In Texas, divorcing couples should consider how their divorce settlement agreements may affect their future estate planning rights. Family laws and probate laws overlap in many situations. In Texas, a surviving spouse has a right to certain community property and non-community property, including a homestead right to a life estate. If a divorce property settlement agreement contemplates otherwise, does a former spouse with a life estate right still have the legal right to live in the former … [Read more...] about Divorce and Estate Planning for Texans: Part 2 of 3
Financial Planning
Divorce and Estate Planning for Texans: Part 1 of 3
Another important consideration with life insurance beneficiary designations concerns spouses who are not required to carry life insurance policies as part of their divorce settlement agreements but fail to substitute beneficiaries. For example, imagine husband and wife divorce in 2010. Following the divorce, husband forgets to name a different beneficiary in his life insurance policy. Under Texas law, if Husband forgets to change his life insurance beneficiary designation, his former wife … [Read more...] about Divorce and Estate Planning for Texans: Part 1 of 3
Your Federal Income Tax Duties as a Personal Representative: Part 3 of 3
As you know from the previous blog, a personal representative may also be responsible for filing a decedent’s final individual income tax return or Internal Revenue Service (IRS) Form 1040. You will also have to make sure you file an IRS Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return. As the personal representative appointed to administer an estate, you must also file a federal income tax return on the estate’s behalf. The estate’s gross income includes everything … [Read more...] about Your Federal Income Tax Duties as a Personal Representative: Part 3 of 3
Your Federal Income Tax Duties as a Personal Representative: Part 2 of 3
Continuing our discussion of a personal representative’s federal income tax responsibilities on behalf of the estate, we will discuss what these responsibilities entail. As a personal representative, you will have to make sure you file all tax documents and forms in a timely fashion and pay any tax liabilities. You may also be responsible for filing individual income tax returns or the decedent’s final income tax return. You will have to comply with the strict deadlines imposed by IRS or request … [Read more...] about Your Federal Income Tax Duties as a Personal Representative: Part 2 of 3
Your Federal Income Tax Duties as a Personal Representative: Part 1 of 3
According to the Internal Revenue Service (IRS), a personal representative of an estate includes an administrator or executor appointed by a probate court or appointed by will to administer the decedent’s estate and distribute the property and assets within his estate. The personal representative also has specific federal and state tax liabilities and is responsible for paying creditors before distributing most of the estate’s assets. This three-part blog series covers a personal … [Read more...] about Your Federal Income Tax Duties as a Personal Representative: Part 1 of 3
Texas Homestead Laws and the Texas Probate Code: Part 3 of 3
Estate Planning: As previously mentioned, Texas law allows residents to exclude a broad range of personal property as exempt homestead property set-asides. Exempt personal property set-asides include any personal property of up to $60,000 per family or $30,000 for unmarried residents. This includes household furnishings, business property and tools, clothing, toys and books. Texas homestead exemptions include farming or agricultural equipment, some agriculture livestock and household pets and … [Read more...] about Texas Homestead Laws and the Texas Probate Code: Part 3 of 3
Texas Homestead Laws and the Texas Probate Code: Part 2 of 3
Estate Planning According to the Texas homestead law and the Texas Probate Code, a surviving spouse has the right to live in exempt homestead property if she so chooses. If your surviving spouse decides to claim her homestead exemption and live in her homestead during her lifetime, your homestead estate cannot pass to your surviving heirs. Texas’ generous homestead laws also provide homestead exemptions to surviving spouses for personal homestead property. This means that if you created a will … [Read more...] about Texas Homestead Laws and the Texas Probate Code: Part 2 of 3
Texas Homestead Laws and the Texas Probate Code: Part 1 of 3
Estate Planning: Texas’ homestead laws provide residents with generous exemptions from creditors’ claims. If you live in Texas and owe money to a creditor, the state’s homestead laws strictly limit what a creditor can garnish, lien or collect from you. The state’s generous homestead allowance extends to probate administration. Spouses who survive their significant others have homestead property rights under Texas law. The Texas homestead laws allow surviving spouses to use their homestead … [Read more...] about Texas Homestead Laws and the Texas Probate Code: Part 1 of 3
Checking Out Charitable Beneficiaries
Charitable bequests are a common part of estate planning. But before you decide to leave money to an organization either be a bequest in your Will or a Charitable Remainder Trust, it's important to do your homework and make sure your favorite "charity" is really a legal charity. The Internal Revenue Service recognizes public charities and private foundations. Your estate can deduct the value of contributions to either type of organization on any federal or state estate tax return that is due. … [Read more...] about Checking Out Charitable Beneficiaries
Five Things You Must Do To Get Your Affairs in Order
No one likes to think about it, but it's a fact of life. At some point, we will all need to have our financial affairs in order because everyone passes away. Making decisions early will allow you to have some semblance of security that your loved ones will be taken care of and will go through less grief when it comes to your financial affairs. Here are five things you can do to get your financial affairs in order. First, you should really consider having life insurance especially if … [Read more...] about Five Things You Must Do To Get Your Affairs in Order
