When you choose a guardian for your minor children in your estate plan, you want to make sure that guardian is capable of providing the care your child needs. Though there are obvious questions about financial abilities, stable home environments, and parenting abilities, there are also some factors you may not have considered. Here are three questions you’ll want to ask yourself when you make your guardianship choice.

Relations

Some people choose a guardian because that person is a close family member. However, you may also want to consider more distant family members or even close friends. The key question is who will be the best guardian for your child, not necessarily who has the closest relationship to you.

Ages

Some people are good with younger children but are not great dealing with teenagers. You need to remember that your guardian will have to care for your child until the child is grown. Someone who is able to get along with your child and who can provide the type of home environment suitable for children of all ages is an ideal choice.

Lifespans

While your parents may seem like a great choice as guardian, you need to be careful when choosing an older person. Many older people experience health difficulties that can impair their ability to care for a child. Always consider age and health factors when making your choice.

Alternatives to Guardianships

Some states have alternatives to guardianships of minor children.  For example Texas will allow you to sign a Non-parent Relative Care Agreement with the person you are wanting to serve as the caretaker of your children which does not have to go through a court process in order to be validated.  Be sure to speak with a knowledgeable attorney who can give you all the options your state allows.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

You’ve probably put it off because you didn’t have the time, or you didn’t think you had enough money, or because you simply don’t like thinking about your own mortality. All of these reasons to not participate in estate planning are understandable, but if you’ve let them delay you from creating a plan, you’re risking more than just your ability to make choices about who receives an inheritance from you. A complete estate plan addresses issues about your future that you can only address by creating specific documents.

Risk 1: Your children won’t be cared for the way you would want. If you and your spouse die simultaneously, who cares for your children? If you don’t have a last will and testament, you don’t get to decide. It will be up to your family and friends to apply to a court to determine who will act as your child’s guardian, and the court may end up choosing someone of whom you’d never approve.

Risk 2: Your family will fight about your medical care. If you get sick, who will step in to make choices about your medical care? What kinds of choices will that person make? Will he or she make the choices you would have wanted? All of these questions can be addressed by you before the necessity arises. But if you don’t act, a court may have to appoint someone to make these choices. This can lead to conflict between your family, especially if they have differing opinions about what you may have wanted.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

If you’re divorced or widowed, you may consider naming your children as beneficiaries of your estate plan.  In almost every situation, it would be better to name trusts for your children, not the children as individuals.

Here’s Why You Should Name a Trust as Beneficiary (Not Your Kids)

• Minor children cannot inherit, legally; if you name a minor child as a beneficiary, the court will have to be petitioned to appoint a guardian of the assets.  If your child’s other parent is then living, he or she will likely be named as guardian; and, this may not be what you want.
• You can create a common trust to meet your children’s needs, without tally, and get them out into the world on equal footing.
• If your child has special needs, the inheritance may disqualify him from receiving governmental assistance.  A trust can be drafted to benefit your child and not disqualify him.
• If your child is going through a divorce when she inherits (or later), your assets may be taken by her divorcing spouse; a trust can avoid this.
• If your child is sued, a creditor can seize the assets in his individual name; a trust can protect against creditor seizure.
• If your child has an addiction problem, a trust can be used to help, not hurt.  Outright inheritances are often squandered and used to fuel an addiction.
• If an inheritance is received outright, it’s harder to fend off predators; a trust helps to prevent your child from being taken advantage of.

If you’re divorced or widowed, consider naming trusts for the benefit of your children as beneficiaries, instead of naming the children as individuals.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

Estate planning solves and avoids problems that you might not know even existed in your future.  Here are 6 easy estate planning solutions to everyday problems.  Have another problem not discussed?  Consult with a qualified estate planning attorney.

• I don’t want to have my asset go through probate.

A fully funded revocable living trust avoids probate and has many other benefits as well.

• I’m worried about asset protection.

Review and update your insurance coverage.  You need more than the state minimums on car insurance.  You also likely need umbrella liability insurance.  Chat with your estate planning attorney to see what’s right for you.

• I don’t want my son-in-law to get his hands on the money I give to my daughter.

Pass assets to your daughter in an asset protected trust.  Chat with her to make sure she understands the importance of keeping assets in trust.  Name a professional trustee or have your daughter serve with a professional co-trustee of her choice.

• I don‘t know how to choose a good estate planning attorney.

Ask for referrals from family, friends, and professional advisors.  Schedule a meet and greet meeting with potential attorneys and ask questions.  Get to know them and see who you are most comfortable with.  Check out their websites and blogs to get a feel for their level of experience, professionalism, and style.

• I’m in a second marriage and have kids from my first marriage.

Share your blended family situation with your estate planning attorney.  Let both your spouse and your children know that you are doing estate planning and making separate provisions for each.  Do not make your children the residual beneficiaries of any assets going to your spouse, this breeds lawsuits.

• My son is an alcoholic.

Ensure that any assets passed to your son are not outright, but in a protected life-time trust with a professional trustee.  The trustee can pay for your son’s needs directly such as paying rent to the landlord, medical payments to the doctor, and utilities directly to the company.

Consult with a qualified estate planning attorney to get these solutions in place in your estate plan.  You can prepare for the known and the unknown with good legal guidance.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

As you likely know, keeping the peace in any family is a challenge.  Keeping the peace in blended families is a challenge multiplied exponentially.  Estate planning is part of the answer to keeping the peace.

Here are 6 Tips for Using Estate Planning to Keep the Peace

• Communicate, regularly and frequently.  Let all of your loved ones know that you love them and their best interests are protected in your estate plan.

• Consider not making children from a first marriage wait for an inheritance until your second spouse dies.  In other words, do not make your children the remainder beneficiary for a spouse that is not their parent.

• Make sure that you properly title your assets so that your children are not unintentionally disinherited; avoid joint ownership and name your revocable living trust the beneficiary of your retirement accounts and insurance plans so avoid disinheritance.

• Write love letters, which are sometimes called “ethical wills.”  Tell each of your loved ones that you love them; include special memories, wisdoms, or your hopes for their future.  This is no right or wrong; include what feels right to you.

• Devise a fair plan to distribute your personal property and family heirlooms.  Perhaps, your second spouse keeps all the furniture you’ve purchased together but the kids get all family furniture that’s been passed down through the generations.  Be sure that the kids get photographs and other mementos as they will likely be under the control of your spouse.

• Write down your funeral arrangements and share them with your adult children and spouse.  Appoint one person, and a back up, to be in charge of following your instructions.

• Realize that legal estate planning documentation is necessary in blended families.  Even if your spouse gets along well with your children from another marriage now, this may not continue should you become incapacitated or die.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

A revocable living trust is often the center of an estate plan.  While it’s not all encompassing and is used in conjunction with other ancillary estate planning documents, a trust is incredibly beneficial for most estate planning clients.

Cindy had read several books on estate planning.  She did more online research and realized that she and her husband, Jack, needed a revocable living trust.  She emailed her CPA and asked for a referral to a qualified estate planning attorney and was pleased to receive an immediate response.

Cindy made an appointment for she and Jack to meet with the estate planning attorney who agreed with her conclusion that they would benefit from an estate plan including a revocable living trust.

After much thought and consultation, the estate plan was designed, drafted, executed, and implemented.  Cindy and her attorney were both very good at follow through; Cindy wanted to get everything in order before their third child was born.

Just a few months later, Jack was killed in a work accident.  He was electrocuted and never regained consciousness.  Cindy called the estate planning attorney who took care of everything so Cindy could focus on her family.  He kept Cindy abreast of all actions taken.

Through provisions in the revocable living trust, an asset protected family trust was set up with Jack’s share of the assets.  The trust benefited Cindy and her three children.  Cindy and the CPA were trustees.

On the way to playgroup just 6 weeks after Jack’s funeral, Cindy was distracted for a moment because the kids were crying and she was still distraught over Jack’s death.  She went through a red light and plowed into an SUV containing a family.  Everyone in the SUV was killed, but for one child in a car seat.

Lawsuits ensued.  All of Cindy’s assets were seized.  She and the three children would have been left with nothing but for the family trust which was asset protected and couldn’t be seized in any law suit.

To this day, Cindy is grateful that she and Jack did revocable living trust planning.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

With the use of a college savings plan, saving for the costs of college can be a lot easier.  Texas is a state that offers several different savings plans.  The Texas College Savings Plan is just one of these opportunities.

What is the Texas College Savings Plan?

The fees associated with this plan are very low.  In order to take advantage of this plan, individuals must contribute a minimum of $25.  Your child can use the funds at almost any accredited school in the United States.

Additionally, this plan makes it possible to save for the education of anyone, including a child, grandchild, friend, or even yourself.

What are some of the benefits of the Texas College Savings Plan?

There are many benefits to this plan.  For one, you’re able to start saving as early or as late as you’d like.

You’re also able to have complete control over your contributions as well as your beneficiary designation.

You’re also able to take advantage of tax benefits.  If you make withdrawals from the account for college-related expenses, you won’t have to worry about paying federal taxes on the withdrawals.  You’re funds will also grow federal and state tax-free.

Because of the many benefits of this plan, individuals just like you are taking advantage of this opportunity to save.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

Many people are taking advantage of the opportunity to contribute to a college savings plan so that they’re able to help their child with college expenses.    If you’re looking for a plan that allows you to pay for your child’s college expenses more easily, you may have heard of the Texas Tuition Promise Fund.

What is the Texas Tuition Promise Fund?

This is a college savings plan that allows you to prepay for your child’s college expenses.  Many people take advantage of this plan because of its flexibility.  You’re able to purchase units that can be used for college tuition and college fees.  Additionally, you’re able to choose which credits you purchase which includes options to prepay for a university or college education or a junior college or technical education.  This makes saving even more affordable.

To get started, you will need to invest $15.  You’re able to choose a payment plan that fits your individual financial needs, so that you’re able to save for college no matter what happens in your financial life.

What are some of the benefits of the Texas Tuition Promise Fund?

This college savings plan offers many benefits.  Your child will be able to attend almost any school!

This account is also able to receive contributions from other family members and friends so that your child is able to receive maximum support.

Additionally, this plan makes it possible for an individual to contribute up to $13,000 a year or $65,000 over a five year period, without having to pay federal gift taxes.

Are you looking for a way to ensure that your child will be able to attend college?  If so, consider the Texas Tuition Promise Fund.  If you have any questions about choosing the best college savings plan, consult with a qualified estate planning attorney.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

If you’re a Texas resident who is looking to save for your child’s future college expenses, you may be looking into contributing to a college savings plan in order to reach your savings goals.  It’s important to understand your savings options before deciding to contribute to a specific plan.  The information below nutshells the basics of the Lonestar 529 Plan.  If you have any questions about selecting a college savings plan, meet with a qualified estate planning attorney.

What is the Lonestar 529 Plan?

This plan is available to anyone regardless of their state of residence or income level.  To get stated with the Lonestar 529 Plan, you only need to contribute a minimum of $25.

This plan allows you to take part in a variety of investment opportunities so that you’re able to choose the best investment for your personal needs.

You’re able to make contributions to the account until it reaches a maximum of $320,000.

The funds in this account can be used for numerous college related expenses that your child may have.

What are some of the benefits of the Lonestar 529 Plan?

There are many benefits to this college savings plan. Because the contribution minimums are low, many people are easily able to take advantage of this plan.

Additionally, there are many tax benefits.  This includes federal and state tax-free growth.  You’re also able to make withdrawals for college related expenses without having to pay federal tax penalties.

If you create an account, you’re also able to easily manage your account online.

Are you looking to begin saving for your child’s education?  If so, you may want to consider taking advantage of the Lonestar 529 College Savings Plan.  If you have any questions about choosing a college savings plan, consult with a qualified estate planning attorney.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.