Do I Need a Trust?
Frequently, my clients ask, “Do I need a trust?” and wonder how to avoid probate. My answer is that it depends but there is a good chance that a trust is not what you need. There are times when 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. What Is a Trust? A trust is a legal arrangement where one party (the trustee) holds and manages assets for the benefit of another party (the beneficiary). Trusts are often used in estate planning to ensure the assets are distributed according to your wishes, both during your lifetime and after death. Trusts can also be used to manage assets in the event you become incapacitated. There are different types of trusts, such as: Revocable trust: Can be changed or revoked during your lifetime. Irrevocable trust: Cannot be altered after it is created. Testamentary trust: Created through your will and takes effect after your death. Reasons A Living Trust Might Not Be Necessary 1. Probate is Not Complicated or Expensive with Proper Planning The price for creating a revocable living trust, funding it, making transfers into the trust, and related documents may exceed the cost of probate for a will that is properly drawn up to provide for independent administration. 2. Probate Under a Well-Drafted Will is Timely and Efficient Texas law streamlines the probate process, and there are rarely long delays when there is a properly drafted will. An independent administration under a valid will requires only one hearing and minimal court involvement in the process. A competent and conscientious executor will move the process along quickly unless there are unusual complications. 3. Avoiding Probate Without a Trust You can avoid probate of many assets by placing them in a transfer on death deed or account with the right of survivorship, beneficiary designation, or payable on death designations. This may be a 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 maybe a will can also accomplish these desires. 4. Estate Tax Planning is Not Needed for Most People Under current estate tax regulations, unless you have an estate worth well 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. A Trust Is Only Effective If Properly Funded If assets are not properly funded to the trust, the value of the trust is void, 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 […]
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. What Is Intestate Succession? Intestate succession refers to the process by which Texas law distributes a person’s assets when they die without a will. The law prioritizes heirs based on their familial relationship to the deceased, with surviving spouses, children, and other close relatives generally receiving the estate. However, this process may not align with your personal preferences, which is why an estate plan and properly drafted will is essential. What Property Is Affected by Intestate Succession? Not all assets are handled by intestacy law. Some properties may bypass probate and go directly to beneficiaries (e.g. life insurance, retirement accounts, transfer on death deeds, transfer‑on‑death accounts). Different Types of Property: Community Property vs Separate Property In Texas, state law classifies assets into two primary categories: community property and separate property. These classifications impact how your estate is divided when you die without a will. Community Property Acquired during marriage (except gifts or inheritance) Typically includes income, real estate, and joint purchases made while married Separate Property Acquired before marriage Inherited or gifted property Real estate or other assets clearly designated as separate The classification of property will affect the division of the estate in the Court when someone dies without a will. How Is the Property Distributed From a Person Who Dies Without a Will? Below are possible scenarios under Texas Estates Code: Scenario 1: Surviving Spouse & Children (All children are children of surviving spouse). Surviving spouse inherits all of the community property. Surviving spouse inherits 1/3 of separate personal property and a 1/3 life estate in separate real property. The remaining 2/3 of the separate personal property is divided among the children. Scenario 2: Surviving Spouse & Children from Another Relationship (Blended Family) The surviving spouse retains his/her 1/2 interest in community property. The deceased spouse’s 1/2 interest in the community real property and personal property goes directly to decedent’s children. The spouse inherits 1/3 of separate personal property and a 1/3 life estate in separate real property. The remaining 2/3 of the separate personal property is divided among the children and all separate real property subject to the surviving spouse’s 1/3 life estate goes to children. Scenario 3: Not Married with Children All probate property passes to children or to children’s descendants by representation. Scenario 4: Married Person, No Children The spouse inherits all of the community property. Separate property is distributed differently if parents or siblings are living of the deceased spouse. The Risks of Dying Intestate When a person dies without a Will, Texas probate law determines: Who gets what Who inherits pursuant to the Texas Estate Code Who manages the estate In many cases, meeting with a lawyer is helpful to understand the results of not having a will and the benefits of having a will. How to Avoid These Risks: Planning With a Will Creating an estate plan and drafting a will ensures that your assets are distributed according […]
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Trusted Advice on Wills for Houston Families
Planning your will is one of the most important steps you can take to ensure your family’s future is secure. With trusted legal advice on wills from your local Houston estate planning attorney, you can feel confident that your estate plan reflects your wishes and protects your loved ones. Questions Every Houston Family Should Ask About Wills Do you have a legally valid will? Who will manage your finances if you’re unable to? Can your loved ones make healthcare decisions for you? How do you ensure your medical wishes are followed? Estate planning is one of the most important steps you can take to protect your family and future. For Houston families, a clear and enforceable will can: Avoid costly probate complications Ensure your children or loved ones receive what you intend Name trusted guardians and executors Communicate your healthcare and financial decisions if you’re incapacitated Guidance from an Experienced Houston Estate Planning Attorney Attorney Cynthia Fronterhouse has years of experience guiding Houston families through the process of preparing wills, establishing powers of attorney, and navigating complex estate planning situations. Whether you’re just getting started or updating a previous will, Cynthia provides straightforward, compassionate, and local advice tailored to your family’s needs. Attend Our Wills & Estate Planning Seminar in Houston Looking to learn more in a relaxed, no-pressure environment? Attend one of Cynthia Fronterhouse’s upcoming free estate planning seminars in Houston. These sessions cover key topics like: When and how to create a will in Texas Understanding probate and how to avoid it Setting up guardianship for minor children Choosing the right executor or trustee You’ll leave with a clear understanding of what steps to take next — and the peace of mind that your wishes will be honored. Ready to Protect Your Family’s Future? Don’t leave your loved ones guessing. At Nimmons & Fronterhouse, we help families in Houston — including Memorial, Spring Branch, Spring Valley, and the Heights — take control of their estate planning. Contact us today to schedule a consultation with attorney Cynthia Fronterhouse or reserve your seat at an upcoming seminar. Get the trusted, local guidance you deserve on wills for Houston families — the kind of trusted advice on wills that gives you clarity and peace of mind.
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Life Estates in Texas Real Estate
What Is a Life Estate in Texas A life estate in Texas is a type of property ownership where one person (called the life tenant) is granted the right to use and possess a piece of real estate for the duration of their life. After the life tenant passes away, the property automatically transfers to another person, known as the remainderman. Unlike full ownership, a life estate is limited in duration to a single lifetime. These arrangements are often used in Texas estate planning to preserve property, avoid probate, and clearly define who inherits real estate. How Does a Life Estate Work? 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. An experienced estate planning attorney can help structure a life estate to fit your specific goals and protect your property rights. 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 property’s mortgage, but not the principal. 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. Who Can Benefit from a Life […]
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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