Estate Planning Resource Center

Estate Planning is a term that is often misinterpreted. Good Estate Planning is more than just a simple will. Estate Planning involves a comprehensive plan to minimize taxes, provide for efficient transfer of assets at death to intended beneficiaries, and prepare for possible future incapacity. Wills, trusts to include living trusts, by-pass trusts, marital deduction trusts, and other types of trusts, life insurance, lifetime giving, a durable power of attorney, a medical power of attorney, a directive to healthcare physicians, appointment of guardian in the event of later incapacity, and family limited partnerships are just some of the tools available. Picking the right Estate Planning attorney is crucial in ensuring that a client both understands the tools available and uses only the proper ones. To discuss your estate planning options, contact El Paso Texas lawyers Watson & Maynez to set up an appointment.

With regard to estate planning, there are several types of taxes you should keep in mind. They are gift taxes, generation skipping taxes, estate taxes, and estate income taxes. In Texas, payment of state estate taxes does not increase total taxation, but only shifts such amounts from the IRS to the State of Texas. For more information on estate taxation, click on Estate Taxation. Also, certain wills and trusts can help reduce taxes for certain persons. Review Wills Explained and Trusts for more information.

Providing for the efficient transfer of assets at death to intended beneficiaries requires proper planning. For a discussion of what happens to one's property at death when no transfer is planned for or when such transfer is not properly planned for, review Dying Without a Will in Texas.

The three methods to control the disposition of property at death are the use of non-probate transfers, wills, and trusts. Non-Probate transfers include the following: life insurance payable to a third person, joint tenancy with right of survivorship, payable on death accounts, living trusts, gifts, and government benefits. For a more complete description of non-probate transfers, click on Non-Probate Transfer.

Wills are a second method to control the disposition of property at death. A will is valid when accepted by a proper court. There are three types of wills. The first is a standard will. The second type of will is a holographic will which is simply a will made only in the testator's handwriting. Holographic wills do not require certain formalities required in a standard will. The third type of will is a nuncupative will. A nuncuptative will is simply a will made verbally just before the testator's death. Certain legal requirements apply to each type of will. The penalty for non-compliance with such requirements is that the will is not valid and that no property transfers under such will. For an in-depth review of each of the three types of Texas wills and legal requirements for each, review my section entitled Wills Explained. If you are concerned that a particular will may not be valid, click on Will Contests: challenging an application to probate a will in Texas.

Trusts are estate planning tools sometimes used to supplement or replace wills as well as manage one's property during life. Trusts are a third method to control the disposition of property at death. A trust requires that a property owner (settlor) transfer ownership of property into a trust. The property is then managed by the trustee who is responsible for ensuring that the intended recipients (beneficiaries) obtain the benefits of the trust in the manner provided for in the trust. For some, trusts can be great ways to minimize estate taxes. A trust may also provide an effective way to ensure steady income to someone viewed as unable to properly manage a lump sum inheritance or who's inheritance may be otherwise taken by creditors. Several types of trusts are discussed in the Trust Resource Center. They are Living Trusts, By-Pass Trusts, Marital Deduction Trusts, Life Insurance Trusts, Crummey Trusts, and Spendthrift Trusts. To read more, go to the Trust Resource Center.

Preparing for possible future incapacity is not pleasant. However, when dealing with loved ones, such planning is considerate. Such pre-planning allows your decisions to be known so that others are sure to respect your wishes and not unfairly or improperly carry the burden of certain decisions alone. Further, such pre-planning ensures that medical, living, and financial decisions will not be made by someone you do not want to make such decisions. To learn more, go to Preparing for Possible Future Incapacity.

Information provided in this website is a courtesy, should not be relied on, does not create an attorney-client relationship, and is not a substitute for actual legal advice from an attorney you have retained. To schedule an initial consultation with Watson & Maynez, P.C. to discuss your matter and mutually determine if retention is appropriate, call today.

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