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.

The post Ownership of Out of State Property in Estate Planning appeared first on Moak & Moak, P.C. -Attorneys At Law.

Filing out an out-of-hospital “Do Not Resuscitate” form for your loved one is part of bringing in hospice to provide  extra care.  When hospice comes in curative care stops and comfort care begins.  This is not an easy task to undertake for a loved one.

Many hold off signing an out of hospital do not resuscitate form because as someone goes down a path with no off-ramps, there could be times when resuscitation makes sense. Then there comes that day when you just need to accept those times are past; that if we have not reached the end, we can see it from here.

Advanced directives are designed to provide both guidance and comfort for those around someone who is nearing death, not to mention fulfilling the wishes of the one dying.  Without having real conversations about this issue, you might not have that comfort.  When you make a decision that basically accepts death as opposed to hope for life, it is hard, no matter how prepared for it you think you are.  You come to realize this in conversations with others, particularly where maybe not all family members are accepting of the finality.

Most of us have an extended family and most of them are not “on the ground” with us the last few months are days we live.  It is important that when the decision about the end of life is made, all of the close family is on board.  Some extended family may not be, but , it is none of their business. Respect and courtesy says you inform them, but when it comes down the decision time, it’s up to the person legally designated to make that decision. Talk to whomever you want, but in the end, it will be who you choose to share information that matters.  That is why it is important to really talk about the end of life when everyone is healthy and sound of mind. Such a conversation will provide a lasting memory and hopefully comfort.

I can not tell you how many unbilled hours this sweet lady spent with families, holding their hands and guiding them.  These memories came back to me reading her husband’s letter on this challenging time of life.

During these conversations you must be very clear with each other about what you want.  For instance, I have had many clients recount when a loved one had a feeding tube installed and that person had no hope of recovery. Often followed by the statement “if you stick one of those down my throat, I will come back and haunt you.”

When one is suffering from something like frontal temporal dementia, which can impact swallowing at some point, just remembering those conversations gives comfort as you are making that particular decision.

When you have these conversations, sitting at the kitchen table or on the patio, you are not thinking about the time you will have to make decisions about life or death. Most believe they will live long lives then fall over dead without a lot of complications.  However, life does not turn out that way.

This one hit close to home because my co-worker was such a sweet lady.  It reminded me of my father’s journey at the end.  Help your loved ones by communicating and making the decisions for them and then consult with an attorney to help you.  These documents are very important and you cannot afford to leave an I un-dotted or a T un-crossed.

The post Conversations about the End of Life appeared first on Moak & Moak, P.C. -Attorneys At Law.

Another common thought is that I can just do this myself.  With the internet comes a vast amount of information and tools.  However, a person may not practice law in the State of Texas unless they are licensed by the State Bar of Texas per Section 81.102 of the Texas Government Code.  In fact, the unauthorized practice of law is prohibited by Section 81.106 of the Texas Government Code.  There will always be the shadetree “lawyer” who is going to do it himself or herself.  Most of these homegrown documents or instruments end up creating problems that cost more in the long run.

While the traditional tools work very well at accomplishing their designated tasks, you might be surprised to learn that they are not the only tools available for estate planning.  Depending on your particular assets and desires, then the use of a limited partnership, limited liability company, corporation may be right for the situation.

All of the business entities mentioned above are common when a business is owned by different individuals.  While the primary purpose for forming one of these business entities is for liability protection, they also provide for a means to manage the business and eventually shift ownership.

Limited partnerships have general and limited partners, the general partner(s) are responsible for management and decision making.  The limited partners are investors or owners with no management or decision making authority.

Limited liability companies and corporations have either membership holders or shareholders.  Typically the membership/shareholder(s) elect the officers who are responsible for management or decision making.  Thus, the membership/shareholder(s) with the greater number of membership interests or shares control.

The interests in all of these forms of business entities are something that can be transferred over time, therefore making a perfect vehicle for parents or grandparents to maintain control over assets owned by the business entity until they pass away or are ready to shift the majority of the ownership over to the next generation for control.  An additional benefit is that the family also has liability protection. So, using a family owned ranch/farm for example, if one family member is sued or found liable in some accident, then the assets of the other family members in ranching/farming business with them are not susceptible to being taken.  Another benefit is that incidents such as incapacity, death or divorce, can be addressed in the governing documents.  This means that should one of these events occur, there is a plan for how the property owned by the business entity is transferred.

If you are thinking of working on your estate plan, then perhaps one of these business entities is right for you.  Or maybe you are a candidate for a more traditional plan.  In either case, you should sit down with an attorney familiar with traditional plans and business entities to find out what estate plan is best for your needs.

The post Estate Planning with Business Entities appeared first on Moak & Moak, P.C. -Attorneys At Law.

Don’t let this happen to you and your family.  For your own peace of mind, read on to understand the basics of Medicaid planning and secure eligibility for long-term care benefits for the elderly.

What is Medicaid for Seniors?

Medicaid provides Texas’ poorest seniors with vital health insurance coverage and a safety net for long-term care when they have exhausted their own financial resources.

How is Medicaid different from Medicare?

Medicaid is a state program while Medicare is a federal health insurance benefit. Medicare covers many healthcare expenses including in-patient and out-patient care, and prescription drug coverage. It does not, however, cover long-term elderly care unlike Medicaid.

Medicaid is designed to provide comprehensive health care coverage for low-income seniors, children and people with disabilities. But you don’t have to be necessarily impoverished to become eligible for its benefits. In fact, many middle-class seniors rely on Medicaid to afford long-term care.

Monthly nursing home bills average between $7,500 to $12,500 a month in Texas. These costs could drive even seniors with a sizable income to financial ruin within months from entering a nursing home.

Thankfully, there are provisions within Medicaid that allow you to protect your assets, secure a financial cushion and still be able to qualify for its long-term care benefits.

How can you become eligible for Medicaid?

In demonstrating eligibility for Medicaid’s long-term care benefits, two things matter – your assets and your income. Understanding Medicaid’s prescribed limits will guide you with your planning.

Medicaid determines eligibility by assessing the value of your assets. Most assets such as bank accounts, stocks and bonds, real estate, cars and boats, and some trusts are considered countable assets. Below is a short list of assets that are exempt from being “counted”:

– Your home or your principal place of residence

– Your personal belongings such as clothing, jewelry, furniture and other household items

– Your one motor vehicle or your primary mode of transportation

– Your prepaid funeral plan

– Your life insurance policy

– Other assets deemed “inaccessible” because they are protected by a will or a trust

Medicaid’s 2020 guidelines state that a nursing home resident should have no more than $2000 in countable assets. A resident’s spouse who does not live in a nursing home can keep half of the joint countable assets with a maximum total value of $128,640.

Income Limits

Medicaid sets income limits to nursing home residents and their spouses. As of 2020, a nursing home resident and their spouse is allowed to have $35 each per month. The excess monthly income is paid to the nursing home to cover the cost of care.

Ideally, you should secure your eligibility for Medicaid long before you step foot in a nursing home. Pre-need Medicakd Planning anticipates the need for nursing home care in the future while you’re healthy.

An effective strategy in Pre-need Medicaid Planning is a long term care insurance policy.  This allows you to avoid the Medicaid system altogether and remain in your home.  The ideal age to begin this planning is 60 years of age.  You should sit down with your insurance agent and have them look for plans that provide coverage should you need assistance.

Another possibility is an Irrevocable Trust.  That means a trust that cannot be changed after it is created. It works by protecting your income and assets from being “counted” by Medicaid. In an Irrevocable Trust, your assets are owned by the Trust and not by you as an individual. Minimizing your countable assets allows you to qualify for Medicaid benefits when the need arises.

But not all Irrevocable Trusts meet Medicaid’s guidelines. For example, if your spouse is receiving payments from the Trust, then a portion of it would be considered “countable” and possibly disqualify you from Medicaid.

If your loved one suddenly falls ill and the doctor tells you that they will be needing full-time care in a nursing home, what do you do? Is it too late for MedicaidPlanning?

Where can you go for help with Medicaid Planning?

Engaging a legal professional can help you secure Medicaid benefits to mitigate the cost of expensive long-term care. They should be able to help you navigate the complexities of estate planning and elder law and ensure that you have the best Medicaid strategy in place.

The post Medicaid Planning in Texas appeared first on Moak & Moak, P.C. -Attorneys At Law.

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.

The post Welcome to Texas! Have you reviewed your Will? appeared first on Moak & Moak, P.C. -Attorneys At Law.

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.

If the decedent had a Will it should name an individual to carry out the duties of administering the estate.  The individual named in the Will to carry out the administration is called an executor.  If the Will does not name an executor, then the court will appoint one.  If the court appoints such a person because the Will does not name an executor or the decedent died without a Will, that person is called an administrator.  Either way, the executor or administrator has to be approved by the court and has legal obligations and duties to the court and those who receive property from the estate.  If the executor or administrator acts improperly, he or she may be held liable for any resulting damages and his or her appointment may be terminated by the court.

In Texas, there are several different methods of administering an estate.  Texas is one of the states that provides for independent administration.  This is administration free of court supervision.  This means that after an independent executor or administrator is approved and an inventory of the estate assets is filed with the court, the executor or administrator can simply take care of the administration of the estate without any further court involvement or supervision.

If there is no need for the appointment of an executor or administrator and the only reason for probating a Will is to clear title to property, a Will can be admitted to probate as a muniment of title.  Under this procedure, there is no executor or administrator appointed.  It is a somewhat simplified method of administering an estate than the traditional formal administration.  This is not for all estates due to certain requirements, therefore you should contact your attorney to see if your situation applies.

If the value of the estate, excluding the homestead, exempt personal property, and non-probate assets, does not exceed $75,000.00, no formal administration is necessary if the heirs file an affidavit with the court showing they are entitled to receive the property of the estate.  In addition to the $75,000.00 ceiling, the small estate affidavit procedure is available only if the assets of the estate, excluding the homestead and exempt personal property, exceed the known liabilities of the estate.  One limitation on the small estate affidavit is its general ineffectiveness to transfer title to real property.  The small estate affidavit is effective to transfer title to a homestead if the homestead is the only real property in the estate.  However, if the estate contains any real property other than just the homestead, the affidavit will not clear tile to any of the real property, including the homestead.

Informal family settlements is another option.  They are permissible where the estate is small and consists only of personal property, such as personal effects and household furnishings, but generally not where the estate includes bank accounts, stocks, and bonds.  If a motor vehicle is involved, a new certificate of title may be applied for by filing an affidavit of heirship with the Texas Department of Public Safety.

A common mistake is that when one spouse dies, the surviving spouse does not have to file anything with the courthouse.  This is not the law in Texas.  Texas offers many different ways to probate or transfer an estate’s assets and therefore you should contact an estate planning and probate attorney for assistance on what route may be best in your particular situation.

The post Probate Options In Texas 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.

The post Challenge of Alzheimer’s Disease appeared first on Moak & Moak, P.C. -Attorneys At Law.

Very few folks have an estate worth more than $15,000,000 (or $30,000,000 for a couple).  Texas does not have a separate estate tax or income tax.  Thus, most estates in Texas can be handled through a well written Last Will and Testament.

If you own a business, real estate, farm,  or ranch, this increase to the Federal estate tax exemption amount is important to your estate.  When you consider the value of businesses, real estate, houses, equipment, investment or savings accounts, vehicles, and cattle, an exemption amount lower than $10,000,000 could be a problem.

Before the estate exemption amount was raised, the use of marital deduction trust clause or family limited partnership were the norm for estate planning in those families with substantial assets.  These marital deduction trusts  were commonly used prior to 2001 when the Federal estate tax exemption limit was $600,000.00.

Another beneficial planning tool is to gift a portion of your cash into a trust that purchases a life insurance policy on you, a parent, or a grandparent. That policy is then owned by the trust, and at death the policy pays into the trust—at a rate of two to ten times the size of the original gift. TAX-FREE. Zero tax. Yes, not one penny to Uncle Sam. In fact, that could leave your family with enough to pay the estate tax and give generously to charities and foundations that you love, as well as provide additional resources for your loved ones.

Along with an increase to the estate tax exemption amount, the annual exclusion for gifts was raised to $19,000, per individual in 2025 and into future years.  Parents and grandparents may prefund children’s education through 529 accounts, or paying tutition on behalf of another directly to the school or other educational provider.  If you only are paying tuition, the exemption is limited to just tuition fees and no other educational expenses.  Other options include paying medical expenses, leveraging lifetime gifts, and charitable giving.

In addition to the Federal estate tax exemption, you should pay close attention to the Federal capital gains tax.  This is a tax placed on the appreciated value of real property and investment accounts.  To ensure that your family does not have to pay any capital gains tax, transferring property subsequently after your death is important.  When property is transferred during your life, the gift tax amount is not the only consideration.  By gifting property during your lifetime, you could cause your beneficiary to be in a situation that results in the payment of capital gains taxes of up to 20% of the gain.

Many people are enticed into creating living trusts or revocable trusts.  However, you should meet with an attorney experienced in estate planning to see what is the best vehicle for your estate planning needs in your state.  They should also discuss with you the importance of powers of attorney (financial and medical), advanced directives (aka living wills) and the other associated documents to make sure those you trust are empowered to assist you without putting your assets at risk (i.e., Do NOT list them on your accounts).

The post Estate Tax Exemption in 2025 and Beyond appeared first on Moak & Moak, P.C. -Attorneys At Law.

A person may not practice law in the State of Texas unless they are licensed by the State Bar of Texas per Section 81.102 of the Texas Government Code.  In fact, the unauthorized practice of law is prohibited by Section 81.106 of the Texas Government Code.  However, there is always the shadetree “attorney” who is going to do it himself.  Most of these homegrown documents or instruments end up creating problems with regards to the ownership of the property in question.  What the legal profession calls a “cloud on the title.”

What would you do if one day you received a notice of eviction while sitting in your home because it turns out the person you purchased the home from did not pay off their lender?    Or perhaps you have decided to sell your property and find out that the conveyance to you when you purchased the property was not valid.  Think this could not happen to you?

Each year thousands of lawsuits are filed involving title problems.  Many title problems can arise which cause the complete or partial loss of your home or business property.  Even the most careful search of the public records will not find every title problem.  Because some problems are hidden, your title may appear to be perfect when in fact there may be a problem that is a land mine waiting to explode.

To give you an idea of the types of title problems that may occur, I have compiled this list of “Land Mines” that could result in partial or complete loss of your property or an expensive lawsuit.

“LAND MINES”

1. Property still held by a deceased owner whose interest has not been properly conveyed by the surviving heirs.
2. Inadequate legal descriptions.
3. Defective acknowledgments.
4. Mistakes in recording legal documents.
5. Misinterpretation of wills.
6. Undisclosed or missing heirs.
7. Deeds by minors.
8. Surviving children omitted from a will.
9. Marital rights of spouse allegedly, but not legally, divorced.
10. Deed of community property recited to be separate property.
11. Instruments executed under fabricated, expired or not properly recorded powers of attorney.
12. Birth or adoption of children after date of will.
13. Falsification of records.
14. Easements established through  continued use but not discovered by a survey or in the public record.
15. Errors in indexing of legal documents by the County.
16. Mistaken reports furnished from taxing authorities.
17. Deeds to or from defunct corporations.
18. Documents executed under duress.
19. Errors in tax records.  (For example, listing payment against wrong property account.)
20. Forged deeds, releases, other forged instruments.
21. Deeds by persons supposedly single but secretly married.
22. Deeds from persons not competent to handle their affairs.

Problems like these listed above, and many more, happen everyday.  I see them because it is my job to make sure there are no such problems with regard to the property in order to protect the parties’ interests.

An uncovered “land mine” could result in an expensive lawsuit.  A title insurance policy insures that these matters have been diligently researched and addressed before closing the transaction.

Owner’s title insurance protects you against financial loss caused by covered title risks.  The title insurer, without expense to you, will defend you against an attack on the title to your property as insured.  If the attack is successful, the title insurer will indemnify you against the defined financial loss up to the policy limit.  A small, one-time premium provides you with this valuable protection.

When buying or selling a home or real property, it is often the largest single investment a person or couple makes.  Therefore, you should seek the assistance of a real estate agent, attorney and title company before making your investment.  This is not a realm for the shadetree “attorney.”

The post Don’t Be A Shadetree “Attorney” appeared first on Moak & Moak, P.C. -Attorneys At Law.