Reliable Legal Guidance for Complex Estate Matters

Most people don’t consider creating an estate plan until it becomes necessary. Unfortunately, personal and family issues can strike when you least expect them, and in some cases, individuals pass away before planning for their loved ones. 

It is a common misconception that dying without a will means assets will automatically go to surviving family members. Sadly, this is not always the case, and many families are left scrambling to obtain the financial resources they need.

The most effective solution is to hire a skilled Texas estate planning attorney to help you plan for your family’s future. Palmer Law Group is dedicated to helping Allen, TX residents and will gladly help you develop an all-encompassing plan that will give you and your loved ones the peace of mind they deserve.

Why is Estate Planning Essential for Texas Families?

All too often, families put off estate planning because they believe they do not have sufficient assets that would require a will, or that they will take care of it later. The truth is that nearly everyone can benefit from having an estate plan, especially if you have minor children or are an older adult who is concerned about asset protection.

One of the most significant benefits of creating an estate plan is that it helps your heirs and beneficiaries avoid disputes and provides an outline as to how your property should be distributed. With a thorough estate plan, you can name a guardian for your minor children and implement asset protection strategies that protect your hard-earned assets should you need to enter a nursing home.

Although having a will does not avoid probate court in Texas, creating a trust can ensure that your family members receive their financial resources without waiting for probate to be completed. You can also include legal documents in your estate plan that grant others power of attorney or the authority to make healthcare decisions should you become incapacitated.

Because every family’s needs are different, it is best to hire an estate planning attorney who can help you choose the approach that works best for your unique situation.

What Happens if I Die and Do Not Leave a Will?

Contrary to what many Texans believe, if you die without leaving a will, your assets do not automatically transfer to your loved ones. Under Texas law, anyone who dies without leaving a will is said to have died “intestate,” and their assets will be distributed per the state’s intestacy laws.

When court involvement becomes necessary, a judge will appoint an administrator to manage the estate during the probate process. Because the court has the final say as to who ultimately receives your property, it may not go to those whom you may have chosen had you left a will.

Who is Eligible to Inherit Your Property

Texas follows strict intestacy laws as to who will inherit your property if you do not leave a will outlining your final wishes.

• A surviving spouse and children: Your spouse will inherit all of half of the marital assets (community property) that you share, a life estate in one-third of your separate property, and one-third of your separate personal property. Your children are entitled to inherit the remaining two-thirds of your separate personal and real property.
• A surviving spouse but no children: Your spouse will inherit all of your community property along with one-half of your separate property. The other half of your separate property will be awarded to your parents or your siblings if both of your parents are deceased.
• Single with children: Your children will inherit all of your assets equally.
• No surviving spouse or children: Your parents, then siblings, or other surviving family members will inherit your assets.
• If you die without heirs, your property will go to the state of Texas.

What Legal Documents Need to Be Included in a Comprehensive Estate Plan?

A well-rounded estate plan contains several documents that express your wishes, protect your property, and reduce the likelihood of family conflict.

Essential legal documents include:

• A will that can name an executor charged with managing your estate and appointing a guardian for your minor children. A will can also outline your wishes as to who should receive your property after you pass away.
• An irrevocable or revocable living trust, depending on your financial goals
• A durable power of attorney allowing your chosen agent to manage financial and legal matters if you are ever incapacitated.
• Living will: Also referred to as a Directive to Physicians, this legal document outlines your wishes for life-sustaining treatment should you have a terminal condition.
• A medical power of attorney that appoints your agent, who is authorized to make healthcare decisions for you if you cannot do so for yourself.
• A HIPAA release, which allows individuals making medical decisions on your behalf to have access to your private healthcare records.
• Declaration of Guardian for Self, which is a document that designates who will manage your personal affairs if you become incapacitated, and the court must appoint a guardian.

A well-crafted estate plan can ensure you feel confident that your family members and future generations are well protected.

Why Should I Establish a Trust if I Already Have a Will?

A common question that many estate planning clients ask is why they need to establish a trust if they already have a will. Although a will offers significant legal advantages, creating a trust can help your family avoid probate and maintain privacy.

Avoid Probate

Even if you have a valid will, your estate will still have to go through the lengthy probate process. Depending on the circumstances of the case and family dynamics, the probate process can be costly and time-consuming. Assets placed in a trust can be distributed quickly to heirs and beneficiaries, enabling them to access critical financial resources.

Maintains Privacy

Unlike a will, which becomes public record after probate, the terms of a trust remain private. Assets placed in a trust can remain private and still transfer to your heirs, even if they owe creditors.

Incapacity Planning

Unlike a will that takes effect after you pass away, a living trust allows you to plan for incapacity by appointing a successor trustee who can help you avoid the court appointing a guardian to manage your affairs.

Asset Protection

Texas law allows individuals to create specific types of irrevocable trusts that can shield their assets from creditors or lawsuits. For example, suppose you are worried that you may need to enter a nursing home eventually. In that case, you are also concerned about how to protect your hard-earned assets from being drained by the care facility. Once you place your assets in a Medicaid Asset Protection Trust (MAPT), they are no longer considered to be under your control and are exempt as long as the trust was established five years before needing care.

Control Over Distributions

A trust can enable you to control how your assets are distributed. Unlike a will, a trust allows for faster distribution of assets, bypassing probate, and ensuring privacy for your heirs and beneficiaries. If you have a child with special needs, you can create a trust that allows them to receive financial resources without jeopardizing their eligibility for government benefits.

What is the Difference Between a Will and a Living Will?

Often, there is confusion as to the differences between a will and a living will. During the estate planning process, you will have to make choices for both, so you must understand the key differences. In far too many instances, individuals wait too long to make preparations that could help protect their families when they will need it most.

Texas wills are legal documents that express your final wishes regarding how your minor children should be cared for and how your assets should be distributed after your death. Conversely, a living will comes into effect while you are alive and unable to communicate your wishes. Having a living will is the best way to help your family avoid guessing your medical care preferences if you are unable to convey them.

If you still have questions or concerns about the differences between a will and a living will, it is best to seek professional guidance from an experienced attorney. The highly trained legal team of the Palmer Law Group can help you understand your legal options and what options work best for your needs.

How Often Should I Update My Estate Plan?

It is recommended that individuals update their estate plan every three to five years. Even so, if you experience a significant life event or financial changes, you should also update your estate plan to reflect your current needs.

Periodic Reviews

Most estate planning lawyers agree that individuals should review their estate plans every 3 to 5 years to ensure they still align with their goals and current circumstances. Regular review of your legal documents will ensure they remain in compliance with any state or federal laws that may have changed since the estate plan was created.

Major Life Events

Individuals can experience significant life events that prompt a need to update their estate plan. Some of the most common life events that should prompt you to update

your estate plan include:

• Changes to family relationships, including marriage, divorce, separation, remarriage, or the birth or adoption of a child or grandchild
• The death of your spouse, child, named executor or guardian, or any other beneficiary designations
• Significant financial changes that have occurred, including receiving an inheritance, the sale or purchase of a business, the sale or purchase of real estate, or loss of income

Other factors that could play a role in updating your current estate plan include one of your witnesses passing away or an executor, trustee, or guardian who is no longer able to carry out their duties.

What are the Benefits of Hiring an Estate Planning Attorney to Help Me With My Legal Needs?

When you hire an estate planning attorney to assist you with your legal needs, they will provide strategic counsel as to what options offer you and your family the most protection. Regardless of whether you are creating your first estate plan or are conducting a periodic review, an attorney will ensure that you have the proper documents that safeguard your rights. Having an attorney assist you can also help you avoid costly legal mistakes that could have severe repercussions for your family after you pass away.

A knowledgeable estate planning attorney helps you craft a custom plan that helps your family avoid probate, protects your assets, and also prevents future family disputes. By utilizing strategies such as asset protection trusts, you can also safeguard your assets from creditors or lawsuits. An estate planning attorney understands the legal nuances involved in creating wills, trusts, and drafting other legal documents, and will ensure they will hold up to legal scrutiny.

Another considerable advantage of having legal representation is that they can assist in minimizing taxes for your heirs and beneficiaries so that they can fully enjoy the financial resources you intend them to have after your death.

Depending on the unique circumstances of your case, they can also implement comprehensive solutions that address your family members’ needs, regardless of their personal or financial circumstances.

Contact Palmer Law Group Today to Get Started Planning for the Future

Palmer Law Group is committed to protecting our clients’ interests. Our legal professionals have a deep understanding of estate law and how it can work to protect your interests. Regardless of whether you need help creating a comprehensive estate plan, administering an estate, or establishing a revocable living trust, our attorneys are ready to put their combined years of experience to work for you.

When you come to us for legal assistance, we will work diligently to create an estate plan that helps you have peace of mind, knowing that you are prepared for whatever the future holds.

To learn more about our legal services and how we can assist you with future planning, contact our law firm in Allen, TX, at (214) 617-1848 today to schedule a confidential consultation.