14603 Huebner Rd., Bldg. 32, San Antonio, TX 78230
Call Us for a Free Consultation
210-535-0870
Recent Blog Posts
Top 5 Challenges Families Face During Probate
Probate is generally not fun. It can be complicated. It can be prolonged. It can be costly. There are multiple steps in the Texas probate process, so there are plenty of points where something could go wrong. It is fairly normal for families to run into difficulties during probate. Although the personal representative may initially have things under control, that could change at any moment. Anything from a surprise challenger to a few missing documents can throw a wrench in probate unexpectedly.
Many bereaved families start the process by themselves only to find that they need help from an attorney midway once a challenge arises. It is often best to have a lawyer on board from the beginning if possible. Our goal as probate lawyers is to take on the legal side of handling your loved one’s estate so that you and your family can focus on healing from your loss.
The Most Common Problems That Arise During Probate
Even if everything goes smoothly, probate can still be difficult. Some of the most common challenges that people face during probate include:
The Two Main Types of Trusts
Estate planning trusts come in many different forms. There are trusts with specific purposes, like charitable trusts and minors’ trusts. There are trusts created by a will. If you are looking to create a trust, you have numerous options. However, the two main types of trusts you will likely work with are revocable living trusts and irrevocable living trusts. The differences between the two largely revolve around how flexible the trust is. Many people choose revocable living trusts because they are rather easy to go back and make changes to. The idea of an irrevocable trust frightens some people. However, there are numerous benefits to using irrevocable trusts, mainly related to asset protection. You should speak with an attorney about what your particular estate planning needs and goals are before settling on a type of trust.
What Is a Revocable Living Trust?
A revocable living trust is the standard type used by estate planning lawyers. When you create one of these trusts, you “fund” it by placing your property in the trust. Most people name themselves trustee so that they can retain control over their property.
3 Tools Texas Parents May Need in Their Estate Plan
No parent ever wants to think about the possibility of passing away while their children are still children. It can be a terrifying and uncomfortable thought. It is also statistically very unlikely, especially if your children currently have two living parents. However, life is nothing if not unpredictable. No one can predict the future. While you are highly unlikely to need an estate plan that provides for your minor children, it is far better to have one and not need it than to need it and not have it.
As you cannot leave money directly to a minor, even if they are your own child, you will need to use several different estate planning tools to protect them. If you have minor children and you do not already have a strong estate plan designed with them in mind, the time to start building one is today.
Estate Planning Tips for Parents With Young Children
There are a handful of legal tools parents of minor children can use to protect their children should the worst happen. Documents and strategies that may belong in your estate plan include:
Understanding Revocable Living Trusts in Texas
Trusts are often the smarter way of planning to distribute your future estate property. Wills come with a lot of pitfalls - specifically, that your loved ones will have to go through an often-challenging probate process. Trusts allow your future beneficiaries to skip the time-consuming proceedings and cost associated with probate and may offer a number of other benefits in addition. However, trusts are not understood as well as wills are. There is still a prevailing popular belief that trusts are for the ultra-wealthy, those families whose children and grandchildren will never have to work for a living. This is far from the truth. You may be surprised how much you and your loved ones could benefit from creating a revocable living trust. Our attorneys can answer any other questions you may have about how trusts work or how they could help you.
How a Revocable Living Trust Works
A common source of confusion is that there are multiple unique types of trusts to choose between. There are irrevocable trusts, special needs trusts, revocable living trusts, and even something called a testamentary trust, which can only be created using a will. These are just a few of the forms a trust can take.
Why You Should Not Rely on a Homemade Will
There are multiple ways for a person to try to make a will without seeing an attorney. While these methods may seem cheaper and easier in the short-term, they can backfire horrendously in the end. The two main ways that some people go about DIY-ing their estate plans are through online kits, and by making handwritten (“holographic”) wills. Both methods are quite fallible. The risk of using one of these at-home methods is that the document you create will not be legally effective.
In Texas, wills must be created according to certain formalities, and they must comply with a series of strict laws. The effect of even one legal mistake can be that the entire document gets thrown out, and you are left intestate. Our attorneys can help you with a much better, safer way of making an estate plan.
What is a Holographic Will?
A holographic will is a will that is written entirely in the testator’s own handwriting and signed. While these can be legally acceptable in Texas, there is quite a lot of risk that someone could challenge the will. Most holographic wills are made without neutral witnesses present, and thus, are easily disputed. The only time a person in Texas should attempt to make a holographic will is if they are imminently about to die and truly have no other options. For example, in one famous case, a farmer carved his will into the bumper of the tractor he was pinned under.
Benefits and Drawbacks of an Irrevocable Trust
When you decide to create a trust, you will have two main options—revocable or irrevocable. Revocable trusts are more common. Having the ability to go back and make changes very easily appeals to a lot of people. The term “irrevocable” can scare people off easily. Because most people transfer all or almost all of their property into their trusts, a lot of people are afraid to create a trust they cannot revoke. However, there are a few distinct benefits of using an irrevocable trust.
The big reason that people who do use irrevocable trusts do is for the unparalleled asset protection features. Of course, an irrevocable trust is not without risks. If you are considering using an irrevocable trust, your attorney can help you decide whether this is the right move.
Benefits of an Irrevocable Trust
The benefits of using an irrevocable trust include:
Top 5 Myths and Facts About Estate Planning
There are alarming many, very common misconceptions about estate planning - what it is and how it works. In this day and age, misinformation is very easy to come by, and sometimes very hard to spot. Many people who approach an attorney to start the estate planning process believe at least one myth about estate planning. What is more concerning is that these myths may be preventing people from beginning the process at all.
You may be surprised by some of these myths and facts about wills, trusts, living wills, and powers of attorney. In some cases, fictional movies or TV shows have perpetuated the misconceptions. Others are simply outdated information. If you are considering beginning to make your estate plans, Geoff Mayfield, Attorney at Law can help.
Myths About Estate Planning and the Truth Behind Them
Some of the most common myths about estate planning include:
- An estate plan only takes effect when you die - Actually, if you use a living trust, it has an immediate effect. You create a trust, fund it with your property, and name yourself trustee. You do not lose any control of your property, but your property goes into the trust right away. Irrevocable trusts can help with asset protection during your lifetime. Additionally, estate planning includes things like making a living will and powers of attorney in case you become incapacitated.
What if My Relative Had More Debt Than Their Estate is Worth?
If you are going through probate, you likely already know that one important step in the process is notifying the decedent’s creditors. Settling debts is an uncomfortable, but necessary part of the process of settling an estate through probate. During this step, the executor or personal representative will need to identify anyone the decedent owed money to and let them know that their estate is in probate now. Certain assets that are part of the estate may be liquidated in order to satisfy the decedent’s debts. However, other assets are exempt from liquidation. So, what happens if your loved one owed more than their estate is actually worth? It depends on a few factors. If you believe that your loved one’s estate is going to have this problem, an attorney can help protect you.
Which Assets Are Protected From the Liquidation Requirement?
If your relative had a lot of debt, you might be worried that you will lose your inheritance to their creditors. While it is true that non-exempt assets can be sold off to pay a decedent’s creditors, other assets are exempt from this requirement.
Estate Planning Documents You Will Need During Your Lifetime
Most people think of estate planning as something that will only come into play after they have passed away. However, the part of estate planning that mostly matters after you are gone - testamentary planning - is only part of what a comprehensive estate plan can do. The other side of estate planning, known as “incapacity planning,” actually controls what will happen during your end-of-life phase. While it may not be a pleasant thought to confront, the vast majority of us will not be fully-functioning independent adults one moment and gone the next. Most people experience a period later in life where they cannot make sound decisions for themselves. In that event, a well-made incapacity plan will control much of your care. You are the best person to make decisions for yourself, and you can do so by taking the time now to make critical decisions about your own future care.
Where Should I Keep My Estate Planning Documents?
Creating estate planning documents in the first place is 90% of the battle. Once you have a trust, a will if you need one, a living will, and your powers of attorney all ready to go, choosing the right place to store them is critical. If no one is able to find your documents, then there is a real risk that the plan you worked so hard to create will never be followed. The right place to store your documents is somewhere that your loved ones will be able to easily locate them, but also somewhere that they will be safe.
It is often a good idea to keep multiple copies of certain documents. For other documents, it is by far best to have the original available when it is needed. Your attorney can give you more specific advice on where to keep your documents so that they will be accessible.
Good Places to Keep Estate Planning Documents
Different types of documents should be stored or kept in different places. Some helpful tips for different estate planning documents include:
14603 Huebner Rd., Bldg. 32, San Antonio, TX 78230
210-535-0870
