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Houston Probate & Estate Administration Law Blog

Estate plan important for disposition of land

Real property purchased by a party during their lifetime often becomes a part of their estate after they pass away. An estate plan created while the person is alive can direct the actions that an estate, through an executor, will take after the person dies. The options for property distribution are varied and can involve trusts or long-term asset distribution to beneficiaries. State laws, including those here in Texas, govern much of the distribution of an estate.

When an estate owns real property, the executor or their assigns may have the responsibility to maintain the land or even make decisions regarding its sale. The decisions of the executor are governed by the will left by the deceased party. This document can be very powerful and is a facet of a strong estate plan.

As land values rise, estate planning is essential for farmers

The family farm has long been held as an ideal in the United States. Many states, including Texas, have a large number of family farms and farmers, and estate planning is often an important thing for them to take under consideration. This may be particularly true as of late because of the rapidly rising land values of farms. Over the past few years, farmland values have increased significantly, even while other property has lost equity.

The estate tax rate has been operating at a reduced rate since the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 set the tax rate at 35 percent with an exclusion rate of $5 million. The act is set to expire at the end of this year. Although Congress will debate extending the current estate tax rates during the upcoming year, the rates could return to the pre-2001 level of 55 percent, with a $1 million exclusion if the act is allowed to expire.

The importance of appointing a trustworthy executor

An executor of an estate has many responsibilities. Not only must they administer the estate of the deceased person, but they also must meet important fiduciary duties. These duties can include, among others, providing an accounting of the assets and debts of the estate in addition to reporting to the court. When an executor fails to meet their duties, beneficiaries can end up in court demanding accountings, or in extreme cases, asking for the removal of the executor.

Texas residents might be interested to learn about the removal of an executor that was requested in Georgia. The trustee of a testamentary trust that was a beneficiary of the deceased's will requested that the court remove the executor of the estate and demanded a full accounting of the estate.

Stieg Larsson: finished the books, forgot the will

The author of the Millennium trilogy died before his first novel, The Girl with the Dragon Tattoo, was published. Stieg Larsson left behind at least four novels when he died of a heart attack at the age of 50, but he failed author the most important document of all: his will.

Estate planning is essential for adults of all ages. We have seen many promising young athletes die at early ages and even professionals such as Stieg Larsson can have unexpected medical issues. Larsson died of a sudden heart attack in 2004 leaving behind a common-law wife of 32 years and a lot of unnecessary strife.

The danger of relying on oral promises in estate planning

Texas residents should beware of relying on oral promises for their estate planning needs. One of the main functions of a will and estate plan is to make sure that your wishes for the distribution of your assets are clear and followed. If you make an oral promise that is inconsistent with your will or greater estate plan, there is no guarantee that this oral promise will be honored. In fact, it is more likely that a court will throw out any probate litigation based on the alleged promise.

That is what happened in the case of one of the world's richest men, Richard Pratt. The billionaire businessman died recently and his wife of 50 years was probably horrified when a former high-end escort emerged and made a claim against the businessman's estate based on an oral promise.

Early estate planning can help avoid probate litigation

Rosa Parks is known as one of the famous civil rights activists in America History, but this civil rights icon's estate has been mired in conflict and litigation. Rosa Park's estate plan provided that her possessions would go to a charitable institute dedicated to the education of black youth and community betterment. Unfortunately the charitable work of the estate and its trust were hindered by unnecessary litigation.

The administrators of the estate were one of Rosa Parks close friends, Elaine Steele, and a retired Detroit judge. Steele was also set to benefit from 90 percent of the royalties of the estate, with only 10 percent passing to Parks' nieces and nephews.

Lack of an estate plan can lead to familial strife

It is important to work with an estate planning attorney who understands your needs and your wishes for your estate. You have no say in how your estate will be handled if you fail to execute an estate plan. The failure to execute a will, trust, or other estate planning tools can lead to familial strife as various family members may have different ideas on how to divide up the assets of an estate. The lack of a will can also lead to corruption, fraud, and probate litigation that can drag on for years.

One estate marred in litigation is that of reggae singer Bob Marley. Marley died without executing a will because he believed that his Rastafarian religion prevented him from acknowledging his mortality. This opened his estate to fraud when his wife's lawyers allegedly forged estate planning documents after his death. The scheme was uncovered by Marley's former managers who started the legal battles which would throw an attorney and an accountant in jail for fraud, among other things.

The distribution of assets of MLK Jr.

Estate planning provides people with peace of mind. If something was to happen to you, would you have the proper documents in place to make sure your wishes are followed? The distribution of assets can be dictated through a will, which many people tend to overlook. Sometimes people, who aren't of old age, think they don't need to worry about what will happen to their belongings.

Although Martin Luther King Jr. was very much in the national spotlight, with countless advisors helping him promote civil rights, an important estate planning detail was overlooked before his assassination. King didn't have a will, dictating what would happen to his belongings if he was to die. The lack of estate planning has lead to numerous lawsuits by his estate, which was set up as a private corporation run by his children, trying to determine the distribution of assets, including historic items such as letters written by King.

Updating estate planning documents now can prevent hassles later

Parent's try their best to provide a better life for their children. They carefully consider their childhood education choices, make sure they are eating properly, have the right equipment for their after-school activities, and try to save for their college education. Many parents work hard to set their children up for success, hoping to be there to guide them along the way.

Although it's something parents don't want to think about, estate planning can help protect your children well into the future, should the unthinkable happen and you aren't able to help them through to adulthood. Some people don't have wills and others have outdated beneficiaries or not enough safeguards in place such as adequate life insurance.

Business succession not always easy with franchises

A lot of hard work goes into running a business. Some families run their businesses for decades with hopes that the company will be handed down to the owner's children. Sometimes franchise owners can face hassles if they don't properly plan for who is going to take over their business when they aren't able to run it anymore.

One family-owned Houston franchise learned business succession planning as early as possible is essential to helping families keep their business running from one generation to the next. Lots of memories are made at family businesses, and it would be a shame if memories couldn't continue to be made because of a lack of planning and cooperation.

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