EP Articles | Miller Law Firm, PLLC

Too many people I meet have misconceptions that only those that are wealthy or retired need estate planning beyond just a simple will. This might be true for some, but in most cases, these thoughts are not valid. While basic estate planning involves creating a plan for what happens if you die, advanced estate planning goes beyond these basics in several ways:

Asset Protection Planning – Reviewing your assets and determining which are exempt and nonexempt from creditors’ and nursing home claims in the event of an unexpected disability;

Trust Planning- Using trust instruments beyond the basic will to ensure proper control of your assets;

Business Succession Planning – Addressing what will happen to you and your closely-held business if you become disabled or die;

Planning for Disabled or Problem Beneficiaries – Discussing all of the needs of your beneficiaries and then planning accordingly with certain trust documents that you will always control;

Creating a Family or Charitable Legacy – Working to establish a wealth transfer/dynasty trust, one or more charitable trusts, and/or a private foundation.

Trust Planning and Asset Protection Planning:

Working with your elder law attorney, you need to establish your foundational estate plan which will allow you and your attorney to assess further, your needs for estate and/or asset protection planning. Why? Because as part of creating your base estate plan you’ll need to make a list of all of your assets and liabilities and then calculate your net worth. This, in turn, will reveal the estimated value of your estate and which of your assets are exempt or nonexempt from potential creditors’ or long-term care claims. From there, your elder law attorney can develop a plan to reduce or even eliminate the potential forced liquidation of your estate and by restructuring your assets, protect and preserve them for your spouse or heirs.

Business Succession Planning:

If you’re in a partnership or sole owner of a closely-held business, then having a strategy to exit your business in the event of your disability or death should be a crucial part of your estate planning. With your attorneys help you can create a plan to ensure what will happen to your interest in the business in the event of an unexpected disability or untimely death.

Planning for Disabled or Problem Beneficiaries:

With advanced planning, your attorney can assess the needs of all of your beneficiaries. If a beneficiary is disabled and receiving government benefits, then the beneficiary won’t be able to receive a direct distribution and will require a Special Needs Trust be prepared. Should there be a beneficiary who is bad with managing money or is in a shaky marriage, it may require that a lifetime irrevocable trust be created for this beneficiary instead of receiving their inheritance as an outright distribution.

Creating a Family or Charitable Legacy:

Finally, creating your foundational estate plan will ensure an ongoing legacy for your family through the use of generation skipping planning or lifetime trusts that preserve the stretch out of required minimum distributions from retirement assets, and/or a charitable legacy through the use of one or more charitable trusts or a private foundation.

There are other reasons you should consider advanced estate planning over that of just creating a simple will, but these reasons I’ve listed above are what I’ve found that clients have the most concerns about.

If you have other questions or would like to discuss the benefits of protecting and preserving your family nest egg, please call 214-292-4225 for a COMPLIMENTARY CONSULTATION.

Estate Planning for Young Couples with Children is an area of law that Plano, Texas Attorney Aaron Miller is very sensitive to. He helps Parents find proper legal remedies that protect their family

One of the areas of estate planning I focus on is helping young families cover the basics when it comes to protecting their children and themselves in the event of an untimely death or disability. All too often, I hear families who feel the only legal document they need is a simple will. It would be nice if one document could solve all of our legal obligations, but in truth, it can be more complex and require other planning beyond just a will if we really want our wishes honored when we pass.

When I meet with a family for the first time, I try to relieve their fears and concerns that the process of estate planning is so final. I know that families will transition through a lot of changes over the course of their children growing up, and so I make sure the estate plan is just as flexible. There are several issues that must be addressed when developing a plan that covers all the unexpected happenings parents can face from birth until their children reach adult age. I’ve identified some immediate concerns that should be a priority to any family with minor children.

What financial planning has been created in the event either parent should pass before the children reach adulthood?

If, God forbid, both parents were killed before the kids were grown, who will be in charge of the estate to make sure the kids are cared for?

Who is responsible for raising the children until 18?

Financial Planning for an Unexpected Death

Being a single parent is tough, and it’s even harder if you have no money for emergencies and expenses that go with raising a child, whether it’s 3 years, 5 years, or 15 years. The reality is that the best and most affordable solution lies in life insurance. No matter how good your group benefits are, I always recommend that both spouses consider investing in additional insurance. The purpose is not to make anyone rich, but a proper amount of life insurance ensures that the loss of income that would have been there, is now replaced so that the family doesn’t have to change their lifestyle. Healthy, young parents can get a lot of life insurance for less than $50 a month, which will provide “peace of mind” that no other financial product can guarantee. One word of caution for parents with minor children, never name minor children as contingent beneficiaries of the policies. The reason is simple, minors can’t receive or control assets. For this reason, I suggest creation of a Will with trust provisions which names the estate in care of the trust as the contingent beneficiary. Or a Living Trust can be created that names an alternate trustee that can be designated as the contingent beneficiary, who will be there to act on behalf of the kids.

Management of the Estate Assets

If both parents should simultaneously pass before their children are grown, someone must be appointed to handle all the financial affairs of the estate until the children are entitled to receive their inheritance. For this reason I strongly promote the use of a Living Trust because of the protections it provides to the beneficiaries of the estate along with guidelines it offers for the person managing the finances. Most families will undoubtedly think it’s best to choose a relative to act in this capacity. At first, it would only make sense to have a family member handle these duties, but certain questions must be asked before appointing anyone that will have to deal with large sums of money.

How will they manage the funds?

What experience do they have with making these types of decisions?

Do they understand their fiduciary responsibilities?

A lot can change over the course of a few years especially in the financial markets, so I suggest that my clients map out a strategy that entails a combination of conservative and semi conservative approaches to seeking a decent rate of return while keeping risk to a minimum. They might also have their financial adviser involved in helping their trustee make decisions for the management of the funds.

Guardianship Choices

Who will raise your child as close to your values had you been there? The truth is that NO ONE can truly fill your role, but you still never want to leave this decision to the State of Texas. You need to decide who will watch over and guide your children if you are not there to do it. Without a doubt, this is one of the most difficult decisions parents have to make, but one that should be dealt with as early as possible – ideally before you bring your child comes home from the hospital. I don’t have a crystal ball, if I did, it would make my job a lot easier, but planning for this contingency means that who ever is appointed will have to make a lot of the decisions on the child’s upbringing, values, religion, schooling, etc. Not a small task, but one that must be dealt with by those you feel will make the best surrogate parent if you couldn’t be there.

Estate planning is not just about dying, there are a lot of aspects people just don’t think about, but no matter what happens, by using the services of a competent estate planning attorney you prevent the courts and the State from becoming partners with your family.

If you have questions about this, or about elder care planning for your loved ones, please visit my website: www.aaronmillerlaw.com or contact me, Aaron Miller, directly at 214-292-4225. My office is located at 101 E. Park Blvd., #600, Plano TX . Remember -

“Your Life, Is Our Life’s Work”

Category Archives: EP Articles

Advanced Estate Planning, Going Beyond the Basics