You should speak with a property or an estate planning attorney to help you understand your legal rights and to make sure your written agreement complies with the state’s statutory requirements. It is generally insufficient to create a deed that states your intent to hold property with your spouse with a right of survivorship. Instead, your attorney will most likely draft a separate agreement stating such and file it in the appropriate county clerk or recorder’s office. You should also be aware … [Read more...] about Community Property and Estate Planning in Texas: Part 3 of 3
Wills and Trusts
Community Property and Estate Planning in Texas: Part 2 of 3
Marital property ownership rights are important for estate planning purposes. In most community property states, communal owners each own half of their property and as such, they may freely dispose of their rights as they wish while they are alive or at death. At one spouse’s death, a community property owner may not have an automatic right of survivorship to the remaining property. However, in Texas, the Texas Legislature recognized the need for flexibility for planning purposes between … [Read more...] about Community Property and Estate Planning in Texas: Part 2 of 3
Community Property and Estate Planning in Texas: Part 1 of 3
Typically, unless you are going through or have gone through a divorce, you probably haven’t given much thought to the term “community property” or “equitable property.” If you are thinking about estate planning, you should understand what “community property” and “equitable property” really mean. Most states follow the common law regime of equitable property during divorce and for estate planning purposes. However, like a handful of other states, Texas is a minority community property … [Read more...] about Community Property and Estate Planning in Texas: Part 1 of 3
Elderly Residents Warned of Living Trust Scams: Part 3 of 3
Elderly residents should be wary of high-pressure tactics from overbearing salespeople who pressure them into giving them your financial information. Be wary of con artists throwing around probate law terms like “executors.” You should always be suspicious of claims from scam companies promising that you can significantly reduce your estate taxes by creating living trusts. A written will can also help you reduce your taxes and are often less expensive to create. Promises that a living trust will … [Read more...] about Elderly Residents Warned of Living Trust Scams: Part 3 of 3
Elderly Residents Warned of Living Trust Scams: Part 2 of 3
As discussed in the last blog, the Texas Attorney General and Texas Bar brought living trust scams to our attention. Living trust scam artists purporting to sell living trust kits or documents prey upon elderly consumers’ fears. Unfortunately, these kits are often worthless and can cost thousands of dollars. Other living trust scam businesses sell living trust products in an effort to obtain a consumer’s private financial information. Deceptive living trust salespeople may visit you at home or … [Read more...] about Elderly Residents Warned of Living Trust Scams: Part 2 of 3
Elderly Residents Warned of Living Trust Scams: Part 1 of 3
Beware of living trust scams targeting elderly residents across the nation. A living trust is a written legal instrument allowing you to place your assets into trust for the benefit of your beneficiaries. A trustee manages the living trust on your behalf. The written instrument earns its name from the fact that you create a living trust while you are still living. A living trust may be irrevocable or revocable. You may not alter or revoke an irrevocable living trust document, unlike a revocable … [Read more...] about Elderly Residents Warned of Living Trust Scams: Part 1 of 3
Drawbacks of Dying Intestate or Without a Will: Part 3 of 3
Another disadvantage of dying without a validly created will is that Texas law treats a lifetime gift only as a gift and not as an advancement of a future bequest. For example, if you intended to count a niece’s car as a gift against her future inheritance, you need to state such in your will. If you do not create a will, the Texas Probate Code treats the gifted car as a gift and not as an advance. This can become a problem if you intended to give your children equal shares of your assets but … [Read more...] about Drawbacks of Dying Intestate or Without a Will: Part 3 of 3
Drawbacks of Dying Intestate or Without a Will: Part 2 of 3
As previously discussed, a major disadvantage to dying intestate is the lack of control you have as to who will inherit your property. If you wanted to leave a large portion of your estate to a special nephew, you must do so by will. If you do not create a will, your nephew only receives his intestate share of your property, as established by the Texas Probate Code. If you die with a surviving spouse and children, they will receive most of your property, and your nephew may not receive anything. … [Read more...] about Drawbacks of Dying Intestate or Without a Will: Part 2 of 3
Drawbacks of Dying Intestate or Without a Will: Part 1 of 3
Each state’s intestacy laws will establish what happens to your property if you die without a will. In Texas, the Texas Probate Code governs who receives your property and the order of priority in those distributions. The Texas Probate Code establishes an order of intestate succession or distribution scheme for residents who died before and after Sept. 1, 1993. After Sept. 1, 1993, the beneficiaries of your property depend on their degree of kinship to you. The Texas Probate Code automatically … [Read more...] about Drawbacks of Dying Intestate or Without a Will: 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
