Living Trusts

Explanation and Engagement Letter

Read our web articles on Living Trusts in Texas and Investor Land Trusts in Texas.

Initial Consultation Required. Trusts are a complex area. There are many different kinds of trusts and many different purposes for which they are used. A paid consultation (see below) is required so we can review your situation and determine the correct approach to your trust. The consultation is conducted online and lasts for up to one hour or three days, whichever occurs earlier, when it automatically concludes.

Final Fee Quote for Trust Work. The final fee for the client’s trust work will be quoted during the initial consultation after background facts and documents have been gathered and evaluated. Any quote prior to that point is merely an estimate.

Living Trusts for the Homestead. This is a classic and popular probate-avoidance strategy. Fee guidelines for living trusts for the homestead begin at $750 plus $350 for the warranty deed into trust (excludes recording). Complex trust fees will be higher. Living trusts are often prepared in conjunction with a pour-over will (see below).

Trust-Related Documents. Living Trusts for the Homestead; Investor Land Trusts; Amendments, Modifications, and Restatements of Trust; Certifications of Trust; Terminations of Trust; Assignments of Trust Beneficial Interest; Trust as sole Member of an LLC; Trust as Beneficiary of an LLC; Testamentary Trusts; Warranty Deeds into Trust; Pour-Over Last Will into Trust. Fees for individual documents in this category usually range from $250 to $750 depending on complexity and anticipated attorney time.

Trusts for Investment Properties. Investor land trusts are a form of revocable inter vivos trust and are used for non-homestead properties. Fees begin at $750 and depend on complexity, anticipated attorney time, and whether or not a warranty deed will be required as well. Final fee will be quoted at the initial consultation.

Trust Checklist. We have a Trust Checklist that we ask that clients fill out in order to supply information needed to draft a trust agreement. Request the Checklist if you would like to proceed.

Pour-Over Will. A basic last will and testament suitable for use in conjunction with a living trust is called a pour-over will. At death, this instrument pours over any non-trust assets into the living trust. Fees are $450 (simpler) to $750 (more complex). Note that Texas wills require at least two witnesses. A notary be present for proper execution. Clearly, this is not something we are able to provide if we are working together online, so the client would need to make arrangements to have witnesses present at the execution of the will. Very complex wills should be taken to an attorney who is board certified in estate planning or tax.

Attorney as Trustee. For professional liability reasons, we never serve as trustee for our clients’ trusts. Trusts have no liability barrier. If the trust is sued, it is the trustee who is named (personally) as the defendant. This is not a risk we take.

CONSULTATIONS GENERALLY

Online Process. Consultations are handled online by email (supplemented by phone) not in the office. Office visits are not included in the consult fees quoted below.

Consultation May Be Required. In complex, creative, or document-heavy cases and at our option, we may require that the process begin with a paid consultation in order to gather facts and discuss details. Determination of an exact fee quote may be deferred until the case can be discussed at the consultation.

Initial Consultation for Document Preparation. An initial consultation is not normally needed in the preparation of individual documents but only so long as we are given clear and concise instructions.

No Conditional Consultations. Beyond stating that a particular matter is within our expertise, we do not accept any client-imposed conditions on payment for the consultation (e.g., “only if your advice is helpful”).

No Bundling of Consultation Topics. Bundling multiple diverse legal topics or questions about multiple properties or transactions into a one-hour consultation is not permitted. This never works because it is too scattered. If multiple properties or topics need to be discussed, an hourly arrangement will apply instead.

No Shoehorning. Shoehorning (slipping in additional items and topics on top of an agreed flat-fee service) is not permitted. Additional topics and tasks incur additional fees.

No Tax Advice. We are not tax advisors and do not give tax, accounting, or bookkeeping advice. Please consult your CPA in conjunction with our legal advice.

No Coaching. We are a law firm that provides advice and prepares real estate and business documents. We are not a real estate school or an investment advisor and do not offer mentoring on real estate investing.

No Total Re-Write During a Consult. The fee for a consultation or review/comment on a document is not a flat fee for the total re-write of an existing legal document. Re-writing a legal document inevitably takes longer than a one-hour consultation, so either our posted flat fee for doc prep or the hourly rate applies.

No Assurance of Future Services. A consultation or document preparation task is not an advance commitment on our part to handle the matter going forward. We may, at our discretion, decline to be further involved after initial services are rendered.

LEGAL FEES GENERALLY

Legal Fees – Initial Consultation. An initial consultation for new clients is always recommended. The fee for an introductory consult is $250 for matters up to $750,000 and $350 (our usual hourly rate) for matters exceeding that amount. The consultation is conducted online and lasts for up to one hour or three days, whichever occurs earlier, when it automatically concludes.

Legal Fees – Ongoing. Beyond the initial consultation, either our extensive flat-fee schedule will apply or our $350 hourly rate would apply (one-hour minimum, billed in quarter-hour increments). If in doubt, inquire. We strive for total transparency as to legal fees.

Legal Fees – Deeds, Notes, and Deeds of Trust. Simpler residential documents in this category are usually $350 each excluding recording. More specialized, customized, or complex documents (including commercial documents) are higher, usually beginning at $450.

Closing Packages. Two or more simpler residential documents ordered at the same time involving the same transaction (e.g., a closing package) begin at $250 each excluding recording.
Keying in Metes and Bounds. If there is a metes and bounds legal description that needs to be re-keyed by us(rather than the usual brief lot and block) add $75.

Custom Special Provisions. Inclusion of custom, creative, or complex provisions increases legal fees. Also, we may, at our discretion, require an initial paid consultation to discuss the transaction before proceeding. Determination of an exact fee quote may be deferred until the consultation.

Costs and Recording Fees Excluded. Legal fees quoted always exclude any costs and recording fees that may be associated with or arise. These are separate and additional and must be paid by the client.

Fees Quoted are for Services Online. Office visits are not included in posted flat fees.

FLAT-FEE SYSTEM

Flat Fees are Guidelines. Posted fees are subject to change without notice. Fees quoted are guidelines only and may be adjusted if a matter or transaction is unusually complex, creative, or document heavy. We reserve the flexibility to vary our usual fees based on specific circumstances.

Flat Fees Stand Alone. In a flat-fee system, all fees stand alone. Payment of one flat fee (including a consultation fee) does not include any other services or result in a credit toward future legal services. Multiple diverse tasks incur separate flat fees. The alternative is our hourly rate.

Flat Fees Earned When Paid. There is no requirement that flat fees or flat-fee retainers be held in trust or in escrow or deposited in a separate account. There is no requirement that interest be paid on such funds.

Switching to Hourly Billing. As a case develops, it may become apparent that hourly billing is more appropriate than a flat fee. We reserve the right to switch the case to $350 hourly billing if work substantially or unexpectedly exceeds what was reasonably anticipated or what is ordinary and customary for the task.

Expiration of Flat Fees Paid. We do not carry long-term positive balances. All payments, retainers, overpayments, or credits to a client´s account must be used within six months or they automatically expire in their entirety. No exceptions.

Flat Fees Distinguished from Retainers. Consultations and document preparation tasks are designed to be short-term. They begin and end. By contrast, retainers are intended to be a longer-term commitment to your case. Retainers may be flat-fee (for a specific period) or hourly. Inquire.

No Carry-Over of Fees. Documents and fees relating to one transaction or property do not “carry over” to other transactions or properties. Our fees are per transaction and per property. Each transaction bears its own stand-alone legal fees and costs.

PAYMENT POLICIES

Advance Payment is Required. We do not send bills after the fact for online services. We do not offer free consultations or any free attorney time. Payment options are as listed on the payment page of the website. Checks are not accepted.

No Conditional or Contingent Fees. Payment of fees is never conditional or contingent upon a successful closing, loan approval, appraisal, title policy, or any other event. There is no refund if such events do not occur as anticipated.

Itemized Statement. We customarily provide statements in larger matters. If you require an itemized statement of fees and costs before proceeding with a smaller matter, please let us know.

No Hourly Accounting for Flat Fees. Flat fees quoted above are not held in trust or escrow. They are earned when paid. No hourly accounting is ever kept or made in flat-fee matters and the client has no right to demand one.

Refunds. If it is determined very early in the process to terminate engagement (before substantial attorney time is expended) we will promptly provide a full refund by means of: (1) an immediate PayPal refund or (2) a law firm check sent by U.S. Mail. However, there is no refund once the attorney expends time and effort examining a file and discussing it with the client. Reading client documents and answering questions consumes attorney time and is a service to the client. Once this happens, legal services have occurred and the client’s payment becomes entirely non-refundable. Also, there are no refunds if legal advice provided is not what the client expected or wanted to hear.

Client Default. If a client defaults on payment of legal fees then we may immediately terminate the attorney-client relationship and cease providing services.

DOCUMENT PREPARATION POLICIES

Document Preparation Fees are Not a Long-Term Retainer. Legal advice over time is called a retainer. That is an extra level of service which is available but is not included in a document preparation fee.

Document Preparation is Not Full Representation. Document preparation is a limited, closed-end service that does not include ongoing legal advice and counsel. Engaging us to prepare a document is not the same as retaining us to represent you in a transaction.

Document Preparation Excludes Negotiations. A flat fee for document preparation is a one-time stand-alone item that begins and ends. It does not include negotiations, future or later revisions of the document, or any other ongoing services. Additional attorney time is handled on an hourly basis.

Extensive Customization of Documents. Our flat fees contemplate our usual and established professional format. If the client wants significant special provisions or customization beyond what we typically provide then fees will increase. In such cases, an initial consultation will be required and specific fees will be determined at that time. Alternatively, our hourly rate may apply.

Finality of Documents We Prepare. The document process is not indefinite or open-ended. Documents we prepare or review are considered final 3 business days after delivery to you. Please get back to us with any needed corrections or changes before then. Afterwards, a revision fee will apply.

Documents are Proprietary and Supplied in PDF Format. Except for templates, documents are supplied in pdf format only. All our documents are proprietary, subject to copyright, and licensed (not sold) to the client. Our documents may not be copied or disseminated to third parties.

Document Preparation – Additional Fees. Add $75 if metes and bounds (rather than the usual lot and block) must be keyed in by us. Add $25 if we are named as trustee in the Deed of Trust.

TRANSACTIONAL REPRESENTATION

Representation in the Full Transaction. Preparation of documents or providing a consultation is a limited, closed-end service that begins and ends in a specific timeframe. These services do not include or encompass ongoing legal advice or representation in the broader transaction. We have no obligations to the client beyond the consultation or document preparation. Engaging our firm for a limited purpose does not mean that we become your attorney for the whole transaction unless we expressly agree to do so in writing.

No Representation of Both Sides. We only ever advise and represent one side of a case or transaction. We never attempt to “represent both sides.” Absent instructions to the contrary, we strive to give legal counsel and prepare documents that are aggressively in the best interests of our client.

RECORDING OF DOCUMENTS AND FinCEN REPORTING

Recording with County Clerk Excluded from Legal Fees. Our legal fees exclude both recording fees and the act of recording a document with the county clerk unless there is a prior express (not assumed) agreement otherwise. Online clients generally record their own documents since they have the original in hand (we do not) and only executed and notarized originals can be recorded in the county clerk’s real property records. We do not collect for recording fees, only document preparation.

Recording of Executed Originals with County Clerk. Recording of the executed and notarized original warranty deed or deed of trust is easily done by the client by U.S. Mail. All 254 Texas counties post their per-page recording fees on their websites. Recording fees for deeds average $30.The longer the document, the larger the fee. Upon request, we can provide a blank cover letter to the clerk for you to use.

If We Do County Clerk Recording. If we agree to this (express agreement required in advance) add $50 handling per document plus the applicable filing fee if we are asked to perform the task of recording documents with the county clerk. Note that only original notarized documents can be filed, so the executed original will have to be mailed to us. We then have to write a check and send it on to the county clerk.

Federal FinCEN Reporting Not Included in Legal Fee. Federal reports disclosing beneficial ownership (FinCEN Residential Rule) are now required (not optional) for non-financed (cash or no consideration) deed transfers to LLCs and trusts. This is part of a new regulatory regime designed to achieve transparency and avoid money laundering and tax evasion. Transfers of investment properties into an investor’s LLC are included within the scope of this. FinCEN reports can be made online but are time consuming. They are effectively a tax on all of us imposed by federal regulation. If a title company is involved in the transaction, they will do the FinCEN report. Otherwise, reporting a required deed transfer to FinCEN is the client’s obligation since the client is recording the deed. Add $150 per deed to our legal fees if we are asked to do the FinCEN report.

LIMITATIONS ON LEGAL SERVICES

No Escrow Available. We do not offer escrow or trust account services. We do not receive, hold, or disburse client funds, ever. We suggest a title company for this purpose.

No In-Office Closings. We do not offer free in-office closings. This firm gives advice and prepares documents only. We recommend a title company for closing and funding.

No Guarantees. Lawyers never make guarantees as to the outcome of any transaction, case, or other matter. This includes real estate closings.

No DIYers. We do not assist DIYers in handling legal projects on their own.

No Amateur, Internet, or Seminar Document Review. We do not advise upon or get involved with homegrown or amateur documents, forms from the Internet, documents prepared by non-attorneys or non-brokers, or guru forms from real estate investment seminars. These do not meet our professional standards and must be replaced with correct Texas documentation prepared by an attorney.

No Liability Beyond Specific Task. Our firm has no liability whatsoever for any part of any case or transaction that we do not directly handle, directly advise upon, or directly prepare documents for. The client’s DIY activities are entirely at the client’s own risk.

No Client Fraud or Illegality. If it is determined that a client is engaging in unlawful activities, representation will be immediately terminated without refund.

No Litigation or Disputed Matters at this Time. Our legal services are limited to real estate representation, business transactions, and asset protection including LLC formation. Our schedule for litigation and disputed matters is currently full.

TITLE COMPANIES AND APPRAISAL DISTRICTS

Title Policy or Title Report. If our client is the buyer or lender, you are advised to obtain a title policy or at least a title report on the property prior to closing in order to determine if the seller has good title and/or if there are existing liens, judgments, easements, or restrictions affecting the property. This is not our responsibility. We are not a title company and do not check title, nor do we offer in-office closings.

Title Company Policies or Actions. Our documents are always legally effective, but we make no guarantees concerning any particular title company´s preferences, demands, or underwriting criteria, since these can vary. Negotiating with title companies, addressing their objections or requirements, and dealing with title company attorneys is not included in flat fees. The hourly rate applies.

Appraisal Districts. There are around 254 appraisal districts in Texas, all with their own independent policies and procedures. We make no guarantees or assurances that an appraisal district will (for example) grant a homestead exemption or take any other action in any particular case or circumstance. Negotiating with appraisal districts or addressing their objections or requirements incurs our hourly rate.

LEGAL VERSUS BROKERAGE SERVICES

Our Attorney Also has a Real Estate Broker’s License. Our attorney is a licensed Texas real estate broker. However, this office is primarily a law firm and the services we provide are primarily legal in nature. Engaging this firm in a legal capacity does not also engage us in a brokerage capacity. Any brokerage representation by us requires a signed written brokerage agreement, not just a legal services agreement. We are not currently offering full brokerage services.

A Lawyer Does NOT Replace a Realtor. Although this law firm offers consultations, document preparation, contract review, and other legal services, it is important to understand that a lawyer does not substitute for an agent or broker and all the various services and ongoing support that Realtors provide. Requesting advice from a lawyer does not substitute for the broader services of a real estate agent or broker.

Information on Brokerage Services (IABS). TREC rules require us to direct you to TREC’s Information about Brokerage Services at https://lonestarlandlaw.com/wp-content/uploads/2020/04/IABS-1-0.pdf.

Possible Commission Rebate. Because our attorney has a broker’s license, a partial commission rebate (net after taxes) may be available to buyers at closing but only if you use our firm for the entire transaction and you are not already represented by an agent or broker. Inquire.

ATTORNEY-CLIENT COMMUNICATIONS

Business Hours, Weekends, and Holidays. We take business hours seriously. Traditional business hours apply (Monday through Friday, 8-5 CST) subject to our posted vacation schedule. After-hours communications are viewed as being received on the next regular traditional business day. We are not available on weekends or traditional holidays.

Sending Us Supporting Documents. Please provide us with legible copies of relevant supporting documents (if any) in easily downloadable form. Email attachments should be in pdf, Word, WordPerfect, Excel, or other common software. Do not send original documents in the physical mail. We do not handle originals.

No Encryption or Passwords. Please do NOT apply any form of encryption to emails or attachments. Avoid Dropbox or any method that requires us to get a password and enter a third-party site in order to view your documents. If you require that level of security, please consult another law firm.

Data Dumps. Please send us only the information or documentation that we request. Dozens or hundreds of extra and unnecessary pages make your file much more cumbersome and time-consuming for us to download, read, and manage. We rely on you to omit irrelevant material. The time it takes to sort through large data dumps is part of paid attorney time and will be charged accordingly.

No Texting Please. We do not offer consultations or any other legal services by text. While texting may be suitable for casual communications, texting of sentence fragments and one-liners is not suitable for a nuanced legal case. Please use a keyboard device and take your time.

MISCELLANEOUS

The Client’s File. Clients receive copies of relevant documents as the legal matter progresses. This is the client´s file. Keeping these copies and maintaining them in an orderly manner is the client´s responsibility. We have no obligation to provide any additional documents or information.

Client ID. The requirement of government-issued photo ID is now common at law firms, medical offices, and other professional firms everywhere. Fraud is rampant. We do not work with anyone who declines to provide ID and any identifying information that we may (at our discretion) request.

AI Agents. If your intention is to do business with us through an AI agent, please contact another law firm. We interact with humans only, no exceptions.

Terms of Service. All of our firm’s general terms of service (found at the “Fees & Policies” tab on the website) apply without exception to all persons receiving legal services in addition to the specific terms of service set forth in this engagement letter. No exceptions.

Engagement Letter. This document is our engagement letter setting out the terms and conditions of this particular engagement for legal services. If you wish to proceed, please sign and date below.

AGREED:

___________________________________________________

SIGNATURE                                      DATE SIGNED