Many people assume that as long as they have a will, their estate planning
is finished, however, there is much more that goes into creating a solid
estate plan that will cover all of your interests. A good estate plan
should include ways to avoid
probate, ways to save on estate taxes, ways protect your assets if you ever need
to move into a nursing home, and an appointee to act on your behalf if
you become disabled.
At the very minimum, an estate plan should include the following two important
panning tools:
- A Durable Power of Attorney
- A Will
Establishing a trust is also a useful way to avoid probate and to manage
your estate while you are incapacitated or after you have passed away.
In this blog, we explain 5 important things to include in your
estate plan.
#1: A Will
A will is a legally-binding list of orders that dictates who will receive
your property after you have died. Without a will in place, the state
will decide who your property will be distributed to. A will also appoints
a legal representative known as an executor to carry out your wishes in
your absence. If you have minor children, it is crucial to
get a will so that you can name a guardian who will care for them in the event that
you die. A Will does not go into legal effect until it is admitted into
probate by a Probate Court. Generally, if a will is not admitted into
probate within four years after the date of death, then it is barred by
Statute of Limitations.
#2: A Trust
A trust is a legal arrangement in which one person known as a "trustee,"
holds legal title to property for another person, called a "beneficiary."
Trusts can help you avoid probate when you pass away. For example, if
you setup a revocable living trust that expires when you die, any property
contained in the trust will immediately pass to the beneficiaries. This
can save a significant amount of time and money for the beneficiaries
of an estate. Other types of trusts can be used to protect property from
creditors, as well as to help the donor qualify for Medicaid. The majority
of people do not have an Estate large enough to justify the preparation
of a Trust document. You should consult with a Texas attorney to explore
which legal avenue is best for you.
#3: Power of Attorney
Under a power of attorney, you are allowed to appoint your “attorney-in-fact”
to make financial decisions if you become incapacitated. This person will
handle all of your financial affairs for the duration of this period.
If you do not have a
durable power of attorney included in your estate plan, a court will have to appoint a conservator
or guardian to handle your affairs. With a durable power of attorney,
your attorney-in-fact can immediately implement your planning steps without
having to seek permission from a court. A Power of Attorney terminates
upon either your written revocation filed with the County Clerk or your death.
#4: Medical Directives
Your medical directives can include a number of different documents, such
as a health care proxy, a durable power of attorney for health care, a
living will, and medical instructions. Both a health care proxy and a
durable power of attorney for health care let you appoint a person of
your choosing to make health care decisions for you. This is crucial for
situations in which people become terminally ill or are in a vegetative
state. Broader medical directives can include the terms of a living will,
but also gives instructions for when you are in a less serious state of
health, but unable to direct the terms of your healthcare on your own.
#5: Beneficiary Designations
When you decide to begin planning your estate, you should take the time
to make sure your retirement plan beneficiary designations are up to date
as well. Without a beneficiary for your
retirement accounts, the distribution of your benefits can end up being controlled by state
or federal law. You can also list a person on your bank account as having
joint rights of survivorship which gives them access to your accounts
after your death.
At J. Roland Jeter, P.C., we are committed to helping families in Irving
and surrounding communities get their estates in order. With nearly 40
years of extensive legal and trial experience, our attorney has the skills
and resources that you need to ensure your assets and interests are fully
protected. Let us help with your estate plan today.
Call {F:P:Site:Phone} today to schedule a free 30-minute consultation with
our legal team.