Do I Need a Trust?
Frequently, my clients ask me if they need a trust. Clients frequently ask about probate and ask “How can probate be avoided?” My answer is that it depends but there is a good chance that a trust is not what you need. There are times that a revocable living trust is an effective estate planning tool but for many clients, it is a waste of money. Trusts are promoted by many websites and literature that the public receives. Trusts are not a solution for all. To determine if a trust is a good idea for you, it should be discussed with an estate planning attorney. Please call our office to set up a free consultation. Reasons A Living Trust Might Not Be Necessary 1. Probate is not complicated. Probate is not expensive if you have a good will and competent counsel. The price for creating a revocable living trust, funding it, making transfers into the trust, and related documents will far exceed the cost of probate for a will that was properly drawn up to provide for independent administration. 2. Probating an estate of a properly drafted will is not timely or a lengthy process. Texas law streamlines the probate process and rarely are there long delays when there is a properly drafted will. An independent administration under a well-drawn will requires only one hearing and minimal court involvement in the process thereafter. A competent, conscientious executor will move the process along quickly unless there are unusual complications. 3. You can avoid probate of many assets by placing them in joint tenancy with the right of survivorship, beneficiary designation, or payable on death designations. This is a better and simpler way of passing on many assets upon death rather than spending the money to place assets in a living trust. If beneficiaries are minors or have special needs, you may require a trust but this can also often be accomplished in a good will. 4. Living trusts are currently not needed by most individuals for estate tax planning. Under current estate tax regulations, unless you have an estate worth more than $12 million per person, you have no need for a living trust to avoid estate taxes. This could change in the future if Congress changes the estate tax laws. 5. If assets are not added to the trust, the purpose of having a living trust can be defeated and probate is still required. When a person has a revocable living trust, all assets must be properly titled. If this is not done, there may still be a probate required to transfer the title, and the expense is multiplied. Reasons You Might Need A Trust 1. Ownership of property in different states or many counties in Texas may require a living trust. 2. A person needs special assistance in managing assets or special needs children. 3. A person wants to provide special conditions to receive assets. If you have questions about whether a trust would be a good fit for you and your family, please contact the office at 713-467-1760 to schedule a consultation.
Read moreWhat Happens When There is No Will?
What happens when there is no will? If you fail to make a living will before you die, your estate will be distributed according to the Texas Law outlined in the Texas Estates Code. COMMUNITY PROPERTY The Law defines community property as anything: – You acquired or accumulated while married. SEPARATE PROPERTY The Law defines separate property as anything: – You owned prior to getting married – You inherited or received as a gift from someone else How is Property Distributed When There is No Will? When there is a spouse and children, your spouse receives your half of the community (marital) property and keeps the living spouse’s half. The spouse also receives 1/3 of your separate personal property and a 1/3 interest in your separate real property for their lifetime (real estate). The remainder of your separate property (2/3) is divided equally among the children. Important note: this arrangement only applies if your spouse is the parent of all of the deceased children. When the deceased spouse has children outside of the current marriage, the children of the deceased spouse receive the deceased spouse’s half interest in community property. The living spouse retains 1/2 interest of the community property and receives 1/3 of the deceased spouse’s separate personal property, a 1/3 interest in deceased spouse’s separate real property for lifetime and the right to use the community real property for the lifetime. Unhappy with what happens when there is no will? We can help you prepare a will and ensure that your property goes where you want it to go. Call Nimmons & Fronterhouse today to book a free phone consultation.
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Trusted Advice on Wills for Houston Families
Trusted Advice on Wills for Houston Families Do you have a will? Is your will valid? Who can manage your finances if you cannot? Can your family make healthcare decisions on your behalf? How do you make sure your doctor follows your wishes? Attorney Cynthia Fronterhouse enjoys helping Houston families and individuals in the area of estate planning, wills, trusts and probate. Attend one of her upcoming (FREE) seminars or contact her today for a one-on-one consultation. Get the trusted advice on wills for Houston families.
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Life Estates In Texas Real Estate
Life Estates in Texas Real Estate: Formation, Rights, And Duties In Texas there is a limited transfer called a life estate. This transfer is limited in duration by a life. Due to the limited nature of such a transfer, a life estate brings with it a number of unique rights and duties. The Basics Of A Life Estate In Texas A life estate is most commonly granted for the life of the grantee. The grantee receives a possessory interest in the estate until the death of the measuring life. At that time, the interest reverts back to either the original grantor or to a third party, called a remainderman. In Texas, no particular or specific words are required to create a life estate, as long as there is clear intent that a life estate is to be created. Common phrases indicating the creation of a life estate include “for life” or “until his/her death.” Due to the nature of a life estate, a life tenant has certain rights and duties unique to this form of ownership. Rights Of A Life Tenant A life tenant in Texas has the following rights: The right to possession of the property: Even though a life tenant is not the only party who has an interest in the property, the life tenant has the exclusive right to possession, management, and control of the property. The right to all rents and profits during possession: If the property produces income, the life tenant has the exclusive right to it. This includes royalties from an oil and gas well if a producing well was in existence at the time the life estate was granted. The right to sell, lease, mortgage, or otherwise alienate the life estate in the property. This right is still limited by the measuring life. For example, a life tenant may lease the property for the duration of the measuring life only. The right to invoke Texas homestead law, If applicable. Duties Of A Life Tenant While in possession of the land, a life tenant owes the following duties to future interest holders: The duty to pay ordinary taxes on the land and interest on a mortgage: A life tenant has a duty to pay taxes to the extent the property produces income. A life tenant is also responsible for interest payments on the properties mortgage, but not the principle. The duty not to commit waste: The most significant duty of a life tenant is that they may not use the property in such a way as to decrease the value of the property. In general, this requires that a life tenant exercise the ordinary care of a prudent person to preserve and protect the estate. If you have any questions about a life estate, contact attorney Cynthia Fronterhouse.
Read moreSimple Steps of Probating A Properly Drafted Will in Texas
– A service offered for a FLAT FEE by Cynthia Fronterhouse FILING THE APPLICATION FOR PROBATE WITH ORIGINAL WILL When you lose a loved one, the original will is filed with the proper court. An application asking the court to appoint the executor listed in the will is filed with the court. After filing the will, the clerk of the court will post a notice at the court advising all interested parties that the will has been filed. The notice must remain posted for at least 10 days. The purpose of this waiting period is to give those who wish to contest a will time to do so. If no one comes forward to contest the will, the courts will move forward with confirming the will’s validity. However, a will can be challenged at any time after the will is offered to probate and up to two years after a will has been admitted for probate. HOLDING A HEARING A hearing is held before a probate judge. During this hearing, the judge will recognize the decedent’s death, confirm that the individual applying to be executor is qualified and verify that the will is valid. Once the hearing is complete, the judge admits the will to probate and appoints the executor. The clerk then issues “letters testamentary” to the executor, which serve as notice to third parties that the executor has authority to act on the estate’s behalf. INVENTORY, APPRAISEMENT AND LIST OF CLAIMS The executor now has the responsibility to inventory and appraise the deceased person’s estate within 90 days of the hearing. These responsibilities include notifying beneficiaries of the will, posting a notice to creditors, discharging debts, filing the decedent’s final federal tax return, and otherwise settling the estate. The executor may also be responsible for selling estate assets. Attorney Cynthia Fronterhouse can assist with many of these duties for a Flat Fee.
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