Archive: February 2023

Having a trust as part of your estate plan can effectively protect your assets and ensure that your wishes are carried out after your death. However, one of the most important decisions you’ll need to make is whether you should establish a revocable or irrevocable trust. Both types of trusts have advantages and disadvantages, so it’s essential to understand their differences before deciding which you need.

What Is a Revocable Trust? 

A revocable trust is an estate planning tool that allows an individual, called a grantor, to retain control over their assets while alive and decide who will receive them after they die. With a revocable trust, the grantor can change the terms of the trust at any time while they are still alive.

In a revocable trust, the grantor typically serves as the trustee so they can retain control over its assets and how they are managed. The grantor can also name a successor trustee who will manage the trust’s assets in the event of their incapacitation or death.

The grantor can also designate beneficiaries or those who will inherit the trust’s assets upon the grantor’s death. Depending on the provisions in the trust document, the beneficiaries may only have access to the trust’s assets after the grantor has passed away.

One of the key advantages of setting up a revocable trust is that it allows for flexibility. The grantor can use the assets in the trust as they wish, change the terms of the trust, and appoint new trustees and beneficiaries as needed. This type of trust also allows the grantor to avoid probate court, as the trust’s assets will not be subject to probate proceedings after the grantor passes away.

What Is an Irrevocable Trust? 

In an irrevocable trust, the grantor contributes assets to the trust, and the trustee manages and distributes those assets according to the grantor’s wishes. With an irrevocable trust, the grantor gives up all control over the trust assets and any rights to revoke or modify the trust in any way. Because of this, the trust cannot be changed or terminated without the beneficiary’s consent once the grantor establishes the irrevocable trust.

Some of the advantages of an irrevocable trust are that it offers more tax advantages than a revocable trust, can protect assets from creditors, and can help a beneficiary qualify for government benefits. Since the grantor no longer owns the trust assets and is not considered the owner for tax purposes, they are exempt from probate. Because the grantor has no control over the trust assets, they are not vulnerable to creditors’ claims.

Although there are many benefits to setting up an irrevocable trust, there are also some drawbacks. For example, once established, changing the trust can be difficult or impossible. Additionally, the trust assets will be managed and distributed according to the directives in the trust document, so the grantor loses control over the trust assets. Finally, there may be significant costs associated with establishing and maintaining an irrevocable trust.

Which One Is Right for You?

Deciding between a revocable and irrevocable trust requires taking the needs of the person creating the trust into account. A revocable trust can be changed or even terminated at any time by the grantor, whereas an irrevocable trust cannot be modified or canceled after it is created without difficulty.

A revocable trust allows for the grantor to retain complete control of the assets within it and can serve estate and trust planning purposes, such as avoiding probate. Irrevocable trusts provide more asset protection since they are not accessible by creditors or others making claims against the grantor’s estate.

Irrevocable trusts are also helpful in providing long-term care options, such as financial support to a disabled beneficiary or allowing a beneficiary to access income or assets from the trust in certain circumstances. When considering which type of trust is right for you, consider your short-term and long-term goals, financial situation, and other relevant factors.

Speak with a Dallas Estate Planning Lawyer  

The best way to determine whether a revocable or irrevocable trust is the right choice is to consult a qualified estate planning attorney. At Staubus, Blankenship, Legere and Walker PLLC, our experienced Dallas estate litigation lawyers understand the complexities of these trusts and can provide sound advice on which type of trust is best for your specific needs. We also offer comprehensive estate planning services to ensure that your wishes are met in the event of incapacity or death. Call us today or contact us online to schedule an appointment and learn more about how we can help protect your family’s future.

Dictating how your assets should be distributed upon your passing is extremely important if you want a say in who gets your money and how much they will receive. Estate planning becomes even more important when you have children because it can indicate who will be the children’s guardians if they are minors. Estate plans can also ensure that someone trustworthy manages the children’s money while they are minors.

When creating an estate plan, you must consider your circumstances as they are today and not base the plan on the assumption that you will not pass for years. For example, if you have a minor child, you need to consider what you want to happen if you pass away while they are still a minor because, under Texas law, they cannot control assets until they are at least 18 years old.

There are a variety of ways that money can be left to your children, including wills, trusts, or by naming them beneficiaries of retirement plans, life insurance, and 529 plans. The best ways to leave your children money are through estate planning tools, such as wills and trusts.

Wills

A will is a legal document laying out how someone’s assets will be distributed upon death. If you have minor children, you can also name one or more people as the child’s guardian if you pass away while they are still minors. Generally, while the child is a minor, their guardian will control the child’s money unless another person is named to manage the minor’s money until they reach the age of majority or an agreement set out in the will, whichever is later.

For a will to be valid, you must sign it at the end of the document in the presence of two witnesses. They will also sign the document certifying that the testator voluntarily signed the document in their presence. A will has no legal effect until it is probated in the court of appropriate jurisdiction, which is usually the probate court in the county where you live at the time of your death.

Trusts

A trust takes assets out of your name and places them under a trust agreement. So, for example, if you own a house, instead of it being in your name, you will deed it to your trust. The party holding and managing the trust is known as a trustee and can be you until death. At that point, a successor trustee will become the primary trustee.

Trusts allow individuals to avoid probate because there is no property in the deceased’s name. As a result, children will have access to the money sooner than if it were left through a will. In addition, the trust can outline how the trustee should distribute the money, meaning you can direct trustees to pay your children’s expenses or cash distributions, regardless of age.

Estate planning tools like wills and trusts are the best options for leaving money to your children because you can outline how and when your children will receive the money. If the child is a minor, you can even dictate how they can spend the money. However, while wills and trust are the best options, there are other ways to leave your children money, including:

• Retirement accounts: Generally, retirement accounts like 401k’s and IRAs allow for named beneficiaries. The money will go to the decedent’s estate if there is no designated beneficiary. Naming a beneficiary will enable funds to avoid probate, saving time when it is accessible to the beneficiaries. Like the original owners of the retirement account, heirs will owe taxes on the money when they take distributions unless they were Roth IRA contributions.
• Life insurance: Life insurance is meant to make sure that people who rely on your financially will be okay upon your death. Purchasing life insurance and naming your children as beneficiaries can provide their children with financial protection upon their parent’s death. You can also name your trust as the beneficiary, allowing your trustee to have control of the life insurance money rather than giving your children direct control of the funds if they have reached the age of majority.
• 529 plans: A 529 plan is a tax-advantaged savings plan to help pay for your children’s education. 529 plans allow tax-free withdrawals for qualifying education expenses, which include expenses directly related to education expenses from kindergarten through postsecondary. Although, withdrawals for expenses for grades K-12 are limited.

Will My Children Receive My Money If I Don’t Create an Estate Plan?

In cases where an estate plan is not created before someone’s death, their assets will be distributed according to Texas’s intestate succession laws. As a result, if you have not made an estate plan, your assets that do not have named beneficiaries will be distributed depending on who survives the decedent by at least 120 hours:

• If there is no surviving spouse, then the children will inherit everything.
• Suppose there is a surviving spouse, and the children are biologically their child. In that case, the spouse will get all of the community property, one-third of your separate property, and a lifetime right to use your real estate. The children will receive the remaining assets.
• Suppose there is a surviving spouse, but the children are not biologically related to the surviving spouse. In that case, the surviving spouse will receive one-half of the community property, one-third of your separate property, and a lifetime right to use your real estate. The children receive the remaining assets.

In Texas, community property generally means any property acquired by a couple during a marriage, with a few exceptions that an experienced attorney of Staubus, Blankenship, Legere and Walker PLLC can explain.

Contact An Experienced Estate Planning Attorney Today

If you have children, it is essential to make an estate plan because you never know what will happen. The experienced Dallas estate litigation attorneys at Staubus, Blankenship, Legere and Walker PLLC will be able to review and evaluate your specific needs and help you create an estate plan that will help ensure your assets go to those you wish them to.

Whether you are creating a new estate plan or need your current estate plan revised, the skilled attorneys of Staubus, Blankenship, Legere and Walker PLLC are ready to help. Contact us online or call us at (214) 833-0100 for a consultation.

Blended families are becoming increasingly common, with many households now consisting of remarried parents, children from multiple marriages, and adopted children. Estate planning for blended families can be a complex process, but with the help of an estate planning attorney, it’s possible to create a plan that ensures your assets are passed on to your loved ones as you intended.

What is Estate Planning for Blended Families?

Estate planning for blended families involves creating a plan, including a will, for the distribution of your assets upon your death. It includes decisions about how to divide your property and financial assets and who will take care of your children if you are no longer able to.

Estate planning also includes decisions about who will manage your finances and make healthcare decisions if you are unable to do so yourself. You can record your wishes for these matters in a living will.

Why Estate Planning is Critical for Blended Families

Some of the benefits of getting an estate plan in place include:

• Protecting children from previous relationships
• Ensuring that your assets are distributed as you intend, to whom you intend
• Avoiding disputes and family conflicts
• Making sure that your wishes are followed if you become incapacitated
• Providing financial stability for your family

The Benefits of Working with an Estate Planning Attorney

An estate planning attorney specializes in helping families create and implement estate plans. They have the experience needed to help you navigate the complex legal and financial issues that come with estate planning for blended families. Here are some of the key benefits of working with an estate planning attorney:

• Customized Solutions – Estate planning attorneys can help you create a plan tailored to your unique needs and circumstances. They will work with you to understand your goals and concerns and help you create a plan that reflects your wishes.
• Sound Advice – Estate planning attorneys have a deep understanding of the legal and financial aspects of estate planning. They can provide sound advice on how to best protect your assets and ensure that your wishes are followed. They can also advise you on estate tax law, an important component of the estate planning process.
• Avoiding Probate – Estate planning attorneys can help you create a plan that minimizes the need for probate court. Probate can be a long and costly process, and avoiding it can save your family time and money.
• Peace of Mind – Estate planning can be complex and emotional. When you work with an estate planning attorney, they can provide you with peace of mind knowing that your plan is in good hands and that your family will be protected.

Steps to Estate Planning for Blended Families

Here are the key steps to estate planning for blended families:

• Gather Information – The first step in estate planning is to gather all of the relevant information about your assets and liabilities. This includes information about your property, investments, bank accounts, and other assets.
• Assess Your Goals – The next step is to assess your goals and determine what you want to accomplish with your estate plan. This may include decisions about how you want your assets to be distributed, who you want to take care of your children, and how you want your finances and healthcare managed if you are unable to do so.
• Create a Plan – Once you’ve gathered all the relevant information and assessed your goals, you can work with an estate planning attorney to create a comprehensive estate plan. This will include important documents such as a last will, power of attorney, and living will.
• Review and Update – Estate planning is an ongoing process, and it’s best to review and update your plan regularly. Your attorney can help you keep your plan up-to-date and ensure that it reflects your current wishes and circumstances.

The Estate Planning Attorneys at Staubus, Blankenship, Legere and Walker PLLC Can Help

Estate planning for blended families can be a complex process, but it’s essential to ensure that your assets are protected and passed on to your loved ones as you intended. By working with an estate litigation attorney, you have peace of mind knowing that your family is protected and that everyone will follow your wishes.

If you are a member of a blended family, you should consider starting estate planning as soon as possible. Our skilled estate planning attorneys have the experience needed to ensure that your family is looked after no matter what happens in the future. Our team is standing by to help. Give us a call today at (214) 833-0100 to schedule a consultation.

When someone dies, their last will and testament must enter probate. A probate judge reviews the will to confirm its validity and authorizes the executor to administer the estate.

The thought of putting your family through probate can be upsetting and stressful. You want your loved ones to receive the assets they deserve without enduring a complicated legal process. However, probate isn’t as scary as it might seem.

Below are the most common misconceptions about probate in Texas.

1. The State Takes Every Possession if There Isn’t a Will

One of the most common misconceptions about probate is where a person’s belongings end up if they die without a valid will. Many think the state will assume ownership of everything, and surviving family will never receive any assets.

However, that’s not true. According to Chapter 201 Subchapter A of the Texas Estates Code, an estate passes to surviving heirs by intestate succession if there isn’t a will. That means your assets will be distributed to your spouse, children, parent, and other individuals in your line of succession.

Intestate succession isn’t a problem for some people. However, if you’re not close to your family or want specific assets to pass to one heir over another, creating a will and naming beneficiaries is crucial.

2. Probate Takes Years to Complete

The probate process can take some time. However, it doesn’t necessarily take years. It might take a while if someone contests the will or files a lawsuit against the executor for misconduct.

The length of probate also depends on the size of the estate. Typically, probate can take about six months or up to a year for the judge to approve the administration of the estate.

3. The Oldest Child Must Be the Executor

Choosing your oldest child as the executor of your estate might make sense. However, it isn’t a law. You can appoint anyone as the executor of your estate if they meet the requirements.

Your executor can be a sibling, parent, friend, or coworker. They must be at least 18 years old and of sound mind. They must also not have a conflict of interest or have been convicted of a state or federal felony.

4. Estate Taxes Will Drain the Estate

Estate taxes are a real thing. Administering an estate requires paying taxes, debts, and other obligations. However, Texas does not impose an estate tax.

The federal estate tax only applies to estates worth over $12,060,000 as of 2022. Starting in 2023, an estate is subject to federal estate taxes if the value is over $12,920,000. Unless your estate exceeds those tax exemptions, you don’t have to worry about your family using most or all of your assets to pay taxes.

5. Avoiding or Minimizing Probate Isn’t Possible

Your entire estate can’t avoid probate. Probate is necessary to validate your will. However, you can set up parts of your estate to avoid probate, so some of your assets transfer automatically upon your death.

How to Avoid Probate in Texas

Multiple options are available for minimizing probate assets so beneficiaries can receive property without waiting for the court to authorize the distribution. You should consider these options while creating your estate plan to prevent your family from encountering complications:

• Revocable living trust – A revocable living trust is a type of trust you can control while you’re alive. You can transfer and remove assets, change beneficiaries, and revoke the trust at any point during your lifetime. When you die, the assets held in the trust will pass directly to your named beneficiaries according to the instructions in your trust agreement.
• Joint ownership with a right of survivorship – Two or more people can own property and establish joint ownership with a right of survivorship. It gives the surviving owner control of the asset upon the other owner’s death.
• Transfer-on-death (TOD) deed – You can use a TOD deed for real estate, brokerage accounts, motor vehicles, and qualified securities—ownership transfers to your named beneficiary or beneficiaries when you die.
• Beneficiary designations – You should complete a beneficiary designation form on your financial accounts. Your beneficiary can access the funds after you pass away without going through probate. You can include a beneficiary designation for savings bonds, life insurance policies, securities accounts, retirement plans, and bank accounts.

Get Help with Your Estate Plan

Estate planning is time-consuming. You must complete all necessary documents according to the requirements of state law. Errors can cause significant problems for your family, leading to will contests, creditor claims, and other legal disputes. You can make the process easier for your loved ones by establishing a well-prepared estate plan with an experienced probate lawyer in Dallas, Tx.

The Dallas estate planning attorneys of Staubus, Blankenship, Legere and Walker PLLC have over 100 years of combined experience in estate planning. We can help protect your assets and your family’s future. Call us at (214) 833-0100 to schedule a consultation today.

Your will contains your last instructions to family and friends about how you want your estate distributed. Although every will is different, there are essential items you should address and components you must include to ensure the document is legal.

Texas has requirements a will must meet to be considered valid. One of these is that there must be a physical document. In other words, it cannot only exist as a digital document. You must be at least 18 years old to create a valid will, and the will must be made voluntarily of your own free will by a person who is of sound mind.

Additionally, the document must include verbiage that makes it a will and be signed in the presence of two credible witnesses who must also sign it. Making the document legal is a vital part of creating a will, so you will likely want to work with a Dallas estate planning attorney who can ensure your document will be followed in the event of your death.

What Are the Most Important Things to Include?

When you create a will, certain factors should be present, including:

Identifying information: At the beginning of the document, your Dallas estate and trust attorney will include information such as your name, address, and a declaration that this document is your will. It must also include your marital status when the will is written and signed and your children’s names.

Debt payment: A section must tell the executor of the will how the remaining debts should be paid. This includes the assets that will be used to pay off the debt. This section can also include whether the home should be sold to pay the mortgage if there is one.

Assets: As you create your will, ensure you have listed all major assets and assets with personal value. Your will can work in combination with a trust to distribute your estate. You must list all assets that you want to give specifically to a particular beneficiary. These are individuals who receive your assets. You can leave everything to one person without putting in the specific details of your assets.

Beneficiaries: Your beneficiaries can be individuals, groups, or charities. It may be wise to name a contingent beneficiary in case the individual you choose to inherit your assets dies before you do.

Guardianship: If you have children younger than the age of majority in the state, your will should designate a guardian. In Texas, the age of majority is 18. If you do not designate a guardian for the younger children, the court will make that decision for you.

Trust: This is an optional component of a will. However, if you have minor children, you may want to include the creation of a testamentary trust for your minor children to help pay for the children’s support while they’re with the guardian. This trust is funded by your assets and can be distributed to the guardian throughout the time your children live with them.

Executor: Your will must identify a person or persons who will ensure your will is executed to your specifications. They will manage your assets, pay your debts, and distribute the estate based on the powers you give them in the will.

Does It Need to Be Notarized?

In Texas, a will does not need to be notarized. However, the statutes allow you the option of including a self-proving affidavit. In this case, you, the witnesses, and a notary sign the affidavit, which offers evidence that you signed the will following state laws.

The affidavit is attached to the will and is a substitute for the testimony of witnesses in court during probate. This can save your beneficiaries time and money as it demonstrates the will meets the legal requirement.

However, if your will does not meet the legal standard, the court can find it invalid, and the estate will then be distributed as if you died without a will.

Contact Staubus, Blankenship, Legere and Walker PLLC to Help Ensure Your Will Is Followed

If you need help with your estate planning or creating a trust, you’ll want to contact the experienced and compassionate estate litigation attorneys from Staubus, Blankenship, Legere and Walker PLLC. Our legal team can advise you about the different elements that must be included in a legal will. Our team will help you plan your estate and asset management to help care for your loved ones after you’ve died.

Contact our office today at (214) 833-0100 to speak with a Dallas trust planning attorney who can help you address all the necessary scenarios that may affect your family. Don’t leave your family’s future to chance.

The process of estate planning rests on numerous assumptions. Key amongst these assumptions is the notion that the beneficiaries of your will are going to outlive you. While it is probable that your heirs will still be around when you pass, particularly if they are younger than you are, there is always a possibility that someone you have named in your will may not survive you.

Although this kind of event is unpleasant to consider, it is crucial to recognize how inheritance works under such conditions according to Texas law. Understanding the various potential outcomes of a situation like this can help you to ensure that your estate plan is as thorough and straightforward as possible.

Texas Survival Requirements

According to the Texas Estates Code, a beneficiary of a will must survive the person who made it (the testator) by five days to inherit property. The property will therefore pass in this fashion by default unless the testator’s will contains language that:

• Addresses simultaneous deaths or deaths in a common disaster, or
• Specifies that a beneficiary must survive the testator for a certain period to inherit the property in question.

Most estate planning attorneys recommend that their clients’ wills include survivorship language requiring a beneficiary to survive for a longer time, such as 30 or 60 days if they are to inherit under the will. The reason for this is that if a beneficiary dies soon after the testator, the testator’s estate may pass according to the wishes outlined in the beneficiary’s will rather than that of the original testator themselves.

For example, if your will stipulates that your home is to be passed to your nephew after your death, your nephew will inherit your home even if he survived you by just a few days. Upon his death, even though it is only days after yours, the house would pass to your nephew’s heirs according to his estate plan, even if you would have preferred to have it pass to a younger niece instead.

On the other hand, if you include language in your will that any beneficiary who dies within a short time of your own death will not be eligible to inherit, your own wishes for your property would determine how it would pass. In the absence of this language, according to Texas law, any beneficiary can inherit if they outlive you by five days.

Contingent Beneficiaries

A good estate planning attorney will advise you to name a contingent beneficiary to whom the property will pass in the event that the primary beneficiary does not survive your death or that they die before the stipulated survival period is complete. For example, you could name your niece as a contingent beneficiary of your home if your nephew does not survive you for the required number of days.

Lapsed Gifts

If a will does not name a contingent beneficiary, or if the contingent beneficiary is deemed to have predeceased the testator, the gift will have “lapsed” or failed. The distribution of lapsed gifts is determined by Texas state law.

A will may contain language stipulating that any lapsed gift will become part of the residuary estate. Even in the absence of this language, the Texas Estates Code instructs that lapsed gifts will pass to the parties the testator’s will named as the residuary benefits of the estate.

The law also states that if there are multiple residual beneficiaries named in the will and one of them predeceases the testator, the deceased beneficiary’s share shall pass to the surviving residuary beneficiaries in a manner proportionate to their interest in the residuary estate. If there are three residuary beneficiaries, and one dies, the deceased beneficiary’s share of the residuary estate will be split 50-50 between the surviving two.

The residuary estate will pass as though the testator died without the will in the event that all residuary beneficiaries:

• Are dead when the will is executed,
• Do not survive the testator, or
• Do not survive the testator for the amount of time stipulated in the will.

Contact an Experienced Estate Planning Attorney

Planning how your estate will be distributed upon your passing can feel overwhelming, especially when considering the various eventualities, no matter how improbable. An experienced estate litigation attorney can help you navigate all these complications so that you can have confidence in your plan. The Dallas estate planning attorneys of Staubus, Blankenship, Legere and Walker PLLC have the knowledge and skills necessary to guide you through the process so that you’ll know your wishes will be fulfilled.

Call us today at (214) 833-0100 or contact us online to schedule a consultation.

If you have a loved one suffering from Alzheimer’s, you understandably have concerns with how the progression of the disease will affect them goring forward and what types of treatment and care they will need. Additionally, if they have not yet created an estate plan, they might not have the powers of attorney required to successfully manage their care in the way they would wish.

Luckily, you have many options available to help ensure your loved one with Alzheimer’s is protected and provided for during their battle with the disease.

Estate Planning Options for Those with Alzheimer’s

As a long-term and progressive disease, Alzheimer’s will require a lot of money and resources to treat and manage throughout the remainder of your loved one’s life. Many people are financially unprepared for the ordeal, and they also have no legal documents in place to specify wishes and instructions for health care, life-sustaining treatment, or what will happen to their assets upon their passing.

After being diagnosed with Alzheimer’s, your loved one should consult with legal and financial professionals as soon as possible. Although your loved one can make important decisions now, they will lose that ability as the disease progresses, and they will have to be of sound mind and deemed competent to make decisions in order create important documents to protect them in the future.

Therefore, your loved one needs to meet with an estate attorney to draft the following. You should also make sure they are filed with the court, or appropriate party, and that they are readily accessible to you and other pertinent parties when needed:

• A will that details their wishes and instructions regarding their assets and beneficiaries as well as their end-of-life details
• A living will to specify their wishes and instructions regarding lifesaving or life-sustaining treatment
• A durable power of attorney for financial decisions
• A medical power of attorney for health care decisions
• An advance health care directive, such as a do not resuscitate order

Even if your loved one already has a will or other estate documents, those documents may need updating after the Alzheimer’s diagnosis. Your loved one will need to have an attorney review them and make changes as needed.

Financial Documents and Protections

Treating and managing Alzheimer’s is expensive, and the costs will only increase as the disease progresses. You will need to sit with your loved one and carefully review their finances to determine their ability to cover the costs they may incur. Your estate planning attorney can help you with this, and they may partner with financial advisers who can help you and your loved one create a plan to provide funds for their care and treatment.

Along with ensuring your loved one will have funds available to pay for care and treatment, you will also need to protect those funds when your loved one has progressed to the point that they can no longer make financial decisions on their own.

For that reason, you need to ensure you have the following documents in place:

• A durable power of attorney – This will grant an agent your loved one designates to make financial decisions on their behalf when they become incapacitated or incompetent.
• A living trust – More versatile than a will, a living trust can be used while your loved one is still alive, and it does not have to go through probate. It can cover a wide range of assets, and the funds can be used to pay bills and other costs associated with your loved one’s treatment and care.

Special Needs Trusts

These trusts, also sometimes called “Supplemental Needs Trusts,” are allowed through a federal statute. People who are disabled can receive benefit from the trust assets and income. These trusts are only useful in particular circumstances. To determine whether your loved one is eligible for a trust of this type and whether they would benefit from one, they’ll require the advice of an experienced estate planning attorney.

Contact Us

There might be other options available, and the experienced Dallas estate planning attorneys of Staubus, Blankenship, Legere and Walker PLLC will explain all of the options and help your loved one create a solid estate plan that will provide for and protect your loved one and their family going forward.

However, your loved one needs to create their estate documents while they still can make important decisions, so you should contact us as soon as possible at (214) 833-0100 to request a confidential consultation.

If you have considerable debt, you may have concerns about passing those debts on to your heirs and loved ones through your estate when you pass away. Likewise, if you are the beneficiary of someone’s estate, you may be concerned about incurring your loved one’s debt and having to pay it back. In limited circumstances, an heir might inherit a debt. Read on for additional information.

Like all other states, Texas has specific codes that govern estates and succession. Texas does not impose estate taxes or inheritance taxes, but the estate may have to pay federal and state income taxes.

Estates and Debts

A decedent may not only have assets, but debts, as well. When the executor or administrator of the estate takes charge of the estate, those debts will have to be accounted for in the estate administration process.

In some instances, a debt may be forgiven upon the death of the debtor, but most of the time, creditors will seek recompense for the money they are owed. Upon someone’s death, all debts become part of the estate, and the estate’s assets must be used to pay off any debts.

By law, the executor or representative of the estate must provide notices to creditors of the estate owner’s passing through the following methods:

• Publishing a notice in a local newspaper
• Mailing a notice to the Texas Comptroller of Public Accounts
• Mailing notice to secured creditors

The notices should be published in the newspaper within 30 days of the executor’s appointment, and notices to secured creditors must be mailed as a certified or registered letter to secured creditors within 60 days of the executor’s appointment. Failing to do so can result in liability issues for the estate’s executor. Executors may also provide notice to unsecured creditors, but it is not required, and there is no established deadline for doing so.

Upon receiving notice of the decedent’s death, creditors will have a certain time to present a claim against the estate to recover their money. Any person or entity owed money by the decedent may present a claim against the estate. These people or entities fall into two categories:

• Secured creditors – Loans secured by collateral, such as a mortgage or car
• Unsecured creditors – Loans unsecured by collateral, like credit cards or personal loans

A creditor must present a claim against the estate accompanied by an affidavit to recover money, and the claim must show that it is just. It must account for the money owed. If the creditor is a corporation or other legal entity, then an authorized representative of the entity may present the affidavit.

Priority of Creditors

Just because a creditor presents a claim against the estate does not mean they will get the money they are owed. In fact, some creditors receive no money if the estate’s assets cannot cover all its debts.

However, certain entities take precedent over others, and the creditors are usually prioritized as follows:

• The IRS
• Funeral costs and final expenses up to $15,000
• Family allowances
• Administration costs
• Secured loans
• Owed child support
• State taxes
• Costs of incarceration
• Medicaid and state medical assistance payments
• Unsecured loans and other claims

An estate executor or representative has the option to accept or reject a claim, and they have 30 days to decide. If they have not decided after that time, the claim is considered rejected, and the creditor can file suit against the estate in probate court.

Will You Have to Pay Any Debts?

In general, heirs do not inherit debt after a loved one’s passing. In fact, federal student loans may be forgiven, depending on the situation, and credit card debt will not pass down to children. However, you may be responsible for your benefactor’s debts if any of the following applies:

• You were a co-signer on a loan with the decedent
• You are their adult child, and they passed off their mortgage to you as an inheritance
• You were married to them at the time of their passing

Texas is a community property state, and the state considers all assets, property, and debt to be jointly owned by both spouses. You can be held responsible for any debt your partner acquired during your marriage, even if your name is not on the account. However, you are not automatically liable for your spouse’s separate debt, and you need to review your situation with an estate or probate attorney to understand your options.

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The experienced Dallas estate litigation attorneys of Staubus, Blankenship, Legere and Walker PLLC will review your situation and advise you of your rights and options. We are here for you in this difficult time, and you can contact us at (214) 833-0100 to request a confidential consultation.

As you are planning how to distribute your estate, there are many legal instruments to consider. These can help make potential future situations easier for you and your loved ones. One of these is a medical power of attorney (POA). This can also be called an advance healthcare directive or, more briefly, an advance directive.

There may come a time in our lives when we are unable to make our own medical decisions. This could occur as a result of injury, illness, or old age. While we can’t necessarily anticipate such a situation, we can plan ahead for it. A medical POA is a way to do just that.

Why Would I Want to Create a Medical Power of Attorney?

A medical POA is an advance directive regarding medical decisions to be made on your behalf in the event that you are unable to do so. The person you choose to make these decisions for you can be referred to as your agent or as your medical power of attorney. They would be able to make essentially any medical decision that you would be able to make yourself.

A medical POA takes effect immediately after you have delivered the signed document to your agent. They will only be able to make medical decisions on your behalf after your doctor has certified in writing that you are unable to do so yourself. Without a medical POA, your doctor would make decisions for you based on what they believe is best.

Since the need for a medical POA could occur at literally any moment, it’s never too soon to create one. By doing so, you will ensure that your wishes for your medical care are enacted. You will also help ease a time that may be highly emotional and difficult for your family and friends.

What Types of Decisions Can My Agent Make for Me?

The person you choose as your medical POA can make medical decisions on your behalf in virtually any area. This includes your specific preferences for or against any type of medical treatment. These can include decisions regarding:

•     Medications
•     Organ donation
•     Convulsive treatment
•     Tests to be performed
•     Withholding treatment in an attempt to provide you comfort
•     Which doctors and healthcare facilities will treat you
•     Whether to keep you on life support
•     How aggressively conditions such as brain disease will be treated
•     Whether surgical procedures will be performed

Because of the nature of these decisions to be made on your behalf, it’s important to discuss them in advance, so your medical POA understands your wishes. You should also discuss any other related matters with them so they are fully aware of your desires. These may include aspects such as moral beliefs and religious beliefs.

Who Should I Choose as My Medical POA?

The person you choose to act as your agent must be at least 18 years old. You should choose someone that you trust will carry out your wishes as they make decisions for you. This could be a spouse, trusted friend, or close relative.

This person will carry a significant amount of responsibility, so you want to make sure you know them well. Consider people who you know will be calm under pressure. You want someone who will ask questions if they need more information to understand a situation. Above all, choose someone you trust to act with your best interest in mind.

What Do I Need in Order to Create a Medical POA?

Once you have decided that you wish to establish a medical POA, you will need to select the person who will act as your agent. There are several forms that will need to be completed to designate the person you choose as your medical POA. One of these is the Texas Health and Human Services Commission medical power of attorney form.

You should consult an experienced estate planning attorney to discuss your wishes. It’s important that you understand the implications of the estate planning choices you make today. There are laws that can impact your situation. In addition, you may also be well-served to consider creating a will or trust.

Contact Staubus, Blankenship, Legere and Walker PLLC Today

If you are planning your estate, you may be considering a medical power of attorney. You should speak with an experienced Dallas estate planning lawyer. Call us today at (214) 833-0100 to speak with a member of the Staubus, Blankenship, Legere and Walker PLLC legal team. Our lawyers are ready to schedule a consultation with you. Call us now.

If you are planning your estate, this can be an overwhelming time. There are many considerations, and it can be difficult to know how to best take care of your loved ones. You do not have to do this alone.

You are taking the right step by planning your estate, regardless of your age. Shockingly, nearly half of Americans over 55 have not made provisions for their estate.

An experienced and compassionate estate planning attorney can guide you through this process. One of the questions you’ll have is whether you should have a will or a trust. There are key differences to understand between the two instruments. While they are similar in some ways, they also differ in significant ways.

What Is a Will?

A will is a legal document that specifies how certain elements of your estate will be handled upon your death. It takes effect at the time of death and generally includes the beneficiaries who will receive your assets, how those assets will be distributed, as well as who will be the guardian of any young children.

When a will is created, it also specifies who the executor will be. This is the person who will execute the directives of the will. Typically, this may be a spouse, friend, adult child, or another close relative. It’s important to note that a will is a public document, so the details will not be kept private.

What Is a Trust?

A trust is a legal document. One type of trust is called a revocable living trust. A trust can be either individual or shared. When you create a trust, you then transfer your assets into the trust. This includes property, financial accounts, and real estate. You maintain control over these assets and the trust while you are still living.

To manage the trust, you will designate one or more trustees. A trustee will distribute the property after you pass away. A revocable living trust is named this way because it means that you have the right to revoke it. This is in contrast to an irrevocable trust, which cannot be changed after it is finalized. In addition to being able to revoke an irrevocable trust, you also have the right to appoint and remove trustees.

What Are Reasons That I Would Want to Choose a Will?

A will is comparatively less complex to create than a trust. In addition, a will has a lower upfront cost than a trust. This means that you will pay less to create a will. However, there will likely be future costs associated with the will going to probate court. These include probate court fees and probate attorney fees that will need to be paid by your beneficiaries.

A will allows you to name future guardians for your young children, while a trust does not. In a will, you can also name property managers for your children’s property. A will also allows you to include instructions for how taxes and debts associated with your account will be paid. For example, you can specify that certain debts owed to you will be forgiven.

Why Would I Want to Choose a Living Trust?

There are multiple reasons why you may want to create a trust instead of a will. A trust is more difficult to contest than a will. A trust is not a public document, so the details of your assets and their distribution will be kept confidential. In addition, while a will must go through the probate process, a trust does not. This means there are no associated probate court fees or probate attorney fees. It also means that the process of administering the trust after you pass away can take less time than the execution of a will.

A trust does carry a higher upfront cost than a will. This means that you will pay more at the time of creation. However, your beneficiaries will not have to bear these costs in the future. With a trust, you also have more control over how your assets are transferred to your beneficiaries.

How Staubus, Blankenship, Legere and Walker PLLC Can Help

If you are considering creating a will or trust, you should speak with an estate planning attorney today. In some situations, it may be that a combination of a will and trust is the most appropriate. You owe it to yourself and your family to understand how the differences between these legal documents may affect you.

Call us today at (214) 833-0100 to speak with a Dallas estate planning attorney of Staubus, Blankenship, Legere and Walker PLLC. You can also send us your information using our online contact form. Each case is unique, and our team can help you make the best choice for your situation.