Protecting Your Family, Loved Ones & Properties
Planning our futures is not as clear-cut as we may think. In fact, some of the details can be overwhelming, and searching the internet for help in these important areas may yield inaccurate or compromising results. When you are ready to take control of your future, we are here to help.
By creating a will and/or establishing a trust, you can help ensure that your family, loved ones, and charitable entities you hold dear are provided for after your death – without a will your estate will be subject to intestate succession, devised by the Texas legislature, and charities you would have supported in your lifetime will never receive a share of the estate by intestate succession.
By taking the time to create a will at a minimum, and perhaps trusts as may be needed by your planning objectives, you can also make sure that the people or nonprofits you care about do not have to deal with unnecessary delays, disputes, increased expenses, having to go through heirship, and other issues.
Creating a will or establishing a trust is not necessarily difficult, but the process can be complex. It is a good idea to discuss your situation with the experienced Houston trust attorneys at our firm, who can help you understand all your options and find a creative and custom solution for your unique situation. At Stepp Law Firm PLLC, we have been helping clients throughout Texas for decades. Our Houston trust attorneys are here to answer your questions and help you determine the best course of action when it comes to your estate plan.
For more information about how we can help you plan your future, contact our skilled Houston wills and trusts attorneys online or call our office at 713-336-7200 to request a consultation.
What You Need to Know About Wills and Trusts In Texas
In Texas, much like in other states, a person’s “last will and testament” (or “will,” for short) is a legal document that details how the person’s assets and properties should be divided upon their death. A will introduces and defines the testator’s family and life station, which is essential in defeating common law marriage claims that have no factual validity but still get made all of the time in heirship cases.
A will also names an executor or executrix of the estate. This person or persons can be either an individual person, multiple people who will serve concurrently, a corporate executor such as a trust company or large bank, or a combination of individuals and a corporate executor serving jointly as co-executors, who will be responsible for making sure that the carefully drafted terms of your properly executed will are carried out. A living will, also known in Texas as a “Directive to Physicians and Family or Surrogates” or simply an “advanced directive,” details how decisions are made and how an individual would like to be cared for at the end of their life.
With your will, you can:
- Designate how you want your various assets and properties, including real properties, to be divided amongst your heirs/beneficiaries upon your death
- Name any organizations, including charities or professional associations, that you would like to leave money or property to when you die
- Appoint a personal guardian to serve as a caregiver to your minor child or adult child with special needs in the event that you are unable to do so
- Name an individual who will be in charge of managing assets/properties you leave to minor children (if they are under the age of 18 at the time of your death)
- Select someone, known as the “executor of the estate,” to be in charge of ensuring that your wishes are carried out after you die
It is important that you create a will because, without one, your family members and loved ones will need to settle your estate through a judicial determination of heirship, which can be costly, ultimately paying the fees of the attorney ad litem who must be appointed in all heirship cases. An invasive public examination of the decedent’s family and marital history, which eventually leads to a rigid distribution of the estate according to the law of intestacy.
Though Texas’s probate process is relatively simple compared to other states like California, it can still be a lengthy, costly, and difficult process, and exacerbate already existing complications among family members. We are well aware of these dynamics and emotions and will help you through these decisions with the confidence you are making the right plan. Contact us online or call our office at 713-336-7200 to request a consultation with our Houston wills and trusts lawyer.
About Revocable Living Trusts
If you decide to establish a revocable living trust, you can name a person (either yourself or another party) who will hold legal title to any assets and/or properties you contribute to the revocable living trust. This person is known as the trustee, and anyone who stands to benefit from the trust is a beneficiary. Revocable living trusts are considerably more flexible than tax-planned trusts (which require an independent third party to serve as trustee, as one of many requirements to follow to avoid frustrating the tax planning objectives), but they do not solve every problem, and there are many major misconceptions about revocable living trusts in Texas.
There are many benefits to establishing a living trust, such as the ability for your beneficiaries to completely avoid probate in certain situations, but trusts are not practical in every situation. For example, in Texas, all estates worth less than $75,000 (calculated under special rules) are allowed to pass through a simplified probate process called a Small Estate Affidavit (SEA) that typically does not even require a hearing in probate court for the judge to sign the order.
Special Needs Planning & Revocable Trusts
Revocable living trusts can be beneficial for small business owners, as they can place business assets in the trust and name themselves as the primary trustee during the course of their life. Upon death, the trust can be used to transfer business assets to a successor. Most situations would benefit from tax planning in a business succession plan and/or proper funding with life insurance in a buy-sell agreement to reduce risk and potential complications. We will work closely with your CPA, accountant, and or your wealth advisor to accomplish a unified plan.
Additional considerations you may want to keep in mind include the various types of available trusts. Simple testamentary trusts will do nothing to reduce the harsh bite of the 40% federal estate tax, but more complex types of trusts can help your beneficiaries avoid seeing a large share of their inheritance march off to Washington to pay federal estate, gift, GST, and/or estate income tax. This is particularly applicable for estates of high value, including ultra-high net worth estates approaching 15 million dollars for an unmarried person.
Frequently Asked Questions About Texas Trusts
#1: How Do I Update A Trust?
In Texas, you generally update a revocable trust through either a Trust Amendment for minor changes or a Trust Restatement for significant changes. For irrevocable trusts, the process is much more difficult. Making changes often requires court approval or negotiating settlement agreements. Consulting with our Houston trust attorneys before creating a trust can help you and your beneficiaries avoid legal headaches. No matter the situation, never handwrite changes onto the original document. This can invalidate the entire section and lead to expensive court battles.
#2: How Do I Fund A Trust?
“Funding” for a trust means that you are transferring your assets to the trust. For real estate, you typically file a new deed with the county. For financial assets, you contact the bank and retitle the assets in the name of the trust. We can help you through these steps to make the process much easier.
#3: Is A Trust Better Than A Will?
They both have pros and cons. A trust offers several benefits, such as avoiding probate. In Texas, a will must be publicly submitted to the court and validated. This can take months or even years. A trust, on the other hand, can often be privately administered in days or weeks.
However, wills have the power to name guardians for minor children. A trust cannot do that. If you do not have a valid will or attempt to name guardians in a trust, a Texas court typically gets to decide who gets guardianship of your children. We are here to fully discuss these differences so the proper decision on your estate planning documents can be made.
Since trusts and wills both have significant pros and cons, many people opt to have both to ensure their bases are covered. Our experienced Houston trust attorneys can help you decide which option is right for you.
Our Houston Trust Attorneys Are Ready to Help You
Whether you are interested in drafting a will for the first time, establishing a revocable living trust, or making modifications to your existing will or trust, Stepp Law Firm PLLC can help. Our Houston trust attorneys understand the ins and outs of estate planning; we can help you find a custom solution that keeps your unique circumstances in mind.
Contact our experienced wills and trusts legal team today to learn how we can establish your future while leaving no detail to chance. Call 713-336-7200 today or fill out our contact form to schedule a consultation. We are available to answer your questions, provide guidance, and deliver solutions, so you and your family are protected today and going forward.