Law Office of Sharon C. StodghillHouston Probate Attorney | Texas Estate Planning, Guardianship and Elder Law2026-05-06T09:39:47Zhttps://www.scslawyer.com/feed/atom/WordPress/wp-content/uploads/sites/1304426/2021/04/cropped-favicon-32x32.jpgOn Behalf of Law Office of Sharon C. Stodghill<![CDATA[7 warning signs of executor negligence ]]>https://www.scslawyer.com/?p=499152026-05-06T09:39:47Z2026-05-06T09:39:47ZAn executor manages the final affairs of a deceased loved one under Texas law. This fiduciary must protect the estate’s assets and prioritize the interests of the beneficiaries. Negligence occurs when an executor ignores these legal duties or acts carelessly.
1. Missing the inventory deadline
Texas law requires the executor to file a verified inventory within 90 days of their appointment. An executor who misses this deadline violates the Texas Estates Code and risks court sanctions.
A fiduciary must maintain a dedicated bank account for the estate. Mixing personal funds with estate money violates state law and suggests financial mismanagement.
4. Selling property below value
Selling assets for less than the fair market value harms the beneficiaries. This behavior suggests a conflict of interest or a failure to preserve the estate’s worth.
5. Ignoring debts and taxes
Negligent executors often ignore creditor claims or tax filings. These mistakes cause the estate to lose value through unnecessary interest and late penalties.
6. Refusing an accounting
Beneficiaries may demand a formal accounting after 15 months. A refusal shows that the executor likely hides financial errors, theft or personal gain.
7. Delaying final distributions
Holding inheritance funds indefinitely lacks justification once the executor pays all debts. Stagnant probate files indicate the executor lacks the necessary skill to finish the job.
Safeguarding your family interests
Negligent actions drain the wealth your loved one intended for you. You deserve a swift and accurate resolution to the probate process. An experienced advocate ensures the executor respects every Texas statute, secures your financial future and holds the wrongdoer accountable.
]]>On Behalf of Law Office of Sharon C. Stodghill<![CDATA[3 ways to avoid estate plan disputes in Texas]]>https://www.scslawyer.com/?p=499052026-02-19T15:07:16Z2026-02-19T15:07:16ZKeep your estate plan clear and consistent
Clear language protects your intent. If your documents use vague phrases like “divide fairly” or leave key details open to interpretation, you invite disagreement over what you meant. Specific instructions reduce room for argument and make your wishes easier to follow.
Consistency matters just as much. Your will, trust and account designations should work together, not compete with each other. In Texas, retirement accounts and life insurance usually pass to whoever you named on the beneficiary form, even if your will says something different. If those documents conflict, that form, not your will, decides who inherits the asset.
Plan for incapacity as well as death
Most people plan for what happens after they are gone. But what happens if you are still alive and unable to make decisions matters, too. A stroke, accident or sudden illness can leave you unable to manage your finances or make medical choices. Without clear instructions in place, the people closest to you may not know who should step in or what you would have wanted.
Durable powers of attorney and medical directives allow you to decide in advance who handles your financial and health decisions if you cannot. When you plan for incapacity as carefully as you plan for death, you reduce uncertainty and keep control of decisions that affect you and your family.
Work with an estate planning attorney in Texas
Your documents only protect you if they hold up when someone questions them. They must follow Texas rules to be valid, including how your will is signed and witnessed. If you rely on generic forms or miss key details, you can leave behind a document that creates problems instead of preventing them.
An estate planning attorney in Texas understands those rules and makes sure your documents meet them from the start. When your plan is prepared correctly, you avoid preventable mistakes that could cause confusion later.
Building a plan that holds up
If you want your estate plan to guide your loved ones without confusion, you should address gaps now. Small inconsistencies often turn into larger problems when emotions run high. Taking the time to clarify your wishes now can make a meaningful difference for the people you care about most.]]>On Behalf of Law Office of Sharon C. Stodghill<![CDATA[Can personal representatives manage the Texas probate process alone?]]>https://www.scslawyer.com/?p=499012026-01-06T12:18:11Z2026-01-06T12:18:11ZPersonal representatives assume risk
There is a degree of liability that comes with estate administration that many people overlook. Personal representatives have a fiduciary duty to the beneficiaries or heirs inheriting from the estate. They must comply with the law and act in the best interests of those who stand to inherit from the estate. They must submit documents to the courts, keep records of how they manage assets and address all outstanding debts or taxes.
If they fail to fulfill their obligations, they may be at risk of litigation. Others could try to remove them from their position. In cases involving improper resource management, personal representatives might face financial liability for debts and taxes that they failed to address.
Working with an attorney helps limit personal liability. A lawyer can advise a personal representative of their obligations and help ensure that they fulfill all of their responsibilities. Additionally, attorneys can handle much of the legwork involved in probate proceedings, thereby diminishing the demands on the personal representative. The lawyer can file paperwork with the courts and attend hearings so that personal representatives don't need to miss work or travel repeatedly to administer an estate.
Between the inconvenience and the risk associated with estate administration, having legal guidance is almost always beneficial for those acting as a personal representative or executor. Estates typically cover the costs of legal representation, meaning that the personal representative should not need to pay out of pocket.
Discussing the details of an estate with a probate attorney can be a smart decision. Personal representatives who have legal guidance are less at risk of litigation and financial liability during probate proceedings.]]>On Behalf of Law Office of Sharon C. Stodghill<![CDATA[What happens to property not addressed in a Texas will?]]>https://www.scslawyer.com/?p=498982025-11-06T11:37:45Z2025-11-06T11:37:45ZUnallocated assets are the residuary estate
The estate of a recently-deceased person contains all of the property they directly owned. Many of their assets may already have intended beneficiaries, but they may not have planned for smaller resources, such as housewares, collectibles and other personal property.
Those assets not specifically addressed in the estate plan become the residuary estate. The residuary estate could be worth thousands of dollars.
What happens to the residuary estate?
Family members can fight over assets that have perceived economic value or emotional value. Some people try to prevent probate conflicts among their loved ones by designating beneficiaries to receive the residuary estate.
Others might leave instructions for their personal representatives to liquidate the residuary estate at an estate sale. Occasionally, testators do not specifically address the residuary estate in advance. In cases involving a failure to plan for the residuary estate, state law determines what happens next.
Intestate succession laws provide instructions about the distribution of estate resources to specific family members. The personal representative of a Texas estate can follow intestate succession laws to fairly divide the residuary estate among specific people. Typically, surviving spouses, children and other close family members are the ones with the right to inherit property under intestate succession statutes.
Knowing how to address assets not included in an estate plan can help reduce the risk of conflict during estate administration. Personal representatives and those expecting to inherit from an estate may require insight into state law and the probate process. Seeking personalized legal guidance is a good way to get started.]]>On Behalf of Law Office of Sharon C. Stodghill<![CDATA[Can business owners arrange to sell their company after they die?]]>https://www.scslawyer.com/?p=498972025-09-03T23:05:40Z2025-09-03T23:05:40ZEstate planning puts testators in control
If a business owner leaves an organization directly to their beneficiaries, the people who inherit the company decide what happens with the organization. They could sell the company if they do not want to operate it, or they could try to learn about the company and step into a leadership role.
If a testator believes that liquidating the company or selling it to a competitor makes more sense than having family members try to assume control of the company, they can plan accordingly. It is common practice for testators to leave instructions in their wills for their personal representatives to liquidate specific assets.
Instructions may also include details regarding exactly how to distribute the proceeds from the transaction among specific beneficiaries. They could even extend the right of first refusal to their beneficiaries, thereby allowing them the opportunity to purchase the business for a fair market value before their personal representative lists it for sale on the open market.
In some cases, uncertainty regarding the market when an owner passes or a desire to ensure an optimal return on the transaction of selling the business. In such cases, testators may want to consider establishing a business trust.
They can appoint a competent person to manage the business and monitor the market until the time is right to sell the company. The trustee can then arrange for the sale of the business or the liquidation of its resources to help optimize the sale proceeds that beneficiaries receive. Either arrangement can potentially provide the close loved ones of the business owner with substantial financial support.
Those who believe that selling a business may be a key component of establishing a meaningful legacy may need support as they evaluate their estate planning options, and that’s okay. The use of the right tools and language can help ensure that a business owner’s hard work has a positive impact on their selected beneficiaries.]]>On Behalf of Law Office of Sharon C. Stodghill<![CDATA[Minimizing taxes in business law succession planning]]>https://www.scslawyer.com/?p=498962025-06-23T15:00:15Z2025-06-23T15:00:15ZBusiness succession planning helps ensure a smooth transfer of ownership upon retirement or passing. In Houston, this process also involves preparing for taxes.
Without a plan, your family, buyer or heirs may face significant estate or capital gains taxes, potentially forcing the sale of essential assets or even the business itself. Starting early allows you to create a plan that minimizes tax burdens, protects operations and facilitates a smooth handoff.
Understand your tax responsibilities
When transferring your business to a buyer, heir or co-owner, there are several taxes that may apply:
Income tax: Applies to profits made from a sale
Capital gains tax: Applicable if the value of the business has increased
Estate tax: Triggers if the total estate value exceeds certain limits
Each type of tax depends on the method of transfer. Selling a business creates different tax obligations than transferring it to a relative, employee or co-owner.
Review your business structure
Your current business structure plays a key role in how taxes apply during a transfer. While most established businesses already operate under a chosen structure, it remains crucial to understand how that setup affects succession planning:
C corporations: May trigger double taxation at both business and personal levels
S corporations: Pass profits through to your personal tax return, which may ease the tax burden
LLCs: Provide flexibility and may reduce exposure depending on how ownership is arranged
Reviewing the implications of your structure helps clarify tax impacts and can support a smoother transfer of ownership.
Lower taxes through lifetime gifts
Gifting parts of your business to others, such as relatives or trusted partners, while you are still alive, can reduce estate taxes later. The Internal Revenue Service (IRS) allows a limited amount of tax-free gifts each year. Here are practical ways to use lifetime gifting effectively:
Use the annual exclusion to distribute gifts over time
Transfer shares to recipients in lower tax brackets, such as relatives or junior partners
Apply discounts when gifting small or minority shares
Keep clear records of every gift to avoid future problems
These steps can reduce the taxable value of your estate, easing the burden on those who inherit or acquire your business interest or need to sell business assets during the transfer process.
Prepare funds to pay taxes
After your death, those who receive your business interest may face immediate tax obligations. Life insurance can provide the liquidity needed to cover those costs without delay. By providing funds, your heirs can avoid selling company assets at a disadvantage. This approach also helps with maintaining the stability of your business during the transition.
Ensure legal documents are consistent
Your will, trust and buy-sell agreement must all work toward the same outcome. When these documents contain conflicting clauses and terms, they can cause delays, confusion or failed transfers. Review and align them regularly to ensure they accurately reflect your desired outcome.
Use business valuation and tax tools
Knowing the fair market value of your business is crucial for effective tax planning and financial decision-making. Accurate valuation guides decisions about gifts, sales and transfers.Tools such as a grantor-retained annuity trust (GRAT) or a grantor-retained unitrust (GRUT) can also reduce estate taxes and grant more control. These types of trusts allow you to move business assets out of your estate while still receiving income from them.
Keep your plan up to date
Tax rules change over time. A plan that was effective five years ago may now cause problems. Review your documents periodically to ensure they accurately reflect your goals and comply with current laws. This process may involve creating a personalized estate plan, especially if your business circumstances have changed.A complete and updated plan helps you transition your business with fewer risks. It supports and protects your company and limits future tax costs.]]>On Behalf of Law Office of Sharon C. Stodghill<![CDATA[Creating an estate plan to protect your business assets in 2025]]>https://www.scslawyer.com/?p=498942025-05-02T07:53:35Z2025-05-02T07:53:35ZWhat to include in your business estate plan
A business-focused estate plan goes beyond a basic will. Key components include:
A succession plan: Despite how crucial it is, only two-thirds of business owners have a will, which is one of the most important documents in succession planning. A well-planned process already identifies someone to take your place or manage your business when you retire. That includes training your successor, so they are ready no matter what happens.
Updated trust structures: The kind of trust you are using should protect your business interests while minimizing tax exposure.
Power of attorney: You should have a trusted person who can make decisions if you cannot.
Buy-sell agreements: You should make ownership transitions clear, especially if you have partners.
Asset protection: Do you have adequate insurance in place to shield the value of your business? You should have legal structures (like an LLC or a trust) to protect assets from lawsuits or creditors.
Each of these components can help protect your business, avoid confusion and prevent financial loss later.
Planning with family and retirement in mind
Estate planning means protecting your loved ones and your legacy. If you have young children, consider who would manage the business and care for them if you suddenly die. Are you planning to retire sooner? Consider whether to pass the business on or sell it to fund your retirement. If you have aging parents who own a business, encourage them to formalize their wishes now. Do not let them wait for a crisis before acting.
Preparing now makes you ready for any challenges in the future. And that can happen with honest communication.
Each business owner has unique priorities. That is why working with someone who takes the time to listen and understand you is important. An experienced estate planning attorney can make these complex processes simple and guide you every step of the way.]]>On Behalf of Law Office of Sharon C. Stodghill<![CDATA[What are holographic wills, and how can they cause disputes?]]>https://www.scslawyer.com/?p=498932025-02-28T14:32:58Z2025-02-28T14:32:58ZA holographic will might seem like a simple solution for documenting your final wishes.These documents can serve as legal wills in Texas under specific requirements.Many people might turn to holographic wills during emergencies or if they want to avoid attorney fees. However, these DIY solutions can create more problems than they solve, leading to costly disputes and family conflicts.
What makes a will holographic?
Unlike traditional wills that require two witness signatures and notarization, a holographic will needs no witnesses. Texas law recognizes these handwritten documents as valid wills when the testator writes and signs them entirely in their own handwriting. While this might appear convenient, the lack of witnesses and professional oversight can lead to various complications.
Understanding the basics of holographic wills
The path to creating a valid holographic will requires careful attention to Texas law requirements.You need to know how these documents work before deciding if this option suits your needs.
Handwriting requirements: Your will must be written entirely in your own handwriting, and typed portions can invalidate the whole document
Testamentary intent: You must clearly express your intention to create a will and distribute your assets after death
Signature verification: Your signature needs to appear in a way that confirms you authored the document
Date requirements: Including a date helps establish the will's timeline and validity against other versions
These fundamental elements create the foundation for a valid holographic will, but meeting basic requirements may not prevent future disputes.
Common reasons for holographic willdisputes
Family conflicts and legal challenges often arise when holographic wills enter the probate process. Understanding these potential issues can help you make informed decisions about your estate planning approach.
Unclear handwriting leads to misinterpretation of asset distribution
Missing essential provisions create gaps in estate administration
Family members may contest the authenticity of the handwriting
Multiple versions of handwritten wills can surface after death
Ambiguous language causes conflicts among beneficiaries
Making informed choices about your estate planning methods can prevent future headaches for your loved ones.A professionally prepared will offersgreater protection and clarity for your estate planning needs. Working with a qualified Texas estate planning attorney can help ensure your final wishes remain clear and legally sound.]]>On Behalf of Law Office of Sharon C. Stodghill<![CDATA[How to provide for your disabled child now…and later]]>https://www.scslawyer.com/?p=498912025-01-17T18:24:54Z2025-01-17T18:24:16ZSpecial needs trusts
One of the most effective tools for providing for a disabled child is a Special Needs Trust (SNT). This type of trust allows you to set aside funds for your child's care and support without jeopardizing their eligibility for government benefits such as Social Security Income (SSI) or Medicaid.
An SNT can be funded with assets from your estate and the trustee can use the funds to cover expenses that are not paid for by these benefits, such as education, therapy or recreational activities.
Designate the trustee
Choosing the right trustee is a very important decision, so you need to think long and hard about who you would entrust your child with. The trustee will be in charge of managing the trust's assets and making distribution for your child's benefit.
Now, whether you choose someone who will distribute assets when your child requests them or someone who plays a more authoritarian role is up to you, but you should make that decision based on your child. You know them best. You will know if trust can be extended to them to know what is in their best interests.
Create a comprehensive will
In addition to a special needs trust, it is important to create a comprehensive will that outlines your wishes regarding your child's care. Specify who will be the guardian of your child if you are no longer able to care for them. This is a critical decision that should not be taken lightly, for the reasons stated above.
In conclusion, there are many estate planning tools you can use when putting together a solid estate plan that includes protection for your child. Speak with your estate planning attorney to have a better idea of your options and select what works best for you, your child and your family.]]>On Behalf of Law Office of Sharon C. Stodghill<![CDATA[When can you sue the executor of an estate?]]>https://www.scslawyer.com/?p=498902024-11-08T18:43:35Z2024-11-08T18:43:35ZFiduciary duties
It is essential to note that the executor must act in the best interests of the estate and its beneficiaries, ensuring compliance with local, state, and federal laws and fiduciary duties.
Most of the time, things go well in this process. However, sometimes the executor does not honor the responsibilities they took on and does something against the law or contrary to the promise of acting in the best interests of the beneficiaries and the estate.
Suing the executor of an estate
If the executor (or personal representative, as they are often called in Texas) engages in misconduct or mismanagement of the estate, they can be sued. For example:
If the executor breaches their fiduciary duty, which they owe to the beneficiaries.
If they fail to follow legal processes and procedures as they are supposed to.
If they misappropriate assets, steal assets or do something with them that they should not.
If the executor commits fraud, like falsifying documents, lying to the beneficiaries about the value of the estate, or hiding assets from the beneficiaries.
If the executor is incompetent or neglectful in their behavior and fail to fulfill their responsibilities.
As you can see, taking on the responsibilities of an executor is serious business. If an executor does any of the above, a beneficiary can file a petition in probate court to remove the executor and hold them accountable. Of course, speak with your attorney first.
Executors are expected to act in good faith and work diligently to fulfill their responsibilities to the beneficiaries of the estate and the estate itself. There are situations where their actions, or lack thereof, justify a lawsuit.]]>