Texans who take the necessary steps by completing their estate plan often believe that a will is sufficient. However, the reality is that there are other documents that are necessary for full and encompassing protection. If, for example, the person becomes incapacitated, there are strategies that should be in place. There are multiple alternatives to account for this type of event and it is imperative to know what they are and select those that apply.
Posts tagged "estate planning"
Estate planning is more than just having a will. In order to have an estate plan that actually protects your interests and keeps your beneficiaries from unnecessary harm, you would be wise to consider the benefits of a trust. There are many different types of trusts, but by having one in place, you may be able meet a specific goal or objective, such as caring for a Texas loved one after you pass.
Texans and people across the nation are paying close attention to how the Trump Administration handles various matters, such as the estate tax. This can be a problematic issue for those whose assets surpass the current levels to receive exemptions. Even if the estate tax remains in place and a repeal is not completed, there are options to use in the estate planning process to avoid paying needless taxes. A legal professional who is experienced in strategies to mitigate the estate tax can help in this endeavor.
Texans crafting their estate plan might have a notion of the benefits of trusts. But, fully understanding the multitude of trust uses is essentially before creating one.
A mistake made by many Texans who do not consider themselves wealthy is to shun creating a will. Wills are an integral part of an estate plan and should not be ignored, no matter the amount of money and assets. They will often believe that they do not have an estate worth making out a will. The important thing to remember about a will is that it is for the loved ones. Once the person dies, his or her assets will need to be dealt with, no matter how large or small. A will is vital toward that end.
For many Texans, drafting estate planning documents can be a difficult chore. Knowing the preferable strategies is often difficult, but it is worthwhile. One estate planning document that can be beneficial is a trust. With a trust, there are certain requirements. Having a grasp of these factors is a foundational aspect of a legal trust.
Texans who are constructing an estate plan might wonder whether it would be preferable to hand certain assets over to children and other heirs before death. They believe that this is a sound strategy to ensure that their assets stay in the family's hands, and their children get everything the testator wants without having to go through probate and worry about ancillary factors. This is often a mistake as it fails to provide certain protections. Understanding this and formulating strategies to maximize protection is a wise step with any estate plan.
Texans who have substantial portfolios will keep a close eye on tax implications for their estate after they have passed on. People who are leaving behind a lot in assets will undoubtedly want to protect their heirs from a major tax hit by engaging in estate tax planning. However, the estate tax is constantly up for debate in the federal government with some wanting to repeal it and others wanting to keep it in place. When drafting estate planning documents, having strategies to account for various contingencies can be key.
Texans who have retired will often want to travel to different areas and spend significant time in other states. A question that should be considered is how this might affect an estate plan. Those who have the means to have several residences are undoubtedly lucky, but there also comes some risk when living in different places. For estate planning purposes, it is vital to grasp the ramifications.
Estate planning lawyers frequently tell people it is important for everyone to have a will. What they may not explain often enough is the fact that people should not think of creating an estate plan as a one-time event. Wills, trusts, powers of attorney and other estate planning documents should be revised as life situation changes.