Please realize the information contained on this web site should not be construed as legal advice nor does it create an attorney-client relationship between us. It is simply here as a means for me to provide you some basic information for you to use when deciding on whether or not you need to hire an attorney. Because each case is different, it would be impossible for us to provide legal advice on a web site.
Wills - Trusts - Estate Planning - Probate - Powers of Attorney - Living Wills
Do you need a Will?
If you were to pass away
without a will, where would your property go?
Would it be divided up the way you want?
Would problems develop between your surviving
family members?
Would you put a large tax burden on your family?
In Texas, if you pass away without a will your property will
be divided up by state law without any tax planning benefits as follows:
Married person:
only 1/3 of separate personal property
and a life estate in 1/3 of separate real estate goes to spouse.
If all children are yours and your spouse's, all community property
goes to surviving spouse; but if you have "his," "hers," and "ours" children, then only the surviving spouse's 1/2 community property
interest is retained, and the remaining community property is given to the children.
homestead exception: the surviving spouse retains
a life estate in the marital homestead unless the surviving spouse ceases to reside there.
Unmarried person with children:
all
property goes to children in equal shares
Unmarried, no children:
All property divided by statutory formula to parents, brothers,
sisters, and their descendants (Probate Code § 38)
Using the above information, you can see that particular problems arise for
married folks whose children are mixed (that is they do not all have the same parents). This also poses a problem if an unknown child
comes forward after your death. In that situation half of the community property goes to the children and 2/3 of the separate property.
Imagine how you would feel if your spouse passed away and then suddenly half of your belongings and 2/3 of your spouses separate belongings
are sold or all of your belongings are sold and you get half of the money (remember they may be sold at garage sale prices!). The
other problem arises if you have an estate that will incur tax liability (even if deferred). Lastly, a person dying without a will
is subject to a very costly and cumbersome court-supervised administration of the estate.
Advantages to having a will:
1.
Estate planning can be implemented to save taxes
2. No surprises, your estate will be divided up in the manner you wish
3. Guardians
and trusts can be set up for your children
4. Relatively inexpensive independent administration is available
5. With proper estate planning
you can save grief and expense for your family
Do you need additional estate planning tools such as:
Durable Power of Attorney?
Allows
you to set up an "attorney in fact" who can sign your name and take care of transactions for you in event of disability or absence.
Can also be set up to be a full time document.
Healthcare Power of Attorney?
Similar to above, except it is used to designate
someone to make healthcare decisions for you should you be unable to make them yourself.
Living Will?
A document used to set up
your wishes should you become in a health situation where you would otherwise pass away but for artificial life support.