1. BASICS OF ESTATE PLANNING AND PROBATE Margie Connolly, Attorney at Law MARGARET McCULLOUGH CONNOLLY, PLLC Sugar Land TX Mmconnollylaw.com

2. AN AVERAGE FAMILY’S GUIDE TO ESTATE PLANNING – FREQUENTLY ASKED QUESTIONS – AND ANSWERS

3. COMMONLY USED LEGAL DOCUMENTS WILL A legal document which allows the maker to direct how his estate will be distributed after his death TRUST A legal document which allows the maker to avoid probate, reduce taxes, and set up long-term property management POWER OF ATTORNEY A legal document which appoints another person to act on your behalf in business or medical decision-making

4. BY MAKING A WILL, A PERSON CAN NAME AN EXECUTOR WHO WILL BE RESPONSIBLE FOR PAYING LAST EXPENSES AND DISTRIBUTING ASSETS, NAME A GUARDIAN AND TRUSTEE FOR MINOR CHILDREN, INSTRUCT TRUSTEE ON HOW TO PAY CHILDREN’S EDUCATION AND OTHER EXPENSES

5. A TRUST CAN PRESERVE PROPERTY THROUGH GENERATIONS A revocable living trust can be established to protect assets from creditors of beneficiaries of the trust, present and future. The maker of the trust can maintain control of management of property, real and personal, for years beyond their death. A trustee is named to manage the property in accordance with the Grantor’s direction. After the Grantor’s death, property will pass under the terms of the trust, avoiding Probate Court.

6. TRUST DOCUMENTS CAN BE USED TO SHELTER ASSETS AND INCOME FOR PURPOSES OF COLLECTING STATE OR FEDERAL BENEFITS SUCH AS MEDICAID OR SSI Special Needs Trust Miller Trust Irrevocable Transfer of Assets trust Other uses – ATF qualified Gun Trust Charitable donation trust Keeps your family’s financial affairs PRIVATE – no public record, no court battles.

7. WHAT IS PROBATE COURT? Probate courts administer proper distribution of the assets of a decedent (one who has died), adjudicates the validity of wills, enforces the provisions of a valid will (by issuing the grant of probate), prevents malfeasance by executors and administrators of estates, and provides for the equitable distribution of the assets of persons who die intestate (without a valid will), such as by granting a grant of administration giving judicial approval to the personal representative to administer matters of the estate.

8. POWER OF ATTORNEY MEDICAL - STATUTORY Medical Power of Attorney allows you to appoint someone to make medical decisions for you in case of temporary or permanent disability. ** NOTE – this is different from and does not affect, your Advance Directive. Statutory Power of Attorney allows you to appoint someone to make financial decisions or sign documents necessary to transfer assets, in the event you are temporarily disabled

9. ADVANCE DIRECTIVE A/K/A “LIVING WILL” Texas Law allows you to declare your wishes regarding artificial life support in the case of terminal illness diagnosis. An advance directive does not mean “ do not treat.” Treatment that will improve your condition is within the authority of your medical power of attorney. The advance directive allows you to have the final decision regarding artificial life support in the event you are diagnosed as “terminal.” All reasonable means to keep you comfortable will be maintained. You have the right to decide if artificial life support will be continued or discontinued.

10. GUARDIANSHIP – CHILDREN AND ADULTS A GUARDIAN is a person who has the legal right and duty to provide for the 1: personal care, and/ or 2: financial care of another person Guardians are needed for persons under the age of majority (18) or for elderly or disabled adults who cannot take care of their own personal or financial needs. (Parents are legal guardians of their children.) When a parent is no longer able to take care of their children, a guardian needs to be appointed – by parental consent – or by court order. When an adult is no longer able to take care of their financial or physical needs, a guardian must be designated or appointed by a court to take care of the financial and/ or physical needs of the “ward.”

11. GUARDIANSHIP IS A PROBATE COURT PROCEDURE WHICH REQUIRES APPOINTMENT OF AN ATTORNEY AD LITEM TO REPRESENT THE BEST INTERESTS OF THE PROPOSED WARD An applicant for appointment as guardian must show the court that the proposed ward is incapacitated – either physically, mentally, or both, and must show whether the incapacity is total or partial. A doctor’s certificate and affidavit must be presented in support of the finding of incapacity, and the court must find such incapacity by clear and convincing evidence, and must find that 1. appointment of the proposed guardian is in the proposed ward’s best interest, and 2. That the proposed ward’s physical or financial well-being will be jeopardized if a guardian is not appointed.

12. ALTERNATIVES TO GUARDIANSHIP The Texas legislature has recently enacted laws which require a proposed guardian or appointed attorney ad litem to explore LESS RESTRICTIVE ALTERNATIVES to guardianship, which might include powers of attorney, or SUPPORTED DECISION- MAKING AGREEMENT, which provides for the proposed ward to maintain her legal rights, with support from various appropriate services.

13. TRANSFER ON DEATH DEED Avoids Probate as it is recorded prior to the death of the Grantor, and takes effect immediately on the death of the Grantor, enabling the Grantee to have title to the property without probating or recording any additional documents.

14. QUESTIONS? IS YOUR FAMILY PROTECTED?