All posts tagged: will

Trust Me, Trust You – Not Just for Rich Uncles and Railroad Barons Anymore

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The most basic tool for estate planning is the will.  But what about doing more than just making sure that the right people get the right stuff after a person passes away?  Scratch the surface, and several basic questions loom: How to minimize taxes?  How to protect a legacy?  How to protect an estate from creditors?  How to make gifts last?  How to protect beneficiaries from themselves? There is any number of ways to answer those questions, but let’s start with an unlikely one – trusts. Fundamentally, a trust is where one person holds legal title to property or assets for the benefit of another person.  Trusts came to America from equity courts in England where they had developed in the Middle Ages when wealthy benefactors would hold property on behalf of churchmen bound by vows of poverty. Trusts serve two essential functions in estate planning.  First, a trust allows someone to achieve creditor protection and tax deferral during his or her lifetime. Second, it allows a person to pass on that same protection and …

What Can a Will Do?

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Earlier, we covered some of the unfortunate consequences of not leaving a will.  But, if there is a well-drafted will in place, what can it do? Generally speaking, a will states what a person intends to happen after his or her death.  This person is the testator.  Specifically, a will directs what the testator wants to happen to her property after her passing.  Additionally, because a will has no legal effect until the testator is actually deceased, the testator obviously will not be around to carry out his own wishes.  Therefore, a will can also appoint who will carry out the wishes of the deceased person.  At its most basic, a will appoints the executor of the will – the person who will carry out the testator’s wishes. When the testator includes more complex provisions, a will may also name trustees to preside over trusts that the will may create. A will can do the following: Appoint a guardian for a minor child or an incapacitated child; Give property and assets to a surviving spouse; …

Do I Need a Will in Texas?

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There are two ways to answer that question.  The first answer would show precisely what a will can do – dispose of property, make gifts, contribute to charity.  The list is comprehensive.  The second, alternative answer is the cautionary tale – the bogeyman under the bed.  Let’s have some fun.  Let’s start with the second answer. Leaving Without a Will As a well-known estate planner in Texas likes to say, to paraphrase: “If you don’t have a will, the State of Texas has one for you – and you won’t like it.”  She’s right.  At common law and in Texas, a person who dies without a will is said to die intestate.  If a person dies intestate, there are default rules in place to dispose of their real and personal property – the things we consider our earthly possessions. According to those rules, a number of things can happen.  First, when you die, are you married?  For that matter, do you own a house?  Did you purchase the house while you and your surviving spouse …