The dissolution of a marriage frequently requires the division and disposition of real estate. Whenever that real estate is investment or business property, rather than solely a principal residence with no business or substantial amount of land, both parties and their advisors should give serious early attention to Section 1031 of the Internal Revenue Code. The stakes are high, and the window of opportunity is narrow.

A properly structured 1031 exchange gives both parties powerful options:

– Defer taxes interest-free, preserving capital that would otherwise be lost to immediate taxation.

– Use leverage to acquire more or more suitable real estate.

– Diversify into different property types aligned with each party’s post-divorce goals.

– Increase cash flow through income-producing replacement property.

– Reduce management burden by converting active investment property into passive income vehicles.

Preserve more wealth for future investment and potentially leaving a greater legacy to the heirs, an objective that parties on both sides of a marriage dissolution normally continue to share.

Consider a common scenario: one spouse receives, as part of an equitable distribution, a commercial building or ranch that neither spouse wants to manage. Without a 1031 exchange, that spouse faces an unappealing choice, manage an unsuitable asset or sell it and absorb a significant tax hit. A properly structured exchange resolves that dilemma, the spouse can exit the unwanted property and acquire replacement property suited to their goals, whether that’s a passive net-lease investment, a smaller rental property, or a diversified portfolio. That outcome benefits not only that spouse but the couple’s heirs as well.

A successful exchange depends on strict compliance with timing, ownership, and control-of-proceeds requirements.  These are not technicalities, they are absolute conditions.  Both parties, their attorneys, any mediators involved, and judges presiding over contested proceedings all need to understand that compliance with these requirements is not optional if the tax benefits are to be preserved.

Decisions made during divorce negotiations or court proceedings can inadvertently destroy an otherwise valid exchange. Common pitfalls include settlement agreements that transfer title prematurely, distributions that give a party constructive receipt of sale proceeds, and court orders entered without awareness of pending exchange deadlines. By the time these errors are recognized, it is often too late to correct them. What could have been a tax-free transaction becomes a fully taxable one that neither party intended.

In divorce cases involving investment or business real estate, a 1031 exchange can be a powerful wealth-preservation tool, but only if it is addressed before key decisions are made. Once a settlement agreement is signed, proceeds are distributed, or a court order is entered, the opportunity may be gone permanently.

The more civil the parties can be and the  earlier the issue is raised, the more options remain available to both parties, the marital estate overall, and the children.  Early coordination among the divorcing parties, their attorneys, tax advisors, and a qualified intermediary can mean the difference between preserving valuable tax benefits for the family and forfeiting them entirely through an avoidable oversight.

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A comprehensive estate plan often includes writing a Last Will and Testament to transfer your assets to your beneficiaries.  Once you’ve passed away, the executor of your Will shepherds the Will through the probate process.  However, you may have things you’d like to communicate to your loved ones and beneficiaries that you don’t want to include in the Will itself. Often, these are informal instructions that will help your executor carry out your wishes. It might also include such informal elements as opinions about your funeral, the values you’d like to be remembered for or a list of personal items designated for individuals.

Sometimes known as a letter of intent, a list of personal items designated to certain individuals is a document that provides specific information regarding your preferences as to who gets certain personal items, family heirlooms, sports memorabilia, jewelry, guns or a clock.  The letter of intent should clearly identify the individual and accurately describe the item you wish for them to have.  Labeling the item(s) helps as well. The Will contains a paragraph that specifically references this letter of intent or list so that personal items do not have to be made public record, but the executor knows who gets what item.

Another similar item is a letter of instruction on anything from key contacts, account information, family information, medical care, or your funeral wishes.  A letter of instruction isn’t legally binding in any way, unlike a Will.  Rather, it’s meant to be something of a crib sheet for the executor of your Will or your loved ones. You can use plain English to communicate anything you want regarding your affairs as a reference once you are no longer able to communicate this information personally.

Because there is no legal aspect to this document, you are free to also include messages to your family if you wish, and you can touch on matters that you may not be able to include in something like a Will or an advance directive.

What Should You Include in Your Letter of Instruction?

What you decide to include in your letter of instruction is completely up to you.  There’s no one piece of information that will qualify or disqualify your letter.  Your attorney should provide you with guidance in this matter and may even have a form.  That said, there are a handful of things that will make your executor’s life easier when she’s working to probate your estate. This information includes:

• A list of all your assets;

• The location of any assets that may not be readily accessible;
• All of your account information, including passwords, PIN numbers and account numbers, for any bank accounts or retirement accounts you have;
• Contact information for anyone who helps you with your finances, including attorneys, brokers, bankers and financial advisors;
• Informal directions about how you would like the executor to disperse some of your assets, typically heirlooms or other sentimental possessions;
• If you’d prefer people to make donations in lieu of flowers at your funeral, information about which charities you prefer;
• Where your executor can find your most recent tax returns, Social Security statements, birth certificate and other important documents;
• Similarly, where your executor can find any real estate titles/deeds or oil and gas leases, etc.;
• Your Social Security number;
• Any divorce and/or citizenship papers, or applications thereof;
• Contact information of any creditors (mortgage, car, etc.) and any insurance companies, particularly if you have a life insurance policy;
• If you have pets who will need a home, where you would like your executor to send them.

From there, you can include any messages or additional preferences that come to you. Some people choose to include a preference for burial or cremation. You might even mention which songs you’d like played at the funeral.

Letter of Instruction vs. Last Will

Although a letter of instruction and a Last Will discuss similar topics, they are distinct documents with several differences. First and foremost, a letter of instruction isn’t a legal document, while a Will has legal force. State law requires that your executor or administrator follow the terms of your Will, whereas no one is required to follow your letter of instruction. In order to prevent any potential conflict as to whether your letter of instruction is a testamentary document or not, you should let you estate planning attorney provide guidance.

Because of this distinction, a letter of instruction can be much more flexible. You’re essentially just writing a message to an executor or a loved one with helpful information. This is why you can choose to include anything you want.

A letter of instruction can’t take the place of a Last Will.  If you pass away without a Will, a court-appointed administrator will distribute your possessions according to state and county law rather than your letter.

While it can’t serve as a substitute for a Last Will, a letter of instruction can be extremely helpful to your loved ones.  You can spell your wishes out in simple terms, and you can leave them a final message without the formality that comes with a legal document.

It is very important to have an estate planning attorney help draft your estate planning documents, and provide guidance with letters of instruction.  It is money well spent to avoid expensive conflicts later.

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1. Make sure the EIN is being obtained directly from irs.gov.  This seems obvious, but it is helpful to those unfamiliar with the IRS website.  Be aware a Google search of “obtain EIN online” could lead to unwelcome results such as websites of companies that offer to collect your information (and sometimes a fee) to obtain an EIN for you.  An EIN can be obtained from irs.govinstantly and at no cost. There’s no need to pay a fee or disclose personal, identifying information through any other website.
2. Confirm that appropriate legal authority exists before obtaining the EIN. An EIN should not be obtained before an executor or trustee has legal authority with respect to the estate or trust; therefore, the application should be made once the executor has been appointed and qualified as such or once the trustee has formally accepted trusteeship.  To qualify, an executor must take a sworn oath for example.  While the IRS website does not ask for this proof, it is necessary if audited.
3. When applying for an EIN for a trust, note that the IRS currently provides 18 different types of trusts to choose from.  Choosing the right one matters.
4. You will be asked if the estate will use a fiscal or calendar year.  You should select the ending month that will give you the longer tax year.
5. Make sure the name of the decedent matches the probate records. When applying for the EIN of an estate, use the Decedent’s name exactly as stated in probate records. Doing otherwise could cause problems for the executor when the executor attempts to open a bank account in the name of the estate.
6. Make sure the name of a trust matches the name as indicated in the governing instrument.  As with an estate, you will want to make sure the name of the trust you list on the EIN application is consistent with the name of the trust as indicated in the governing document.
7. Be aware that the IRS typically will not give the same responsible party more than one EIN on the same day.  The IRS typically limits the number of EINs a responsible party can obtain on a given day, with the current cap understood to be one.
8. If wires got crossed and two EINs were obtained for the same trust or estate, you must contact the IRS right away.
9. Know when you might need an EIN for a grantor trust.  For many grantor trusts, an EIN will not be needed for the trust while the grantor is still living because the grantor’s social security number will effectively serve as the trust’s EIN, and the trust income will be reportable to the grantor.  This is also true when a grantor trust has two grantors who are married and file their income tax returns jointly, as the trust income is reportable on their joint return.  However, if the trust has two grantors who are not married to each other or who are married to each other but file separate income tax returns, the trust will need its own EIN.
10. Consider who the “responsible party” is. The EIN application will ask who the “responsible party” is for the trust or estate. The “responsible party” is the person who ultimately owns or controls the entity or who exercises ultimate effective control over the entity. For an estate, it follows that the responsible party is the executor or administrator.  For trusts, the responsible party is a grantor, owner, or trustor.

Most attorneys who are handling the estate or trust will obtain the EIN and take care of these matters.  However, I believe it is important to understand these points so that you and your etate attorney are on the same page.

While Texas has the best system for transferring your property through your estate planning, it is more than a document.  It is a process process with many moving parts to secure your legacy.

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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. In other words, read it.  In Texas, the Will needs to be signed by the testator and be witnessed by two individuals above the age of 14.  I have seen many documents that fail to have all these requirements.  Never assume the Will is valid or invalid, see an attorney.

Every state has their own estate code and tax system.  These systems vary greatly from state to state.  Generally, in Texas, the original Will is admitted to probate, meaning filed with the court and retained within the court files.  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.  Again, never assume the Will is valid or invalid, see an attorney.  You will need an attorney familiar with the probate process to guide you through the best course of action.  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 short, the GUIDE program is designed to enhance the quality of life for individuals living with dementia and to support their caregivers. As I stated above, for anyone who has dealt with a loved one suffering from dementia, this is a welcome step in the right direction.  This program provides a range of services aimed at improving care and reducing the need for hospitalizations.

The GUIDE program includes several essential services:

–  24-Hour Helpline: Caregivers can access support at any time, ensuring they have guidance when needed.

–  Care Navigators: Families are assigned navigators to help them find local services and resources.

–  Financial Assistance: Up to $2,500 annually for respite care, which can cover in-home caregivers or adult day care.

The primary objectives of the GUIDE program are:

1) Improve the quality of life for individuals with dementia.

2) Reduce unnecessary hospital visits and emergency department use.

3) Support family caregivers in managing their responsibilities.

The program aims to alleviate the strain on caregivers by providing them with resources and support. This holistic approach not only benefits the individuals with dementia but also enhances the overall caregiving experience, allowing families to maintain a better quality of life.

I believe the 8 scariest words in the English language are “I am here from the government to help.” Additionally, I am hesitant to indorse a test proram, but I believe the GUIDE program could represent an  advancement in dementia care, focusing on comprehensive support for both patients and their caregivers.  By addressing the complex needs of those affected by dementia, the program seeks to create a more sustainable and effective care model.

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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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Annual Fee Payments and Information Updates:

Maintaining your business entity in Texas starts with ensuring all annual fee payments are up to date and that your company’s information accurately reflects any recent changes.  This process is not merely administrative but foundational to your business’s legal and operational health.  It involves a detailed review and potential update of addresses, management structures, or business operations.  This step is crucial as it lays the groundwork for legal compliance and smooth business functioning.  It requires careful attention to detail, a thorough understanding of state requirements, and a systematic approach to reviewing and updating records.  At a minimum, corporations and LLC’s (business entity/s) must hold and document one annual meeting of the Officers and one annual meeting of the shareholders/membership each year. Consider consulting professionals to ensure nothing is overlooked.

Managing the Governing Bylaws or Operating Agreement:

This is part of your annual meetings for officers and shareholder/members.  The Governing Bylaws or Operating Agreement of your business entity sets forth the rules and procedures for internal governance, including management structure and financial arrangements. Changes within your business entity, such as shifts in membership or management roles, necessitate updates to this agreement.  This step is about ensuring that the operating agreement remains an accurate, current reflection of how your business entity functions and is governed.  It’s a task that requires internal consensus, legal knowledge, and strategic foresight.  Properly maintaining this document ensures that all members understand their rights and responsibilities, helping to prevent conflicts and confusion.

Appointing a Registered Agent:

Selecting a reliable registered agent is a legal requirement in Texas and a critical step in maintaining your business entity.  This agent is your business’s official contact for all legal and state communications, including service of process and tax notifications.  The choice of a registered agent is strategic and significant, as they ensure that you receive important legal documents promptly and keep your business compliant with state laws.  For businesses with home offices outside Texas, many services provide a registered agent to meet this requirement.  This step is about securing a dependable intermediary between your business and the state, ensuring that you remain informed and responsive to legal matters.

Filing Business Privilege Tax Returns and Annual Reports:

Annually, your business entity must file Business Tax Returns by April 15th.  These documents are critical in providing a comprehensive overview of your financial and operational status, helping the state assess taxes and verify compliance.  This process requires a meticulous compilation of financial records, an understanding of your business activities over the past year, and often consultation with financial advisors to ensure accuracy and completeness.  It’s a step that underscores your business entity’s transparency and accountability, affecting your legal standing and financial health.  Late submissions can result in penalties, emphasizing the importance of timeliness and precision in this process.

This step goes beyond simply issuing payment; it involves a deep understanding of your financial obligations to the state, which can vary based on factors such as income and assets.  It requires careful financial review, planning, and budgeting to ensure all obligations are met fully and on time.  Misunderstandings or under payments can lead to penalties, making it crucial to allocate sufficient time and resources to this task.  This step is not just about financial compliance but about strategic financial management and planning for your business entity’s future.

Maintaining State Records:

Your business entity’s involves updating any changes in your business entity, such as modifications in ownership, address, or management.  This must be reflected in an updated report to the state.  This step is about ensuring that your business’s legal document accurately represents its current structure and operations.  It’s a task that requires a keen understanding of how structural changes impact your legal obligations and an attention to detail in documenting those changes.  Keeping this information current is essential for legal transparency and operational clarity.

Handling Licenses and Permits:

Depending on the nature of your business and its location, various licenses and permits are required to operate legally.  This step involves identifying, obtaining, and regularly renewing all necessary licenses and permits.  It’s a task that requires staying informed about local, state, and federal regulations and understanding how they apply to your business activities.  Regular reviews and renewals are necessary to avoid lapses that could lead to legal troubles or business interruptions.  This step is critical in maintaining the legality and integrity of your business operations.

Registering a Business Entity with a Doing Business As Form:

If your business operates under a name different from its legal name, registering a ‘Doing Business As’ (DBA) name is necessary.  This step allows your business the flexibility to engage in the market under a name that best suits your brand or operational focus. It involves understanding the state’s requirements for DBA registration and maintaining this registration as needed.  While it doesn’t change the legal structure of your business entity, it’s an important aspect of your business’s public identity and marketing strategy.  Proper management of your DBA ensures that your business can operate and be recognized under its preferred name.

Navigating the complexities of maintaining an corporation or LLC in Texas can be challenging.  Seeking professional consultation is a crucial step in this process.  Whether it’s legal advisors, financial experts, or business consultants, professional guidance can provide clarity, ensure compliance, and offer strategic insights for your business’s growth and stability.  This step involves identifying the areas where professional advice is needed, selecting the right experts, and integrating their recommendations into your business practices.  It’s an investment in your business entity’s compliance, stability, and future success.  Leveraging expertise helps you navigate complexities and make informed decisions, ensuring that each step in maintaining your business entity is well-informed and strategically sound.

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Of course, Texas is also home to many people who’ve crossed the national border, traveling from abroad and making the Lone Star State their new home. The same goes for these proud ex-patriots: you need to take a long, hard look at your existing estate plans in a new jurisdiction.

The Wall Street Journal recently featured one American family’s struggle after their father was killed in a terrorist attack while living in Israel. Estate planning emerged as one of their chief concerns. To that end, the Journal shares the following advice:

Estate planning done in one country isn’t always recognized in another.

Even if the plan is recognized, it might be interpreted or executed differently than expected.

Make sure your healthcare directives and powers of attorney comply with both U.S. federal regulations and the laws of Texas.

Be sure you understand the tax liabilities that might apply in each country (and know which countries will take priority).

Never assume the validity of any of your documents or provisions after a move. Confirm with a professional instead.

Your Will should be reviewed periodically and the appropriate adjustments made.  Some other factors to consider that make dictate reviewing your Will and estate plan:

• Events that automatically revoke a Will: In most states certain actions on your part automatically revoke your Will.  The specific actions vary from state to state.  Examples may include marriage and the birth or adoption of a child.  Other actions, such as divorce, can cause property left to a former spouse to pass as though your former spouse predeceased you, which may or may not be what you intended.  With every major life change, you should review your Will and consult your local attorney to see if a new Will or other changes are required.

• Marriage, divorce or death of a spouse: Marriage brings about legal relationships that can revoke or conflict with the terms of a Will made prior to the marriage.  The end of a marriage requires a fresh look at your Will and, most likely, will lead you to designate different beneficiaries.

• Birth or adoption of a child: Although some states may automatically revoke your Will at the birth or adoption of a child, others may have laws that offer safeguards for children born after your Will was made.  You’ll want to make sure that your Will reflects your wishes for how your property is distributed among your offspring.  On the subject of offspring; you may also want to revise your Will when the grandchildren come along.

• Changed status of a beneficiary:  Children grow up and get married (or divorced).  A child or other beneficiary may become sick or disabled or may die.  Events in the lives of your loved ones can have an impact on what you want to leave your beneficiaries and how you leave it.

• Changes in your assets or asset value: Over the years your wealth is likely to increase.  You may have acquired assets (i.e., an investment portfolio, a business, valuable collectibles) that you did not have when you made your Will.  You may have sold an asset for which you named a beneficiary when you originally made your Will. In other words, your personal financial picture is constantly changing, and your Will should be updated accordingly.

• Retirement: Major changes in your life and your financial holdings occur at retirement.  You may receive a lump sum distribution from a company retirement plan, sell the family home and move to a smaller residence.  Put Will review on your retirement planning checklist.

• Changed tax laws: Income, inheritance, estate, gift and generation skipping tax rules are revamped regularly.  Failure to make the appropriate adjustments to your Will may mean missing tax saving opportunities.

If you are new to Texas, or even if you’ve been here a while but haven’t dusted off your Wills and trusts since relocating, hiring an attorney to review and revise your estate planning documents can help you ensure that the technical formalities of Texas law are followed and that your gifts are clear and easily understood.  Spending a few dollars now will save your family and loved ones from spending more later.  Not to mention the confusion and grief  that will be avoided.

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I have address this topic several times in the past, but it is a continuing problem and one of my personal pet peeves.  While in the past, many trust salesmen used the offer of a free meal to discuss a LIVING TRUST SEMINAR, today the preferred method is social media.  So, I continue my battle against these Snake Oil Salesman.

The Promises of a Revocable Living Trust

The promise is that a revocable living trust is the end all be all for transferring your assets.  However, the presentation amounts to a scare tactic to talk folks into buying their product, a living trust.

However, these ads are just another clever marketing ploy to attract senior investors and the product they are selling is useless, costly and quite frankly, a pain in the rear to maintain.   This large segment of our society is often invited to “seminars,”  “free lunches” or social media ads for the senior investor.  But remember the wise old saying,  “There is no such thing as a free lunch.”

Offers to Entice

“Free educational seminars” are often offered by some group (as this upcoming one is, from out of state or backed by an out of state company) promising to show those over 55 how to avoid probate, avoid the high cost of probate,  reduce or eliminate taxes (cut the IRS out of your Will), protect your privacy and promoting the need for a living trust.  Some offer unnecessary partnerships, limited partnerships, “family” partnerships, and limited liability companies.

State Bar of Texas Advisory

The State Bar of Texas has issued an advisory opinion regarding advertising and promoting living trusts for attorneys.  Attorneys are not supposed to advocate a living trust over a Will or vice-versa.  They should give you the pros and cons of both documents.  However, these con artists are not bound by any such rules.

It’s easy enough to become a victim.  Living trust sales are a growing area of consumer fraud.  Con artists make millions of dollars every year selling unnecessary trusts.  Each year, thousands of consumers lose from $500.00 to $5,000.00 through the purchase of living trusts.  Often, families face potentially greater costs after the consumer’s death, resulting from problems associated with the trusts.

What You Can Do To Protect Yourself

It is very difficult to get your money back if you are cheated in a living trust scam.  So before you buy, and better yet, before you allow a salesperson in your home, remember:

1. Take time when making your decision.  Do not fall victim to high-pressure “act immediately” sales tactics.  Avoid buying on impulse.

2. Never respond to an offer you don’t thoroughly understand.  Legitimate advisors understand when you want more information about their services or products.

3. An age old adage works well here, “If it sounds to good to be true, it probably is.”  Often a trust sounds like just the right solution, but in reality it can cost 4 to 5 times as much to create a trust as the cost of a good Will and you receive no more benefit.

4. Seek the advice of someone knowledgeable whose advice you value when considering an estate plan.  Seek the advice of your accountant, estate planning attorney, banker or reputable financial advisor.  Be sure you are working with someone with the necessary training, education and experience for your particular state (Texas).

5. If you conclude that a trust may be right for you, deal directly with a licensed Texas attorney who has substantial expertise in estate planning and Elder Law.

An Estate Attorney is Best

The laws which apply to trusts vary from state to state.  Forms, kits or computer software programs may not be tailored to the requirements of Texas law.  A licensed Texas attorney with expertise in estate planning and Elder Law should prepare, or at least review, your living trust.  Also, a trust prepared by an attorney will generally cost less than the prices charged by trust salespersons.

Next week I will discuss some of the more common tactics employed by Snake Oil Salesmen.

The post REVOCABLE TRUST OR WILL? Part 1 of 2 appeared first on Moak & Moak, P.C. -Attorneys At Law.

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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