No matter what an individual might face, the future is easier to handle when they have a plan. One of the most crucial plans an individual should consider is an estate plan. Estate planning can help a person take care of loved ones and protect themselves in the event of their incapacitation or death. What documents are needed for estate planning? In this article, we’ll cover some of the most common ones and how they fit with your future plans.
At Massingill, we believe in empowering our clients with knowledge. We can help clients draft comprehensive estate planning documents to help shape their futures into what they want. With several decades of experience, we have received countless top reviews from our clients. Contact us today if you need knowledgeable support and guidance in an estate planning matter.
What Happens When Someone Dies Without an Estate Plan?
When someone dies without a will in Texas, that person’s estate is subject to distribution according to the state’s intestate succession laws. These laws establish a hierarchy of the deceased’s legal heirs and how they will share in the distribution of property. Intestate succession laws divide the estate among a surviving spouse, children or descendants, and sometimes parents, siblings, or distant kin.
Being subject to intestate succession laws can lead to outcomes a deceased person might not have intended, creating complications and emotional distress for their loved ones. A well-drafted will or trust can help ensure a person’s assets go to the people they choose and in the amount they desire.
Wills
A will is arguably the cornerstone of estate planning documents for many. The testator (the person making the will) creates a legally binding document that directs how to distribute their assets to their chosen beneficiaries after passing.
In general, a will must be:
- In writing,
- Signed by the testator (or someone acting on their behalf),
- Attested by two credible witnesses who are at least 14 in the testator’s presence.
A will should also be comprehensive. If it does not address a piece of property that the testator owns, that property passes under the state’s intestate succession laws.
Trusts
A properly executed trust can bypass the probate process, which is desirable for many individuals developing their estate plans. Probate is a lengthy and dreaded process.
During probate, a Texas court does the following:
- Decides whether a deceased person’s will is valid,
- Oversees the inventory and appraisement of the deceased person’s estate and liabilities,
- Oversees the payment of the deceased person’s debts and taxes, and
- Oversees the distribution of the deceased person’s estate according to their will or intestate succession laws (or both).
Probate proceedings can stir up fighting among loved ones and affiliates of the deceased. People may come out of the woodwork to contest a will or argue they are the rightful heirs of the deceased. A trust can cut through all of this noise.
With a trust, a person’s property can be transferred to the trust, avoiding the need to divide an estate in probate court. Instead, beneficiaries receive assets according to the trust’s terms. An individual can create a trust by:
- Declaring that they hold property in trust for another person,
- Transferring property during their lifetime to another person who will be a trustee for the benefit of the individual or a third party, or
- Transferring property in a will to a trustee for the benefit of a third party.
The trust must be in writing and signed by the person creating it (the settlor). The settlor can determine what type of trust to create and whether they want to have control over trust property while they are still alive. Massingill has spent years helping the people of Texas prepare trust documents for their unique circumstances. We can create a plan that is as rigid or flexible as an individual needs.
Estate Planning in Texas for the Incapacitated
Estate planning isn’t always about death. Legal documents and agreements might be necessary to protect an individual’s health, family, or property if they become incapacitated. These documents include the following.
Durable Power of Attorney
A durable power of attorney is a vital document that allows someone (the principal) to appoint an agent to manage their financial affairs and property if they become incapacitated and cannot make decisions. This document can grant an agent broad authority to handle various matters, such as:
- Paying bills,
- Managing bank accounts,
- Buying or selling property, or
- Dealing with investments.
The power of attorney can specify the scope of the agent’s authority and any limitations the principal wishes to impose.
Medical Power of Attorney
A medical power of attorney allows a person to appoint an agent to make healthcare decisions if they cannot do so on their own. This document may be necessary because of a principal’s illness, injury, or disability. A medical power of attorney is a written, witnessed, and signed document granting an agent the authority to consent to, refuse, or withdraw medical treatment on the principal’s behalf. The principal can also provide specific instructions fr limitations on their agent’s authority.
Advance Directives
Like a medical power of attorney, an advance directive helps an individual plan for medical care in case they cannot make decisions or communicate their wishes when care is needed. Advanced directives commonly address decisions regarding end-of-life care.
Choose Us to Choose the Future You Want
At Massingill, we understand that estate planning in Texas requires careful consideration and personalized solutions. Using our decades of combined experience, we are committed to providing our clients with clear and concise guidance and effective legal strategies. Contact Massingill by phone or online today to discuss your estate planning needs and take control of your future.
Resources:
- Community Estate of an Intestate, Tex. Estate Code, §201.003 (2019), link.
- Separate Estate of an Intestate, Tex. Estate Code, §201.002 (2014), link.
- Estate of an Intestate Not Leaving Spouse, Tex. Estate Code, §201.001 (2014), link.
- Inventory and Appraisement, Tex. Estate Code, §309.051 (2014), link.
- Statute of Frauds, Tex. Prop. Code, §112.004 (1984), link.
- Form, Tex. Estate Code, §752.051 (2014), link.
- Scope and Duration of Authority, Tex. Health Code, §166.152 (1999), link.
- Execution, Tex. Health Code, §166.154 (2009), link.
- Written Directive by Competent Adult; Notice to Physician, Tex. Health Code, §166.032 (2015), link.
- Form of Written Directive, Tex. Health Code, §166.033 (2015), link.
Jeffrey Lynn Goldblum
Jeffrey Lynn Goldblum is an American actor and musician. He has starred in some of the highest-grossing films of his era, Jurassic Park and Independence Day, as well as their respective sequels, The Lost World: Jurassic Park and Jurassic World: Fallen Kingdom, and Independence Day:
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