Creditors may be able to reach money in GoFundMe account
The information in this column is intended to provide a general understanding of the law, not as legal advice. Readers with legal problems, including those whose questions are addressed here, should consult attorneys for advice on their particular circumstances.
Q: Is a creditor in Texas entitled to monies in a GoFundMe account set up for the benefit of a debtor? If the account was set up by a third party, can the creditor sue the third party for debt satisfaction?
A: If a debtor has money that is not exempt by law from the claims of creditors, then those creditors will be able to reach the money. The GoFundMe website says “… the money you collect goes directly to you.”
Cash in the bank is typically not an exempt asset under Texas law. Therefore, it would seem that any money that is raised would be available to creditors.
The simple act of donating money to a GoFundMe account should not expose a donor to the claims of the debtor’s creditors.
Q: I need a will. Where is the least expensive place to obtain one? I can prepare one online for about $350. Is that expensive? I’m 53 years old and make over $100,000 a year.
A: The cheapest way is to go to the Harris County Law Library and find a book that contains will forms. Assuming you find the right form and it’s not outdated, you could then type up what you think is the appropriate way to plan your estate. Once the form is ready, you would need to sign it and have it properly witnessed and notarized.
You might also be able to find a free form online.
Of course doing it yourself is a bit risky, as you might completely mess things up.
Paying for a will from a company online is probably the next cheapest way to get a will. Again, even though you are using online software, you still might mess things up. The $350 fee you mentioned is not unreasonable.
Hiring a lawyer is going to be the most expensive way to get a will prepared. If you look hard enough, you might be able to find a lawyer who will prepare a will for the same $350 fee you found online. Most lawyers will charge more than that, but it would likely be done correctly.
Q: My sister and I jointly own 5 acres of land in Texas. We both have houses in Houston. If I sell my house in Houston and move onto the 5 acres, can I claim the homestead exemption on the entire parcel?
A: No. Your homestead exemption will be based on the interest you own.
Since you own a one-half interest in the property, you will receive only half of the homestead exemption.
Ronald Lipman, of Houston law firm Lipman & Associates, is board certified in estate planning and probate law by the Texas Board of Legal Specialization. Email questions to stateyourcase@ lipmanpc.com