought up. And from experience, arguments will cause delays and will increase the expenses for all the parties involved. There will be additional legal fees all the way around to respond to the different objections to the will and any kind of contest to the will. Something to consider if you bulletproofing your legacy is something you want to achieve in your lifetime.

If you would like to hear more about how our firm can help you plan for the future, contact us today. We would love to help.

FinCEN Extends Deadline from 30 Days to 90 Days for Companies Created in 2024

Fri, 01 Dec 2023 22:04:46 GMT

Alert! New update to CTA Corporate Transparency Act

Just this past week, the update we were waiting for came in! The Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a rule that extends the deadline from 30 days to 90 days for reporting companies created or registered in 2024 to file initial beneficial ownership information reports for the new federal law called the Corporate Transparency Act (CTA).

Here are three key takeaways of the recent CTA update:

· FinCEN published a final rule that provides a temporary extension to Corporate Transparency Act (CTA) reporting for certain companies.

· Companies formed or registered in 2024 will have 90 days to report beneficial ownership information to FinCEN.

· Companies should continue to take steps to prepare for the CTA’s January 1, 2024, effective date.

As we had mentioned in a previous Dickerson Report, the Corporate Transparency Act (CTA), which becomes effective on January 1, 2024, creates an obligation for millions of entities nationwide to report beneficial ownership information (BOI) and certain other information to FinCEN. This requirement extends to private entities previously not otherwise subject to any reporting requirements.

Under prior FinCEN rulemaking (the BOI Rule), companies created or first registered after January 1, 2024, would have had only 30 calendar days (the notice date) after the date that is the earlier of the date on which a company receives actual notice or public notice that it has been created or registered to determine whether they are subject to the CTA and, if so, report required information to FinCEN.

However, on November 29, 2023, FinCEN amended the BOI Rule to extend that reporting deadline to 90 calendar days after the notice date for companies created or first registered in 2024.

The CTA requires certain corporations, limited liability companies and other similar entities to report BOI and information concerning one or two individuals who form or register reporting companies (company applicants) to FinCEN.

On September 30, 2022, FinCEN finalized the BOI Rule to implement the CTA’s reporting requirements. The BOI Rule required all reporting companies created or registered to do business on or after January 1, 2024, to make an initial report containing information concerning the company, BOI and company applicants within 30 calendar days of the applicable notice date.

A wide range of impacted companies and commentators argued that this short reporting period for new companies would pose a significant burden and compliance challenge, particularly with a new, untested rule taking effect. In addition, as of this date, FinCEN has not established its reporting system, nor are the mechanics for filing finalized. FinCEN responded to this concern by publishing a notice of proposed rulemaking on September 28, 2023, proposing to extend the deadline for companies formed or registered in 2024 from 30 to 90 days. The amendment to the BOI Rule that FinCEN finalized on November 29, 2023, makes that extension official.

FinCEN stated that “numerous” commenters advocated for extending the deadline to more than 90 calendar days. Although FinCEN has acknowledged that it will be complex for newly created or registered companies to navigate the many novel aspects of the CTA’s reporting requirements (including whether a company is within the definition of reporting company and, if so, which individuals would meet the definition of a beneficial owner or company applicant), FinCEN declined to extend the reporting period beyond 90 days. FinCEN noted that the extension from 30 to 90 days should provide sufficient additional time for impacted entities and their third-party service providers to understand the new reporting obligation and collect the necessary information to complete required filings. Rest assure, we are ready to help you do this as a third party, so please contact us to learn more about how we can help you be in compliance.

The extension to 90 days applies to both domestic entities created in 2024 and foreign entities that first register in the United States in 2024. However, entities created or registered on or after January 1, 2025, remain subject to the original 30-day deadline. The November 29 amendment also does not impact the reporting timeline for reporting companies created or registered before 2024. Such companies are still required to file their initial BOI reports with FinCEN by January 1, 2025.

The reporting extension for companies formed or first registered to do business in 2024 will provide such companies a small amount of additional time to determine whether they are subject to the CTA, and gather the information required to submit reports to FinCEN. However, given the complexity of the CTA, companies should not take this temporary reporting extension as an opportunity to pause efforts to prepare for the CTA’s January 1, 2024, effective date. Rather, companies should continue to take steps to prepare for, and lessen the impact, of the CTA. Importantly, entities formed prior to 2024 will have until the end of that year to report while those formed after January 1, 2024, will only have 90 days.

As I mentioned, we are ready to help you be in compliance so you can rest easy this holiday and upcoming new year. Make a plan to protect your business compliance by meeting with me and my team. Contact our office to set up an appointment in, Laredo or via zoom and let’s be ready for 2024!

Rounding Out the Year

Fri, 17 Nov 2023 19:19:41 GMT

2024 is right around the corner

Can you believe it? 2024 is right around the corner! Our awareness is heightened to the fact that although we may have put off what we were meaning to do all year long, we have a glimmer of hope that maybe we can squeeze in the most procrastinated things within these last two months of the year. Well, we feel the same way. Of course, you can squeeze in your estate planning that you put off all year. But I don’t recommend waiting any longer. Why? Because it’s true. 2024 is staring right back at us on the horizon and those who are hopeful that they will indeed accomplish their 2023 goals are taking action right now and stretching for just a little more time, and making it happen. How are they making it happen? They are calling on their expert team of estate planners and I have to tell you our phones have been ringing at a steady pace. What does that mean for you? In simple terms, we’ve got your back and if you take heed, like our many of our clients, we got you covered, but we will have a short December because we like to give back to our team and allow for an extra-long holiday, so please don’t hesitate to contact us this November and December and take care of scheduling an appointment for an estate planning review or review of the health of the protection of your business and assets. In order to get you even more ready, here are some important estate planning logic you need to know before you enter the new year.

Why estate planning is important.

Whatever your age or how much money you currently have in the bank, estate planning now can help your heirs sidestep complicated tax and legal issues later. Our philosophy is to avoid probate completely and we think it is very doable.

With estate planning that is tailored for you, you can also map out the kind of personal legacy you wish to leave. Perhaps you want to protect your loved ones and assets or make a generous gift to your favorite charity or alma mater, it’s up to you.

In other words, putting a plan in place this year can give you greater peace of mind and comfort or inspire others down the road.

4 simple steps to creating an estate plan.

While it may seem like a challenge, creating an estate plan is an achievable goal, especially when you’ve tapped proper guidance and resources.

Here are some simple steps to create your estate plan before the new year.

1. Evaluate your financial situation

To get started, write down or type out a comprehensive list of your assets and debts. This will not only give you a better understanding of your financial status but also help you calculate your net worth.

Your list should include the following:

Assets

· Bank and investment accounts

· Personal property (i.e., jewelry, collectibles, motor vehicles)

· Retirement plans

· Life insurance

· Real estate

Debts

· Credit cards

· Auto loans

· Personal loans

· Student loans

· Mortgages

2. Determine your beneficiaries

Anyone you name in your estate plan as an heir is considered a beneficiary. Many people choose their spouse, children or even a charity to inherit their belongings when the time comes.

While this personal decision may seem easy, understanding particular implications and how certain assets are distributed can be quite complicated. There are legal restrictions, for instance, on what minor children can inherit and how.

When you take active steps to get the paperwork in order this now, you can make things easier on your heirs and perhaps help them avoid a costly, time-consuming probate process.

3. Develop a contingency plan

After you’ve figured out the value of your estate and mapped out a draft plan for its distribution to your beneficiaries, take time to consider possible issues — both seen and unforeseen — that may come up.

This brainstorming will help you develop a contingency plan for your wealth, health care and heirs. Think about what might happen if you (or close living relatives) were to become extremely ill and need care. How would you want to provide for them? Think through, too, whom you might name as a contingency beneficiary if a primary beneficiary were to predecease you.

Jot down your contingency plan concerns and objectives. Then, schedule time to review it with an board-certified estate planning attorney and financial advisor so that all your estate planning documents (e.g., will, living trust, power of attorney, medical power of attorney, etc.) are completed correctly and placed in the hands of a professional whom you trust to ensure your wishes are followed.

4. Revisit your estate plan every 3 to 5 years

Once you have established your estate plan, schedule time on your calendar to review it regularly. In addition to making routine adjustments, note that you may want to update the documents after key life events, such as (but not limited to):

· The birth or adoption of a child or grandchild

· Marriage or divorce

· Death of a beneficiary

· Inheritance

· A change in careers

· The purchase of a house, land, or vehicle

· Significant gains or losses in investments

· The creation, sale, or closure of a small business

· Changes in federal or state estate or tax laws

Where to turn for estate planning assistance

If you decide to create an estate plan this year, remember to consult a board-certified estate planning expert. I can help develop a customized and structured financial strategy that protects your finances and supports your loved ones for generations. I offer a continuum of estate planning support, and our team is comprised of highly trained professionals committed to helping you. You can make a plan for your assets by meeting with me and my team. Contact our office to set up an appointment in Laredo via zoom or in person and let’s finish strong in 2023!

3 Reasons Insufficient Estate Planning Can Hurt Your Children

Fri, 03 Nov 2023 18:21:03 GMT

Passing on the pain - click on picture for video

Since 1995, I have watched the pain surviving family members are confronted with when a loved one dies without sufficiently planning for their estate or creating a will. The people who get left behind have no idea of the amount of confusion and anguish they will face. The kind of pain that makes you anxious, that has your stomach in knots in anticipation. I equate it to imagining someone passing on the pain of a painful dental procedure you don't want to ever have onto someone you love.

Questions come up about who is going to get sentimental items that can lead to fighting within the family. Family wealth can be quickly depleted with court costs and attorney’s fees and familial bonds are severed as the remaining family members and siblings begin to squabble and fight for what is left.

Though it’s not everyone’s favorite topic, estate planning is necessary. Estate planning allows us to determine who gets our assets. We also plan for and cares for our minor children when something happens to us and many other important decisions that can impact the ones you love.

However, parents don’t often realize and think about the effects insufficient estate planning can have on their families- especially their children.

Here are 3 reasons insufficient estate planning can hurt your children.

1) Added Stress

When we lose a loved one, we all suffer grief and loss. But, for a child losing a parent, that grief and loss can be so much greater.

Moreover, if our children are still little, they are not emotionally equipped to handle the added stress an insufficient estate plan can add to their lives.

For older children, the stress may be going to Court and administering your estate in front of a Judge while trying to properly grieve. For younger children, that stress could be watching family members fight over them or being jostled around by family and friends.

You can relieve your children’s stress at any age with the proper estate plan in place.

2) Unprotected Assets

If you leave your assets to your children through a Will, or do not have a plan at all, the assets will pass to your children immediately. For children over the age of 18, they can access the money and property immediately. For minors, they will need a Guardian to oversee their inheritance.

Think back, if you will, to who you were at 18. Though the law may recognize an 18-year-old as an adult, do you believe your child could properly manage a large inheritance at 18? If the answer is no, you need to put an estate plan in place.

When a child is under the age of 18, they will have a Guardian who manages their money and property for them. This can be the other biological parent or someone you have nominated. If you have not nominated someone, the Guardian will be an adult who asks the Court to give them custody of your child.

If you do not have concerns about your family, their intentions for your children, and their management of assets for your children, then you may not need a plan in place. But, if this is your family situation, count yourself blessed to be among the few.

Should you have concerns about who cares for your children or how their inheritance should be handled, you need a proper estate plan in place.

3) Lack of Privacy

When you don’t plan or use a Will for planning, your estate goes through probate. Probate is a court process that requires other members of your family to receive notice of your assets and how they’re distributed. In Texas, your case is also a public record. Anyone can go down to the courthouse and pull the probate case. And usually the case can even be found online.

I’m sure you can see how this could affect some of your more vulnerable heirs. If there is someone out there who may know and try to take advantage of your children, it would benefit your family to have a more private plan in place.

You can make a plan for your assets by meeting with me and my team. Contact our office to set up an appointment in New Braunfels, Laredo or via zoom and let’s finish strong in 2023.

Estate Planning After Estate Planning

Fri, 27 Oct 2023 20:55:13 GMT

Keeping up with life's changes

After a divorce is an excellent time to implement an estate plan or to review and amend an existing plan. Once your divorce is final, it is crucial to update your will, living trust, and other estate planning documents. If you have an estate plan, your former spouse probably figured prominently in it. He or she was probably a beneficiary of your will or trust and may have been your executor or trustee. He or she may also have had your financial and health care powers of attorney. Even if your divorce voided these arrangements (as it does in some states), you want to amend your plan to replace your former spouse or confirm that you want your ex’s role in your plan to remain unchanged.

If you have retirement accounts or life insurance, you may have named your spouse as the beneficiary. If your divorce cancelled the beneficiary designation and you don’t have an alternate beneficiary, your estate will be the beneficiary, which may be undesirable if you intend to avoid probate or minimize taxes. If your divorce did not affect your beneficiary designations, your ex is legally entitled to the asset when you die despite the divorce.

Estate Planning is for Everyone

Remember, you don’t have to be extraordinarily wealthy to need a plan that ensures your property is passed on to your loved ones as quickly and inexpensively as possible. You’ll also want to make sure your wishes regarding end-of-life medical care are followed regardless of how much money you have.

Estate planning has five major purposes, one or more of which doubtless applies to you.

With a good estate plan, you can:

1. Designate how your assets are to be distributed among beneficiaries after you die.

2. Avoid or minimize the delays and expense of probate.

3. Appoint a guardian for your minor children and a person to manage the children’s assets.

4. Provide for your incapacity.

5. Minimize estate taxes.

Distribution of Your Property

If you die without an estate plan, the state will provide a plan for you. Every state has an intestacy statute that specifies who gets your property if you die without a will or other documents for passing your property. The statute is a “one size fits all” plan that attempts to predict how most people would like their property distributed. Typically, your property would go partly to your spouse with the rest to your children in equal shares. If you don’t have a spouse or children, your property would go to other relatives such as parents or siblings.

This plan may not be suitable in many instances. For example, you may want to:

· Leave unequal shares to your children because they have different needs or you have already provided more help to one during your life.

· Ensure that property left to minor children will be properly managed or will not be managed by their other parent (your ex-spouse).

· Ensure that property left to a second spouse will go to your children from an earlier marriage on the spouse’s death, rather than to the spouse’s children or relatives.

· Disinherit a child.

· Leave your estate to a life partner to whom you are not married.

· Leave a gift to a grandchild, more distant relative, or friend.

· Leave a contribution to charity.

All of these goals require estate planning.

Avoiding Probate

Probate, the court supervised process of distributing your estate, can be time-consuming and expensive. You can minimize the assets that need to pass through probate or eliminate probate altogether by using certain devices such as:

· Living trusts

· Joint tenancies.

· Bank accounts jointly owned with a right of survivorship or payable on death.

· Life insurance payable to a beneficiary other than your estate or executor.

· Retirement plans (e.g., IRA’s, pensions, and Keoghs).

Providing for Minor Children

If you have minor children, you will want to name a guardian to care for them in the event of your death. Although a court will need to appoint the guardian, most courts will follow your wishes in the absence of a compelling reason not to.

As a divorced person, should you die first, your ex-spouse will get custody of your children, unless he or she is clearly unfit. This is true even if you had full legal custody and your will names someone else as their guardian. If you don’t believe your ex-spouse is an appropriate person to have custody of your children, speak to your lawyer. You will want to document your concerns in your will or a letter and preserve any evidence you have of your ex-spouse’s unsuitability. The court will consider this material in making a decision. Minors can’t be given property outright. You will need to designate someone to manage your children’s property until they are adults and able to manage it themselves. As a divorced person, a will leaving everything to your children may not accomplish your goals. Since your ex will usually become the legal guardian of your children, he or she will control the property your children receive from your will. If you are not comfortable with this situation, you can establish a trust for your children and name a trustee to manage and distribute the property according to your wishes.

Preparing for incapacity

In your estate planning documents, you can designate someone to manage your financial affairs should you become unable to do so. You can also specify how your incapacity is to be established. With the proper documents in place, you will save your family the expense and stress of having to go to court to get guardianship. You can designate a person to make medical decisions for you when you no longer can. And you can provide written guidelines for that person as to what type of end-of-life treatment you want.

Keeping up with life’s updates

Remember that estate planning is not a one-time event. Once you have your initial plan and documents in place, you and your estate planning attorney will need to review them periodically and revise them as necessary for changes in your financial or family circumstances or the law, especially when you have significant life changing events.

If you would like to hear more about how our firm can help you plan for the future, contact us today. We would love to help.

We provide estate planning services to clients throughout South Texas. Please contact us today, we are happy to share our expertise with you so you can make the best decisions for passing on your financial legacy. We are available in person, by appointment or by Zoom. In South Texas, call us at 956-791-5422.

Do You Have a Firm Grip on the Rest of 2023?

Fri, 20 Oct 2023 22:15:22 GMT

How you can end on a high note

Have you ever heard of the phrase, “I need a firm grip on the situation first”? Or has someone ever told you they will do that thing they’ve been meaning to do once they have a “firm grasp” on what exactly they need to be doing in the first place?

To keep a firm grip is to maintain a tight grasp on someone or something. But first, let’s think about how we get there.

For instance, when we played on a playground, like children in the preverbal good-old-days, not all of us were ready to grip the monkey bars with wild abandon and test the limits of our physical abilities. Yet some of us were ready to take a firm grasp on all the levels of the playset and swing from bar to slide in a choreographed swish of movement. One thing can be said of the two playmate types; they both want a firm grasp of the bars to make the most of their time at the park.

How does this relate to us today? People have the best of intentions. At the start of a 2023, millions make resolutions — goals they want to reach throughout the upcoming months. Getting a handle on loose ends are usually near the top of many such lists.

As we end this year of 2023, let’s consider re-resolving to getting a better grip on protecting your prosperity and the fruits of your labor like never before.

Have you asked yourself what you can do this month to hold on tighter, to maintain your grasp on prosperity or perhaps propel you further and out of a current slump?

Do you know if you have a solid succession plan for your business and does your family know how you plan to look after them when you are no longer here to guide them?

If you are asking these questions yet not finding answers, then you are half-way to having the strongest grasp of your future then ever before.

How do you then take the next step? When our kids are playing at the park by our office, one is always ready to make the next move and another is ready to be encouraged, which is (honestly) one of my favorite parts. She takes an extra leap and realizes she can swing to the next level because she can trust me to guide her hand to the next spot for the firmest grasp possible.

The next step for you is to trust that you may not have all the answers, but when you come to a board-certified estate planner so they can hear you and guide you, your “playtime” in the real world is that much more enjoyable because you have taken time to get a firm grip on the future of your family without you.

If you would like to hear more about how our firm can help you plan for your new year with the confidence of knowing you have a firm grip on the future, contact us today. We would love to help.

Big Brother & Business: Corporate Transparency Act is coming

Fri, 13 Oct 2023 20:09:31 GMT

Avoid Fines and Penalties by being ready

The Final Rule implementing Section 6403 of the Corporate Transparency Act (the CTA) was issued on September 30, 2022. The CTA is a sweeping, new regulation that will affect millions of companies, both domestic and foreign. The objective of the law is to require companies to reveal their beneficial ownership in order to assist the U.S. government in its efforts to identify bad actors, both foreign and domestic, who use the anonymity provided by various company structures in furtherance of their lawless activities. It is important that companies, their owners, and their senior management, be aware of the law and its requirements, which can be both complicated and difficult to navigate.

There is a good chance that anyone reading this will be affected by the implementation of CTA and, consequently, should understand it and be prepared to comply with it based on each situation. Effective this New Year, January 1, 2024, entities created through the filing of a document with a state government, and foreign entities registering to do business in the United States through the filing of a document with a state government, are required to submit company information, beneficial owner information and company applicant information to the Financial Crimes Enforcement Network (FinCEN).

Entities formed on January 1, 2024, or later will have 30 days from creation or qualification to submit such information. On September 28, 2023, however, FinCEN issued a request for comment on a proposal to extend the 30-day time period to 90 days for the submission of information for such companies. Should such proposal be finalized, the extension will only apply through 2024 with the 30-day time period to be reinstated as of January 1, 2025.

This is only a proposal at this time and until implemented such entities should proceed with the 30-day timeframe in mind. The 30-day time period will be triggered "by the earlier of the date on which the reporting company receives actual notice that its creation (or registration) has become effective or a secretary of state or similar office first provides public notice, such as through a publicly accessible registry, that the domestic reporting company has been created or the foreign reporting company has been registered."

Entities formed before January 1, 2024, will have until January 1, 2025, to submit company information and beneficial owner information, but will not be required to submit company applicant information. Companies are expected to submit their filings via a secure, online platform administered by FinCEN called the Beneficial Ownership Secure System or BOSS.

The Regulations, however, exempt 23 types of entities from being deemed a reporting company. These exempted entities tend to be larger or more heavily regulated entities. Reporting companies must file specified information on each of the company's beneficial owners with the understanding that a "beneficial owner" is any individual who exercises substantial control over the reporting company or owns or controls at least 25 percent of the ownership interest of the reporting company. The information to be reported includes the following:

(i)Full legal name;(ii)Date of birth;(iii)Current residential address; and(iv)A unique identifying number and issuing jurisdiction from an acceptable identification document, along with an image of that document. Such a document might include a driver's license or passport.

Excluded from the definition of beneficial owners are: (i) minor children (parents or guardians are required to report), (ii) nominees, (iii) employees, other than senior officers, (iv) future inheritors; and (v) creditors.

Penalties for the willful failure to report complete or updated beneficial ownership information, or the willful submission of or attempt to provide false or fraudulent beneficial ownership information can be severe.

These penalties may include civil fines of $500 per day for each day a violation continues and criminal penalties of imprisonment for up to two years and/or a fine of up to $10,000.

If you find yourself wanting more advice and information on how my team and I can help you avoid fines and penalties that may result from not complying with CTA 2024, we are available in person, by appointment or by Zoom. In South Texas, call us at 956-791-5422.

Protect your financial legacy from gold-diggers and fraud

Fri, 06 Oct 2023 18:06:23 GMT

It's your legacy to protect

How would you feel if you knew that your kids would never get the financial nest egg you worked so hard to provide for them? As unthinkable as it sounds, your kids can be cut out of the family estate when a deceased spouse leaves everything to the surviving spouse (which is very common). This can all be solved with good estate planning.

Why You Need to Protect Your Children’s Inheritance

Many couples believe that signing wills leaving everything to the surviving spouse or jointly titling all property is a good estate plan. The truth is, both strategies can create risks that can place your family’s financial legacy in the hands of a stranger or gold digger.

How Does a Stranger or Gold Digger Get Your Family’s Financial Legacy?

Someone outside your family can end up with your family legacy in several different situations. The following true story can show you just how this happens. (To protect the family, these are not the real names.)

John and Mary were happily married for many years. They had three children. As the couple grew older, John developed health problems. Mary became his full-time caregiver. When Mary died suddenly and unexpectedly, the family was devastated.

Mary’s will left her entire estate to John. The will also stated that if John predeceased her, the children would receive the estate. John had a similar will.

John’s children wanted to make sure that John received the care he needed. Since they all had busy young families of their own, the children found a highly recommended (but unlicensed) caregiver for John.

The caregiver faithfully tended to all of John’s needs every day. John’s children and grandchildren visited him when their own schedules allowed.

Several years later, John passed away. The children were shocked to discover that John had changed his will and left his entire estate to the caregiver. His will also provided that if the caregiver predeceased him, the caregiver’s daughter inherited the estate. John left nothing to his children.

John’s children looked into filing a lawsuit to contest the will. However, evidence in the case demonstrated that John understood the nature and effect of his will at the time he signed it. He intended to leave everything to the caregiver, who took very good care of him on a daily basis. He felt the children did not visit or care enough to benefit from his estate. Unfortunately, his children received none of the assets that he and their mom had worked so hard to earn. They felt like they were cheated out of their family’s legacy.

Caregivers, Late Life Marriages and Relationships, and Fraud

The events involving John’s family occurred because Mary’s will left her entire estate outright to John. From that point forward, John was free to manage and control the assets as he pleased, including providing for their disposition after his death in his will.

Caregivers are only one example of how a financial legacy ends up in the hands of a stranger. When a surviving spouse receives an entire estate under a will, the same result can occur because of a late life second marriage or relationship, or when a single family member takes advantage of an elder surviving spouse.

Sometimes fraud is involved — individuals who cultivate relationships with a surviving spouse might be gold diggers. Other times, as in John’s case, fraud is not a factor. In the absence of a legal reason to invalidate a surviving spouse’s will that leaves the entire estate to a stranger, the children receive nothing. No matter how the situation arises, it can result in depriving the children of the family financial legacy that the parents originally intended them to have.

How You Can Protect Your Kids' Inheritance

If you and your spouse execute wills leaving your estates outright to each other, you run the risk that a stranger or gold digger will end up with your family’s financial legacy. To make certain that your children receive their inheritance after you and your spouse pass away, careful estate planning with assistance from an experienced attorney is essential.

In most situations where a married couple owns substantial assets to pass along to their children, a trust is the appropriate estate planning tool to use. It is important to discuss your needs and wishes with a board-certified attorney to determine the right type of trust and appropriate terms to accomplish all your goals.

A word of caution is extremely important, especially given the ready availability of online forms and services for Do-It-Yourself (DIY) estate plans, including will and trusts. If you use forms or online services to set up your estate, you run a substantial risk that you will not succeed in accomplishing your goals. Talking with a knowledgeable estate planning attorney is the only way to make sure you put in place an estate plan that protects you and your family now and in the future.

Talk With an Experienced Estate Planning Attorney to Ensure You Protect Your Kids' Inheritance

At The J.M. Dickerson Law Firm, we focus on protecting our clients and their assets, whatever their unique circumstances may be. Ensuring that children benefit from the family legacy is an important goal for many of our clients.

Avoid Probate Like You Avoid a Grizzly Bear

Fri, 29 Sep 2023 16:12:47 GMT

Probate can bring out the worst in us

You would never intentionally mess with a grizzly bear, would you?? Of course not! And why would you? Albeit intelligent mammals, grizzly bears, especially momma bears, are known to be ferocious creatures, quick to lash out and protect what is theirs. Poking a bear is NOT on your "to do" list, but you would be surprised that poking a sleepy bear is what so many parents set up to do to their heirs and loved ones when they do not prepare to avoid probate.

Probate is like a grizzly bear who just woke up very hungry.

I liken probate to being much more like a grizzly bear that has just woken up from its hibernation slumber. Still a little groggy, the realization begins to set in that they have not eaten for many weeks. The grizzly saunters out of its winter shelter, only to find that there may not be much food to forage for with the ground still cold from a long winter.

Probate can bring out the very worst in us.

It is embedded in our human nature to survive. When a family is faced with a newly awakened grizzly bear, in the form of a probate lawsuit, things can get ugly, as probate can bring out the worst in us. It can be avoidable that some family members may feel threatened during or before the probate process and go into "survival mode". Remember that a Will only has potential when you have passed away and a Will will guaranteed your family will have to take your Will to probate court, as that is the way to distribute assets to your family that is left behind.

Avoiding probate is easier than you think!

Make 2023 your year to prepare to avoid the ferociousness of probate completely. I would be happy to offer you a free consultation to get the process started and leave the science fiction stories to the movie screen. Save your family bonds and contact us instead. If you find yourself wanting more advice and information on how my team and I can help you avoid the grizzly bear of probate by the end of the year, we are available in person, by appointment or by Zoom. In South Texas, call us at 956-791-5422.

My Proven Method for Reducing Risk

Fri, 15 Sep 2023 18:26:42 GMT

Make 2023 your year for reducing risk

In my experience as a board-certified Estate Planner, I know that a lot of businesspeople do not realize the magnitude of risk exposure, they put themselves in just by operating their business day-to-day. Some people unfortunately are one lawsuit away from getting wiped out because they're a sole proprietor. Basically, they and the business are one and the same. There is no separate business entity that protects them or if they do have an entity, nine times out of ten, they do not have their documentation up to date. They use the company check book like a personal check book. They do not have a record of corporate or LLC minutes documenting different transactions. They do not account for any transactions in their minutes or anywhere for that matter, and that is the way they handle it. That creates a huge of risk exposure in a lawsuit.

In a lawsuit, the first thing that the opposing attorneys are going to ask for is to see your corporate or company book and the last three years of company tax returns. How are you going to answer those questions in a way that does not give a lot of ammunition that can be used against you? What can you do to make sure that you are okay, and not intimidated by the multitude of TV lawyers looking for their next lucrative case to profit from? Why put yourself in a position where you are worried about somebody wanting to sue you or creating a problem?

The reality is most of you may not even have a business. Some of you may have your sole proprietorship that you filed with the county clerk or have a “DBA.” That does not give you ANY protection. Perhaps you never realized that fact or maybe you just do not want to think about it. Ignorance is bliss until something bad happens. By then, you realize that this lawsuit for a million dollars that sprung up because of a roll-over accident your employee caused will not go away.

The other reality is that a lawsuit is going to follow you until you either die or you pay it off. And guess what? When you die, the lawsuit is going to go after your estate; and if you have amassed anything, the lawyers and those suing you are going to want to get their cut. The bottom line is you will end up paying now or paying later.

The advantage of employing the 3 Bucket Method is that you can set yourself up in a way that will actually protect you in this sometimes very scary business world. You ARE going to be able to weather the storms of life. You ARE going to be able to move forward and not be personally tied to the adverse times of life forever. Remember, the business entity can suffer the loss and die, and there goes the liability and you are in a safe zone. You subsequently move on, and you do that by making sure that you have created some protection structures.

Next, you need to MAINTAIN those protection structures. If you do not have company minutes for each year of operation that document the transactions of the company, you are at risk. If you do not have a record in your company book of the different intercompany loans, especially those that require various kinds of tax treatment, you are at risk.

It can get expensive to hire your CPA and attorney to help you retrace your business’ steps to create the correct documentation that meets the lofty standards of the IRS for the years your record keeping fell through the cracks. You may not have ANY intercompany agreements and minutes in place. Do you want to open up a window of opportunity in which one of these ambulance chasing lawyers can probe into your business? I can hear them now. “Hey! These two companies do not even act like they are two separate companies. Why would these separate companies lend money to each other without a promissory note? Why would they let this person have their office on that property without paying rent or having a contract?” Then, suddenly, there is a jury that appears and says, “Hey! Do you know what? That makes sense.,” and the jury has the right to believe they are the same person, especially when you have the same owners.

That is a risky way to do business. You are only opening up your weaknesses and, in a lawsuit, there are a lot of ways in which the opposing legal team can chip away at the armor of your business structure. It is in your power to keep up the integrity of that armor.

We can certainly create the Cadillac or Mercedes system of protection. But like owning a Cadillac or Mercedes, if you do not change the oil regularly, check the tire pressure and other aspects of routine maintenance, eventually that car can break down, inevitably at the most inopportune time.

The same can be said of your business. If you do not have your business set up properly and up to date, it is likely you will find out at the worst possible time. You will say to yourself, “If I had only done these things, I would be in a better position to negotiate with strength.”

Wouldn’t you want to say, “Hey, take whatever the insurance company is offering you because you're not getting more than that from me!” Do you want to negotiate from a position of weakness in which all your separate companies are collapsing, and the opposing side is ready to take it all? You do not want to be in a position to say, “How much can I give you for you not to take my property away?” These are the things business owners’ nightmares are made of and scary things can and do happen to the unprepared.

The 3 Bucket Method is a proven method. My clients have used it. I use it myself for my personal investments and we have used it very successfully. The only requirement: you must commit to maintain it.

If you find yourself wanting more advice and information on how my team and I can help you reduce your risks by the end of the year, we are available in person, by appointment or by Zoom. In South Texas, call us at 956-791-5422.

8 Big Estate Planning Mistakes to Avoid

Fri, 08 Sep 2023 20:01:51 GMT

Take heed...

Friends, take heed and avoid these eight major estate planning mistakes.

1. Relying on the Government’s “Estate Plan”

One of the biggest mistakes people make in estate planning is to not have an estate plan in place at all. This puts families in the position of being subject to government rules and regulations about all of the important things; who gets custody of the kids, who gets the money from the estate; who gets family business and stock - all the things you want to have direct control over when you’re making your plans. And that breaks my heart. I hate seeing families ripped apart by a lack of estate planning; seeing cash resources depleted, and custody decided by an impersonal system.

Did you know that the estate of Elvis Presley went through this process? Did you know that taxes and fees made up 73% of the estate’s value? I’m sure Elvis wouldn’t have wanted that, and he would have been heartbroken to learn that the legacy he planned to leave to his daughter was virtually wiped out.

The truth is, the cost of not making an estate plan can easily inflate to far more than the cost of an elaborate, “gold plated” estate plan - with none of the benefits of making a good plan. Failing to take action and make up your mind about these important questions, including custody and the financial and tax implications, can leave your loved ones tied up in the court system at a time when they ought to be grieving for their loss.

The other big problem with failure to make an adequate estate plan is that if you use a simple will, your will can become public. Anyone can go to probate court and request a copy of it. Your financial assets will be exposed and the disposition of your property open to public scrutiny. It’s far better, from a privacy standpoint, to use a more protective trust-based plan to allocate your finances and shelter the details from the public eye.

Don’t make the mistake of relying on the government “estate plan.” You’ll only cause a lot of heartache and financial distress for your family. This is one of the most tragic mistakes you can make, and I hate seeing families suffer because of it.

2. Doing it Yourself – or Using Cheap Online Tools

I know that your finances are important to you, and it can be tempting to try to create an estate plan yourself, or use cheap online tools to do it at virtually no cost. After all, how hard can it be? Unfortunately, estate planning is much more than simply filling out the blanks in form documents. Every financial situation - and family situation - is unique, and a generic catch-all form can’t address your needs. Why is it such a bad idea to go the DIY route with your estate planning? For one thing, estate and tax laws change constantly - almost on an annual basis. And they vary from state to state.

You really need a detailed analysis of your situation, with application of current estate and tax laws, to get you the best possible outcome in your estate planning. If you go with a DIY approach and use a generic form, you’re almost guaranteed to be leaving money on the table - or more accurately, handing it over to the government - sometimes to the tune of tens of thousands, or even hundreds of thousands of dollars. Wouldn’t you rather that money go to your family?

The issues get even more complicated if you have children from previous marriages, or if you and your spouse have separated or divorced. Then it’s not just about money - it’s about the well-being of your family. Do you really want to trust those decisions to a court that sees dozens of cases per day, and doesn’t know your family or your wishes? Even if you’ve got the best intentions with your DIY approach, or in using cheap online tools, the stakes are too high to trust these critical questions to someone who isn’t experienced and well-versed in current law. All it takes is to answer one question incorrectly, or to overlook a significant detail like appointing a guardian for children, to lead to a lot of heartache.

3. Choosing a Lawyer Who Bills by the Hour

If you’ve decided to go with a lawyer for your estate planning needs - great! You’re on the right track. Enlisting the aid of an experienced professional can help you save tens of thousands of dollars - as well as a priceless emotional toll for your family - by having your affairs put in order by someone who knows the right questions to ask, and how best to apply law to your situation.

But - and this is a big one - choosing a lawyer who bills by the hour can be a big mistake when it comes to estate planning. Why is that? Any lawyer who is an expert in estate planning should be able to tell you exactly what your estate plan should cost. A lawyer who bills by the hour either doesn’t know how much time it’s going to take - which means he isn’t the experienced professional you want drafting these important legal documents - or he just wants to get paid for every little thing, from drafting the documents to conducting meetings and making phone calls - in other words, wasting your time and money. Don’t make this mistake. You want a knowledgeable, experienced estate planner. You don’t want someone who’s just trying to wring every penny out of you that he can.

4. Thinking That Any Lawyer Can Do Estate Planning

A lawyer is a lawyer, right? Wrong. In today’s world, law is incredibly specialized and complex. The lawyers who are best in their field pick an area of law and become experts in this area. A lawyer who specializes in estate law, for example, will be familiar with state laws, federal laws, tax considerations and important legal questions that go into a good estate plan.

A general practitioner, on the other hand, who handles a wide variety of legal cases simply can’t be an expert in estate law. A general practitioner won’t have had the time to learn this area of law in depth, and will be splitting his attention in too many directions to be a really great estate lawyer. A general practitioner might be a great person to know for all of your minor, day-to-day legal needs, but you don’t want this person putting together your estate plan. You want an expert.

5. Thinking That All Trusts Are the Same

This is where things get a little “legal” - the question of what type of trust is best for your estate plan. Many people choose to use a trust in an estate plan to convey assets and protect their privacy. But our legal system has been evolving for hundreds of years, and today there are dozens of types of trusts - each one with a different purpose. What does this mean for your estate plan?

What you need to know is that there’s no such thing as a “one size fits all” trust. A business owner would want a different trust from a physician, who would have something different from an executive, who might have something different from a single parent. You need the right type of trust for YOUR situation - not the only trust that an inexperienced lawyer knows how to create.

In other words, attorneys who use a “fill in the blank” or “one size fits all” trust are doing their clients a disservice. These trusts may not be the best type of trust for a given situation, and may not work as intended. Do you really want to leave your estate plan in the hands of someone who doesn’t know how to craft the right legal document for your needs?

6. Failing to Adequately Protect Children

Do you really want to trust a court with the question of who will raise your children? If you need an example of exactly how devastating this can be, take a look at the case of Terry and Pat Birch. These All-American parents had a tragic car accident, which their three little boys survived - but they didn’t. Court documents have shown that Terry and Pat had talked about naming guardians for their boys, but they simply hadn’t gotten around to putting their decision in writing. After all, we always think we have more time, and they were healthy, happy adults with three small boys at home. Estate planning is often something we think of later in life, so it’s not surprising they didn’t feel any particular urgency to create their plan.

Unfortunately, the Birchs had no idea how much conflict would be involved in naming a guardian for their boys. In the four years following their death, thousands of court documents have been filed in their case, nine lawyers have been involved, and the costs have totaled in the tens - or hundreds - of thousands of dollars. In the meantime, the boys went into the foster care system for a short time, while police worked to locate family members. Would you want your kids going to strangers after a tragedy like that? When family was finally located, the boys went to live with one of their aunts, who allegedly prevented the rest of the family from having any contact with the boys. Not only were their parents tragically ripped away from them, but they were denied the comfort of the rest of their family, too! In the end, the Court will be responsible for appointing a legal guardian for the boys. This person may or may not be the person Terry and Pat would have chosen. They’ll never have a chance to say who they want to raise their kids, or have any say at all in their children’s lives - because they thought they’d have more time, so they didn’t put together a plan. Don’t be Terry and Pat Birch.

7. Using a Lawyer Who Doesn’t Have a Follow-Up Plan

Estate plans are a one-time thing that you never have to worry about again, right? Think again. Unfortunately, estate planning requires an ongoing commitment to making sure your documents are up-to-date. The law changes every year, and plans need to be reviewed to ensure that they still comply with current law, and still keep your estate in an advantageous financial situation. Additionally, your life isn’t static. You’ll have changes as time passes. Maybe you open a new account. Maybe you make some new investments that do very well. Maybe you sell an asset, or acquire a part of a business. Or maybe you remarry, become a step-parent or buy or sell real estate. All of these things can throw a wrench in your existing estate plan, however well thought out. You need to revisit your estate plan regularly to ensure that your needs are still being met, or draft new documentation to address your changing lifestyle.

A good estate lawyer will have a program to conduct annual reviews of your plan. Follow-up is an essential part of ensuring that you’re protected by your estate plan. An estate lawyer who cares about keeping you protected, and providing for your family, will offer a scheduled annual follow-up and review for a set price. Don’t just take the word of a lawyer who says he’ll follow up. For most lawyers, this isn’t part of the service that they provide every client. Ask your lawyer for details about follow up, and make sure you choose a lawyer with a good follow up plan - or your estate plan may become meaningless in spite of all of the hard work, legal expertise and cost you put into creating it.

8. Choosing a Lawyer Who Doesn’t Guarantee Service

When you’re making an important decision that affects your life, you put a lot of effort and research into it, don’t you? When you’re buying a car, for example, you shop around for a car with a good reputation; a car that meets your needs; and a car that the manufacturer will stand behind. The guarantee or warranty is often a big part of the purchase process, and it helps to ensure that you’ll stay happy and protected long after making your decision.

Why should estate planning be any different? You want to ensure that your estate plan is good, and is going to serve your family well. Wouldn’t you prefer to have an estate plan with a guarantee? Think of it this way: how many lawyer jokes have you heard that give lawyers a bad reputation? Probably plenty. Sometimes, this bad reputation is deserved. Some lawyers are unscrupulous; some want to make money at any cost; and some don’t care about their clients.

To avoid getting into a bad situation with your estate plan, choose a lawyer who guarantees his service. Any good lawyer will offer a guarantee. If your lawyer won’t give you a guarantee, you might be dealing with one of those “bad reputation” types - and it might be time to move on to someone who cares about doing right by you and your family, and stands behind his work.

Ready to find out more about estate planning that is right for you. Contact me through our contact page here.

Why Labor Day is Special to Me

Fri, 01 Sep 2023 16:49:33 GMT

The glue that hold us together...

Labor Day has a special meaning for me since 1994. You see my oldest son, Andrew, was born on Labor Day that year. This year we were fortunate to have see some of our children two of them developing in their careers, two continuing their higher education and three of them making strides in high school and elementary school. Did I mention we have a big blended family of 7 kids? Talking on the phone, or seeing them in person, we catch up with them about different things and find out what is going on in their lives, discussing politics and sports with the older ones and dance class and taekwondo with the little girls. It brings warm feelings to our hearts. We feel blessed that our children get along and genuinely care about each other.

Unfortunately, in my experience, these relationships sometimes deteriorate when parents, including step-parents, are no longer there or they are there but cause my heartbreak than harmony in their children's lives. The glue that held them together may be gone and that can cause friction. This is why it is important to have a plan in place to reduce this friction and risk of hurt feelings among siblings. If this is a concern to you, give me a call, I will be happy to visit with you about your concerns.

Taking an extra day off for Labor Day can also be a great opportunity to recharge your batteries and evaluate where you are at this time of the year. It is almost the end of the third quarter, which is a great time to look at the numbers in your business. Are you on track to meet your annual business goals, or do you need to step it up to catch up? You may have had some unexpected downturns in you business or health that may have altered some of these business targets, but we should nonetheless try to reach them. This can be a good time of the year to asses and refocus in order to attain your end of the year goals.

The past couple of weeks, I also started to reevaluate my health. I turned 54 last month and I am in good health, my numbers all look good, but I have noticed I am spending more time at the office and have not been exercising. I have been inspired by friends and family to get back in shape, and so I have started a simple 10 minute daily calisthenics routine to get me motivated for more. I know my competitive nature will get me motivated, and I hope at the same time motivate my friends.

So as we approach the last quarter of 2023, we are at a good vantage point to look back (scary at times) at where we have been and resolve to get back on track. We can also take a moment to step up our game to finish the last quarter by exceeding our goals. I wish you all success as we round out this quarter.

If you find yourself wanting more advice and information on how my team and I can help you get ready to meet your asset protection goals for the end of the year, we are available in person, by appointment or by Zoom. In South Texas, call us at 956-791-5422.

Misleading Myths: What happens in a second marriage situation?

Fri, 25 Aug 2023 19:54:32 GMT

August is Make-A-Will Month!

There are people who think that when they die while married, that everything they own will automatically go to their spouse or children. What may be the case is that they are thinking of state rules that apply if someone dies without leaving a will. In legal terms, this is referred to as “intestate.” In that case, the specifics will vary depending on each state’s law, so where you live when you die can significantly change the result for your family. However, the general rule is that your spouse will receive a share, and the rest will be divided among your children. Exactly how much a spouse will inherit depends on the state you die in.

Now, it may seem like, “So far, so good.” Your spouse is getting an inheritance and so are the kids. But here are some situations of how the laws can fail many common family situations. First off, if both parents of minors die intestate, then the children are left without a legal guardian. Kids don’t automatically go to a godparent, even if that’s what everyone knew the parents had intended. Instead, a court will appoint someone to be the children’s guardian. In circumstances like these, the judge seeks to act in the children’s best interests and gathers information on the parents, the children, and the family circumstances. But the decision is up to the court, and the judge may not make the decision that you, as a parent, would have made. When it comes to asset division, in most cases, state intestacy law presumes that a family consists of a husband, wife, and their natural-born children.

But, that’s not necessarily the way many families are structured, and things can become legally complicated quickly. According to wealth management studies, one analysis has 50 different types of family structures in American households. Almost 18% of Americans have been remarried, and–through adoption and stepfamilies–millions of children are living in blended families. Unfortunately, the laws just haven’t kept up, and undesirable results can occur if you rely on intestacy as your estate plan. Stepchildren that you helped raise but didn’t legally adopt may end up with no inheritance, while a soon-to-be-ex-spouse may inherit from you.

Say, for example, a father has a will that provides assets to his spouse and two children and then they adopt a third child. Then, the father dies in a car accident before he’s able to revise his will. In some states, because the adopted child is not mentioned in the will, she may not be entitled to any inheritance.

If that isn’t bad enough, consider that, in some states, the law provides that an adopted child still has rights to the biological parents’ assets–and the biological parents are entitled to inherit a child’s wealth. (Imagine if the adopted-as-an-infant Steve Jobs had died intestate, and his biological parents demanded a share of his estate!) Of course, with a will or trust, you can control your estate and essentially eliminate the risk of these crazy results.

What if You and Your Spouse Are Separated?

State law decides what happens to your estate if you are separated from your spouse when you die. Much of the time, the court ignores your separation and just considers you still legally married. Unless you have a prenuptial or postnuptial agreement, it is extremely difficult to disinherit your spouse. Again, even if a spouse is omitted from a will, state laws might choose to give a surviving husband or wife a share of the assets. If you are separated from your spouse, and your divorce is pending, you should definitely talk with your divorce lawyer and an estate planning attorney about your options.

Creditors Win

Intestacy provides no asset protection or preservation benefits. Without any protections in place, an estate’s assets are still vulnerable to creditors, lawsuits, and others who may claim entitlement to the property. These claims would take precedence over the statutory requirements for inheritance. In other words, the family may not receive the lion’s share of the estate. They’d get the leftovers.

Does this bring up more questions than answers? We are available in person, by appointment or by Zoom. In Central Texas call us at 830-302-4577.

The one thing I consider worse than doing nothing

Thu, 17 Aug 2023 21:21:36 GMT

Your protection is yours to mold

In my career as an attorney, I have had the opportunity to help many successful people “mold” a plan of protection around their assets. I have found that you do not have to be a genius to be a success or rich. A degree, in and of itself, does not make you rich. It’s true that you don’t have to be a lawyer, doctor, or a CPA to be rich and successful, although some professionals just fall into that category. While most truly wealthy professionals & business owners make high incomes, it’s how they mold a protective shield around their money that makes and keeps them firmly in their category.

The Rub

I hear it all the time, “Mike when I win the lottery, I’m going to call you, then I’ll be just like your other clients.” Ask yourself, is the Lottery a surefire way to become wealthy? I certainly wouldn’t recommend buying lottery tickets as an investment strategy. For those few that win, they become rich overnight. Say you were lucky enough to win the lottery, worth $10,000,000.00! The truth is you would keep only a small part of it. The “rub” is that you would need to make a choice and, unfortunately, right away. Do you choose the $10,000,000.00 winnings payable over 20 years or “rub” your hands together with gusto and be ready to pinch that nice big check for a lump sum with your fingertips. The lump sum would be an amount equal to the present value of the winnings, which would be about $2,000,000.00. From that, the IRS takes about one-third. So, you may not end up being as rich as you thought you would be. Sadly, many lottery winners wind up broke within a few years.

Why?? It’s what they didn’t do with their money.

If you happened to have looked around your community, you may notice many truly rich people who may have little or no college education and, can be confirmed, they are NOT lottery winners. I can tell you; they did what many of us intend to do, but sometimes fall short in the discipline of implementation. I can tell you they found overlooked opportunities, then they took calculated risks without over analyzing. They sheltered their assets by taking steps to create separateness within their entity structures, thereby molding a business protection environment that derives its “strength in numbers.” Typically, they have unglamorous businesses and have lived within or below their means. These people found a way to mold the clay they were given, become rich and stayed that way as a result of the shields of protection built into their estates.

You may have also observed many prominent people who live in big houses, drive the latest luxury cars and are members of the country club. This may not be news to you, but some of those people are not truly rich. When and if you happen to look around to see who is truly rich, do not be fooled by displays of material wealth. Many people with big houses, late model cars, and expensive clothes also have large debts; and very possibly, with no solid assets. These are consumable items, not wealth building assets. Some spend more than they make, even though they earn a lot. “Keeping up with the Joneses,” or now, the Kardashians, has become a way of life. In fact, this very trap can keep you from becoming truly successful. And remember, as my wife likes to call my little random but meaningful sayings: Dickersonism #7, “Looking rich does not MAKE you rich.”

So, what could be worse than doing nothing?

Henry Ford, the inventor of the automobile, once said, “If you think you can, you can. If you think you can’t, you can’t. Either way, you’re right.”

Inaction is the one of main things that keeps many people from shaping a path towards their dreams, be it becoming independently wealthy or any other goal, for that matter. Inaction, or doing nothing, is the easiest thing to do, but not the best thing to do. Doing nothing means not having a path to success. You do not need a path if you are not going anywhere. This is the same as saying, “I just can’t do that.” “I can’t” means that you don’t even have to try. To be successful and protected, you must do something. It is not just going to happen.

Something I often say to my clients is that over-analyzation is as bad as inaction. It has the same result, but only after a lot of wasted time and effort. This is also known as “Analysis Paralysis.” If you look at different maps and plans of action but you do not make up your mind, you will spend a lot of time getting nowhere. It is easy to look at an opportunity and see all the many ways that it can go wrong. Nothing in life is guaranteed. Some people avoid taking any risks because they are so focused on not losing. They look over many opportunities and see only the risk, not the reward. The result? They don’t do anything at all. Unfortunately, those people become cynics, and discourage other people from making an investment. If I asked one of those people about investing in a rental property, they would say, “Why would I want to do that? I don’t want to be fixing toilets in the middle of the night.” Really?! How many rental properties do you think that person owns? None. Owning a rental property does not just mean fixing toilets. It is important to analyze, as opposed to “over analyze” your opportunities and realize that not every prospect is a winner.

Consider your short and long term goals

If you see that you have not taken adequate steps towards molding your future and shielding your assets, you might be asking yourself, how do I get going? I’m going to tell you; you need to make way for your path. Where do you want to be next year? In five years, or ten years? If you set a measurable and attainable goal, you have the path in front of you. Once you set your sights on your goal, you take the steps to get there and then you plan to protect everything you built up, which makes up your asset protection shields.

Not having a plan to protect your assets is like not insulating electric wiring, there is always a risk of exposure.

If your assets are not insulated and protected, a board-certified Estate Planning attorney can help you with proper protection and the maintenance that comes with it. Finally, you should listen to advisors and others with experience, but in the end, you need to make clarifying decisions for yourself. It is important to mold and follow your own plan and not let others dictate the direction of your life. We are available in person, by appointment or by Zoom. In South Texas, call us at 956-791-5422.

August is Make a Will Month

Fri, 04 Aug 2023 22:17:12 GMT

Consider these things to get you started

August is National “Make a Will” Month, and for many us who are constantly on the go, this yearly reminder is just the motivation we need to update your will if needed and create a will if you don’t have one already. A will is an important estate-planning document that can help you transfer your assets with ease. Having a proper will can make the difference between a smooth transfer of assets and a probate nightmare. And once a will is completed, many find the process isn’t as long or tedious as they anticipated.

Do you still need to make your will? Whether you’ve been too busy or simply don’t know how, here are three great reasons that will motivate you to write your will this August.

1. It’s an important legal document that everyone should have.

All adults should have a will — it’s a powerful document that lets you distribute your property and protect your loved ones after you pass away. One-third of all American adults have a will, and that number is growing every day.

2. It provides peace of mind to you and your family.

Wills aren’t just for the rich and famous. They make life (and death) easier for everyone, regardless of socioeconomic status.

Consider your belongings. You may not think you own a lot, but you likely have more property than you realize: your home, vehicles, furniture, clothing, books, sentimental items, and more. If you don’t have a will, your loved ones will be tasked with finding a home for this property when you pass on. Creating a will prevents family conflict, eliminates confusion, and ensures your assets go to the people you most want to have them. It also gives your family guidance and reassurance that they can fulfill your wishes during what is likely a very difficult time for them.

With a will, you can also plan ahead for those who are in your care — for example, you can name a legal guardian for your minor children and choose who should care for your pets.

The logistical benefits of having a will are important. But above all else, having a will creates peace of mind for you and the people you love.

3. It lets you create a legacy that lasts beyond your lifetime.

None of us live forever. But there are ways to continue making a positive impact on this world long after you leave it. One of these ways is by donating to a charity in your will.

There are many different ways you can use your will to benefit a charity — you can give cash, stock, real estate property, and more. Leaving a gift for a nonprofit in your will costs you nothing during your lifetime, but will ensure that you can make a positive impact on causes close to your heart for years to come.

Already made your will?

That’s a fantastic first step. Now that you have a will, it’s important to keep it updated. Estate attorneys recommend reviewing your will every three to five years, or whenever you have a big life event (like getting married, moving states, or having a grandchild).

This month, consider taking 15 minutes to look over your will and make sure it’s up to date with your current preferences. Your life and relationships change over time — it’s important that your will reflects those changes, too.

You may also consider taking a few extra minutes to make sure you’ve named beneficiaries of your non-probate assets, like your life insurance policies or retirement accounts. You can name a charity as a beneficiary of these assets as another great way to leave a lasting impact.

How to Create a Will

Creating a will can be a straightforward process, and should involve a board-certified estate planning attorney and financial advisors, if need be.

Generally, the first step in creating a will is to determine what you want to include. You should include instructions for passing along your assets after your death, including ownership and other instructions. You should certainly consider working with an attorney who is board-certified in your state to ensure that your will contains everything it needs.

Next, you will likely sign your will in front of two witnesses, and these two witnesses will also sign your will. Some states require a self-proving affidavit that you sign in front of a notary, other states require your will to be notarized, and some states don’t require any special self-proving documentation as long as you sign and witness your will correctly.

Whether you have $10 worth of assets or $10 million, creating a will is a good idea to give your family more guidance after you pass. Wills help make the transfer of assets easier and give you and your family more peace of mind. Consider creating or updating your will this August for National “Make a Will” Month!

Let us help you make August the month to make your will or update it.

We are available in person, by appointment or by Zoom. In South Texas, call us at 956-791-5422.

Why You Don’t Gift Your House To Your Kids

Wed, 26 Jul 2023 20:24:54 GMT

Avoiding headaches is easier than you think

It is amazing how home ownership seems out of reach for many young people today. Some of our clients ask us if they should just give their house to their children at some point to help them achieve their dream of owning a home. Other clients are afraid of losing their home if they have to enter a nursing home and apply for Medicaid. In this day and age, both fears are well-founded, but transferring the family home to their children is not the best way to protect it or their children from other headaches down the road.

It might be a consideration, for example, if the parents plan to downsize to a new condo or make a former vacation home their full-time residence. However, while such generosity may be admirable, giving a house away is a decision with serious financial consequences for everybody concerned. Before you sign over the homestead to your adult child, consider these factors, which could make you think twice about doing so.

1. You Could Be Giving Your Child a Huge Capital Gains Tax Bill

If you purchased your house a few years or a few decades ago, it has most likely gone up in value. If you gift a home to a child and they sell it, they will be taxed on the gains or appreciation of the property. For instance, if you bought your home for $200,000 and it’s now worth $500,000, your child may be subject to capital gains of $300,000 if/when they sell the property.

Instead of forcing your children to deal with that tax burden, you can instead set up a trust where you are the grantor, and your child is the beneficiary. Under this approach, when your child receives your home upon your death they get a step-up in cost basis, meaning the property they acquired is valued at fair market value and not the original price. This serves to prevent the many years of appreciation.

2. Avoid Crossing Into Medicaid Ineligibility Territory

Typically, you do not have to sell your home in order to qualify for Medicaid coverage of nursing home care, however, the state could file a claim against the house after you die. If you get help from Medicaid to pay for the nursing home, the state must attempt to recoup from your estate whatever benefits it paid for your care. This is called "estate recovery." If you want to protect your home from this recovery, you may be tempted to give it to your children.

Transferring your house to your children (or someone else) may make you ineligible for Medicaid for a period of time. The state Medicaid agency looks at any transfers made within five years of the Medicaid application. If you made a transfer for less than market value within that time period, the state will impose a penalty period during which you will not be eligible for benefits. Depending on the house’s value, the period of Medicaid ineligibility could stretch on for years, and it would not start until the Medicaid applicant is almost completely out of money.

There are circumstances under which you can transfer a home without penalty, however, you should consult a qualified estate planning attorney before making any transfers. You may freely transfer your home to the following individuals without incurring a transfer penalty:

· Your spouse

· A child who is under age 21 or who is blind or disabled

· Into a trust for the sole benefit of a disabled individual under age 65 (even if the trust is for the benefit of the Medicaid applicant, under certain circumstances)

· A sibling who has lived in the home during the year preceding the applicant's institutionalization and who already holds an equity interest in the home

· A "caretaker child," who is defined as a child of the applicant who lived in the house for at least two years prior to the applicant's institutionalization and who during that period provided care that allowed the applicant to avoid a nursing home stay.

3. Losing Control Before You Are Even Gone

It should be noted, by transferring your house to your children, you will no longer own the house, which means you will not have control of it. Your children can do what they want with it. Even the most responsible adult child can run into financial troubles. Your child now owns a portion of the home and if they have children applying to college, run a business, declare bankruptcy or a divorce proceeding these can affect you also. One big surprise you may not have thought of is that if your children are sued or get divorced, the house will be vulnerable to their creditors and when you gift the home to your child or add them to the deed, you may be vulnerable to losing the property while you are still alive.

Discuss Your Options With An Expert

Before making a big decision on what to do with your home, be sure to contact me to discuss your options. As a board-certified estate planning attorney, I can review the best methods for your financial situation and your goals, and if the concerns addressed above resonate with you, then you should strongly consider using a trust to transfer ownership of your house. An important strength to using a trust is that the capital gains taxes do not come into play when your child becomes the beneficiary at the time of your passing. Different types of trusts include living trusts, irrevocable trusts, grantor trusts, and assorted other variations with specific traits and purposes. Contact me today and I will work with you to identify the right trust strategy for you and your family.

Don't Lose to Sharks

Tue, 18 Jul 2023 20:18:46 GMT

"Sharks" will find your weakness and attack

Imagine you are at your favorite beach with your family. All of the comforts you can think of as you enjoy yourself. You sink back comfortably on your beach lounge chair and soak in sounds of your loved ones having the time of their lives.

Out of nowhere, a frenzy of sharks appear. Now, this is unexpected, but certainly not unheard of around this stretch of beach. What is the first thing you take action on? Fear washes over you. The hairs on the back of your neck stand immediately at the thought of all you worked so hard to nurture, falling prey to a swarming circle of hungry sharks.

You startle but regain composure. Now you rush to reach your family to save them and pull them out of the shark invested waters.

Soon, you realize there were signs and warnings all along. At the breakfast bar of the resort, you recall hearing murmurings from other guests about the sharks who come around at this time of year. You remember seeing postings about shark attacks recently on the beach near the parking area. Then it dawns on you that you were the only family on the beach that day. Though it struck you as odd, you and your family were so set on having a fun time on the beach, these warnings did not even register.

Now you feel a bit foolish and wish you had paid closer attention, and as soon as the immediate scare is over, you start to think, "How could I have prevented this from happening in the first place?"

I share this imagined story to illustrate that when we are not paying attention and are not prepared to protect ourselves from the unexpected, but possible, dreadful things can most certainly happen. We can get lucky and skirt by without any damage, but in reality, getting lucky is the outlier situation.

From my experience, and the experience of hundreds of my business owner clients who have heeded my advice and used my 3 Bucket Method to properly structure their business entities, it is those who plan ahead with the right chain mail armor that make it through the "shark attacks" of lawsuits and litigation attorneys.

When you put a little chum in the water, you open a shark's appetite. The countless billboards you see on the highways for personal injury attorneys is proof of the hunger that exists for big-dollar verdicts. Yes, I am talking about the 444s and the 222s and even the Numero Unos out there and if you find yourself in an unexpected lawsuit because an employee crashed into someone while making a delivery or someone injured themselves on a property you own, or any number of things that you don't expect to happen, but do; you can most certainly expect the "sharks" on the other side of the courtroom to find whatever crack in the protective armor of your LLC or business entity in order to sniff out even more assets. Oh, and sharks also come dressed as IRS auditors, and the "beach" will soon fill with them too.

The "cracks" I am referring to are things like:

not updating your annual minutes in the last 3 years or more, or
not documenting intercompany loans and leases or agreements.
having other major transactions or real estate purchases under one LLC with little to no official documentation.

All this and more, are the types of "chinks" in your shark armor you need to be worried about, because these will be exploited for the benefit of the opposing counsels' attempts to consider all of your assets accessible in a lawsuit or an IRS auditor gets a craving to really stick it to you for not keeping your corporate records up to date.

There IS a way to be sure you have the strongest armor for your business that the government allows. There IS a way to fight off a "shark attack" by not ever letting it happen in the first place. There IS a way to be the victor and not the victim, and I can show you how.

By taking steps to have all of your corporate records updated each year with my new 3 Bucket Method Entity Maintenance Service, YOU will be the one with the upper hand when you find yourself in a lawsuit or an audit.

Clients who use my proven method for properly structuring their business entities, plus implement my new 3 Bucket Method Service, do not worry about having their hair stand up on the back of their neck because someone is trying to sue them.

Instead, they have the peace of mind that their business will be monitored all year long for compliance and their annual minutes will be prepared on time, ready for any audit or inspection.

My clients know that we will ensure that their company binder never becomes a messy stack of papers, with little substance. Instead, my clients who subscribe to my 3 Bucket Method Entity Maintenance Service, rest easy knowing that any additional items needed to keep the protection of their business entity intact can be created and ready as a result of our annual audit of their business.

I will explain the benefits of my proven method here in my book The 3 Bucket Method for Asset Protection. For your free eBook access, click here.

Friends, this is the time to heed the signs of warning. This is the time to open your eyes to the obvious. It is not the time to dissuade you from traveling to your favorite beach this year, but this is the time to take advantage of the time I am making available just for you. I am making myself available to all of my e-newsletter readers for a discovery call to learn more about how they can arm themselves in a custom "shark-proof" suit. To see if you and your business entity are ready to get started on the program, my team has set aside special time slots for these discovery calls. Simply reply to this email with your name and business entity to get started and we will coordinate the rest.

If this resonates with you and you want to protect your business assets and legacy, or you have any other questions, we are available in person, by appointment or by Zoom. In South Texas, call us at 956-791-5422.

"And the flight leaves Friday", he says.

Thu, 06 Jul 2023 16:44:06 GMT

Don't let procrastination ruin your vacation plans

I always say, It’s never too late to get your estate plan done, but don’t put it off. I want to take this opportunity to tell you a story about my good friend and client. My client and friend is a contractor, he owns his home, has his own business and has investments in real estate.

I met him about 25 years ago, when we were both “real estate-aholics”. This is how we met and we did several real estate deals together. It was way back then that I first brought up the importance of estate planning to him. He had his daughter over 20 years ago, and I really started to emphasize the importance of having an estate plan.

I continued reminding him of the responsibility we have to take care of our kids, even when we are not around anymore.

He agreed with me wholeheartedly and insisted that he would set up an appointment.

Unfortunately, he procrastinated for a few years. Some time passed and he finally came in and we got the intake information filled out, but never pulled the trigger to get the documents going.

He then had his second child and I reminded him again of the importance of the estate plan. Over the years, at social gatherings and birthday parties, we have touched on the need get the estate plan done.

The answer was always, “Yes! Next week”, but next week would never happen. Until, a trip out-of-the-country recently triggered his desire the “GET IT DONE” and now it was urgent.

He called me on a Wednesday for us to meet about moving forward with his estate plan. “And by the way, our flight leaves on Friday,” he says.

We were able to put the documents together and we got the documents signed Friday morning in time for him to make his flight.

He had a great trip with his family, knowing that his estate plan was completed and if anything happened to him, there would be a smooth transfer. He now wonders why he waited so long, but nevertheless, is glad he got it done.

I don’t relay this story to suggest that you put off your estate plan, but rather to suggest that its not to late nor too early to get it done. On the other side of this story and as a word of caution, I share another story about a client early in my career.

We met on a Friday morning to discuss his estate planning and asset protection needs. He said, “Let me think about it over the weekend and I’ll let you know on Monday if I want to proceed”. Sadly, he passed away that Saturday night.

With that said, I can’t stress enough, it is important not to put this off. I invite you to take action today.

Contact us today to help you learn about estate planning and start putting together the information for your estate plan. I invite you to schedule an appointment with our office. Remember don’t procrastinate about estate planning, you never know when it will be too late.

If this article resonates with you and you are finally ready to begin preparing your will or reviewing your current will, or have any other estate planning or asset protection questions, we are available in person, by appointment or by Zoom. In South Texas, call us at 956-791-5422 and in Central Texas call us at 830-302-4577.

Avoiding Disaster in a Second Marriage Situation

Thu, 06 Jul 2023 16:41:34 GMT

What you need to know before your nuptials

Some of you have been married more than once. Some of you have children from each of those relationships. Some of you still don't have a will.

If this describes you, guess what?! The Texas Legislature has prepared your estate plan for you, and it probably is not what you want and will likely lead to litigation and fighting among your spouse and children.

To help you understand how this works, I will use the following example throughout. Able is our decedent. He was married to Betty and they had 2 children Charles and Daisy. Able and Betty divorced. Able then marries Esther and they have one child Frank. Able dies without a will. Section 201.002 of the Texas Estates Code, directs where Able’s separate property will go as follows: 1/3 of the personal property and a life estate in the Able’s land goes to Esther his surviving spouse, 2/3 of the personal property and the remainder of the land goes to Able’s children, Charles, Daisy and Frank. Section 201.003 of the Texas Estates Code, directs where the community property of Able and Esther will go:

Esther will keep her ½ of the community estate and Able’s children, Charles, Daisy and Frank will share Able’s ½ of the community estate.

As you can see, there will be quite an issue between Esther and Charles and Daisy, when it comes to the house.

Esther will get to stay there, in addition, Charles, Daisy and Frank will need to wait for Esther to pass away to get access to their share of the real estate.

Likewise, the furniture, vehicles, etc., would need to be divided 1/3 and 2/3.

These divisions can create a lot of interfamily tension.

There is a solution, an alternative to the Legislative estate plan. By drafting a will, your decision, your plan is what will control. Why not have your plan control the way your assets will pass. There are many different combinations of how assets can be distributed. It is important to meet with your legal advisor to see how to best distribute your estate. In summary, you should choose how your estate is distributed. As you can see, not making a choice still is a choice (though not a good one).

If you are interested in preparing your will or reviewing your current will, or have any other estate planning or asset protection questions, we are available in person, by appointment or by Zoom. In South Texas, call us at 956-791-5422 and in Central Texas call us at 830-302-4577.

To Zoom or Not To Zoom?

Fri, 09 Jun 2023 20:59:53 GMT

DIY Legal Estate Planning Documents Can Fail You

Did you know, that 55% of the U.S. Population does not have a will, or other estate plan in place? I dare say it is even higher. As a result, these families will be faced with extra legal expenses, and even have difficulties in accessing funds to pay for funeral expenses. Don’t let that be you.

When Something is Better Than Nothing

Although it is tempting to go online to LegalZoom or other similar sites that will provide you with a “State Specific Will”, what you need to realize is that taking the "do it yourself' approach can be more damaging than you imagined. While, it is better than nothing, you may be missing several issues related to your personal situation that can only be identified when discussing with an Estate Planning attorney, preferably one that is board-certified. There are unfortunately plenty of negative outcomes that can result from not having a will or trust as your estate plan.

Doing Nothing is Also a Choice

Recently I met with a client who did not have a will and he asked what happens to my things if I die without a will. I informed him what the Legislature's estate plan was for him. The government's estate plan, however, was not how he wanted to distribute his estate. An example of the potential for problems is, if you are married and all of your children are not also your spouse's children, then your spouse keeps their 1/2 of the community property and your children get the other half of your community property.

This may not be the way you want things to go, because it caused tension, disagreement, anger and frustration for all involved. You should decide how you distribute your estate.

A longtime client that I had been continually pleading with to do his will, died unexpectedly the day before payroll for his business. He was the only signer on the checkbooks. He had no will, trust or other estate plan in place, and as a result his wife had to pay over $5,000 just to get a court order authorizing her to sign payroll checks. This does not include all of the other probate matters that ensued. With proper estate planning, this nightmare could have been avoided for his family.

I ask that you not let another day go by that you leave the matter of your estate unattended. Do not leave a mess for your family to deal with when you die. They will have enough on their minds with the grief of your loss, don't add to their burden by not having planned ahead for their benefit.

Call my office or email me at info@dickersonlaw.com set an appointment to begin taking care of your estate planning needs. We offer free initial consultations which will help you get you understand all or your options.

Your Company Binder: What is Missing Can Cost You Big Time

Fri, 09 Jun 2023 20:42:47 GMT

What You Need to Know About Keeping Yourself Protected

Do you know where your Corporate Book is right now? Some of you may wonder where it is, and others may wonder WHAT it is?

Your Company Book is where you keep the legal records of your business. It is where you record the history of your company and document the actions taken by its directors, officers or managers.

As a business owner you are focused on your Business: customers, service, products, cost, profits, bank account balances, just to name a few, maybe not your Company Book. When you set up your company, you probably checked it off you to do list, and were happy be done with it and be able to move on to the things that make money. However a key item to think about is keeping up with your Company Book or Binder.

3 Questions to ask yourself today:

1) You may have two or more companies that do business with one another. Did the company buy or sell any assets? to third parties or to related companies? Did you document these transactions in your company minutes? Are you having meetings to approve your companies actions, or do you just do it?

2) Throughout the year(s) you may have paid for certain personal items with your business or perhaps paid for business items from your personal account or another business account. Your company may have leased a property from you.

3) Have you asked yourself "What's in your Company Binder?"

You can avoid this potential disaster by keeping up with your Entity Binder. It is important to document your company activities (and in some cases non-activities) in a proper, coordinated and complete manner. Rely on a professional familiar with the importance of Entity Maintenance, it often involves more than minutes to properly document a transaction, without leaving holes that can be attacked or challenged.

Entity Maintenance involves documentation of the business of your entity. In law "if it is not in writing it did not happen" can cause problems and increase pressure when things go wrong. In a lawsuit or an IRS audit, one of the first things you will be asked for is your Entity Binder. Not having it up to date will create cracks in the armor of the Asset Protection Entity. When you don't have proper documentation to substantiate the business activities, you leave it up to interpretation, the interpretation of a jury or an IRS agent. The potential loss could be financially catastrophic.

You can work on this yourself, or you can hire a qualified law firm to handle these documents for you. I am ready and able to assist you in coordinating your minutes and other corresponding documents to insure your business continues to provide you protection.

TIP OF THE MONTH

Document your business activities, in your entity binder, but also remember to create the underlying agreements between companies and individuals. If you lease property to your business, be sure you have a lease agreement in place. If one company borrows money from another, be sure that you have a promissory note with interest charged. And of course record these transactions in each corresponding entity. When you have a thorough set of documents, you will have a stronger shield of protection. Save yourself the hassle and be assured the job is done right, contact us today!

If you are interested in updating your company binder, forming a new entity or to review your business structure, or have any other estate planning or asset protection questions, we are available in person, by appointment or by Zoom. In South Texas, call us at 956-791-5422 and in Central Texas call us at 830-302-4577. The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.

Why I Recommend Multiple Entities for Business

Tue, 16 May 2023 22:48:19 GMT

This is a subtitle for your new post

Part of the reason that the Titanic sunk so quickly and so many lives were lost, was that the compartments that make up the hull of the ship were not completely sealed from one another. When the iceberg tore open the first three compartments, water flooded in and filled those then began filling the rest of the ship. If those compartments had been sealed from the others, the ship may have been able to stay afloat longer, proving safety for the passengers, at least until help could arrive, saving many lives that were lost.

What does this have to do with multiple entities?

As our businesses grow, and we acquire more assets, it becomes ever more important to compartmentalize these assets. I will give you an example of a type of business that is very prevalent in Laredo and along the border. The trucking industry. The company usually will begin with a few tractors, and maybe some trailers. If the business is well managed, sales increase and more vehicles are purchased. Then having a terminal or yard of your own in order to build equity and eliminate rent going out the door every month.

With this example in mind, let’s remember that the U.S. is the most litigious country in the world. Trucking is a high risk industry. Let’s say one of your drivers is negligent in his driving your truck, resulting in the death of a family. Your insurance company will provide a defense and may offer to pay the full policy limits to settle the case. But it might not be enough. If you began your business by forming a business entity like an LLC or a corporation, your personal assets will be protected, but all of the assets of the entity will be on the line to pay any shortfall the insurance does not cover. That means that all company vehicles (or the equity you have in them) and company property, can be sold to pay for the judgement. This can be a devastating result, even if your personal assets are not affected. Your way of making a living has been taken away and you have to start over from scratch.

Is there a way to reduce the risk? Yes, there is.

Again, using the initial example, I will show you that using multiple entities will provide protection, allowing you to continue moving forward with your business, without the total loss and devastation. As the business began to grow and acquire additional vehicles and equipment, you formed a new company to purchase the equipment, own it and lease it to your trucking company. In that lease, you specify that the trucking company is responsible for all maintenance and damages. Your trucking company now pays your leasing company to use the equipment, it does not own any vehicles. When you purchase your terminal or yard, you form yet another Company that rents the property to the trucking company. If there is an accident with your driver, they can only reach the assets of the trucking company. The trucking company does not own many hard assets, just some computers, desks, and other office equipment (if these things are not also leased). The vehicles (which are what make money for you) are then leased to a new company and will continue to produce income for you. The property is not exposed because it is in a completely separate company and a fair rent is paid.

This may sound too good to be true. It is not too good to be true, but it is more work to maintain the separateness of these companies. For this to work, you need to not just create the companies, you must insure that you maintain contracts, like if you were dealing with a stranger. You must maintain your entity minute books documenting all of the intercompany agreements and transactions so you can defend the separateness of the companies. It is through the regular maintenance of the intercompany transactions and records that you insulate each entity from the other.

Unlike the Titanic, by forming these compartments in your businesses, and maintaining the separateness, you can rest assured that your ship will not be easily sunk and that you will be able to make your way to continued success.

If you are interested in forming a new entity or to review your business structure, contact me at 956-791-5422 or email at info@dickersonlaw.com to schedule an appointment for a review of your business structure.

My Top Pet Peeve

Tue, 07 Mar 2023 22:40:04 GMT

The woes of letters testamentary & small estate affidavit and what it takes to get them

I wanted to take a moment to talk about a little pet peeve that I have. This deals with what certain non-attorneys, like financial professionals from mainly banks and insurance companies, tell their clients that they need when they are they are trying to collect on life insurance benefits. This is also something that they say if they are trying to collect the funds that are might be in a bank account that didn't have a POD (pay on death) after their loved one has passed away.

So, what is my pet peeve that that they say, you ask? They say, "Oh, just go to your lawyer and get letters testamentary or letters of administration and if you can't get that I will even accept a small estate affidavit if that's what is that's available."

So, what happens next? My clients then come to me and say, "Hey, Mr. Dickerson, can you get me a letter testamentary so I can get this money out of the bank? Or a letter of administration will do fine, too. Or do we need a small estate affidavit?" The truth of the matter is, the banker or financial representative has now made my client believe, unfortunately, that our firm can just whip that out and they can then go over to the bank that same afternoon and go ahead and get their money out. Or they are now how a false sense of hope that they can just send these types of letters out to the insurance companies and they will send them a check. Well, what they don't tell you is that the lawyer doesn't get those for you directly. They don't we don't prepare letters testamentary. The county clerk prepares those, and they don't prepare any of that stuff until after we've gone through probate.

What are Letters testamentary?

"Letters testamentary" is what the executor receives when he or she is appointed. This is the executor's proof that he or she is duly appointed and authorized to act as the personal representative of the estate pursuant to a Will. But as I mentioned, to get that we have to file a probate and go through the probate process before we get them appointed and get those letters. Plus, getting those letters isn't just the end of it. There are duties and responsibilities that come with letters testamentary and letters of administration. Letters of administration are almost identical, except that they call them letters of administration because they are for somebody who died without a Will. So, the person is the administrator, not the executor and are court appointed and authorized to serve as a personal representative.

Once we have those letters; letters testamentary or letters of administration, we then have some duties. We have to file a notice to creditors. We have to do an inventory. We have to distribute the estate. As you can see, all those are additional things that come into play. So, when a financial representative tells our clients, "Oh, you just need to get us letters of administration, your lawyer can do that", it's not quite that easy.

Small estate affidavit

Now, let's talk about the small estate affidavit. The small estate affidavit is a is a great vehicle for somebody who maybe didn't have a large estate. Perhaps they didn't have a Will and didn't have any bills, or a bunch of debts and properties that we need to deal with. What happens then is, we write up the small estate affidavit, and it basically gives a whole history of the decedent, like when they were born, when marriage or marriages occurred, the children, siblings (if appropriate) and what properties they had and also when they died. This needs to be signed off by everyone who would receive from the estate, like the kids, grandkids., plus two disinterested witnesses would also need to sign off. This gets filed like a probate. We then have a hearing. In some jurisdictions, they do it by submission, meaning, you just submit it and after the judge looks it over, he or she will sign off on it and it'll be done. In Webb County, we do have to have a hearing, so we have our client prove up and they give testimony in support of the evidence that's stated in the affidavit. Then, they will be able to get the affidavit signed by the judge.

That affidavit obviously takes time and it's a lot more involved than just creating a quick document in our office. I hope this information has been helpful to you and I hope it clarifies what some of these different terms areas well as helps you understand that sometimes what some financial institutions or insurance companies might say things in a way that sounds like it is something really easy is, in actuality, something much larger and involves a longer process that needs to be thought through with other additional responsibilities once you get going. All right. Until next time. This is Joseph Michael Dickerson from The J.M. Dickerson Law Firm and if you would like to visit with us in person by appointment or by Zoom, contact us today by calling (956) 791-5422.

Tough Decisions Made Easier

Tue, 07 Mar 2023 22:28:48 GMT

Deciding not to avoid probate? Read this first.

One of the many decisions you will need to make about your estate plan is whether you want to avoid probate or decide if it makes sense for you. Probate is the legal process for settling an estate after someone has died. It is also known as estate administration. The main purpose of probate is to provide inheritors of a deceased person’s property with clear title to the property.

Should You Avoid Probate?
During probate, the decedent’s personal representative (also called the executor if the decedent left a will or the administrator if the decedent did not have a will) locates the decedent’s assets, pays his or her debts, and distributes the remainder of the estate to the beneficiaries named in the will or heirs specified by state law.

Here are some reasons why you might prefer for your estate to pass outside probate:

Probate expenses can shrink your estate significantly

Cost is probably the most important reason people decide to avoid probate. Attorneys’ fees are often the biggest expense. Most personal representatives decide to hire an attorney to navigate the probate process. It can be difficult for a non-attorney to figure out the procedures, forms, and deadlines. Courts do not always have clear instructions available for non-lawyers or staff available to help. Some states require the personal representative to hire an attorney. Attorneys’ fees can be expensive. In some states, they are based on the value of the estate. In others, on the amount of time the attorney spends and what the judge thinks is reasonable. It is not unusual for them to run into the tens of thousands of dollars depending on the complexity and size of the estate and whether the estate is contested. Plus, there can be fees for executors, court filings, appraisers, and other expenses, such as real estate taxes, insurance, utilities, and property maintenance. These fees are all deducted from the estate and can take a big bite out of it. For smaller probated estates, fees can greatly diminish the distributions the heirs receive.

Probate can take a long time

Probate is not typically a fast process. A minimum of six months is usually required. Even routine uncontested probates can take several years to complete. While the probate drags on, the beneficiaries and heirs wait to get their distributions. By contrast, when probate avoidance methods are used, property transfers can be completed in weeks.

Probate filings are public

Many court probate filings are a matter of public record. Probate could open up information to the public that you would prefer to keep confidential.

The Flip Side...

Although avoiding probate is a good plan for many individuals, you may decide that you want your estate to be probated if any of the following are true:

The cost and effort of

probate avoidance exceed the expected expense of probate

A revocable living trust is the principal tool for avoiding probate. A revocable living trust is more expensive to have prepared than a will. Even once it is created, the trust must be maintained until death. The costs associated with a revocable living trust sometimes exceed the expected cost of probate. This could well be the case if you have a small estate that qualifies for simplified or expedited procedures. If you bring your estate planning attorney an inventory of your assets, he or she can advise you whether avoiding probate will likely save you money in the long run.

You expect challenges to your estate plan

If you expect your estate plan to be challenged by disgruntled relatives, friends, or associates who are likely to be unhappy with your choices, probate offers an efficient forum in which to resolve the conflict. Challenges to a will or living trust are rare, and the grounds are limited and difficult to prove. They include fraud, undue influence, duress, or mental incompetence.

You have significant complex debt problems

Probate may be an advantage if you have many creditors. When an estate is probated, creditors have a deadline by which they must file claims against the estate. If a creditor misses the deadline, the debt is extinguished. Valid claims must be paid before your estate is administered. Your heirs or beneficiaries get their inheritance without worrying about creditors appearing to claim some or all of it. Few estates are in this category, however. When you meet with my team, we can discuss whether avoiding probate makes sense in your particular situation as well as any other estate planning issues and concerns you may have. Here for you.

Finding Real Estate Opportunities

Tue, 07 Mar 2023 22:16:48 GMT

Finding Real Estate Opportunities

Finding real estate opportunities takes continuous monitoring. There are always opportunities out there; however, if you’re not looking for them, you won’t find them. Real estate opportunities will rarely go looking for you. And don’t forget, other people are looking for these opportunities as well. If you’re not looking, someone else will get them before you even know about them. Although this may sound like a daunting task, it doesn’t have to be. Monitoring simply means keeping your eyes and ears open. You need to focus your perception, so you can be sure you’re not overlooking something. The best place to start is where you live, limiting your research to a specific geographic area as opposed to all over the country or the state. It’s likely that you will know what areas are desirable for different types of property ownership and development. Some areas may be good for apartment rentals and others may be better for commercial. The time you invest in getting to know your market and area will pay you back many times over. Developing this knowledge will keep you from buying in the wrong neighborhood or the wrong property for that neighborhood. The first place to look is in your local newspaper’s classified ads. Look at all the properties for sale. Keep this up for several weeks and you will begin to realize what the retail prices are for properties in different neighborhoods. As this becomes a habit, you will discover the properties that were overpriced and, thus, have stayed on the market for quite some time. These properties can become opportunities after they’ve sat on the market for a while because the sellers may get frustrated by the lack of offers or activity. They will eventually realize that their prices are too high and will negotiate to at least reasonable prices, if not better. Remember that the prices listed in the classifieds are asking prices, not final sales prices. It has been my experience that a property usually sells below the asking price. Real estate guides (those free magazines with property listings) can be another source of information. They usually have pictures of the properties for sale. These pictures can help rule out properties. But remember the old adage, “Never judge a book by its cover.” Don’t decide against a property just because it doesn’t look perfect. It may only need a little cosmetic improvement, or maybe it just didn’t photograph well that day. You may find that a property looks bad, but upon close inspection you see it merely needs some landscaping and paint to bring out its beauty. These are relatively inexpensive improvements that can pay off handsomely. Real estate guides can also be a source to help you to find mortgage companies, insurance providers, and even property inspectors to assist you in your evaluation or purchase. You can see a lot of properties by thumbing through the pages of a real estate guide and you will also see how different real estate people market their properties. When you’re in the market to sell, you’ll want to choose the real estate firm that will be the most effective. Real estate brokers and agents can also be good sources for properties. It’s important to find a real estate agent who will help you find the right property. To do so, the real estate agent must understand what you are looking for in order to narrow your options. Real estate agents have access to information on properties through a multiple listing service. This service is often referred to as MLS. It provides real estate agents with a list of properties that are for sale and includes details about property size and characteristics. This service is searchable to find properties that fit the buyer’s property profile. An easy example is a three-bedroom, two-bath home in a specified zip code, school district or neighborhood. This search may turn up several prospects for the real estate agent’s customer. It’s also important to establish yourself as a viable customer for your real estate agent. My hat is off to the agents; they may show someone a hundred properties and not sell anything. This can be frustrating, but it’s part of the job. Consequently, if your real estate agent feels you are a real buyer, she will make you aware of properties before showing others. An agent is best implemented when you have narrowed your scope to a specific property type in a specific area of town. People around you, friends and relatives, can also be great sources for prospective properties. These people may have information that can help you get a jump on the competition and get a great deal. Divorces and deaths are tragic situations, but they offer opportunities. Knowing that the neighbor down the street is getting a divorce and has to sell his house as part of the decree is useful information. You might be able to deal directly with the seller before the property is ever listed. The death of an elderly relative or acquaintance, although tragic, could pose a problem of liquidating the estate’s assets to pay medical bills or taxes, or even just to divide them fairly among the heirs. In this case, you may be able to purchase the property from the estate’s executor. To some people, it may seem like you are taking advantage of someone in a bad situation, but realize that in these situations, it’s usually best to get things over with as quickly as possible. And sometimes you just hear that your friend or neighbor has some property they want to sell. Keep your eyes and ears open. Someone is going to buy; it may as well be you. Driving around the neighborhoods that you feel have potential for the type of investments you’re looking for is another great way to find a property. Many times, you will find that if the property is for sale, it will have an agent’s sign or “For Sale by Owner” sign. Sometimes you may see an apparently abandoned property that has great potential. You can find out who the owner is by looking up the address in the local appraisal district’s roll. With this information, you can contact the owner to see if she’s interested in selling her property. Although I haven’t had good luck with this technique, some of my clients have been successful with it and so I pass it on to you. You should look at as many properties as you can before deciding to buy. Drive around the properties you saw in the newspaper or the real estate guide. This will be a learning experience. You will see what amenities are offered in different property developments and different property types.

I have found that out of one hundred properties you look at, there will only be one that you wind up buying. When I say that I look at one hundred properties, I’m including the ones I consider in newspaper ads and real estate sales brochures, and when I drive around town looking for “For Sale” signs. Just these simple things can take up some of your leisure time. However, you will find that the rewards can be significant. I found the first income property I bought by looking in the classified ads in my local newspaper. It was a ten-unit apartment complex for sale. The ad provided the address, so my wife and I drove by to have a look. The property was a nice corner lot with a house, nine apartments, and a laundry room. Later that day I called the owner to schedule a time to look over the property. Sure enough, the owner was willing to negotiate, and we came to an agreement on the price, including a partial owner-financing of the purchase. Three months after we saw the classified ad, we owned our first income-producing property. Don’t be discouraged if you don’t find the property you’re looking for right away. If you have planned your goals, then you should stick to your plan. The worst thing anyone can do is buy a property because he thinks he needs to, not because it makes sense. Many people have gotten so wrapped up in buying a property to have an investment that they may make someone else a lot of money by paying full price on it. Do not fall in love with an investment property. It will cloud your judgment and you could lose it in the end if you pay too much and things don’t go as well as you expect. Sometimes when working with an individual seller, you will find someone familiar with real estate deals. When you are dealing with someone who has made their wealth already, you may find him willing to be flexible with your financing options, perhaps willing to provide owner financing for part of the purchase price.

As you have seen, there are many ways to find properties. You don’t have to stick to just one, but if you find something that works, keep using it and improve on it until perfected. To learn more, contact us, and we will send you a free copy of my book, The Road Map to Rich: a Lawyer's Perspective on Getting and Staying Rich, as my gift to you.

Prevention is the Best Medicine for Your Business

websitebuilder@thryv.com — Fri, 08 Jul 2022 21:52:54 GMT

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Asset protection is something that needs to be in place before something happens. Once you have received a letter from an attorney, the risk of being able to get protection can be at risk of a suit for fraudulent transfer. As the saying goes, “Prevention is the best medicine” and taking action ahead of time to protect yourself is the best step to take. But where to begin?

Like insurance, you need to have a plan for the assets tied to your business before you have a problem, in order for it to work. In Mike’s book, The 3 Bucket Method for Asset Protection, he stresses the importance of keeping up with your corporate documents on an annual basis. And the first step to your asset protection plan can be identifying who in your corporate organization will be in charge of this task. In a nutshell, this includes keeping your annual minutes updated, having your records and agreements updated and identifying what you are missing for at least three years back.

Now you may ask yourself, do I really need to keep company minutes for every year? The fact is, corporate minute books serve as your official corporate records, so keeping up-to-date needs to be high on the priority list. Maintaining the minute books allow people to understand the decision-making processes of the corporation. Well maintained corporate minute books are an effective means of creating a paper trail to demonstrate to banks when you want a loan or government authorities, like the IRS during an audit, what transactions the corporation made. Banks and the IRS typically ask for the last three years of corporate documentation.

Business owners should maintain current and proper corporate records so that creditors, which include the IRS, are not able to challenge the validity of the corporate shield. Theses records and agreements should be stored in a safe place, since it is critical to maintain the corporate shield. By maintaining corporate records, the corporation meets state reporting and filing requirements. If a business owner doesn’t maintain corporate records or is unable to annually report and file records, the business entity might face penalties, fines and get dissolved. But maybe you are missing your corporate records and agreements.

What do you do then? Failure to maintain your records and annual minutes can invalidate the protection your corporate entity provides. Keeping current to avoid losing your protection is easier than you think. At our firm, we consider ourselves "the business doctors" and can help you manage these requirements so your entity is giving you the greatest protection available under the law. What we can do is conduct a Risk Audit Assessment that we base off of Mike’s book The 3 Bucket Method for Asset Protection. We can help you identify what you are missing and you can leave it to the professionals to get your business back to health and out of the “risk zone”.

Our Risk Audit assessment session is complimentary to our clients and Dickerson Digest subscribers, so be sure to take advantage of this opportunity and have your business maintain the protection you started with when you moved it into an LLC entity or similar business entity. In South Texas call us at 956-791-5422 and in Central Texas call us at 956-791-5422. Hope to chat more soon!

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