Cloud Law, PLLC

04/16/2021

Get Your Will!
Who will raise your children when you are gone? Who will be financially responsible for raising your children when you pass?
These are a glimpse of 2 issues that need to be laid out, in a valid Texas Will, should you pass to protect your children.
Do you want the government responsible for the care of your children and who cares for them?
If these situations are not addressed in a valid Will, the court will make the decision for you!
The court will appoint a guardian who may be put under strict guidelines and yearly accounting to the court, that you may deem as unnecessary and expensive.
You may be getting extra stimulus money for your children. Use this money wisely, invest it in your children and family. Use a portion for a Will that will ensure your wishes are carried out and your children are cared for should you pass.
Contact me at [email protected] to discuss.

09/12/2018

12 Crucial Insights for Protecting Your Furry Family Members

One thing is certain: we Americans love our pets. The American Pet Products Association estimates that in 2017, pet owners spent an estimated $69.36 billion on their dogs, cats, birds, reptiles and other domestic animals. The money spent isn’t only for pampering the pets, it also includes the necessary food, veterinary visits, and medications.

So what happens to your pet when you pass on? How can you be assured that one of your friends or loved ones will adopt your dog or cat, let alone pick up the tab for their ongoing care and feeding? Just like anything else, it’s a matter of planning; if you don’t plan for the care of your pet when you die, who will?
If you’re like most pet owners, you want to believe that your dog, cat or other beloved pet will be okay once you’re gone. The only way to be certain, however, is to plan for it. Let’s look at 12 key insights to help you and your family plan for the future well being of your pet.

Insight 1: If you don’t plan for the care of your pet after you’re gone, you are leaving your pet to the mercy of others. Sadly, we see it all the time: someone passes on, and no one wants to take responsibility for the dog, cat, or other pet left behind. You might assume that a family member or loved one will simply adopt your pet, but quite often this is not the case. Family members may live at a distance or work long hours; or perhaps they’re allergic to pets or afraid to introduce an animal into a home with small children. Perhaps they can’t afford the extra cost, or perhaps they just don’t feel the same attachment to your pet as you do. Whatever the case, if you don’t proactively plan how your pet is to be cared for when you’re gone, you are gambling on the mercy of others, and that gamble often doesn’t pay off. Too many pets get taken to shelters —or worse, abandoned or euthanized —just because their owners made an assumption rather than making a plan
Insight 2: Lack of planning is the primary reason your pet would be left alone.
It’s a simple concept: you can’t ensure what you have neither asked for nor planned for. No one, whether family or friend, is obligated to take care of your pet unless you have made prior
arrangements, and without these arrangements it’s far more likely something undesirable will happen. On the other hand, if you express your wishes for your pet’s care in advance, along with setting aside money for your pet’s care, your wishes are far more likely to be carried out.

Insight 3: A pet trust is the most reliable way to enact your wishes for your pet after you’re gone. A pet trust works exactly the same way as any other trust: you set aside money in a fund, naming your dog, cat, bird or other pet as the beneficiary, along with instructions for the pet’s care. You also name your pet’s caretaker. It’s the best way to safeguard your pet’s future and ensure your wishes are clear when you are no longer able to care for the pet yourself.

Insight 4: Pet trusts are more common than you think.More and more owners are now including their pets in their estate planning, and legislators are responding in kind. There are laws that specifically allow pet trust planning in all 50 states and the District of Columbia.

Insight 5: A pet trust component can easily be added to an existing trust. A pet trust can easily be incorporated into an existing or new living trust. Most people choose to incorporate their pet trust into their “main” living trust in much the same way that they incorporate trusts for family members or charity. Although setting up a separate trust is an option, it is usually not necessary.

Insight 6: A pet trust can be triggered by incapacity. One of the most valuable features of a pet trust is that you can include instructions for the care of your pets if you become incapacitated. This means the provisions of your pet trust go into effect if you can’t care for your pet because of temporary or permanent incapacity. This provision ensures your pet will be cared for while you’re in the hospital, in rehab, or in a nursing home.

Insight 7: You can be as specific as you want to be with your instructions. Do you want your dog to be fed only a certain
brand of food? Does your cat need to go to the vet four times a year? Are there certain medications your pet must take? Do you want the dog taken to the park at least twice a week? These and other types of instructions can all be included in your pet planning, helping to preserve not only your pet’s health, but also his or her routines, habits, and quality of life.
Insight 8: You decide who cares for your pet in your absence.
In a pet trust, you may designate a specific person to be the caretaker for your pet when you’re gone. If a certain family member or friend has bonded with your dog or cat, for example, that person is more likely to understand your pet’s needs, and to respect your wishes as to how to meet those needs. It is also beneficial to have the discussion with your proposed caretaker so he or she is not caught off guard if the time comes when they must assume responsibility for
your beloved pet.

Insight 9: You can appoint a separate trustee, if necessary.
The designated caretaker can also act as the trustee—the person in charge of the funds you’ve set aside for your pet. However, if circumstances call for it, you may opt for the caretaker and trustee to be two different people. If your pet trust is an amendment to a larger trust, the pet trustee can also be designated separately from the main trustee. Everything can be customized based on your circumstances, needs, and desires.

Insight 10: You can choose a contingent caretaker and/or trustee.
What if the person you chose as your pet’s caretaker or trustee is unable or unwilling to fulfill those responsibilities when the time comes? A pet trust enables you to appoint contingency choices to these positions to allow for any unforeseen circumstances, further securing your pet’s
future.

Insight 11: Your pet trust can serve multiple purposes.
What happens if there is money left over when your pet passes on? How do you decide how much money to designate to the care of your dog or cat? Your pet trust can be structured so that any surplus funds will go to charitable giving, perhaps to an animal charity of your choice.
This way, you can provide generously for your pet knowing that any extra money will go to a good cause. As an alternative, you can instead have any money left over go to your surviving spouse, children, or other family members. The choice is entirely yours.

Insight 12: Pet planning means greater peace of mind for you and your family.
It’s remarkable how a simple act like planning ahead can eliminate so much stress from a difficult situation. By arranging for the care of your pet, not only will you enjoy greater peace of mind, but your loved ones will also rest easier knowing there is a plan and provision in place for
your beloved pet. Don’t run the risk that your dog, cat, bird
or other pet will be neglected -or worse -when the
time comes.

Call today (713.620.8974) to discuss your options for setting up a new pet trust or adding a pet trust to your existing estate plan. We are here for you and your entire family.
Paul Cloud
[email protected]

03/29/2018

Thursday
Do It Now: Name a Guardian for Your Minor Child(ren)

We know it’s hard. Thinking about someone else raising your children stops us all in our tracks. It feels crushing and too horrific to consider. But you must. If you don’t, a stranger will determine who raises your children if something happens to you - your child’s guardian could be a relative you despise or even a stranger you’ve never met.

No one will ever be you or parent exactly like you, but there is someone who could muddle through and provide for your children’s general welfare, education, and medical needs. Parents with minor children need to name someone to raise them (a guardian) in the event both parents should die before the child becomes an adult. While the likelihood of that actually happening is slim, the consequences of not naming a guardian are more than intense.

If no guardian is named in your will, a judge - a stranger who does not know you, your child, or your relatives and friends - will decide who will raise your child. Anyone can ask to be
considered, and the judge will select the person she deems most appropriate. Families tend to fight over children, especially if there’s money involved (don’t forget life insurance), and worse, no one may be willing to take your child; if that happens, the judge will place your child in foster care. On the other hand, if you name a guardian, the judge will likely support your choice.

How to Choose a Guardian
Your child’s guardian can be a relative or friend. Here are factors our clients have considered when selecting guardians (and back up guardians).
● How well the child and potential guardian know and enjoy each other
● Religious beliefs, Parenting style, moral values, educational level, health practices and financial acumen
● Location - if the guardian lives far away, your child would have to move from a familiar school, friends, and neighborhood
● The child’s age and the age and health of the guardian

Candidates:
○ Grandparents may have the time, and they may or may not have the energy to keep up with a toddler or teenager.
○ An older guardian may become ill and/or even die before the child is grown, so there would be a double loss.
○ A younger guardian, especially a sibling, may be concentrating on finishing college or starting a career.

--Emotional preparedness:
○ Someone who is single or who doesn’t want children may resent having to care for your children.
○ Someone with a houseful of their own children may or may not want more around.

WARNING:
Serving as guardian and raising your child is a big deal; don’t spring such a responsibility on anyone. Ask your top candidates if they would be willing to serve, and name at least one alternate in case the first choice becomes unable to serve.

Who’s in Charge of the Money
Raising your child should not be a financial burden for the guardian, and a candidate’s lack of finances should not be the deciding factor. You will need to provide enough money (from assets and/or life insurance) to provide for your child. Some parents also earmark funds to help the guardian buy a larger car or add onto their existing home, so there’s plenty of room for extra children.

Factors to consider:
● Naming a separate person to handle this money can be a good idea. That person would
be a guardian of the estate or a trustee, but not guardian of the children.
● However, having the same person raise the child and handle the money can make
things simpler because the guardian would not have to ask someone else for money.
● But the best person to raise the child may not be the best person to handle the money and it may be tempting for them to use this money for their own purposes.

Compromise Will Likely be Necessary
Naming a guardian is a difficult decision for most parents. Keep in mind that this person will
probably not raise your child because odds are that at least one parent will survive until the child is grown. By naming a guardian, however, you are being responsible and planning ahead for an unlikely, yet possible, situation. It’s important to realize that no one besides you will be the perfect parent for your child, so typically this means making compromises in some areas. Select the person you think will muddle through the best.

Let’s Continue this Conversation
We know it’s not easy, but don’t let that stop you. We’re happy to talk this through with you and legally document your wishes. Know that you can change your mind and select a different guardian anytime you’d like - and - the chances of needing the guardian named in your will is slim; but, you’re a parent and your job is to provide for and protect your children, so let’s do this together. Call our office now for an appointment and we’ll get your children protected. (713) 620-8974 or [email protected]

01/10/2018

Wisdom Wednesday Post-1-10-18
Four Reasons Why Estate Planning Isn’t Just for the Top 1 Percent
There is a common misconception that estate plans are only for the ultra-rich -the top 1 percent, 10%, 20%, or some other arbitrary determination of “enough” money. In reality, nothing could be further from the truth. People at all income and wealth levels can benefit from a comprehensive estate plan. Sadly, many have not sat down to put their legal house in order.
According to a 2016 Gallup News Poll more than half of all Americans do not have a will, let alone a omprehensive estate plan. These same results were identified by WealthCounsel (of which I am a member) in its
Estate Planning Awareness Survey. Gallup noted that 44 percent of people surveyed in 2016 had a will place, compared to 51 percent in 2005 and 48 percent in 1990. Also, over the years, there appears to be a trend of fewer people even thinking about estate planning. When it comes to estate planning, the sooner you start the better. Below are four reasons why everyone -no matter what income or wealth level -can benefit from a comprehensive estate
plan:
1.Forward Thinking Family Goals:
Proper estate planning can accomplish many things.
The first step is to ask what your goals are. They may include caring for a minor child, an elderly parent, a disabled relative, or distributing real and personal property to individuals who will appreciate and maintain these assets prudently. Understanding what your family wants and needs are for the future is a great starting point for any estate plan. If you can sit down and spend time planning your vacation, you can do the same for your estate. Your future self, and your loved ones, will thank you.
2.Financial Confidence Now and After You Are Gone:
One immediate benefit of having a finished estate plan in place is that you will likely feel in control of your finances, possibly for the first time ever. Many people experience a new sense of discipline in maintaining their finances which can help with saving for retirement, a big purchase, or other goal. In addition to the personal benefit of financial control, an estate plan allows you to dictate exactly how and when your heirs receive an inheritance. This is particularly important for minor heir or those who need additional guidance to manage their inheritance, like a disabled child.
3. Identify Risks:
An important aspect of a good estate plan is to mitigate against future and current risks. One example is becoming disabled and unable to support your family. Another is the possibility of dying early. Through an estate plan you can chose who will be in control of your personal assets, instead of the court appointing a legal guardian who will cost money and be a distraction for your family. While contemplating these types of risks is never fun, preparing ahead of time ensures your loved ones will be
prepared if an unfortunate tragedy occurs.
4. To Maintain Your Privacy:
Some people want to ensure that their assets remain private. In the absence of an fully funded, trust-based estate plan, a
list one’s assets (or an affidavit in lieu) are available for public view upon death. This occurs when a probate court needs to step in. Probate is the legal process by which a court administers the deceased person’s estate. A solid estate plan should generally avoid the need for involvement by the probate court, so your family’s privacy can be maintained.
The Bottom Line: Seek Professional Advice
There are numerous benefits to working with a professional team when it comes to estate
planning. Estate planning attorneys, financial advisor, insurance agents, and others have a broader and deeper knowledge of money management, financial implications, and the law.
When you work with a qualified team to implement an estate plan you can rest easy knowing your family will be taken care of no matter what happens in the future.

For more information contact us at Cloud Law, PLLC. [email protected] or 713.620.8974

01/02/2018

THESE KIDS TODAY!
If you don't have some estate planning in place, you need to and it should also include your children!?! Not just as heirs, but on their own terms?

Once a child turns 18, he or she is an adult under the law. At the stroke of midnight, parents lose the right to learn about her health, her tuition bill or even her grades. Without clear legal paperwork (a carefully laid out estate plan), those young people risk chaos and even heartbreak for themselves and their families. Yet only a quarter of young adults have a will, and just seven percent have any kind of advanced directive for medical care, according to the Washington Post.

That's why it can be so critical for families with growing children to work on a careful estate plan for the kids. Just a few careful steps can make such a huge difference and bring peace of mind to the entire family.

The good news is, an estate plan for a young adult doesn't have to be terribly complicated. Most experts recommend:

• A simple will or a trust: Your child may not yet have many things with a high cash worth, but personal items may have a lot of sentimental value. And there may be hidden assets that no one even considers, such as online accounts: Is there someone who should be trusted with email or Twitter passwords—just in case?

• Powers of attorney (POA): You should consider two POAs that, in the event of an emergency, would allow you to act on your child's behalf for financial decisions and the other for medical decisions.

• Some privacy waivers: Various laws can make it difficult for loved ones to obtain information from colleges or even hospitals; limited waivers can allow you to receive this information.

Finally, If you don't have a Will with Guardianships for your Children, you are at risk of them becoming Wards of the State of Texas and having a court appointed Guardian take control of assets and make medical and financial decisions for your children. This is expensive, distractive and emotionally draining especially if the guardian is not a loved one or family member!

My firm works with families and their children—to provide piece of mind and to ensure your entire family is protected. Please reach out to us today to learn about the solutions we offer. 713.620.8974 or [email protected].

12/25/2017

Wishing you and yours a Merry Christmas

12/02/2017

This holiday season make sure you protect those most important to you. Let us help you leave a legacy

09/29/2017

09/20/2017

Your answers to the following questions will help Johns Marrs Ellis & Hodge LLP collect information relevant to potential legal claims that the firm's clients may have against government agencies for intentionally causing flooding from reservoirs during and after Hurricane Harvey. This fact-gatherin...

09/12/2017

There has been much discussion on inverse condemnation and whether a temporary flooding event could be a governmental taking. Although there are always competing arguments, the Supreme Court stated that temporary flooding could be a taking in Arkansas Game and Fish Comm'n v United States. Here is a link to the opinion for those inclined to read.

09/11/2017

Attached is a link to a recent alert. It is titled Responding to Harvey: Know your FEMA rights. It was not prepared by my firm and does not constitute legal advice but I hope it helps. As always, let me know if you need anything further. Best, Paul

09/08/2017

Harvey Town Hall Meeting, Grand Lakes, Katy, Texas. Special Thanks to Justin Hodge and Kyle Baum with Johns, Marrs, Ellis and Hodge, LLC as well Don Griffin with Vinson and Elkins. I apologize for the orientation and the couple of glitches.