Ramsey Law, PLLC North

05/27/2024

Today we honor those who gave their lives to defend our freedom. Thank you to all who have served or supported loved ones in U.S. military service. 🇺🇸

01/26/2024

ALERT TO ALL BUSINESS OWNERS: the federal government now requires a Beneficial Ownership Information Report to be submitted by many small businesses. There are STEEP financial penalties for late filing, so please determine if you are required to file as soon as possible. More information can be found here: https://fincen.gov/boi-faqs

There are a lot of people who will be caught by surprise. Please help get the word out by sharing this post or the above link.

FinCEN has prepared the following Frequently Asked Questions (FAQs) in response to inquiries received relating to the Beneficial Ownership Information Reporting Rule.

10/23/2023

Understanding Probate: A Brief Overview

Probate is a legal process that occurs through the court system after someone passes away. This process is designed to ensure that the deceased person's debts are settled and that their property is transferred to the rightful heirs or beneficiaries according to the law (hopefully as directed under their Will and not the laws of intestacy).

During probate, the interested parties are established, an executor or administrator is appointed, and certain paperwork/notices are filed. The executor's primary duties include identifying and valuing assets, notifying creditors, and distributing assets as required by law. It is important to note that an executor does not have authority until the court has formally appointed them (the Will by itself is not enough) and Power of Attorney documents expire at death.

Probate can be relatively simple in Texas with the proper estate planning tools. However, if there is not a well-drafted, valid, original Will or there are disputes amongst family members, the process can be quite lengthy and expensive.

It's essential to understand that not all assets are subject to probate. Assets with named transfer-on-death beneficiaries, like life insurance policies or retirement accounts, often pass directly to the designated recipients, bypassing probate. Some assets can also be set up with Joint Tenants with Right of Survivorship, though that should be done with caution and with the assistance of a knowledgeable estate planning attorney.

Living Trusts can be another valuable tool in avoiding probate – particularly in more complicated family situations.

Photo by Melinda Gimpal on Unsplash

09/11/2023

Lifetime Gifting Can be DANGEROUS
There are well-meaning attorneys out there telling people to deed their homes to their children (or anyone else) for estate planning purposes. DO NOT DO THIS without consulting with an experienced estate planning attorney. Here are several reasons why:
• This exposes your home to the recipient’s current and future debts, past due income taxes/penalties, child support obligations, etc.
• This could result in acceleration of any mortgage on the property (meaning the entire balance becomes immediately due).
• You lose homestead tax breaks.
• This will be treated as a disqualifying gift by Medicaid if you apply for Medicaid within 5 years of the transfer.
• The recipient could refuse to give the property back if you need (or want) it back in your name.
• Your Will/Trust will no longer control what happens to the property after you pass.
• You may have trouble dealing with insurance, locksmiths, or anyone else who only wants to interact with the record owner.
• THERE. ARE. BETTER. OPTIONS.
Many of these concerns also apply to other types of gifts.
Contact Ramsey Law at 210-910-8431 to discuss the alternatives to this very dangerous DIY estate planning tool.

Photo by Scott Graham on Unsplash

08/21/2023

Common law marriage, also known as informal marriage, is still valid in Texas, much to the dismay of many probate judges and attorneys. What is so bad about it? Here is an all-too-common scenario:

Jack and Pat live together in Pat’s house. They are in a relationship, but they aren’t married. At least one of them has been divorced and they don’t want to go through that again. Pat has two adult children who get along with Jack well enough. Jack has always said if something happens to Pat, Jack will leave the house voluntarily. Pat passes away. Instead of moving out, Jack padlocks all of the doors and refuses to leave. Jack then hires an attorney to file affidavits signed by two of Jack’s friends confirming that Pat and Jack told the friends they were married. Jack seeks to validate the marriage in court because of the right of the surviving spouse to live in the homestead for life, even if the spouse doesn’t own an interest in the house. Pat’s children spend the next 18 months battling this out in court, spending a substantial amount of money on hearings, mediation, and court costs.

On the flip side:
Jack and Pat live together and consider themselves to be married, but never got a marriage license. Pat has been clear that Jack should stay in the house for life, but doesn’t prepare a Will or Transfer on Death Deed. Pat becomes very ill. The kids tell the hospital that Pat is not married and successfully keep Jack out of the hospital room. After Pat passes, they file an application to determine Pat’s heirs that lists Pat as single with the intention of evicting Jack from the house. Jack produces witnesses to confirm they did intend to be married and the kids produce witnesses to confirm Pat was not married. Court battle ensues (assuming Jack can afford to fight).

Compare this to:
Jack and Pat go to the courthouse to apply for a marriage certificate. They have a ceremony and get a marriage license. Pat dies. Jack gets to live in the house for life and receives the spouse’s share of Pat’s estate. This scenario could still be improved by a well-drafted estate plan, but is generally far less messy and costly than a fight over common law marriage.

Given that common law marriage is still valid in Texas, what can be done? Your friendly neighborhood estate planning attorney can offer far more certainty than family meetings ever will.
1. A full estate plan with a Will, Durable Power of Attorney, Medical Power of Attorney, Declaration of Guardian, Appointment of Agent for Disposition of Remains, and possibly a Transfer on Death Deed or Living Trust depending on the circumstances. This maximizes an individual’s ability to control who can manage their affairs if needed, who is in charge of the estate, who gets what from the estate, and everyone’s respective rights.
2. A cohabitation agreement for couples who do not intend to be married. A well-drafted cohabitation agreement can lay out various rights and document the fact that the couple does not intend to enter into an informal marriage.
3. A prenuptial agreement or postnuptial agreement a/k/a marital agreement or separate property agreement can outline spouse’s rights with respect to separate property and income. Through these agreements, spouses can also waive certain rights, like the right to live in the homestead for life, which can be quite a complicated and contentious situation if the kids are not on board.
4. File a formal common law marriage declaration with the county clerk in accordance with the Family Code. (Or just get a marriage certificate!) Importantly, there is no such thing as “common law divorce” in Texas. A court divorce is still required to terminate the marriage.

Photo by Soroush Karimi on Unsplash

05/29/2023

We hope everyone has a safe Memorial Day! Thank you to all who have served and their families. Today we honor those who made the ultimate sacrifice for our country.

05/09/2023

Mother’s Day has me thinking about moms. What is one thing moms do better than just about anyone? Worry. Worrying about kids and loved ones is practically an Olympic sport. The worrying never goes away, but sometimes taking initiative with the things that can be controlled can take a weight off mom’s (or your) shoulders.

When people approach me for estate planning services, nine times out of ten, they are worried about protecting and making things easier for their family, not protecting themselves. Fortunately, my Will and Living Trust plans do both (far better than a fill-in-the blank form, if I do say so myself). Wills, Trusts, Powers of Attorney, and other estate planning documents are about controlling what can be controlled to minimize cost, hassle, and conflict where possible. What works for one person could create a complete nightmare for another, which is why the forms are not nearly as important as the person preparing them.

When my clients and I part ways with their big blue tabbed binder in hand, they know what can be controlled and what can’t. They’ve been asked all of the questions so I could create Wills, Trusts, Powers of Attorney, Transfer on Death Deeds, Living Wills, etc. that are custom tailored to their specific needs. The types of documents prepared and the language contained in those documents varies significantly from case to case depending on the circumstances.

DIY documents may provide a false sense of security – and those bubbles tend not to burst until it is too late to do something about it. Hiring an attorney who is experienced in both estate planning and probate provides true peace of mind. One less thing to worry about.

Photo Credit: Jonathan Borba on Unsplash

04/18/2023

If you are wondering when Fiesta starts in San Antonio for 2023, the official start is April 20, 2023. There are a wide variety of events across the city, including parades, NIOSA, Oyster Bake, Taste of the North Side, Taste of New Orleans, not to mention all of the unofficial events.

As you are thinking about which events you will attend, keep safety in mind. Parking and traffic at some of these events can be a challenge to navigate. A lot of these events are very crowded, so even just walking around requires you to be aware of your surroundings and exercise necessary precautions. Ideally these events should be enjoyed with a group. Also, if alcohol is going to be part of the festivities, arranging for a designated driver or rideshare in advance is a good idea. The bus is another economical option. Here is a the VIA Park & Ride schedule for Fiesta Events: SAN ANTONIO FIESTA 2023 - VIA Metropolitan Transit (viainfo.net)

Ramsey Law, PLLC wishes everyone a safe and fun Fiesta 2023!

Photo Credit: Christy Ash on Unsplash

04/04/2023

If you have young adult children, I have a few questions:
Has your child formally designated agents for medical and financial decisions in the event of an emergency?
Do they know where their important documents are stored?
Would you have concerns about them losing important documents?
This POA special is designed to put crucial protections in place for peace of mind. We also include a shiny blue portfolio with tabbed dividers to store and organize important documents and an "Adulting Checklist" so nothing important is missed.
The checklist is available for download for FREE on our website: https://ramseylawtexas.com/adult-starter-kit
Give us a call at 210-910-8431 to get started today.

03/27/2023

Estate Planning for Parents

Becoming a parent changes everything – and estate planning is no exception. A big motivator for many of my clients is ensuring that their young children are in the right hands (both physically and financially) in the event of a tragedy. For others, it is making sure their older children are protected and there is as little opportunity for conflict as possible. Parents who assume everything will “work itself out” often leave a mess for their children and the loved ones who ultimately have to get everything situated for those children. The list of things PROPER estate planning can do for families is endless, but here are a few big ones:
• Ensure the right people are in charge of the money/assets (particularly if there is another parent or family member you want to keep out of the finances)
• Ensure your assets go where they are supposed to go
• Avoid situations that create tension between a surviving spouse and the children
• Avoid unnecessary and costly legal processes (heirships, contests, guardianships, court managed trusts, etc.)
o Note: avoiding probate itself can also be a goal, but it is highly dependent on each person’s specific circumstances
• Avoid division, finger pointing, and other conflict that is common when estate planning documents are unclear, poorly thought out, or absent altogether
• Ensure your young children will still have access to family members who don’t have physical custody
• Create a plan that gives someone you trust the ability to provide financial mentorship to your children before they take control of their own inheritance
• Provide protections for many more potential problems than someone without extensive probate and estate planning experience could forsee
It is crucial to enlist an experienced estate planning attorney when preparing legal documents. Anyone can fill out a form, but families usually don’t know what that form is missing or how it should have been structured until it is too late. Ramsey Law, PLLC can provide thorough, customized documents that meet your family’s specific needs.

Photo Credit: Kelly Sikkema on Unsplash

03/20/2023

Death and Taxes

Two of the only few certainties in life, right? I talk to a lot of people who have “normal”-sized estates and are worried about beneficiaries having to pay a lot of income taxes when they pass. Well, there are a few pieces of good news I can offer.
Before I start, I want to make it clear that I am not a CPA. This is general information that is subject to change. Tax matters are very complicated, so you should always consult with an experienced tax professional before making any decisions that may affect your tax liability.
1. The current estate tax exemption amount is over $11 MILLION per person for American citizens. Only the value of the estate, combined with lifetime gifts, that EXCEEDS this exemption amount is subject to federal estate taxes. Most of us can breathe easy on that front. Note: there is always the possibility the exemption amount could go down, so keep an eye out for changes in the law.
2. Texas does not currently have its own estate tax (not to be confused with the federal estate tax, which applies regardless of the state of residence). This is not the case in every state.
3. Property received upon someone’s death through a Will, intestacy, or Transfer on Death Deed generally gets a “stepped up basis,” meaning the capital gains for the estate/beneficiaries will be calculated based on any increase in value from date of death, instead of date of purchase. The same preferential treatment is not given to gifts completed during someone’s lifetime, so I recommend talking to an estate planning attorney and CPA before making large lifetime gifts.
I will note that property taxes are completely separate from income/estate taxes. Also, some types of assets, such as traditional IRAs, have their own tax rules.
As some people are in the process of preparing tax returns and possibly gearing up to write a painful check to the IRS, I thought I would point out a few things that aren’t *quite* as bad as many people believe.

Photo Credit: Kelly Sikkema on Unsplash.

03/06/2023

Estate Planning for Military Families

One perk for active duty military members and veterans is free basic estate planning services through the JAG Office. This is something I encourage people to take advantage of regularly, to the extent the services are appropriate for the individual.
We actually receive a fair number of calls from military members who looked into these free services and concluded they needed something more robust. Examples of factors that indicate you may need to hire a private estate planning attorney include:
• Minor children (children under the age of 18)
• Incapacitated or disabled children
• Any beneficiaries who are under 18, incapacitated, receive need-based government assistance such as Medicaid or SSI, or can’t be trusted to receive their share directly
• Complicated distribution scheme (really anything more than gifts that are made outright to named individuals upon your passing)
• An interest in avoiding probate court upon death or incapacity
• An interest in any kind of trust (living trust or testamentary trust)
• A need to execute documents ASAP
• A desire for in-depth overviews and explanations of legal documents, terms, concepts, and options
• Concerns about Medicaid and Medicaid Estate Recovery
Ramsey Law provides estate planning packages that are specifically tailored to each client’s individual circumstances and preferences. We discuss wills versus trusts, probate versus probate avoidance, and a variety of factors to ensure the documents are just right. We can complete our services from hire to signing within 2-4 weeks in most cases. You will also be able to reach out the same attorney who helped you with your documents if questions, issues, or a need for changes arise later on. The firm also offers probate and guardianship services, giving your family the opportunity to work with the same attorney who helped prepare your documents.
Photo by Charles "Duck" Unitas on Unsplash