Harvey Cox Estate planning documents are prepared based on a snapshot of your life at the time you prepare them. The documents accomplished your goals and objectives then. But, life changes. While your estate plan may have achieved your objectives then, your goals now may be different. So, the documents you have may not accomplish your goals … Read more
If you die without an Estate Plan, Texas law has a formula that determines the distribution of your assets. That formula does not consider your wishes or unique circumstances. The following summary explains how Texas law distributes your assets if you die without a plan. Rules for a Single Person with No Children If you … Read more
Many parents hear a common piece of advice: “Just give the house to your children now, and they can avoid probate later.” It sounds simple. It sounds practical. Sometimes it becomes a costly mistake. What many families do not realize is that gifting appreciated property during life can create major capital gains tax consequences later—often … Read more
An effortless and straightforward way to plan for the passing of your estate is to use beneficiary designations. The problem is that beneficiary designations don’t handle contingencies very well. Example: You have a son and a daughter. You name them both as beneficiaries of your life insurance policy. Your daughter predeceases you. What happens to … Read more
I participate in several online lawyer discussion groups. A few weeks ago, a fellow lawyer posted a story illustrating the dangers of do-it-yourself estate planning. The attorney telling the story said she received a call from a woman whose boyfriend recently died. The boyfriend had considerable wealth. He had consulted with an attorney about an … Read more
Contrary to popular opinion, your will doesn’t necessarily control how your assets pass at your death. You may hold most of your wealth in assets that pass outside of your will. For example, if you have a retirement plan, life insurance, or IRAs, those assets aren’t usually subject to probate. Your will does not affect … Read more
Many parents add a son or daughter to a bank account for what seems like a practical reason: The trust may not be the issue. The problem is that adding a child to your account often makes them a current co-owner of that account—and that can expose your money to risks that have nothing to … Read more
In Texas, co-owners of property can have a right of survivorship to the property they co-own. Co-ownership with the right of survivorship means that when one co-owner dies, the surviving co-owner becomes the sole owner of the property without the necessity of opening a probate estate. But, using this method of estate planning can cause … Read more
Example: Mary’s estate consists of two significant assets, a life insurance policy and a traditional IRA. Both assets are equal in value. To simplify and equally distribute her assets, Mary names her son as the beneficiary of her life insurance and her daughter as the beneficiary of her IRA. What is the problem with Mary’s … Read more
I have seen a lot of poorly drafted estate plans. Inexperienced attorneys wrote some of those plans. Financial planners and CPAs even wrote some of them. With the proliferation of wrong information on the internet, I have seen more than a few poorly written do-it-yourself estate plans from forms found on the web. It isn’t … Read more