ESTATE PLANNING

Estate planning may not seem like something you need to consider until much later in life. The reality is that, regardless of age, it is important to have a plan in place should the inevitable come sooner than expected. Planning is important to everyone – those with modest estates, those with large estates that may be subject to the federal estate tax, those with children, and those with beneficiaries with special needs. Having an estate plan allows you to make sure that your assets are protected and handled as you wish regardless of what happens. It’s expected that you’re going to have a lot of questions when it comes to this type of planning. Vance E. Hendrix is a dedicated attorney who will answer all of your questions and walk you through the process.

What is Estate Planning?

Simply put, estate planning is the process of creating a legally binding plan for the distribution of your assets when you pass. This includes deciding who gets what parts of your estate, naming an executor or trustee of your estate and planning for payment of debts. All of these will need to be taken care of, and having a plan in place will ensure that things are taken care of as you see fit. Estate plans often include wills, powers of attorney, trusts, and special types of deeds.

It’s especially important to name an executor for your estate. An executor should be someone that you trust to be responsible for fulfilling the plan detailed in your Last Will and Testament. They will be in charge of filing probate, handling any remaining debts you may have, and distributing assets to those named in your will. Think of it as naming someone who will legally stand in for you to handle these responsibilities after you’re gone.

Do I Have to Plan My Estate?

No. It’s not legally required that you have an estate plan. Most individuals are better off having an estate plan than not having one. An estate plan makes sure that not only will your estate be handled correctly upon your passing but that whoever is put in charge of your estate (your Executor) has written instructions to guide them along the way. Serving as the executor of an estate is a complex and difficult role. The more you have things laid out ahead of time with a lawyer who handles estates, the easier it will be for everyone once the plan goes into effect.

What Happens If I Don’t Have a Will?

If you pass without a will in place, it will depend on your personal situation. The State of Texas has statutory “intestate succession” laws where in the absence of a Will, a person’s estate passes to that person’s heirs. This often creates some undesired results. For example, (1) if you are married in Texas, (2) own community real property (for example a house purchased during the marriage), (3) have any children from a previous marriage, and (4) die without a Will, then the result may be that your one-half interest in the community property real estate passes to your children and not your spouse. Understandably, this often creates conflict. If you are not survived by a spouse or children, your estate may pass to parents, siblings, nieces, nephews, or another heir. That being said, it’s better if you have a will in place.

How Does My Estate Affect Other Areas of My Life?

Having an estate plan is more than just making sure your assets are taken care of and your debts are paid. There are two other areas that your estate can have an effect on: guardianship, marital agreements, and special or supplemental needs.

When it comes to making an estate plan, you have to think about how things will affect your children. If they are minors (under 18) or an incapacitated adult, you have to think of who will take care of them in the event of your sudden passing. Making an estate plan that covers who will become their legal guardian in such a case ensures that they will be taken care of in case of your passing and that a court battle doesn’t ensue over them.

While many people view marital agreements as things like a traditional “prenup” that only affects a divorce, this is a misconception. Many marital agreements are put into effect to help identify and protect assets in the case of death. If you have a marital agreement in place, it will play a major role in your estate plan, since assets protected under the martial agreement will need to be considered.

Many individuals have beneficiaries who receive government benefits as a result of special needs. There are specific types of trust that can be added to a will or incorporated into a revocable living trust that address and protect such beneficiary’s anticipated inheritance. A supplement needs trust or a special needs trust is designed so that the beneficiary will benefit from your estate but will not lose any government benefits that he or she may be receiving.

Still Confused? Call Vance E. Hendrix!

Vance E. Hendrix is an experienced East Texas attorney who can answer all of your estate planning questions. From preparing wills and powers of attorney to creating trusts and planning for estate tax issues, Mr. Hendrix will personalize a plan of action to ensure that your wishes are respected and your loved ones are taken care of. Don’t put off taking that first step. Planning now could help you and your loved ones avoid headaches later on. Call today to find out how Mr. Hendrix can help.