Each state has its own laws regarding estate planning and real estate. Property laws can vary significantly, affecting everything from the way property titles are held to how estates are taxed and probated. Therefore, the first step in planning your estate is to understand the specific laws that apply in each state where you own property. This may require consultation with estate planning attorneys who are licensed in each respective state to ensure all local regulations are met.

One of the primary challenges of owning property in multiple states is the possibility of having to go through multiple probate processes upon death. Probate can be time-consuming and expensive, particularly if it needs to be conducted in several states. To circumvent this, many estate planners recommend placing the out-of-state property in an limited liability company or perhaps a revocable living trust.

While Texas does not have an estate tax, if you own property in multiple states, you might be subject to estate taxes in each of those states, depending on their laws. Some states have higher estate tax thresholds than others, and a few have no estate taxes at all. Planning strategies might include shifting your domicile to a state with more favorable tax laws or restructuring ownership of properties to minimize the tax burden.

It’s also important to consider the impact of capital gains taxes and how they interact with estate taxes. In some cases, keeping property in the family can lead to significant tax advantages over selling it before death. An estate planning attorney can provide guidance on how to best manage these tax implications.

Organize and maintain detailed records for each property, including deeds, mortgage documents, insurance policies, and a list of all maintenance activities. This documentation will be invaluable for the executor of your estate or the trustee managing the trust.

As laws change and your personal circumstances evolve, so too should your estate plan. Regular reviews and updates will help ensure that your estate plan continues to reflect your wishes and adapts to any new laws or changes in your asset portfolio.

If your estate plan is complex, consider holding a family meeting to discuss your plans and the responsibilities each family member may have. This can help prevent confusion and conflict after your passing, ensuring everyone understands your intentions and the legal landscape.

Owing property in multiple states adds a layer of complexity to estate planning, but with careful preparation and expert advice, you can ensure that your estate is handled smoothly. Limited liability companies, trusts, strategic tax planning, and regular updates are key components of an effective multi-state estate strategy. Consulting with professionals who understand the nuances of multi-state estate planning will provide peace of mind, knowing that your legacy is secure and your wishes will be honored.

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Gather Important Records:

           Death Certificate (can be provided to probate attorney after initial meeting)

           Social Security Card

           Driver’s License

           Marriage Certificate

           Birth Certificate

           Birth Certificates of Children

           Insurance Policies

           Business Documents and Agreements (consider if the business had a succession plan – this will be apart from the probate process)

           Auto Titles and Registration

           Deeds & Titles to other Property

           Bank Account Information

           Bank Safe Deposit Box Information (Who can access the box and where is the key?)

           Financial Account Information (stocks & bonds)

           Retirement Account Statements

           Tax Returns (last three years)

(Consider tax filing deadlines for the current year)

            Loan Documents & Debt Information

            VA Information (discharge papers & VA claim number)

            Digital Account Information (account information, passwords)

            Information regarding Intellectual Property Rights

            Social Media Account Information (access, information & legacy programs)

            Estate Planning Documents (powers of attorney end upon death)

It is important to consider if any of  the above Assets have Beneficiary Designations.

Locate the Will. There is no formal requirement to file a Will before death.  If you cannot locate the original Will, you should also check with the attorney who prepared the Will – sometimes Attorneys will maintain the original Will.  Other places to look for an original Will include the following: bank safe deposit boxes, safes, gun safes, safe rooms, fire proof boxes and the freezer.  A lot of estate planning & probate attorneys use blue ink to help us determine that the document is an original. Original documents also often have colored jackets.  You should also check with other advisors such as CPAs, tax preparers, financial advisors, and insurance agents.  As mentioned below, at times and in certain circumstances a copy of a Will may be admitted to probate. Consider that a few companies offer digital vaulting of important documents such as Wills.

Review the Will or Trust – read it.  In Texas, the Will needs to be signed by the testator and be witnessed by two individuals above the age of 14.  Don’t assume the Will is valid or invalid.  Don’t assume that because its old its invalid.  Don’t assume that because it was prepared by an online company that it’s valid.

Generally, the original Will is admitted to probate, meaning filed with the court and retained with the court file.  However, in certain circumstances, a copy of a Will can be probated. Note, Texas also recognizes the existence of a “Holographic Will” – this Will needs to be “entirely” in the handwriting of a testator and signed.  Just signing a typed document doesn’t count.  Once you locate the Will you should keep it safe because your probate attorney will need to review it at the initial meeting.  You will need a probate attorney.  You cannot represent yourself in a Texas probate.

Another tip is to keep beneficiaries informed. There is no formal requirement to make a Will public to the beneficiaries by “reading” a Will in Texas.  However, there is a requirement that the beneficiaries be furnished with a copy of the Will.  Your probate attorney will take care of that and other legal requirements.

As always, check with your attorney to decide which method of estate administration is right in your particular circumstance.  It could save you time and money.

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In this week’s Column, I will provide 3 tips for caring for a loved one with Alzheimer’s.

Create a Safe Environment for your loved one with Alzheimer’s

During the early stages of Alzheimer’s disease, your loved one may be able to continue living on their own. Even then, it’s important to keep a very close watch on them and be aware of when that begins to change.

As Alzheimer’s progresses, you should take precautions around the home to keep your loved one safe from falls. You may need to remove obstacles around the home and install ramps to make it easier for the elderly person to get around.

You may also want to install locks on substances like alcohol and things like guns that can be dangerous to your loved one. Think about fire safety as well.

Hot water is another potential danger. As Alzheimer’s progresses, you may need to lower the thermostat so that the water cannot get as hot and potentially burn the senior.

Keep Frustration to a Minimum

When your loved one is diagnosed with Alzheimer’s disease, this is often coupled with a lot of frustration. A person with Alzheimer’s disease can experience frustration with forgetting to do things they were once able to do. They experience frustration because they struggle to follow and understand tasks and communication.

Frustration can also come from loss of independence. It is important to recognize these frustrations and take steps to reduce the frustration.

Provide your loved one with choices whenever possible. Allow your loved one to help with tasks they are capable of, even if it takes them longer that it may take you, or longer than they were able to do it before their diagnosis. Make directions and requests simple.

When your loved one needs to focus, eliminate distractions. Create a calm environment. Be patient with your loved one and take time to allow them to do tasks.

Work at Communication with your loved one with Alzheimer’s

Communication often becomes difficult when an elderly loved one has Alzheimer’s disease. This is an area that takes patience. When communicating with your loved one, they may get discouraged if they can’t understand you or you can’t understand them. Always maintain eye contact with your loved one when communicating. Keep communication simple and to the point, but positive.

When your loved one is attempting to communicate with you, be sure to allow them to talk. Be careful not to interrupt or try to complete their sentences. This can add more frustration. Keep conversations going with your loved one as long as possible by encouraging them and truly listening to concerns.

Use physical touch, such as holding a hand or touching a shoulder, to communicate with your loved one. Don’t take outbursts personally. The illness causes you loved one to do and say things they may not normally do or say. Always be aware of your tone and keep it kind.

Alzheimer’s is a disease with many varying characteristics.  It can wreak havoc on the person our loved one once was.  Caring for a loved one with Alzheimer’s can be frustrating and difficult.  However, patience is the overarching quality that a caregiver must possess to deal with an elderly person with Alzheimer’s disease in a loving and positive manner.

Consulting with professionals who understand the Elder Law and diseases like Alzheimer’s and Dementia will provide peace of mind, knowing that are developing the best plan possible to provide for your loved one’s care.

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We plan our vacations, can spend hours choosing a car to buy, and can even spend time selecting a spot to eat dinner.  If you are a business owner, you spend time budgeting and buying office equipment.  Ranchers spend time preparing feeding, working their cattle, and vaccinating them.  However, we all seem to push estate planning—deciding who we want in charge in the event of an emergency or who will inherit their assets after we are gone.  It may not be as fun to think about as booking a trip or checking out restaurant reviews, but without estate planning, you can’t choose who who makes medical decisions for you or who gets everything that you worked so hard for.

Estate planning applies to everyone and you don’t have to be rich. Without a plan in place, settling your affairs after you go could have a long-lasting—and costly—impact on your loved ones, even if you don’t have a pricey home, large IRA, or valuable art to pass on. Not convinced that an estate plan is necessary?  Let me give you four reasons why you should have one and avoid potentially devastating consequences for your heirs.

            1)  If you want to choose who will inherit what among your possessions and valuables, you need do some estate planning.

            2)  Estate planning allows you the ability to name your children’s guardian in the event of your premature death.

            3)  Reducing taxes on what you leave behind is a common estate-planning goal.

            4)  Estate planning minimizes the chances of family strife and ugly legal battles.

An Estate Plan Protects Beneficiaries

If estate planning was once considered something that only high net worth individuals needed, that’s changed. Nowadays many middle-class families need to plan for when something happens to a family’s breadwinner (or breadwinners).  After all, you don’t have to be super-rich to do well in the stock market or real estate, both of which produce assets that you’ll want to pass on to your heirs.

Even if you’re only leaving behind a  home, if you don’t decide who receives the property when you pass away you won’t have any control over what happens to it.

That’s because the main component of estate planning is designating heirs for your assets, whether it’s a summer house or a stock portfolio. Without an estate plan, Texas law will decide who gets your assets, a process that can take years, rack up fees, and get ugly. After all, a court doesn’t know which sibling has been responsible and which one shouldn’t have free access to cash.  Nor will the courts automatically rule that the surviving spouse gets everything.

If you die without a Last Will and Testament, which is a vital part of an estate plan, Texas law will decide who gets your assets.

An Estate Plan Protects Young Children

Nobody thinks of dying young, but if you’re the parent of small children, you need to prepare for the unthinkable.  This is where the will portion of an estate plan comes in.

To ensure that your children are cared for in a manner of which you approve, you’ll want to name their guardians in the event that both parents die before the kids turn 18.  Without a Last Will and Testament that names these guardians, the courts will step in to decide who will raise your children.

An Estate Plan Can Spare Heirs a Big Tax Bite

Estate planning is all about protecting your loved ones, which means in part giving them protection from the Internal Revenue Service (IRS). Essential to estate planning is transferring assets to heirs with an eye toward creating the smallest possible tax burden for them.

While the current estate tax is only applicable to couples with assets exceeding $26,000,000.00, it is a consideration for some.  Even just a bit of estate planning can enable couples to reduce much or even all of their federal estate taxes and be aware of potential capital gains taxes. There are also ways to decrease the income tax beneficiaries might have to pay. Without a plan, the amount that your heirs will owe Uncle Sam could be quite a lot.

An Estate Plan Can Hlep Eliminate Family Messes

Stopping fights before they start is yet another reason why an estate plan is necessary. This will enable you to choose who controls your finances and assets if you become mentally incapacitated or after you die and will go a long way toward quelling any family strife and ensuring that your assets are handled in the way that you intended.  Making these plans well in advance of any cognitive loss is very important.

It also will help you make individualized plans, if necessary—to arrange for a child with health problems or to set up a trust for one who might be better off not inheriting a lump sum.  It can also help you give more to the child who did most of the work of caring for you in your later years or less to the one whose extensive education you funded while paying far less for their siblings.

Deciding whether to divide your estate exactly equally is one of the key tasks you need to think through. And, of course, if you’ve had more than one spouse—or have children from more than one family—an estate plan is urgent.

If you want your assets and your loved ones protected when you can no longer do it, you will need an estate plan. Without one your heirs could face big expenses and Texas law could designate how your assets are divided—and even who gets to raise your children.

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Who pays the bills in your house?  If your house is like most, there is probably one person who handles most of the financial matters. Would you or your spouse be prepared to assume the role of managing the household finances if something happened to the other spouse?  Too often, clients have gone through the process of ensuring their estate plan is in order, just to realize that, when one passes away, the other does not have the information they need to pick up where the other left off.

Consider the checklist below when organizing your household finances.

1. Organize your financial documents and personal information. Leaving behind an organized filing system including everything from account information to contact numbers will help your spouse or children when they need to sort through that information. Imagine the frustration of having to dig through scattered envelopes and stacks of papers to find account information after the recent loss of a loved one. Make sure your spouse knows the location of where personal information is kept, including Wills, Trust documents, insurance information, social security cards, birth certificates, medical records, tax return information, etc. Write the names and contact information of family members, friends, and other emergency contacts. Include the contact information for the professionals you use, such as your doctors, lawyers, attorneys, CPAs, financial planners, insurance agents, etc.

2. Make a list of all of your assets and liabilities. Your assets should include bank accounts, brokerage accounts, safety deposit boxes, properties, etc. Your liabilities should include credit cards, mortgages, car payments, etc.  For each item, list the location, the names on the accounts, the account numbers, and any website login information including usernames, passwords, and security questions. If you were to pass away, this would help your spouse identify what and where all of your assets are.

3. Identify all sources of income and expenses.  This will give your spouse a checklist to follow so they can understand what inflows to expect as well as what bills need to be paid. Indicate whether you pay each bill by paper or online.  If online, be sure to include the usernames, passwords, and security information to access the websites.

4. Document any other miscellaneous information that your spouse might need to run the household.  This part of the planning is not always financial, but still very important.  For example, does your spouse know where you keep the spare keys to your house, or any keys to gates, sheds, lock boxes, or safes?  Make an effort while you are going through your daily routine to think of things that are obvious to you, but may not be as obvious to your spouse or children. Include a list of passwords for social media and other online accounts, passwords for tablets and other electronic devices, locations of flash drives or CDs with old family pictures, and even a basic household maintenance checklist.

Sometimes it is the intimate details of a family’s situation that can be hardest to plan for, but detailed planning will result in the peace of mind that the spouse and family will be taken care of in the event of death or incapacitation.  Sit down with a trusted attorney if you need assistance with planning for these and other life events.

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To start, let’s basic difference between a Will and a Trust in simple terms, so you can get a basic idea of what’s out there.

Wills executed in Texas can be relatively easy to probate. If the will contains proper language appointing an “independent executor” and contains “self-proving affidavits” from 2 witnesses over the age of 14, then your estate should be in an out of probate in a jiffy. If you do not have a will, or it does not appoint an independent executor, or is not self-proving, in that event THE LAWYERS WILL GET ALL THE MONEY.

An independent executor need only make application to the court for admission of the Will to probate, and do an inventory and appraisement. If no debts or taxes are due, the estate may then be distributed to the devisees (devisee is a fancy lawyer word for “heir”). Technically heirs and devisees are different, but you will have to pay me to explain all that.   Another term is beneficiary (another fancy lawyer word for who benefits from the Will).  The benefit to not having debt is that only the beneficiaries see the inventory.

Thus, an estate driven by a Will does not require a great deal of management, allows the individual to maintain ownership of assets until death, can be simple, private and relatively inexpensive.

Generally, a trust is a legal instrument that transfers  title to designated property from the owner, called the settlor, donor or grantor (settlor), to a trustee, who holds the property for the beneficiaries of the trust.  The settlor can also serve as the trustee, thereby enhancing control over the trust during the life of the settlor.  In such a case, a successor trustee is usually named in case the grantor dies or is incapacitated.  Depending on the size or complexity of

the trust, the trustee, or cotrustee, might

be an institution, so as to bring more expertise to the position.

When utilizing a trust for your estate plan there are several considerations.  Once created, all property belonging to the settlor must be transferred into the trust.  This includes real estate, financial accounts, vehicles and any other property.  Over time, as property is sold and/or acquired, the trust must be utilized and the property placed in the trust name.

If you are seeking tax relief from the trust, then you will not be able to act as the trustee.  Additionally, you may not be able to amend the trust.  Many folks are not comfortable giving up control of their assets.

Another consideration are the homestead, disability or over 65 exemptions effecting your property.  In order to maintain these exemptions, the trust will need to contain specific language.  It may not be possible to maintain all these exemptions.

Trust are popular in many states because of different property and tax law.  However, what works in one state, may not be the best in your state (Texas).

There are many different types of trust and one might be appropriate in your plan, but there is lots of misconceptions about trust.

If you considering an estate plan, you should sit down with an attorney experienced in estate planning to assist you in making sure which estate plan is correct for your needs.  We have the experience and would be glad to help you in this regard.

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The law gives you the freedom to decide how and to whom your assets are distributed when you die by making a Will.  But if you die without a Will, your assets will be distributed according to a statutory formula that doesn’t take into account your wishes and unique circumstances.

Below is a summary of the way the assets of those who die without a Will in Texas are distributed.  Please understand this is not an exhaustive list.  It does not take into consideration claims of common law marriage, birth of a child after a Will, handwritten documents validity as testamentary instruments and a host of other issues.

Distribution For Single People With No Children

If a you are single and die without a Will in Texas, the Texas Probate Code dictates that your assets will be distributed as follows:

      Your estate will pass equally to your parents, if both are living.  If only one parent is alive, and you don’t have any brothers or sisters, then your entire estate will pass to your surviving parent.

However, if you do have siblings, or descendants of siblings (nieces and nephews), then your surviving parent would receive only half of the estate, and the remaining one half would be divided among your siblings or their descendants.

      All of your estate would pass to your siblings or their descendants if you have no surviving parents.

If you have no surviving descendants, parents, siblings, or descendants of siblings, then the estate is divided into two halves, with one half passing to relatives on your mother’s side of the family, and the other one half passing to relatives on your father’s side.

      If one side of the family has completely died out, the entire estate would pass to the surviving side of the family.

      On rare occasions, when an unmarried person dies without any surviving heir, his estate will pass to the State of Texas.

      Perhaps you have a close friend who you would have wanted to share in your estate. That would not be possible without a Will.

Distribution for Those Who Die Unmarried with Children

If you are single and have children, then all your property will pass to your descendants. If your descendants are of the same degree of relationship, (meaning, for example, that all are your children or all are your grandchildren), then the assets will be divided equally between them.

However, if your descendants are of different degrees of relationship, (meaning some of your children predecease you, leaving children or grandchildren of their own), then the younger generation would only be entitled only to the share the older generation would have received had he or she survived.  Meaning that if you have two siblings and one predeceases you, the children of that deceased sibling divide that share.

Distribution for Those Who Die While Married

Many people may assume that if they are married and die without a Will in Texas, their surviving spouse will inherit their entire estate. This is not always the case. How their property is divided depends on whether it is characterized as community property or separate property.

Community Property

All property acquired during a marriage is presumed to be community property. Under Texas laws, if you are married and are survived by a spouse and children, then:

Your surviving spouse will inherit all your community property if all your children are also the children of your surviving spouse;

Otherwise, all your one-half interest in the community estate will pass to your children, with your spouse keeping only his or her one-half interest.

If you do not have any children, then your surviving spouse will inherit all of your community property.

Separate Property

If your property is characterized as separate property, the distribution scheme is different:

If you are survived a spouse and children, your surviving spouse is entitled to one third of your separate personal property and only a life estate (the right to use the property until his or her death) in one-third of your separate real property. The rest would be inherited outright by the children of the deceased spouse.

If you are married but have no children or other descendants, your surviving spouse would be entitled to all the separate personal property. But if you have surviving parents and siblings, the surviving spouse would only be entitled to one-half of the separate realproperty with the other half passing to the parents, siblings or descendants of siblings in a manner set forth by the statutes.

If you want the freedom to decide how and to whom your property will be distributed when you die, you need a well written Will.   While the internet promises self help documents, these homemade documents usually add more issues than they resolve.   Additionally, the process for proving who your family (heirs) are without a Will is time consuming, difficult and generally much more expensive than if you had a Will.  You should therefore seek the assistance of an attorney who is well versed in estate planning to help you create these documents and give you peace of mind.  © 2025

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What does the term “incapacitated” mean?

An adult is incapacitated if , because of a physical or mental condition, the person is substantially unable to provide food, clothing, or shelter for himself or herself, to care for his or her financial affairs.  Merely advanced age or hospitalization does not automatically mean a person is incapacitated.

How can I provide in advance for the management of my financial affairs should I become incapacitated?

As you grow older and the possibility of becoming incapacitated increases, it is wise to consider choosing a trusted friend or family member who will have the legal authority to manage your financial affairs without incurring the expense of a guardianship.  This is done by executing a Durable Power of Attorney.  A Durable Power of Attorney is a legal document in which a person (called a “principal”) appoints another person (called an “attorney-in-fact”) to manage the principal’s financial affairs.  A Power of Attorney will automatically terminate upon the principal’s incapacity under Texas Law unless it is durable, that is, unless it contains language to the effect that “This power of attorney is not affected by the subsequent disability or incapacity of the principal.”

Who will make medical decisions for me should I become incapacitated?

By executing a Power of Attorney for Health Care, you can appoint one or more persons whose judgment you trust to make your medical decisions should you be unable to do so yourself.  You can give your agent complete authority to make medical decisions, or you can limit his or her authority.  Without a  Power of Attorney for Health Care, an adult surrogate may not be able to consent to medical treatment on your behalf if you become incapacitated.  The adult surrogate, in the following order of priority, is as follows: (1) your spouse, (2) an adult child, (3) your parents, (4)  an individual identified to act on your behalf before incapacity, (5) or your nearest living relative.

What is a living will?

A living will is a common name for a document entitled “Directive to Physicians.” A Directive to Physicians allows you to direct that life sustaining procedures, such as use of a respirator, be withheld or withdrawn if two doctors certify in writing that you have an incurable condition and that death is imminent.

What is the difference between an  Power of Attorney for Health Care and a Directive to Physicians?

A Directive to Physicians has very limited application; it only applies to one medical treatment decision, the decision to withhold or withdraw life support when death is imminent.  A Power of Attorney for Health Care covers all medical treatment decisions.

Pursuing for your incapacity can be a difficult process, emotionally and legally.  It is important to give your family peace of mind that they know who has authority and what actions to take ahead of time.  An attorney experienced in estate planning can assist you in determining what option(s) is/are appropriate for your particular situation.  There are too many details to address in this article, but if you have further questions or are planning for your future, you should consult an attorney.

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Another factor to consider, that is often overlooked, is protection of your assets.  When you add another person to your accounts it opens you up to liability.  While it is unlikely the child or person you add to your account would take your funds without permission, it is a possibility.  But the danger I am talking about is accidental loss.  If the person you add to your accounts is ever in a lawsuit or audited, then the attorney on the other side is not going to care it was Mom or Dad’s money.  They just see another source of money for their lawsuit.  Texas provides access to accounts through a statutory durable power of attorney that gives the person(s) you want to have access, but no ownership.  Thus protecting your asset.

However, if it is your intent that a particular account with a financial institution pass to a named survivor immediately upon your death, this can be achieved if the account is set up properly.  As is too often the case, the devil is in the details.  The language sufficient to create survivorship rights is the key.  You do not want your loved one(s) to end up in a legal battle with the financial institution over whether this is the case.

There is a provision in the Texas Estates Code § 113.151, to assist in this regard.  Until this provision was enacted, there was no uniform type of signature card or account agreement governing bank or financial accounts.  The language varied from institution to institution.  In many instances, the agreement was expressed in Uniform Commercial Code legalese, conveying the distinct impression that the primary objective was not to give the customer meaningful information as to the rules governing the account, but rather to protect the bank or financial institution in every conceivable situation.

Estates Code § 113.151 reflects an admirable effort to give the consumer clear and understandable information as to the different types of accounts that are available and the legal consequences attached to them.  However, many banks and financial institutions in Texas still do not use the Uniform Account Form (i.e., statutory safe harbor language) provided in Estates Code § 113.151.  It is unlikely any of the national investment accounts use this language.

The importance of the language used on the bank or financial institution’s signature card being sufficient to create survivorship rights was highlighted by two recent appellate cases.  Armstrong v. Roberts, 211 S.W.3d 867 (Tex.App-El Paso 2006, pet. denied) and In re Estate of Wilson, 213 S.W.3d 491 (Tex.App-Tyler 2006, no pet.h.).  In the Armstrong case the bank had signature cards that stated “Ownership: Joint w suv.”  The issue before the trial and appellate courts was whether this language was sufficient to create survivorship rights.  The court indicated that this language, standing alone, was insufficient.  However, the front of the card made express reference to the back of the card which did contain language substantially similar to Estates Code § 113.151.  In the Wilson case, both the trial and appellate courts agreed that signature cards marked with an “X” next to the designation “Joint with Right of Survivorship” and which referred to a deposit agreement stating that “when a co-owner dies, the balance of the account belongs to the surviving co-owner(s)” was sufficient to create survivorship rights.

To avoid problems, financial institutions should follow the statutory safe harbor language when creating multiparty accounts and give serious consideration to using the statutory form in Estates Code § 113.151.

Another factor to consider is will there be  items such as real estate, vehicles and funeral expenses that must be paid as part of your estate.  If settling your estate will require dealing with these matters, then naming a person as a pay on death beneficiary may leave the executor without the funds to cover these matters.  Additionally, if you have a concern that your beneficiary may need assistance with managing funds you leave them, then naming them as a pay on death beneficiary does not allow the executor the ability to help manage the funds.

When working on your estate plan, your attorney and financial planner should work together to make sure potential problems are avoided.  It is not sufficient that your bank or financial institution have you sign a signature card stating joint account with right of survivorship.  Your estate planning attorney should review the card or document to make sure it complies with safe harbor language of Estates Code § 113.151.  This is particularly important if your bank or financial institution is a national firm.

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I have seen situations where a family member suggest they be paid for caring for their elderly parent(s).  This reflects the views of many adult children who have elderly parents to care for.

Creating a caretaking agreement between relatives is something that benefits both the caretaker and the elderly relative.

However, a financial arrangement between a caretaker and an elderly relative can actually be a way to protect the older person.  There may come a time when they have to go into a nursing home and wish to qualify for Medicaid.  While I believe Medicaid should be an avenue of last resort, the caretaker agreement could help them qualify.

The financial arrangement must be an official one.  Any money given to a caretaker outside of the legal caretaker agreement could be construed as simply a gift.  This may cause a disqualification or delay in receiving benefits.

Although you may feel that you would gladly care for your mother or father for free, consider the benefits of a caregiver agreement.  Talk to your attorney about whether a contract of this kind could be useful to your family.  All situations are not equal, but if they are close to qualifying a caregiver agreement may be the ticket.

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