Wills and Estate Planning 101
Estate planning in Texas is little different than other states but there are specific requirements for each aspect of your estate plan. The overall objective of your estate plan is to have your property distributed according to your wishes. The estate planning process starts with a will and can include many other elements like trusts, living wills and powers of attorney. Your will is the cornerstone of your estate plan so we will start there.
The first and often the most important instrument to put in place is your last will and testament. A will is a legal document that outlines your wishes regarding your assets after you die. Many people make their own wills through software or forms they download off of the internet but this isn't always a wise choice. Requirements for wills are different from state to state and are not always easy to interpret. If you don't create a will that can be validated in probate court then your estate may be disposed of as if you never even wrote a will. The bottom line is that hiring a professional to help craft your last will and testament is a smart choice and it can be done for a reasonable fee.
Next in the process comes the durable power of attorney. A power of attorney allows another person to make decisions on your behalf and a durable power of attorney is a special kind that allows the decisions making authority to continue if you become incapacitates and unable to make decisions for yourself. This is particularly helpful when it comes to making medical decisions and there are specific versions call a health care power of attorney for this purpose.
A living will goes hand in hand with a medical power of attorney. A living will states your intentions regarding health care if you are not capable in do so for yourself due to a future incapacity. The living will states WHAT you want done in specific situations and the health care power of attorney authorizes somebody to follow through on your wishes. These two documents are complicated enough that most are crafted by professional estate attorneys.
Trusts - Trusts are legal devices that let you place restrictions on how and when your assets will be distributed upon your death. A great example of establishing a trust is if you want to leave assets to your minor children. You can place those assets in trust and limit the asset dispersal schedule to future ages or events that you deem appropriate. Trusts can also be used as a tax planning device to allow your assets to be transfer by a different path.
Tax planning - There are a wide variety of tools that can be used to manage the tax burden at your death. These include life insurance, life insurance trusts, charitable remainder trusts, qualified personal residence trusts and more.
Now that you are familiar with some of the estate planning tools it is time to start the process. Whether you go it alone or enlist the help of a professional the first step is to create a list of all of your assets. Once you have your list of assets you will need to make a decision about what you'd like to happen to each asset upon your death. Should it go to family, your alma matter, your favorite charity or someplace else that is near and dear to you?
Setting up a Will in Texas can seem like a complicated process but take it one step at a time and you will quickly gain the peace of mind know that you and your loved ones will be taken care of if you should pass away. Enlisting the aid of a professional estate attorney will help you land with the exact types of documents that will most help you and your particular needs. - 23159
The first and often the most important instrument to put in place is your last will and testament. A will is a legal document that outlines your wishes regarding your assets after you die. Many people make their own wills through software or forms they download off of the internet but this isn't always a wise choice. Requirements for wills are different from state to state and are not always easy to interpret. If you don't create a will that can be validated in probate court then your estate may be disposed of as if you never even wrote a will. The bottom line is that hiring a professional to help craft your last will and testament is a smart choice and it can be done for a reasonable fee.
Next in the process comes the durable power of attorney. A power of attorney allows another person to make decisions on your behalf and a durable power of attorney is a special kind that allows the decisions making authority to continue if you become incapacitates and unable to make decisions for yourself. This is particularly helpful when it comes to making medical decisions and there are specific versions call a health care power of attorney for this purpose.
A living will goes hand in hand with a medical power of attorney. A living will states your intentions regarding health care if you are not capable in do so for yourself due to a future incapacity. The living will states WHAT you want done in specific situations and the health care power of attorney authorizes somebody to follow through on your wishes. These two documents are complicated enough that most are crafted by professional estate attorneys.
Trusts - Trusts are legal devices that let you place restrictions on how and when your assets will be distributed upon your death. A great example of establishing a trust is if you want to leave assets to your minor children. You can place those assets in trust and limit the asset dispersal schedule to future ages or events that you deem appropriate. Trusts can also be used as a tax planning device to allow your assets to be transfer by a different path.
Tax planning - There are a wide variety of tools that can be used to manage the tax burden at your death. These include life insurance, life insurance trusts, charitable remainder trusts, qualified personal residence trusts and more.
Now that you are familiar with some of the estate planning tools it is time to start the process. Whether you go it alone or enlist the help of a professional the first step is to create a list of all of your assets. Once you have your list of assets you will need to make a decision about what you'd like to happen to each asset upon your death. Should it go to family, your alma matter, your favorite charity or someplace else that is near and dear to you?
Setting up a Will in Texas can seem like a complicated process but take it one step at a time and you will quickly gain the peace of mind know that you and your loved ones will be taken care of if you should pass away. Enlisting the aid of a professional estate attorney will help you land with the exact types of documents that will most help you and your particular needs. - 23159
About the Author:
The Texas Wills web site is where Cindy writes about Wills In Texas and other estate planning topics.
posted by X - Men @ 1:49 AM
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