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Abbreviated Table of Contents

Chapter 1                      Client Communications

Chapter 2                      Non-Probate Assets

Chapter 3                      Community Property

Chapter 4                      Ancillary Documents

Chapter 5                      Medicaid-Oriented Estate Planning

Chapter 6-9                   [Reserved]

Chapter 10                    All Wills

Chapter 11                    Wills for Single Persons

Chapter 12                    Simple Wills for Married Testators

Chapter 13                    Tax-Planned Wills for Married Couples

Chapter 14                    Codicils to Wills

Chapter 15                    Generation-Skipping Transfer Planning

Chapter 16-19                [Reserved]

Chapter 20                    All Trusts

Chapter 21                    Revocable Inter Vivos Trusts — Single Persons

Chapter 22                    Revocable Inter Vivos Trusts — Married Couples

Chapter 23                    Funding the Revocable Trust

Chapter 24                    Irrevocable Trusts — Non-Charitable Beneficiaries

Expanded Table of Contents

Chapter 1

Client Communications

I.     Client Communications

§1:01    Questionnaires

A.    Dealing With the Client

§1:02    Conflicts of Interest Disclosure for Spouses

§1:03    Fee Agreements

§1:04    Documenting Non-Representation

§1:05    Tax Planning Flowcharts

§1:06    Cover Letters

B. Malpractice Allegations

§1:10    Claim May Not Arise Until After Client Is Unavailable

§1:11    Statutes of Repose

§1:12    Privity of Contract

§1:13    Further Undermining of Privity Defense

§1:14    Conflict of Interest Between Testator and Beneficiaries

§1:15    Evidence of the Client's Intent

§1:16    Substantive Issues in Defining Malpractice

§1:17    Avoiding Liability and Protecting the Integrity of the Plan

§1:18    Documenting Intent

§1:19    Triggering the Statute of Limitations

II.    Forms

Form 1-1, Estate Planning Questionnaire (For Single Client)

Form 1-2, Estate Planning Questionnaire (For Married Clients)

Form 1-3, ‑Email Cover Letter Transmitting Estate Planning Questionnaire (Two Versions: Single Clients and Married Clients)

Form 1-4, ‑Regular Mail Cover Letter Transmitting Estate Planning Questionnaire (Two Versions: Single Clients and Married Clients)

Form 1-5, ‑Conflict of Interest Disclosure and Consent to Joint Representation of Spouses

Form 1-6, Fee Agreement

Form 1-7, Declination Letter

Form 1-8, Non-Hire Letter

Form 1-9, Instructions Regarding the Storage of Wills

Form 1-10, Cover Letter Transmitting Simple Wills to a Married Couple

Form 1-11, Cover Letter Transmitting Wills With Bypass Trusts to a Married Couple

Form 1-12, Cover Letter Returning Original Documents

Chapter 2

Non-Probate Assets

I. General Points

§2:01    Types of Non-Probate Assets

§2:02    Advantages of Avoiding Probate

§2:03    Disadvantages of Avoiding Probate

§2:04    Advising Clients About Non-Probate Assets

II.    Joint Tenancy with Right of Survivorship

A.    History and the Texas Presumption

§2:10    No Presumption of Survivorship for Joint Tenancies (Prob C §46)

§2:11    Texas Changes to the Uniform Probate Code for Multiple-Party Bank Accounts (Prob C §439)

§2:12    Types of Jointly Owned Assets in Texas

B.     Joint Tenancy Survivorship Agreements (Prob C §46)

§2:20    Joint Ownership Is Not Enough

§2:21    Writing Requirement Does Not Require Signature

§2:22    “Payable to Survivor” Language Sufficient for General Joint Tenancies

§2:23    “Payable to Survivor” Language Not Sufficient for Multiple-Party Bank Accounts (Prob C §439)

§2:24    Unilateral Severance of Non-Bank Account Joint Tenancy

C.     Right of Survivorship in Community Property

1.     History of Attempts at Right of Survivorship

§2:30    Constitutional Prohibition on Converting Community Property

§2:31    The Texas Two-Step

§2:32    Partition Agreements

§2:33    Constitutional Amendment Allows Survivorship in Community Property

2.    Community Property Survivorship Agreements

§2:40    Survivorship Agreement Must Be in Writing and Signed

§2:41    Safe Harbor Language for Survivorship Agreement

§2:42    Not Revoked by Divorce

§2:43    Unilateral Severance of CPWROS

§2:44    Procedure Not Widely Used

D.    Right of Survivorship in Real Property

§2:50    Real Property JTWROS Rare in Texas

§2:51    General Recognition of Right of Survivorship Has Been Slow

§2:52    Recognition of Bank Account Right of Survivorship Has Been Difficult

III.   Multiple-Party Bank Accounts

A.    General Points

§2:60    Bank Accounts Treated Differently Than Other Joint Tenancies

§2:61    Statutory Definitions: Account; Financial Institution

§2:62    Freeze Notices

§2:63    Creditors’ Rights in Insolvent Estates

§2:64    Bank’s Right of Set-Off

§2:65    Unilateral Severance of a Multiple Party Bank Account

B.     Joint Accounts

1.     Definition and Presumptions

§2:70    Definition of a Joint Account

§2:71    No Presumption of Survivorship

2.    Survivorship Agreements

§2:80    Survivorship Agreement Must Be Signed by First to Die

§2:81    Survivorship Agreement May Be Independent of Bank Signature Card

§2:82    Safe Harbor Language for Survivorship Agreement

§2:83    Second Safe Harbor

§2:84    Checkbox Signature Cards

3.    Rights After Death of Party to the Account

§2:90    Bank Not Liable to Estate

§2:91    Rights Among Parties Are Not Pro Rata

C.     P.O.D. Accounts

§2:100  Definition of a P.O.D. Account

§2:101  Rights When There Are More Than One Original Payee

D.    Trust Accounts

§2:110  Definition of a Trust Account

§2:111  Purpose of Bank Trust Accounts

§2:112  Similarity to P.O.D. Accounts

§2:113  Rights When There Are Two or More Trustees

E.     Convenience Accounts

§2:120  Definition of a Convenience Account

§2:121  Purpose of Convenience Accounts

§2:122  Payment After Death of the Last Surviving Party

§2:123  Distinction From Joint Account Without Survivorship

§2:124  Convenience Accounts Not Readily Available

IV.   Other Nontestamentary Transfers: Prob C §450

§2:130  Specified Nontestamentary Transfers Are Valid

§2:131  Applicable Types of Transfers

§2:132  No Requirement for Written Agreement

V.    Forms

Form 2-1, Beneficiary Designation Instructions (Simple Will Plan)

Form 2-2, Beneficiary Designation Instructions (Bypass Trust Plan)

Chapter 3

Community Property

I.     Basic Rules

§3:01    Characterization of Property: Community or Separate

§3:02    Property Acquired in Another State

§3:03    Inception of Title

§3:04    Federal Pensions

§3:05    Undistributed Trust Income

§3:06    Evidentiary Issues and Presumptions; Commingling

II.    Consequences of Characterization

§3:10    Divorce

§3:11    Federal Tax Consequences: Basis Step-Up; Estate Tax Inclusion

§3:12    Creditors’ Rights

§3:13    Intestacy / Standing to Contest Wills

III.   Reimbursement Rights

§3:20    Inception of Title Rule

§3:21    Right of Reimbursement; Claim for Contribution; Claim for Reimbursement

§3:22    Calculating the Statutory Reimbursement

§3:23    Calculating the Common Law Reimbursement

§3:24    Establishing the Different Types of Claims

IV.   Fraud on the Community

§3:30    General Points

§3:31    Presumption of Constructive Fraud

§3:32    Consequences of Fraud on the Community

§3:33    Interaction With Right to Reimbursement Doctrine

V.    Equalizing Estates

§3:40    Comparison of Community Property and Common Law

§3:41    Life Insurance

§3:42    ERISA Preemption

§3:43    Tax Consequences of the ERISA Beneficiary Designation

VI.   Widow’s Elections

§3:50    Election of Community Property Interest or Gifts Under Will

§3:51    Will Must Show Intent to Establish Election

§3:52    Election Must Be Knowing

§3:53    Rationale for Planning a Widow’s Election

VII.  Avoiding Pro Rata Division at Death

§3:60    Effect of Devise of Interest in Community Property

§3:61    Agreement for Non-Pro Rata Division

§3:62    Estate Planning to Facilitate Non-Pro Rata Division

Chapter 4

Ancillary Documents

I.     Durable Power of Attorney

A.    History

§4:01    Old Common Law

§4:02    Modern Durable Power of Attorney

§4:03    Springing Power of Attorney

B.     Considerations & Limitations

1.     Dangers to Principal

§4:10    An Agent May Alter an Estate Plan

§4:11    Certifying Disability for a Springing Power

2.    Reluctance of Third Parties

§4:20    Liability Risks; Extra Work

§4:21    Statutory Exculpatory Provisions

§4:22    Steps to Reduce Problems

C.     Choosing an Agent

§4:30    Trustworthiness

§4:31    Ability and Willingness

D.    Execution Requirements

§4:40    Drafting and Signing Requirements

§4:41    Model Language for Durability Not Mandatory

§4:42    Appropriate Principals and Agents

§4:43    Recording Generally Not Required

§4:44    Statutory Durable Power of Attorney

E.     Storing the Power of Attorney

§4:50    The Principal

§4:51    The Agent

§4:52    The Drafting Attorney

F.     Termination

§4:60    Death, Divorce, Guardianship, Revocation

§4:61    Problems With Termination by Divorce

§4:62    Bankruptcy Does Not Terminate a Durable POA

§4:63    Temporary Guardianship or Guardian of Person Do Not Terminate a Durable POA

§4:64    How to Terminate by Revocation

II.    Medical Directives

A.    General Points

§4:70    Communicating a Medical Directive

§4:71    Directives From Other States

§4:72    Directives Do Not Affect Insurance

B.     Medical Power of Attorney (MPOA)

1.     General Points

§4:80    Statutory Forms Mandatory

§4:81    Care Providers Can Not Require an MPOA

2.    Choosing an Agent; Agent’s Authority

§4:90    Ineligible Agents

§4:91    Agent Authority Without an MPOA

§4:92    MPOA Agent’s Authority

§4:93    Advantages to Authority With an MPOA

§4:94    Agent’s Duty to Consult and Follow Principal’s Wishes

3.    Execution

§4:100  Basic Requirements

§4:101  Principal and Witnesses Must Be Competent

§4:102  Principal and Witnesses Must Be Adults

§4:103  Ineligible Witnesses

4.    When the MPOA Takes Effect

§4:110  Must Be a Springing Power

§4:111  Doctor’s Obligations

§4:112  Determination of Incompetency

5.    Termination and Revocation

§4:120  Terminated by Competency or Revocation

§4:121  Revocation by Principal

§4:122  Revocation by Divorce

§4:123  Revocation Because of Duress or Fraud

§4:124  Not Revoked by Guardianship

C.     Directive to Physicians

1.     History & Overview

§4:130  Right to Refuse Treatment

§4:131  Communicating a Refusal of Treatment

§4:132  Standards: Clear & Convincing or Substituted Judgment

§4:133  Texas: Substituted Judgment

2.    Authority to Decide About Life-Sustaining Treatment

§4:140  With a Directive to Physicians

§4:141  Without a Directive to Physicians

3.    Execution of Directive

§4:150  Generally Executed Before Principal Faces Actual Situation

§4:151  Statutory Form Not Mandatory

§4:152  Witness Requirements

§4:153  May Be Given Orally

§4:154  Parents Can Execute for Minor Child

4.    Using the Directive

§4:160  Directive May Request to use Life-Sustaining Treatments

§4:161  Directive May Distinguish Between Irreversible and Terminal Conditions

§4:162  Doctors Must Use Reasonable Care in Carrying Out Directive

5.    Revocation

§4:170  Competence Not Required for Revocation

§4:171  May Be Revoked Orally

§4:172  Physician Not Liable if Revocation Not Communicated

D.    Do Not Resuscitate Order

§4:180  Purpose

§4:181  Execution

§4:182  Distinction From Directive to Physicians

E.     HIPAA Authorization

§4:183  Background and General Rules

§4:184  The Professional Judgment Exception

§4:185  Whether to Prepare a HIPAA Authorization for the Client

§4:186  Interaction with Medical Power of Attorney

§4:187  Compound Authorizations

§4:188  Required Elements

§4:189  HIPAA Authorization Form

III.   Guardianship

A.    Court Appointed Guardianship

§4:190  Appointment

§4:191  Authority of Guardian

§4:192  Purpose

B.     Declaration of Guardian

§4:200  Designate or Disqualify Persons as Guardians

§4:201  Priority of Guardians

§4:202  Selection of Designated and Disqualified Guardians

§4:203  Execution

IV.   Forms

Form 4-1, Durable Power of Attorney

Form 4-2, Medical Power of Attorney

Form 4-3, Directive to Physicians (Living Will)

Form 4-4, Declaration of Guardian

Form 4-5, HIPAA Authorization

Chapter 5

Medicaid-Oriented Estate Planning

I.     GENERAL POINTS

A.    Introduction

§5:01    Scope of Chapter

§5:02    Appropriateness of Medicaid Planning

§5:03    Legality of Medicaid-Motivated Transfers

B.     Medicaid Long-Term Care Program

§5:10    General Points

§5:11    Nursing Care Must Be Medically Necessary

§5:12    Person Must Be in a Medicaid Bed

§5:13    Resource and Income Limits

§5:14    Excluded Resources

§5:15    Protected Resource Amount for a Community Spouse

C.     Penalized Transfers

§5:20    Ineligibility Periods

§5:21    Lookback Period

§5:22    Ineligibility Penalties

§5:23    The Penalty Start Date — Prior to 2006

§5:24    The Penalty Start Date — After 2006

§5:25    Exemptions to the Transfer Penalties

D.    Estate Recovery

§5:30    General Points

§5:31    Avoiding Recovery May Prevent Eligibility

§5:32    Lady Bird Deed

II.    PRACTICAL ISSUES

§5:40    Clients Who Do Not Want Medicaid

§5:41    Long-Term Care Insurance

§5:42    Client May Move to Another State for Long-Term Care

§5:43    Recordkeeping — the Application Process

§5:44    Recordkeeping — Liquidation of Assets

III.   STRATEGIES

A.    Durable Power of Attorney

1.     General Points

§5:50    The Statutory Form Is Not Ideal for Medicaid Planning

2.     The Power to Create and Fund Trusts

§5:60    Statutory Form Does Not Allow the Creation of Trusts

§5:61    Medicaid Applicants May Need to Create Trusts

§5:62    Establishing a QIT for an Incapacitated Person

§5:63    Extent of Authority May Vary

3.     The Power to Make Gifts

§5:70    Guardians Cannot Make Medicaid-Motivated Gifts

§5:71    Statutory Form Is Not Designed for Medicaid Gifts

§5:72    Giving Assets to Spouse

§5:73    Statutory Form and Self-Dealing

§5:74    Transfer of Remainder Interest

4.     Need for Power to Be Immediately Effective

§5:80    Gifts May Need to Be Made Before Caseworker Is Involved

§5:81    Proving Incapacity May Be Difficult

5.     Sample Clauses to Modify the Statutory Form

§5:90    How to Use These Clauses