Living Trusts

Explanation and Engagement Letter

ONLINE LEGAL SERVICES

Our Firm’s Scope of Business. We advise on real estate transactions and prepare contracts, deeds, and other documents. We also form new LLCs and trusts in order to protect our clients’ assets. Many of our clients are real estate investors. We do not advise clients in any other areas of the law.

Online Screening. All new clients and all new cases are now screened and handled exclusively online, not by phone and not in the office. This includes the initial consultation. Details below.

Attorney-Client Communications. We are an email-oriented firm. We always begin with an email discussion so we can gather basic facts and documents before answering questions. Business hours apply.

Legal Fees. We offer a combination of flat fees and hourly billing. We do not offer free consultations or any free attorney time. Advance payment is required. Payment options are on the website. Details Below.

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

LIVING TRUST POLICIES AND FEES

Initial Consultation May be Required. Trusts are a complex area. There are many different kinds of trusts and many different purposes for which they are used. Unless you are absolutely certain that a particular trust document or course of action is what is needed, and you are absolutely certain of its legality and suitability in the circumstances, the best option is to begin with a paid consultation. Proceeding with trust creation or a trust-related project without a prior consultation is at your own risk. We do not absorb the loss of fees if the client has bypassed the consultation and requested the wrong legal action or incorrect trust document. We may (at our discretion) decide that a paid consultation is required so we can review your situation and determine the correct approach before we begin work on your trust.

Working with Appraisal Districts. There are 256 counties and appraisal districts in Texas and they all have separate policies with regard to living trusts for the homestead. The eligibility of a trust is sometimes challenged. The reason is that granting the trust status as a “qualifying trust” reduces the appraisal district’s income. Some discussion with the appraisal district may be necessary in some cases in order to preserve the full homestead tax exemption. Other times this process goes smoothly. This is not something that we can predict or control. When it comes to living trusts, we use the best available tools but do not guarantee results with the appraisal district. Our fees are solely for producing the trust documentation. They do not include any discussions or negotiations with the appraisal district or their attorneys.

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

Trust-Related Documents Available. Trust Agreements – beginning at $750; Warranty Deeds into Trust – beginning at $350; Amendments and Modifications to Existing Trusts – beginning at $550; Certification of Trust – $250; Terminations of Trust – beginning at $450 not including asset transfers out of trust; Assignments of Trust Beneficial Interest – beginning at $450; Pour-Over Last Will and Testament – beginning at $350. All fees quoted are guidelines. The final fee may vary depending on document 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-homesteadproperties. 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.

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.

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

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 range from $350 (simpler) to $750 (more complex). Very complex wills should be taken to an attorney who is board certified in estate planning or tax.

Execution of Pour-Over Wills. Texas wills require at least two witnesses. A notary must be present for proper legal execution. Clearly, this is not something we are able to provide when working online, so the client would need to make arrangements to have witnesses present at the execution of the will.

CONSULTATIONS

CONSULTATIONS GENERALLY

Online Consultations. All initial one-hour consultations with new clients are now handled online, not in the office. We always begin with an email exchange/discussion so we can gather basic facts and documents before answering questions. An optional phone call is available afterward if time remains.

Consultation Recommended. In most cases, a consultation is recommended in order to provide the attorney with an overview and understanding of the facts and legal issues. However, in simpler matters (document orders for instance) an initial consultation is not usually required.

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 in Document Preparation Requests. 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.

Duration. The introductory consultation may last up to one hour spread over a period not to exceed 3 consecutive business days (business hours apply) when it automatically concludes. Note please that this is not an unlimited three-day consultation. One hour is the limit.

Supporting Documents. Please have any relevant documents (the sales contract, for example) ready for review. If you have an LLC or other entity that is involved, we will likely need to see the formation and approval documents.

Scope of Consultation. It is important to be realistic and reasonable about the quantity and scope of material that will be discussed in the introductory hour. Not every legal problem can be analyzed and solved in a one-hour consultation.

Phone Call. An optional call is available so long as time remains within the allotted hour. Some clients find this useful, others do not. In any case, we do not jump straight to a phone call without first gathering basic facts and documents.

Our Response Time. No scheduling or fixed appointment time is required to begin. We will respond promptly although this can vary somewhat due to our backlog and the complexity of your inquiry.

LIMITATIONS ON CONSULTATIONS

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”). We do not agree to any pre-conditions or make assurances as to the outcome of a consultation. We do not guarantee that our legal advice will be what you expect or want to hear.

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

No Fixing of Existing Defective Entities and Structures. This is not part of our business model as a law firm. We form new entities and structures only.

No Bundling of 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 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 of Documents 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 document preparation or the hourly rate applies.

No Assurances as to Medicare, Military, or Government Benefits. We do not offer any assurances as to the outcome or effect of any documents that we prepare on Medicare, military, or government benefits.

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.

ATTORNEY-CLIENT COMMUNICATIONS

Business Hours, Weekends, and Holidays. This is a law firm, not an online retailer. We adhere to traditional business hours (Monday through Friday 8-5 CST) for the well-being of the humans who work here. Please communicate with us during these hours. Late night and weekend calls and emails from clients are discouraged and we have no obligation to read or respond to these.

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.

Please Maintain the Email Thread. This is a required level of professional communication. We are unable to work with anyone who does not do this.

Screaming with Capital Letters. We do not work with clients who communicate this way.

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.

LEGAL FEES

LEGAL FEES GENERALLY

Legal Fees – Flat Fees and Hourly Billing. We offer as many transparent flat fees as reasonably possible. However, certain matters are best handled by hourly billing or by retainer. No contingency fees are available.

Legal Fees – Initial General Consultation. An initial consultation for new clients is 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 for Review/Comment on Contracts. The fee for review/comment on a TREC or Texas Realtors residential contract is $250 for a sales price of up to $750,000 and $350 (our usual hourly rate) for a sales price exceeding that amount. We work with unsigned TREC and TXR contracts only. Addition of our custom special provisions addendum (recommended for both buyers and sellers to fill in gaps in the standard contracts) is $150. Both are available within the one-hour consultation timeframe. The review fee increases by $100 if we are the only real estate professional (broker or attorney) in the transaction.

Legal Fees – Document Preparation. Simpler, custom residential closing documents are usually $350 each excluding recording. Package available. More complex documents with custom provisions (including commercial documents) usually begin at $450. Two or more residential documents ordered at the same time involving the same transaction (e.g., a closing package) are $275 each. Additional legal services beyond document preparation are available at our regular $350 hourly rate or a posted flat fee if applicable. Fees are due when documents are prepared (we do not wait until closing for payment.

Legal Fees – Ongoing. Beyond the initial consultation, either our extensive flat-fee schedule will apply or our $350 hourly rate will apply (one-hour minimum, billed in quarter-hour increments). If in doubt, inquire.

Closing Packages. Two or more simpler residential documents ordered at the same time involving the same transaction (e.g., a closing package) are typically $250 to $350 each (depending on complexity) excluding recording with the county clerk. Note that we do not offer in-office closings.

Keying in Metes and Bounds. If there is a lengthy metes and bounds legal description that needs to be re-keyed by us (instead of the usual brief lot and block) add $75.

Costs and Recording Fees Excluded. Legal fees quoted are for document preparation only and always exclude any costs and recording fees that may arise. These are separate and additional costs and must be paid by the client.

Extensive Customization. Our documents rely on an established professional format and presentation. While our documents conform to the transaction, extensive customization is not included and incurs higher fees. Also, we may require an initial paid consultation to discuss a custom or complex transaction or doc prep task before proceeding. Determination of an exact fee quote may then be deferred until after the consultation.

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

FLAT-FEE POLICIES

Flat Fees are Guidelines. Fees quoted are guidelines only and may be adjusted if a matter or transaction is unusually complex, creative, or document heavy. Fees are subject to change without notice. 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.

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.

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 Flat Fees. Flat 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. 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.

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 acceptance of a refund entirely releases this firm from further involvement in the case.

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

DOCUMENTS

DOCUMENT PREPARATION POLICIES

Extensive Customization. Our documents rely on an established professional format, organization, and presentation. Fees for document preparation do not include re-writing or re-formatting our documents in a customized way. Extensive customization increases fees at our discretion. The hourly rate my apply.

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 consultation or 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.

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.

No Amateur, Internet, or Seminar Documents. 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 Professional Liability Beyond the Specific Document(s) We Prepare. Preparing one or two documents for a transaction does not make us professionally liable for the entire transaction. We have 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. No exceptions. A client’s DIY activities are entirely at the client’s own risk.

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 Suspended. The FinCEN Residential Rule requiring reporting of cash or no-consideration deed transfers into LLCs and trusts has been invalidated by a U.S. District Court pending potential appeal by the government. Flowers Title Companies, LLC v. Bessent.

REAL ESTATE TRANSACTIONS

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.

LEGAL VERSUS 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.

No Physical Inspection. We do not physically view or inspect property. We do not walk surveys on the ground to verify them. These functions belong to the parties and their agents and brokers.

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.

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.

TITLE COMPANIES AND APPRAISAL DISTRICTS

Our Law Firm is Not a Title Company. We do not check title, provide title reports or polices, obtain tax certificates, or pay off existing liens. We do not employ staff to perform these title company functions.

No In-Office Closings. Our law firm does not offer title company style closings in the office. We do not escrow or distribute funds. We do not notarize or record documents. We do not file any forms with the IRS.

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.

Title Company Policies or Actions. Our documents are always legally effective, but we make no guarantees or assurances 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.

LIMITATIONS ON OUR LEGAL SERVICES

SPECIFIC EXCLUSIONS

No Escrow Services. We do not offer escrow or trust account services. We do not receive, hold, or disburse client funds or funds in trust, 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 Trustee Services. We do not ever accept the duty of acting as the trustee of a client’s trust.

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

No Liability Beyond the 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. This is not acceptable. 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.

NO GUARANTEES OR ASSURANCES

Generally. Lawyers may offer an assessment of future probabilities, but lawyers NEVER give guarantees or assurances of any kind as to the outcome any case, document, or transaction. NO EXCEPTIONS.

Contracts. We offer no guarantees or assurances that contract or document amendments we recommend will be accepted by the other side.

Closings. We offer no guarantees or assurances that a transaction will successfully close and fund.

Title Policies. We offer no guarantees or assurances that a title policy will issue in any particular transaction.

Loans. We offer no guarantees or assurances as to whether or not a client will be able to secure a loan.

Property Taxes. We offer no guarantees or assurances about how an appraisal district will evaluate or assess any real property or any conveyance of real property. This includes whether or not the appraisal district considers any particular property to be homestead or considered a qualifying trust.

Tax Outcomes. We offer no guarantees or assurances about tax outcomes. We are not tax advisors and offer no tax advice. Always consult your CPA in conjunction with our legal and asset protection advice.

Title Transfers and Due-on-Sale. We offer no guarantees or assurances about how any particular lender will or will not choose to exercise its power to call a loan due. We discuss probabilities only.

Lawsuits. We offer no guarantees or assurances as to whether or not a client will be sued or what the outcome of any litigation will be.

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