Understandably, many people don’t want to think about the end of their lives. However, planning what happens to your estate after your death is a loving thing to do for those closest to you. Without an estate plan in place, it will be much more complicated when the time comes to distribute your assets. If you live in Decatur, Texas, consider consulting a Decatur estate planning attorney from an established estate planning law firm.
At The Law Firm of William A. Walsh, I understand how much your family means to you. I strive to do everything possible to ensure my clients’ wishes are met. I’ve been serving Texans for more than 20 years, and I know how to create an estate plan that holds up in court.
Estate planning is essentially planning for your future. One aspect of estate planning allows you to determine who will take charge of medical and financial decisions if you cannot do so yourself due to an illness or injury. However, the majority of an estate plan involves determining how you want your assets to be given to your beneficiaries. It can include documents such as wills, a power of attorney, deeds to real estate, advance directives documents, or any other forms necessary to accomplish your goals.
A will is your written instructions for what will happen to your property upon your death and who will receive it. You can also designate who will take care of your underage children if you pass away before they turn 18. Furthermore, you can list your wishes for other important decisions, such as any funeral preferences you may have.
A clear and well-written will may prevent family arguments from occurring. There will be no need for the family to guess what your preferences were, as everything is outlined in the will. Additionally, a will can help your estate pass more quickly through the probate process, making it go much more smoothly than it would if you died intestate.
If you pass away intestate, or without a will, the state of Texas will decide which people are your closest heirs and what they will receive, if anything. In intestate law, an heir does not include partners, stepchildren, or friends. Grandchildren cannot inherit from their grandparents unless their parents die before the grandparents.
Aside from determining the heirs to your property, the state will also decide whether the estate property is community or separate. The process of intestacy is long and usually expensive due to court costs and other legal fees. With a valid will, your property will go to the beneficiaries you have named in the document, making the probate process much easier.
Even with a will, some assets are not included in probate, such as retirement accounts, bank accounts that are payable upon death, and proceeds from insurance. Instead, these can be passed directly to the beneficiary named on the account. Bank accounts and other jointly-owned assets with a right of survivorship will go directly to the joint owner or owners.
A living trust is another way to manage your personal and real property. It allows you to choose what will happen to your property after your death. You, the grantor or settlor, will place your property under a trustee’s care. The trustee will then divide the property among the beneficiaries. The assets within a trust will avoid the probate process, unlike those listed in a will.
There are two kinds of living trusts: revocable and irrevocable trusts. A revocable trust allows you to manage your assets while you are alive. It will then pass to the control of the trustee if you become incapacitated or after you pass away. Creating a revocable trust gives you the chance to revise the trust as you see fit.
An irrevocable trust cannot be changed once it is created. The only exceptions can occur if all the beneficiaries named in the trust approve any proposed changes or if a court order mandates an alteration.
A major benefit to having a trust is that your estate’s property will essentially have a new owner before you die. Because of this, your beneficiaries will not have to wait for the probate process to finalize before the estate administration takes place. Upon your death, they can receive the property that the grantor gave them, as stated in the original trust document.
An asset protection trust is designed to protect a person’s assets from creditors. This estate planning instrument can effectively defend your estate against creditors or legal claims. They can also protect your estate from judgments against it. This kind of trust can allow your estate to avoid litigation or achieve a more positive settlement.
With an asset protection trust, the grantor of the trust can also be the beneficiary, allowing them to manage the assets within the trust. A properly created asset protection trust should prevent any creditors from being able to touch the assets within the trust. Additionally, state income taxes will not apply to assets in these trusts, although that is not an issue in a state that does not have income tax, like Texas.
A power of attorney (POA) allows you to give someone the authority to make financial or business decisions on your behalf if you become unable to do so yourself. The holder of your power of attorney can also authorize purchases and sales of property. You can take away this authority at any time. It will also end when you pass away, so if you want the same person to handle your estate, you will have to give them that power through other documents.
An advance directive gives clear instructions about the types of medical care you wish to receive if you are incapacitated. It also allows you to make other decisions about end-of-life care. The purpose of the advance directive is to give your loved ones an idea of what you want to happen if you cannot make the decisions for yourself. These directives can include instructions for physicians, family, or surrogates, such as a Do-Not-Resuscitate (DNR) order.
A special deed gives you the ability to pass any real estate property to a beneficiary without it having to go through probate first, making it easier for that beneficiary to own it after your death. These deeds can also protect real property from a Medicaid Estate Recovery Program claim, which the government can use to recover the costs of any services it provided while you were living.
A transfer on death deed gives you the chance to name someone to inherit the property associated with the deed. It will then go to that person upon your death. For the deed to be legally valid, you must make sure to sign and file the document in the county records where the property is located.
Different from most other kinds of deeds, a life estate deed allows you to give real property to your beneficiaries before you pass away. However, you will still be allowed to live on the property while you are alive, which is why it is called a life estate deed.
You are also still responsible for all the financial duties associated with the property, such as paying the mortgage, property taxes, and any repair costs. If you suddenly decide to sell the property, you cannot do so unless you have permission from all the named beneficiaries on the deed.
A lady bird deed is typically used for those who are preparing and planning for long-term care. Like a life estate deed, it allows you to live in, stay on, or sell your property while you are still living. Passing the property to your beneficiaries is dependent upon whether you still had ownership of the property upon your death. If you did, any beneficiaries named on the deed can obtain the property once you pass away.
It is highly suggested that everyone create an estate plan, no matter if you have a large estate or a small one. When you have an estate plan in place, you can determine how you want to divide your assets and property among family members or friends. It also allows you to name a power of attorney to handle any medical and financial needs on your behalf if you can no longer do so yourself.
An estate planning lawyer in Decatur can be vital to the creation of an effective estate plan. They can guide you as you create your estate plan, will, and/or trust, as they understand the laws surrounding estate plans and probate. This allows you to have a strong and robust estate plan which can withstand legal challenges and outline clear wishes for your estate.
They also understand how to word and craft documents to follow all legal requirements. That way, all the documents you create can be valid and hold up in court. A lawyer can also help their clients avoid mistakes or cause confusion, saving you and your beneficiaries time and money in the long term. They can also clarify any laws or issues that may seem overwhelming or confusing.
A: You should create an estate plan in Texas as soon as you can. It is never too early to start planning. This is especially true as you acquire more assets and your life changes, such as when you:
These are all great reasons to create an estate plan. That way, your property and assets can be taken care of once you pass away.
A: It is recommended that you update your estate plan in Texas as needed or every three years. If you have previously created an estate plan and then got married or divorced, these life events should be reflected in your estate plan. You should also update it if:
A: In most cases, a probate attorney is required in Texas, depending upon the court’s probate process and policy. The administration of an estate needs the guidance and skill of an attorney because an estate has many interested parties that the court must consider and possibly accommodate. If the court is undergoing a less formal probate process, you might not need an attorney, but having one can still protect your interests.
A: It may be possible to avoid probate in Texas in some cases. Not all assets must undergo the probate process unless a person dies without a will or the estate has only a will. If an asset or property is jointly owned, it will be given to the surviving owner. Certain assets, such as retirement accounts and life insurance accounts, allow you to give them to a beneficiary without having to undergo probate.
Many people do not want to think about what will happen to their belongings after they pass away. However, making an estate plan can provide considerable benefits to your loved ones and the assets you have collected throughout your life. If you do not have an estate plan, the estate administration process will be much more complicated.
An estate planning attorney can assist you in creating a robust and comprehensive estate plan to avoid this outcome. Contact The Law Firm of William A. Walsh for estate planning guidance and assistance today.
