Readers in Texas know that they should begin to plan for their eventual demise. This effort is important as it helps those left behind know how the deceased individual wanted their assets to be distributed between heirs. However, some may be confused as to which estate planning documents should be included in a comprehensive plan.
In one recent report that may be of interest to our readers in Texas, the author notes that there are several options for those seeking to begin estate planning. Most commonly, people create a will first. This type of tools can direct specific bequests to individuals. However, some assets cannot be included in a will, including insurance plans and annuities.
Many of these types of assets are best dealt with by creating a trust. The article notes that there are several types of trusts that have different goals for people. Some in Texas create such a tool to ensure that all of their assets are included or that taxes can be minimized. Others find a trust helpful to direct payments to beneficiaries rather than having the inheritance paid in one lump sum. This can be important in cases where adult beneficiaries are unable to handle their finances without help from trustees.
Estate planning can appear complicated to some people in Texas and elsewhere. This is often the case due to the vast array of choices that can be made by a person seeking to best plan for their eventual death and the distribution of assets. To ensure that a good decision is made for all, people may wish to seek information regarding all of their options as they begin the estate planning process.
Source: DailyFinance, Documents that Should be Part of Everyone's Estate Plans, Andrea Murad, Sept. 5, 2013