Are you planning your estate in the Lone Star State? If so, familiarizing yourself with Texas estate planning laws can help you determine what actions you may need to take to pass down your legacy according to your wishes.
A Texas estate planning attorney familiar with Texas law is a critical guide through this complicated process. They can advise you on the current rules and align your plan to meet any changes to estate tax laws. In the meantime, this overview covers some of the essential elements of Texas estate planning.
Powers of Attorney in Texas
A “power of attorney” (PoA) is a document drafted by one party (the principal) that grants another party (the agent) the right to make certain decisions on the principal’s behalf. These powers vary from document to document but could include:
- Making business decisions
- Managing financial affairs
- Making medical decisions
There are two main types of PoA:
- General Powers of Attorney, which allow the agent to take any legal action the principal could
- Limited Powers of Attorney, which allows the agent to make only specific decisions on the principal’s behalf, and often with an expiration date
Some powers of attorney will sunset if the principal becomes incapacitated. Chapter 752 of the Estates Code allows for the establishment of durable power of attorney. Unlike other powers of attorney, a durable PoA will either go into or remain in effect when the principal suffers the effects of injury, illness, or age. You might establish this type of PoA so that someone can make important decisions on your behalf when you can no longer.
You can choose what types of powers to grant when establishing a PoA. For example, you may want to establish a medical power of attorney so someone can make health care decisions on your behalf while not granting them the right to make financial decisions.
Intestacy in Texas
If you die without a will in the State of Texas, intestacy law will determine who inherits your estate. Here’s how that works under a variety of scenarios:
- Your spouse automatically inherits your estate if you’re married.
- If you don’t have a spouse, your children and their descendants will automatically inherit your estate.
- Your estate passes to your father and mother if you have no spouse, children, or descendants. If you only have one surviving parent, that parent and your siblings (and their descendants) will inherit the estate. Your one surviving parent will receive the entirety of your estate if you have no siblings.
- If you have no spouse, children, descendants, or surviving parents, your estate will pass to your siblings and their descendants.
The law further defines how assets will be distributed if none of the parties described live. Creating a will or trust lets you exercise more control instead of letting the state decide what happens to your assets.
Wills and Trusts in Texas
Creating a will allows you to exercise some control over the distribution of assets after your passing. However, with a will, your beneficiaries must go through the probate process before collecting what you’ve left to them. A probate court will also have to be involved, meaning information about the distribution of your assets will be public record.
You may help your beneficiaries avoid probate by establishing a trust. Like other states, Texas allows you to set aside assets in a trust that a trustee controls on behalf of the beneficiaries named in the trust. With a revocable living trust, you can still maintain control of the assets in the trust during your lifetime. With an irrevocable living trust, you separate the assets from your estate.
A trust can let beneficiaries receive their inheritances more quickly. Setting aside assets in a trust may also shelter those assets from estate taxes.
In addition, there are many types of specialized trusts you could establish. For example, you may create a spendthrift trust if you want to leave an inheritance to someone who might be irresponsible with money. This type of trust allows another party to control the trust’s assets.
Discuss your options with a professional. Speaking with an estate planning legal pro can give you peace of mind when making future plans.
Contact a Dallas, TX, Estate Planning Lawyer
Working with a Dallas estate planning attorney is the first step to developing a rock-solid estate plan. At Staubus, Blankenship, Legere and Walker PLLC, our Texas estate planning laws knowledge can help you better understand your options and select the right choices for your goal. Learn more about what we can do for you by contacting us online or at (214) 833-0100 today.
Related Posts:
Using Survivorship Life Insurance in Estate Planning
Common Estate Planning Myths Debunked
Will or Trust: How to Choose Which Is Right for You
Call Us
Email Us