In this article, you can discover…
- How often you should review or update your estate plans.
- Steps you can take to protect your assets from creditors.
- Ways to help your loved ones avoid probate in Texas.
How Often Should I Review Or Update My Estate Plan?
You should review and update your estate plan as regularly as possible, but at least every three to five years. Some people prefer annual reviews, especially if their attorney offers periodic check-ins. The key is to update your plan whenever a significant life event occurs—such as marriage, divorce, the birth or death of a child, or acquiring new assets like real estate.
These changes can impact your estate plan, so it is important to ensure your documents reflect your current wishes. Regular reviews help keep everything aligned with your life circumstances and financial goals.
What Are The Advantages Of Having A Will Versus A Trust In Texas?
A will is often the cheaper option upfront, but it must go through probate court after death, which can be costly and time-consuming. Probate is necessary to validate the will and determine which version is the most recent. In Texas, probate costs can range from $3,500 to $5,000 or more, depending on the complexity of the estate. A will must also be probated within four years, and failure to do so can create legal complications.
A trust, on the other hand, offers several advantages. It avoids probate entirely, providing privacy and quicker distribution of assets. It also helps manage assets both during incapacity and after death, ensuring a smoother transition. Because trusts bypass the court process, they are often preferred for estate planning despite having a higher initial cost.
How Do I Protect My Assets From Creditors And Lawsuits?
You can leverage various strategies as part of your approach to protecting your assets. Trusts, business entities, homestead exemptions, and proper insurance coverage are just a few common yet effective ones. A revocable trust does not provide significant protection from creditors or lawsuits because the assets remain under the owner’s control. However, an irrevocable trust is a stronger option, as the assets are no longer legally owned by the individual.
For business owners or real estate investors, forming an LLC, especially a series LLC, can shield assets by separating liability among different properties or ventures. This structure ensures that if a lawsuit arises concerning one property, the others remain protected.
A dynasty trust is another powerful tool for long-term asset protection. They enable you to keep assets in a trust rather than directly transferring them to beneficiaries. The added benefit is that it shields them from creditors, divorces, and bankruptcy. Trust provisions can also delay distributions if a beneficiary is facing legal or financial troubles, ensuring that assets remain protected until the issue is resolved.
Aurelio Garza of The Law Office Of Aurelio Garza PLLC has extensive experience helping Texans navigate estate planning with confidence and clarity. For over 15 years, he has guided countless clients through the process of updating wills, establishing trusts, and structuring plans to minimize legal challenges and probate costs. His firm understands the complexities of Texas law and works to ensure families are protected from unnecessary disputes and financial burdens.
If you need to review or update your estate plan, contact The Law Office Of Aurelio Garza PLLC today to secure your family’s future.
What Are The Best Strategies For Avoiding Probate In Texas?
You can use several strategies to avoid probate in Texas, depending on the type and value of the assets involved. A revocable living trust is one of the best options, as it allows assets to pass directly to beneficiaries without court involvement. However, for those with fewer assets, other methods may be sufficient.
For real estate, a Transfer on Death Deed or a Lady Bird Deed can ensure that your property transfers directly to a named beneficiary upon death without probate. While the Transfer on Death Deed is governed by Texas statute, the Lady Bird Deed is based on common law, and the choice between them depends on individual circumstances.
For financial accounts, Payable on Death or Transfer on Death designations allow assets to bypass probate. Naming a trust as the beneficiary instead of an individual ensures continuity and avoids complications if the primary beneficiary passes away first.
Without proper designations, funds in bank accounts can be frozen upon death and eventually transferred to the state’s unclaimed property division, making it difficult and costly for your heirs to recover the money you have left them. Ensuring that all of your assets have clear beneficiary designations or are held in a trust goes far to avoid probate and the many unnecessary legal expenses that follow.
Should I Appoint A Family Member Or Hire A Professional To Serve As Executor Of My Estate?
Deciding between appointing a family member or hiring a professional as the executor of your estate depends on several factors. Ultimately, the decision should be based on the size and complexity of your estate, the potential for disputes, and whether you have a suitable family member willing to take on the role.
If you have complex assets or anticipate family conflicts, a corporate trustee or professional executor may be a better option. They provide neutrality, experience, and financial management skills, though their services come with fees.
On the other hand, if you have trusted family members who are responsible and capable of handling the duties, appointing one of them may be a cost-effective and personal choice. However, any family member you are considered to appoint should be willing and able to take on the responsibility since serving as an executor can be incredibly time-consuming and complex.
How Do You Address Concerns About Family Disputes Or Challenges To An Estate Plan?
When addressing concerns about family disputes or challenges to an estate plan, I focus on clear evidence, strong legal language, and open communication. If a client wants to disinherit someone, I advise including explicit language in the will or trust to clarify their intent, such as stating they love the individual but are choosing to exclude them for personal reasons. This helps demonstrate that the decision was deliberate, reducing the likelihood of a successful challenge.
I also emphasize communication within the family. While I do not base decisions on what family members want, I encourage clients to discuss their wishes openly to set expectations and minimize surprises. If a dispute arises later, previous discussions can serve as evidence of the testator’s true intentions.
Still Have Questions? Ready To Get Started?
For more information on the questions to ask an estate planning attorney, an initial consultation is your next best step; mention you read this article on our website and we’ll waive our consultation fee. Get the information and legal answers you are seeking by calling (956) 513-1117 today.
Aurelio Garza of The Law Office Of Aurelio Garza PLLC has extensive experience helping Texans navigate estate planning with confidence and clarity. For over 15 years, he has guided countless clients through the process of updating wills, establishing trusts, and structuring plans to minimize legal challenges and probate costs. His firm understands the complexities of Texas law and works to ensure families are protected from unnecessary disputes and financial burdens.
If you need to review or update your estate plan, contact The Law Office Of Aurelio Garza PLLC today to secure your family’s future.
