In Texas, those that enter into the estate planning process most often use the popular tools of a trust or a will. In the case of a trust, the assets left to beneficiaries can be distributed at various times or all at once. For a will, an estate must go through the probate process.
Posts tagged "heirs and beneficiaries"
Many people entering into the estate planning process in Texas do so using common tools such as wills and trusts. Each of these options has benefits for beneficiaries and heirs. In some cases, however, trusts may be a better option. This is the case when a person creating an estate plan seeks to avoid some or all of the federal estate tax.
Many people in Texas create an estate pan in an effort to make things easier for their heirs and beneficiaries after they die. In addition, some hope to avoid costly probate litigation between their heirs. To achieve this goal, some find it helpful to create an estate plan that is as detailed as possible.
There are many reasons that people in Texas decide to create an estate plan. For some, it is the desire to ensure that their heirs receive the assets that are left after the planner's death. For others, it is to guarantee that their values are transferred to heirs and beneficiaries along with the monetary assets that are more commonly distributed. Such individuals may be interested to learn about a new trend called spiritual estate planning that is becoming more common in our state and across the nation.
Generation Z kids in Texas and across the nation often expect that their parents will leave them money after they die. This comes despite the fact that many of the parents of those same kids ages 13-22 expect that their beneficiaries will not inherit great wealth. This may be due to the fact that many parents are now more concerned than ever about their finances and the need to expend larger amounts of money as they age.
In our August 15 post, we told you about the difficulties that may come up during estate planning due to the estate tax changes. There may be hope for families who are planning to leave assets to heirs. Two examples have been provided to show how gifting during the estate planning process may help assets to be protected from high taxes.
There are many aspects of estate planning some may not consider as they work to plan for their future. One consideration for people in Texas may be the idea of long-term care insurance as a part of estate planning. This type of insurance, with some policies, can offer peace of mind to a person concerned about paying for medical care in old age along with the assurance that whatever money is not used in medical care can be offered to heirs in estate planning documents.
Princess Diana was one of the most famous people in the world when she passed away after a car accident in 1997. Prior to her death, she, like many people in Texas, had created an estate plan designed to ensure that her wishes for the distribution of her estate to her beneficiaries would be followed when she passed away. Though no one expected her to meet her death at such a young age, having an estate plan helped to define who would inherit from her and how.
More than a third of wealthy baby boomers in Texas and elsewhere across the country have not discussed their finances with their children. In addition, these potential beneficiaries may not be aware that their parents may be planning to give much of their wealth to charity after their death rather than leaving it to the children. In fact, only 55 percent of baby boomers think that it is very important to leave an inheritance to their heirs at all.
When a person creates a trust to distribute assets after their death, it is often with the intention to share their wealth with family members. In some cases, the amount of money being transferred to heirs is significant, a fact that can lead people to take creative actions to get an even larger share of a trust. In one recent case that may be of interest to readers in Texas, one of the heirs to a billion-dollar estate secretly adopted her ex-husband in an attempt to increase her children's share of the family trust.