• Home
  • About Us
    ▼
    • Gratia Schoemakers
      ▼
      • Community Outreach Program
    • Testimonials
  • Virtual Services
  • Estate Planning
    ▼
    • Estate Planning Basics
    • Last Will and Testament
    • Revocable Living Trusts
    • Durable Power of Attorney
    • Medical Power of Attorney
    • Living Will
    • Family Estate Planning
    • LGBTQ Estate Planning & Asset Protection
    • Kids Safety Plan™
    • Business Succession Planning
    • Guardianship
      ▼
      • Guardianship Planning
    • Special Needs Planning
    • Legacy Preservation Planning
    • Asset Protection
    • Trusts
    • Pet Trusts
    • Gun Trusts
  • Probate
    ▼
    • Texas Probate Guide
    • Probate of a Will
    • Texas Affidavit of Heirship
    • Texas Small Estate Affidavit
    • Texas Heirship Determination
    • Texas Muniment of Title
    • Trust Administration
  • Family Law
    ▼
    • Divorce
    • Collaborative Divorce
    • Mediation
    • Custody / Visitation
  • Blog
  • FAQs
    ▼
    • FAQs – Videos
    • FAQs – Estate Planning
    • FAQs – Probate
  • Contact
    ▼
    • Virtual Estate Planning Login
    • Client Portal
  • Skip to primary navigation
  • Skip to main content
  • Skip to footer

PROTECTING YOU, YOUR FAMILY, YOUR FUTURE | CALL US TODAY! (832) 408-0505

GP Schoemakers, PLLC

Protecting You, Your Family, Your Future

BOOK AN APPOINTMENT

  • Home
  • About Us
    • Gratia Schoemakers
      • Community Outreach Program
    • Testimonials
  • Virtual Services
  • Estate Planning
    • Estate Planning Basics
    • Last Will and Testament
    • Revocable Living Trusts
    • Durable Power of Attorney
    • Medical Power of Attorney
    • Living Will
    • Family Estate Planning
    • LGBTQ Estate Planning & Asset Protection
    • Kids Safety Plan™
    • Business Succession Planning
    • Guardianship
      • Guardianship Planning
    • Special Needs Planning
    • Legacy Preservation Planning
    • Asset Protection
    • Trusts
    • Pet Trusts
    • Gun Trusts
  • Probate
    • Texas Probate Guide
    • Probate of a Will
    • Texas Affidavit of Heirship
    • Texas Small Estate Affidavit
    • Texas Heirship Determination
    • Texas Muniment of Title
    • Trust Administration
  • Family Law
    • Divorce
    • Collaborative Divorce
    • Mediation
    • Custody / Visitation
  • Blog
  • FAQs
    • FAQs – Videos
    • FAQs – Estate Planning
    • FAQs – Probate
  • Contact
    • Virtual Estate Planning Login
    • Client Portal

Divorce

Warning: Don’t Let Creditors Inherit from You

Shocking to most people, the retirement account you leave for your spouse can be seized in a divorce, lawsuit, or bankruptcy.

3 Options Available To Surviving Spouses

When your surviving spouse inherits your IRA, he or she generally has three options:

Creditors inherit from you
  1. Cash-out the inherited IRA and pay the income tax.  
    • WARNING! The cashed-out IRA will not have creditor protection and accelerates taxation.
  2. Maintain the IRA as an inherited IRA.  
    • WARNING! The inherited IRA will not have creditor protection.
  3. Roll over the inherited IRA and treat it as his or her own.
    • WARNING! This may offer some creditor protection; however, not in all cases. 

It’s frustrating to many that a stranger can swoop in and take their hard-earned money; fortunately, there’s a solution and that solution is a retirement trust.

Standalone Retirement Trusts Provide Protection

A Standalone Retirement Trust (SRT) is a special type of trust designed to be the beneficiary of your retirement accounts after you die. It can protect your assets from your beneficiary’s creditors.  We can include trust provisions that specifically benefit your spouse in situations such as:

  • Second marriages
  • Divorce
  • Lawsuits from car accidents, malpractice, or tenants
  • Business failure
  • Bankruptcy
  • Medicaid qualification  

Want To Know More?  

The bottom line is that a properly drafted SRT is often your best option for protecting your retirement assets (and providing the bonus of tax-deferred growth). Want to know more?  Contact us today to schedule a conversation. We look forward to working with you.  Contact us today! Call our office at 832.408.0505 or schedule your appointment right now.

Tips for Effective and Healthy Communication for Divorcing Parents

The way we communicate is a big part of how we see and deal with the people around us. Most people who file for divorce had a communication meltdown at one point or another. It’s more than usual… when emotions run high, we are stressed out, angry, disappointed, frustrated even, our communication skills usually one of the first things to suffer.

Unproductive communication like yelling, abusive language, name-calling, withholding information, or even shutting down not only complicate the divorce process, it also is unhelpful for everyone involved.

This blog article helps you improve or highlight any lousy communication skills (and it is a skill because we CAN change our communication style).

Although I am not a psychologist, as a Divorce Lawyer, I can tell you that research shows that a Collaborative Divorce process can improve your communication style.

A few tips to get you started would be to:

1) Consider your tone! When frustrated and angry, people fall in familiar patterns of communication, sarcasm, yelling, or even the sound of your voice can lead to ineffective communication. Make sure you speak with respect and talk as if you are talking to someone you like to impress, someone you want to sway your way. See it as a job interview if you must! When you control the atmosphere by creating an open and respectful conversation, and remember harsh tones, hurtful feelings or abuse words have no place in this process.

2) Set boundaries! Decide how often you will communicate with each other. Set the time, duration, and expectations. This will help you avoid acting impulsively, or high on emotions. It will also keep everyone from feeling that there is too frequent or infrequent communication and diminishes any frustration paired with that.

3) Focus on the Issue at hand! Divorces are not easy, and they bring out the worst in us. We are high on emotions. We are frustrated, and sometimes we will lose our tempers, not because we plan to, but because we feel lost, frustrated, or even bitter about the whole process. When we focus on the issues at hand, we effectively avoid all the baggage that we carry with us. The change of “straying” to a different topic due to frustration will be significantly diminished.

4) Use a Mediator or Mental Health Specialist! Having a third party (neutral) professional in the conversation will help highlight our style of communication, it will allow us to understand what the other one is saying. Sometimes we hear but do not understand the other person due to differences in communication style. Having a “translator” helps!

5) Getting a “Vent-Buddy”! If your attorney has not yet recommended it, you should get a Therapist anyways! Divorces are hard; many unpleasant emotions will pop up. Our prior relationship with our spouse causes some, some just of how we grew up. Getting to understand yourself better will help you know your communications style. That said: Do NOT use your kids as a “vent-buddy,” they should not carry your or your exes baggage! Find a friend, a therapist, or even a pet! 

6) You are now a co-parent! You are not competitive parenting! Pay attention to what you do and why! Do not let other people drive you to do things that you would not have done in less stressful times!

Please understand that these are just six suggestions to improve your communication style. As with everything, change takes time, every relationship is different, and always put your children first! What we do now will shape our children’s reality and the way they love, communicate, and parent down the line.

If you have any questions about collaborative divorce or another family law issue, GP Schoemakers, PLLC is more than happy to assist; you can reach us at 832.408.0505 or find us on at or schedule your initial consultation here. We’ll help you decide whether it makes sense to avoid probate in your particular case and, if so, the best way to do so. We hope this article has helped you and your family shape a better tomorrow.

What Everyone Should Know About Mediation

What Is Mediation?

The goal of mediation is to use the assistance of a neutral third party to reach an agreement that is acceptable to both the parties. It helps both parties walk away with a satisfactory outcome, without the financial and emotional cost of a court case.

The mediation process consists of a mutual endeavor. Unlike in negotiations (where parties are often entrenched in their positions), parties to a mediation usually seek out mediation because they are ready to work toward a resolution to their dispute. The mere fact that parties are willing to mediate in most circumstances means that they are ready to “move” their position. Since both parties are willing to work toward resolving the case, they are more likely to work with one another than against one another (this happens in a typical court setting). The parties thus are amenable to understanding the other party’s side and work on underlying issues to the dispute. This has the added benefit of often preserving the relationship the parties had before the dispute.

Can Mediation Help Me?

Virtually any type of case can be mediated.Conflict Management

Examples included situations where issues arise out of contracts, partnership dissolutions, divorce, workplace conflicts, personal injury, sexual harassment, landlord-tenant relationships, discrimination, collections, and more.

What Is The Role Of A Mediator?

The role of a mediator is to provide guidance during discussions in an effort to resolve pending issues. The mediator does not represent either party and cannot provide legal advice. A good mediator is trained in conflict resolution and in working with difficult situations. The good mediator is likely to work as much with the emotional aspects and relationship aspects of a case as he or she is to work on the “topical” issues of the matter. The mediator, as a neutral, gives no legal advice, but guides the parties through the problem solving process. The mediator may or may not suggest alternative solutions to the dispute. Whether he or she offers advice or not, the trained mediator helps the parties think “outside of the box” for possible solutions to the dispute, thus enabling the parties to find the avenue to dispute resolution that suits them best.

Do I Need An Attorney?

No. Mediation can occur with parties who are with or without attorney representation.
If your specific mediation case requires filing of court documents / forms, we at GP Schoemakers PLLC are licensed by the Texas State Bar, and therefore can help you file any court documents.

What Is The Difference Between A Court Case And Mediation?

Mediation offers multiple and flexible possibilities for resolving a dispute and for the control the parties have over the resolution.
In a case filed in court, the parties will obtain a resolution, but a resolution thrust upon the parties by the judge or jury. The result probably will leave neither party to the dispute totally happy.

In mediation, on the other hand, the parties have control over the resolution, and the resolution can be unique to the dispute. Often, solutions developed by the parties are ones that a judge or jury could not provide.
Therefore, mediation is more likely to produce a result that is mutually agreeable, or win/win, for the parties. And because the result is attained by the parties working together and is mutually agreeable, the compliance with the mediated agreement is usually high. This also results in less cost, because the parties do not have to seek out the aid of an attorney to force compliance with the agreement. The mediated agreement is, however, fully enforceable in a court of law.

How Does Mediation Work?

In advance of any mediation meeting, it is common, but not necessary, for the parties to provide the mediator with information about the dispute. This can be done with documents describing the facts and issues of the case. Often, but not always, this information is also exchanged between the parties.
Depending on the relationships between the parties, all participants may meet initially with the mediator to discuss the case in general terms. The parties may stay in the same room or go to separate rooms, depending on the case. The mediator serves as liaison to develop consensus in either situation.

Is Mediation Confidential?

Mediation offers a confidential process. While court hearings of cases happen in public, whatever happens in mediation remains strictly confidential! No one but the parties to the dispute and the mediator(s) know what has gone on in the mediation forum. In fact, confidentiality in mediation has such importance that in most cases the legal system cannot force a mediator to testify in court as to the content or progress of mediation. Many mediators actually destroy their notes taken during mediation once that mediation has finished. The only exceptions to such strict confidentiality usually involve child abuse or actual or threatened criminal acts.

The Benefits of Mediation

Mediation has many benefits. One of them certainly is the confidentiality that goes with it. Trials are public and for everyone to see, but in mediation parties can make as much or as little known to the outside world as they like. Much mediation goes by without anyone outside of the parties involved every knowing about them.
Mediation is also a good way to bypass scheduling times on crowded court calendars; it avoids preferential treatment courts give to criminal cases. It furthermore eliminates the expense of expert witnesses and costs that usually go with a jury case.
In Comparison, a typical trial, filled with stress and great expense, may not result in a verdict for 18 months from the date of filing. Mediation, with the exception of family law cases, can usually be solved in less than a week, at times even sooner than that.

Mediation in Family Law Cases

Divorce, child custody and other family law matters involve some of the most complex and personal situations an individual encounters in a lifetime. Clients have concerns ranging from dividing property and debt to custody of children and support obligations.

Many issues that need to be considered in family law cases include child custody, visitation, child support, spousal maintenance and marital property division. These are all issues that can be resolved without going to court. It is often in the parties’ best interest to choose for mediation because court dockets have become more congested and cases risk becoming a long drawn out battle. For this reason there is a greater focus on Alternative Dispute Resolution (ADR) such as mediation in family law cases.

Mediation is not only a confidential, practical way to resolve problems with the help of an impartial third party. It is a non-adversarial approach to conflict resolution, where the parties generally communicate directly; the role of the mediator is to facilitate communication between the parties, assist them in focusing on the real issues of the dispute, and generate options for settlement. When parties mutually agree that they have found common ground on the issues, and agreement will be made and signed by all parties involved. The agreements then are incorporated into the divorce decree or court order and are then subject to the approval of the court.

Why should I consider family law mediation?

Mediation, particularly in a family law setting, provides a viable option for those who prefer to stay out of court. The biggest advantages of mediation are the enormous reduction in cost. People usually find mediation less emotional stressful than a court proceeding. The rules and procedures involved with mediation are much more flexible than it would be in any court.

What are advantages of mediation?

A very important benefit of mediation in family law cases is that parties have a control over what they agree upon, because the focus is not on the personal conflict between the parties, but the desire to find a way to cooperate and move forward. For example, in a custody dispute (time with children, special or changing needs of children, child support, taxes, medical insurance, child care) mediation allows parents to seek practical solutions which are customized to fit their unique circumstance, unlike a standardized court order. The process itself helps parents find ways to work with each other’s situations regarding their children so that they themselves will have less emotional stress because of the divorce. A mediator will help parents look at the various options available for them instead of arguing about what they don’t want, and help them make a decision with confidence. This is important because a successful custody schedule is more likely to occur when both parents are committed to a plan that they created and makes sense to them.

A key advantage to mediation is that the parties themselves, not a court or some other third party, are primarily responsible for the outcome. The other main advantages of mediation have to do with time, money, form, and satisfaction.

  1. Time. Mediation usually takes less time than litigation because it avoids court scheduling delays and because there are no formal court rules to interfere with the pace of negotiations.
  2. Money. Because preparing a case for trial is expensive, mediation saves money by reducing the number of issues that must be prepared for trial.
  3. Form. In mediation, the parties have wide discretion to control the form of the proceedings. This control means the parties can set rules appropriate for their situation and avoid formalities that may hinder negotiations.
  4. Satisfaction. Because mediation allows the parties to actively participate in negotiations and to control the outcome, divorce issues resolved through mediation are less likely than those resolved through litigation to result in future disputes.

What divorce issues can be resolved through mediation?

Divorcing couples are typically free to choose which issues to resolve through mediation and which issues to resolve in court. Some states require mediation to resolve issues regarding children, such as child support, visitation, and child custody. In other states, mediation of child-related issues is not mandatory but can be ordered by the court when necessary. However, all child-related issues resolved through mediation will require court approval to be enforceable.
Other divorce issues commonly resolved through mediation include spousal support (alimony), marital-property division (marital homes, family-owned businesses, and other jointly owned property), division of retirement benefits (pensions, 401(k)s, and other retirement plans), and health-care benefits.

What happens when an agreement is reached?

When the parties reach an agreement through mediation, the agreement must be put in writing. The written agreement is called a divorce settlement agreement or a marital settlement agreement. Each party should have his or her own attorney review the agreement before he or she signs it. The parties should have an attorney draft the final version of their agreement and file other required documents with the court. An attorney, unlike a non-attorney mediator or the parties themselves, is typically in a better position to see that the agreement meets the court’s formal, procedural and legal requirements. An agreement that does not meet legal or procedural requirements will not be accepted by the court.

You will want to speak with a mediator who will provide you with practical solutions which are customized to fit your personal circumstances.

We at GP Schoemakers PLLC can help you. We believe that the first step in obtaining results is to always keep the lines of communications with our Clients open. Ms. Schoemakers’ Clients know that they will always speak with her and be fully informed of all developments in a timely manner.

 

If you choose Gratia Schoemakers as your mediator, you will have the advantage of both a trained and skilled mediator as well as a reputable lawyer who’s knowledgeable and licensed in Texas law. So whatever path your mediation takes, you will have a skilled practitioner and an experienced problem solver assisting you during these difficult times.

To determine whether mediation is appropriate in your situation, contact GP Schoemakers PLLC to discuss your options.

Get In Touch

We represent clients throughout the greater Houston-Galveston area, including: Algoa, Alvin, Anahuac, Angleton, Bacliff, Bayou Vista, Baytown, Clear Lake, Clear Lake Shores, Clute, Danbury, Deer Park, Dickinson, El Lago, Friendswood, Galveston, Hillcrest, Hitchcock, Lake Jackson, Houston, Kemah, La Marque, La Porte, League City, Manvel, Mont Belvieu, Missouri City, Nassau Bay, Pasadena, Sugarland, Pearland, San Leon, Santa Fe, Seabrook, South Houston, Texas City and Webster.

 

 

Protecting Your Children’s Inheritance When You are Divorced

Consider this story.  Beth’s divorce from her husband was recently finalized.  Her most valuable assets are her retirement plan at work and her life insurance policy.  She updated the beneficiary designations on both to be her two minor children.  She did not want her ex-husband to receive the money.

sorry rose

Beth passes away one year after her divorce.  Her children are still minors, so the retirement plan and insurance company require an adult to be appointed to receive the inheritance Beth left behind.  Who does the court presumptively look to serve as the caretaker of this money?  Beth’s ex-husband who is now the only living parent of the children.  (In some states, this caretaker of the money is called a guardian, whereas in others it is the conservator.  The title does not matter as much as the role, which is to manage the funds on behalf of a minor, since the minor is not legally able to handle significant assets or money.)

Sadly, stories like Beth’s are all too familiar for the loved ones of divorced people who do not make effective use of the estate planning tools.  Naming a beneficiary for retirement benefits or life insurance, or having a will can be a good start.  However, the complexities of relationships, post-divorce, often render these basic tools inadequate.  Luckily, there is a way to protect and control your children’s inheritance fully.

Enter the Trust

A trust allows you to coordinate and control your estate in a way that no other tool can.  For those who are not yet familiar, a trust is a legal arrangement for managing your property while you are alive and quickly passing it at your death.  There are a few key players in the trust.  First, there is the person who created the trust, often called the Trustmaker, Grantor, or Settlor (this is you).  Second, there’s the Trustee who manages the assets owned by the trust (usually you during your life and then anyone you select when you are no longer able to manage the assets).  Finally, the Beneficiaries are the people who receive the benefit of the trust (usually you during your life, and then typically children or anyone else you choose).

How a Trust Protects Your Children’s Inheritance after a Divorce

A trust protects your children’s inheritance in a few distinct ways:

  1. Since you select the Trustee, you can choose someone other than your ex-spouse to manage the assets.  In fact, you can even state that the ex-spouse can never be a Trustee, if you wish.  If Beth had a trust, she could have named her brother to be Trustee after her death.  Her brother (rather than her ex-husband) would then be in charge of the children’s inheritance.
  2. Since you select the Beneficiaries, you can determine how the trust assets can be used for them.  You may have long-term goals for your beneficiaries, such as college, purchasing of a first home, or starting a business.  When you share your intent, your Trustee can invest the assets appropriately and ensure your legacy is used the way you want, rather than the assets being potentially wasted or used in a thoughtless way.  If Beth had a trust, she could have instructed how she wanted the inheritance used, rather than leaving it to the whims of a court and her ex-husband.
  3. A fully funded trust avoids probate, so your children do not have to deal with the cost, publicity, and delay that is all-too-common in probate cases.  Although “plain” beneficiary designations, like the one that Beth used, also avoid probate, they may still open the door for a guardianship or conservatorship court case, especially when your children are minors.  A fully funded trust avoids these guardianship and conservatorship cases.  This means more money for your intended beneficiaries and less for the lawyers and courts.

If you are divorced, it is essential to make sure your plan works precisely the way you want.  Every situation is unique, but we are here to help design a plan that achieves your goals and works for your family.  Give us a call today.

Beneficiary Designations and a Blended Family: Why You Need to Think Before You Sign

Whether you are in your first marriage or have remarried after a divorce, blended families are a common part of modern society. That being said, it is important to understand that blended families and subsequent marries create important and unique issues when it comes to estate planning. You may need to account for a prior spouse who is still caring for minor or disabled children, and also possibly make sure your current spouse and any children you had together – and any step children – are also taken care of after you pass away. The good news is that estate planning can take all of these factors into account. This is true whether you are putting together your estate plan for the very first time or if you need to update your current estate plan due to a change in your circumstances.

Setting Up a Trust

It is common for married couples to leave everything to one another in their wills, or list their spouse as the sole beneficiary of any assets that allow for this designation. The result is that if one spouse passes away before the other, the surviving spouse will own all of the assets left behind outright. While this may work for some families, when it comes to blended families this strategy may inadvertently disinherit children or spouses from a prior marriage. One way to provide for a current spouse without leaving out children from a prior marriage is to place some or all of your assets in a trust that the spouse can use during his or her lifetime. Once the spouse dies, all of the property in the trust can go to the children from your current and prior marriage, or to other intended beneficiaries.

Beyond Simple Beneficiary Designation

The plain and simple beneficiary designation on assets (like life insurance, bank and investment accounts, etc.) that allow for outright distribution to the surviving spouse can inadvertently wreak havoc on an estate plan when a blended family is involved. These complications can apply to a couple who has children from prior marriages, someone who remarries late in life, or someone on their second or third marriage and beyond.

For example, you may purchase a large life insurance policy and designate your current spouse as the sole beneficiary and pass away shortly thereafter. Since the beneficiary designation takes precedence over your estate planning documents, the proceeds of the life insurance will not be placed in that trust and will be distributed outright to your current spouse. If you had instead named the trust as beneficiary, you could have determined when and how the funds would be spent for the benefit of your heirs. As an example, the funds could be used to provide support for your surviving spouse during his or her lifetime while also allocating a portion to help your children to pay for college, finance a down payment on a first home, pay for a wedding, or start a business. The key is that the money can be available for your spouse, but not with unfettered control, and still available for your children.

Ensuring Your Wishes Are Followed

While you hope that a surviving spouse with honor your wishes even if they are not in writing, you may accidentally disinherit your children. Instead, a knowledgeable estate planner will use your trust as the centerpiece of your estate plan and make sure to coordinate and align the beneficiaries on your assets so that your intent will become the reality once you have passed away. We can explain all of the options available to you and put together a plan that best suits your family’s needs.

Contact us today, we are here to help.

3 Things You Must Do Once Your Divorce Is Final

The divorce process can be long and expensive.  However, the work does not end once the divorce decree is signed. In order to ensure that your assets and estate planning wishes are carried out in light of this major life change, there are three things you must do as soon as possible.

Change Beneficiary Designation On Life Insurance

A life insurance policy is a contract between you and the insurance company.  You designate the beneficiary (the individual(s) or entity who will receive the proceeds upon your death) and the insurance company will pay them when you die. Because the beneficiary designation is a legally binding contract, the insurance company has to pay the individual listed as your beneficiary. If your ex-spouse is listed as the beneficiary, they will pay the funds out to him or her.  It does not matter to the insurance company if the two of you are now divorced.

Update Beneficiary Designation On Retirement Plans

Although state law may automatically revoke a designation on a retirement plan if the ex-spouse is listed, federal law states that the last named beneficiary is the one who is entitled to the funds. Depending upon what type of retirement account you have, it might be the state law that controls or the federal law.  To be on the safe side and avoid a potentially long and costly battle for your family, it is best to change the beneficiary as soon as possible.

Create or Revise Your Estate Plan

If you and your former spouse had a joint trust, you will need to have your own individual trust created to hold the assets that are now in your name only. In this new plan, you will need to think about who to name as the trustee and beneficiary. If you have minor children, you may also need to consider who is going to be the individual to manage those assets on behalf of your children. In many cases, you probably don’t want your ex-spouse in these roles.

If you do not have any estate planning documents in place, now is the perfect time to get everything in order. After going through the divorce, you probably have a good idea as to what assets you own and the value of them.  This will be very helpful as we discuss the right estate plan for you.

Your estate plan is more than just a trust.  It can include documents such as a financial power of attorney and healthcare power of attorney.  Whether you have them already or need to have ones executed, this is a crucial time to review them.  Chances are you no longer want your ex-spouse to have the authority to sign documents on your behalf or make medical decisions for you.  To avoid confusion by third parties as to who should be acting on your behalf, make sure to call us so we can update these essential documents.

We can help you cross the finish line

Divorce can be a long process.  Before taking those next steps into your new life, call us, so we can make sure that you cross the finish line with documents that are able to carry you and your wishes forward.

Contact us today.  We’re here to help.

Footer

Clear Lake Location
1100 NASA Parkway, Ste 420J
Houston, TX 77058

Contact Us
Get Directions
(832) 408-0505

Privacy Policy
The information contained in this Website is subject to our Disclaimer and Terms and Conditions.