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With 2015 in full swing, now is a great time to think about your estate plan and whether it needs to be reviewed or amended. If you don’t have an estate plan in place, it’s a great time to think about how you might benefit from an estate plan and how your loved ones may be affected if you die or become incapacitated without an estate plan in place. If it’s been more than a few years since you last looked at your estate planning documents, you should review them to ensure that they are still in line with your current goals and objectives. This is especially true if you have had any major life events recently, such as the death of a family member, a divorce or marriage, or a relocation to another state. Regardless of your situation, here are some of the documents you should consider executing as part of your Houston estate plan, along with some things to think about:
- Will – How do you want your property distributed when you die? A common disposition for married couples is to leave everything to the surviving spouse and then to the couple’s children at the death of the second spouse to die. However, if you have a blended family, this may not be a good fit, and careful consideration may need to be given to the disposition of your probate estate. In addition to disposing of your Texas probate assets in your will, you can also name a guardian for minor children. Additionally, you should carefully consider who will receive your personal property, as highlighted in the recent dispute over the estate of comedian Robin Williams. For more information about a Texas last will and testament, click here.
- Durable Power of Attorney – This document allows you to name someone to act on your behalf regarding your financial and business matters. For instance, the person you name will generally be able to access your bank accounts and to pay your bills if you become unable to manage your own affairs. There are also a number of other powers that can be granted in the Texas durable power of attorney. If you execute a new Texas durable power of attorney while a third party is relying on an existing power of attorney, you will need to record a notice of revocation for the earlier power of attorney in the records of the county clerk.
- Medical Power of Attorney and Directive to Physicians – The medical power of attorney names who will be responsible for making healthcare decisions on your behalf if you are unable to do so. A directive to physicians states your wishes regarding medical treatments in case of a severe, life threatening, or terminal illness.
- Declaration of Guardian for Minor Children – If you have minor children, you should execute this document, which names who you would like appointed as guardians for your children if you die or become incapacitated.
- Beneficiary Designations – It is important to understand that not all of your assets pass under your will unless you take special measures to ensure that they do. Your retirement plans, life insurance policies, and some other assets pass according to the beneficiary designations you have in place when you die. It is important to periodically review your beneficiary designations to ensure that they correctly reflect your current wishes. This is especially important after a major life event occurs. If you want these types of assets to pass under your will, you can name your estate or the trustee of a testamentary trust created in your will as the beneficiary of the plans or policies. However, naming your estate as the beneficiary of these assets may cause them to be subject to any creditors of your estate.
Depending on your specific circumstances, there may need to be other documents included in your estate plan. You should speak with a qualified Texas estate planning attorney in order to determine the best fit for your needs.
