Introduction to Wills and Estate Planning
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.
Your will establishes your wishes with respect to your property, but what if you become incapacitated and can't direct others as to your wishes? This is where powers of attorney come in to play. A power of attorney authorizes someone else to act on your behalf in business and legal affairs. A durable power of attorney allows another party to act on your behalf if you become incapacitated and are not capable of making decisions on your own. A health care power of attorney is a durable power of attorney that is specific to health care situations.
A living will communicates your intentions regarding health care if you become unable to communicate them on your own. A living will is usually created in tandem with a health care power of attorney. The living will spells out your wishes and the heath care power of attorney allows somebody else to act based upon those wishes.
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 a familiar with some of the estate planning tools available, it is time to start your estate planning process. Step number one is to list out all of your assets whether held just by you or jointly with your spouse. With that list in hand go through every item and choose who should receive each item upon your death. You should also note and items or recipients that you would like to place restrictions or requirements upon. Now it is time to decide if you are going to try and create your estate plan on your own or with the help of a professional.
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. - 23223
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.
Your will establishes your wishes with respect to your property, but what if you become incapacitated and can't direct others as to your wishes? This is where powers of attorney come in to play. A power of attorney authorizes someone else to act on your behalf in business and legal affairs. A durable power of attorney allows another party to act on your behalf if you become incapacitated and are not capable of making decisions on your own. A health care power of attorney is a durable power of attorney that is specific to health care situations.
A living will communicates your intentions regarding health care if you become unable to communicate them on your own. A living will is usually created in tandem with a health care power of attorney. The living will spells out your wishes and the heath care power of attorney allows somebody else to act based upon those wishes.
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 a familiar with some of the estate planning tools available, it is time to start your estate planning process. Step number one is to list out all of your assets whether held just by you or jointly with your spouse. With that list in hand go through every item and choose who should receive each item upon your death. You should also note and items or recipients that you would like to place restrictions or requirements upon. Now it is time to decide if you are going to try and create your estate plan on your own or with the help of a professional.
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. - 23223
About the Author:
Cindy writes articles about estate planning topics like Texas Living Wills and how to Write A Will at TexasWills.com.
posted by X - Men @ 9:16 AM
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