As people prepare for the busy holidays, creating a will may be one of the farthest things from their minds. However, estate planning is a wise thing to do toward the end of the year. A couple of tips might help individuals in Texas to embark on this process confidently.
People often delay creating estate plans due to a lack of time or simply because they prefer not to talk about death. The emotional aspect of estate planning may be so intimidating that people never complete this essential task. Ideally, it is good to engage in proper planning while not unnecessarily complicating the process.
Oftentimes, estate plans have structures that are overly complicated. For instance, a person's house may have been transferred into what is called an irrevocable trust, but if he or she sells the house to move into assisted living, the person will miss out on $250,000 worth of tax-free dollars. Such an avoidable misstep can be costly, and trying to address can also cost time and money.
Still, having a plan is better than having no plan at all. If people die without estate plans in place, their loved ones will have to deal with the emotional challenges of losing a loved one in addition to dealing with the financial turmoil resulting from the lack of an estate plan. Unfortunately, infighting among family members may ultimately lead to relational damage that cannot be undone. An applied understanding of the law may help individuals in Texas to complete estate planning in a manner that is reflective of their and their loved ones' needs, desires and best interests.
Source: cnbc.com, "Overcomplicating an estate plan can really hurt", Bijan Golkar, Nov. 21, 2016