Estate Planning – Plan your Estate or the State will Plan it for you
Why do an estate plan?
Money and convenience. It’s that easy and that simple. Without a plan, state law dictates what happens to a person and their things when they no longer are able to. There are a two types of plans, simple and comprehensive.
A simple estate plan includes:
-A will (see below).
A comprehensive estate plan includes:
-Durable power of attorney.
-Medical power of attorney for medical decisions.
-Medical directive or living will (so no heroic measures are used to prolong life).
-Declaration of guardianship-inter vivos (during life) or testamentary (contained in a will).
-A simple or basic plan, adding to it one of the following business forms: a limited partnership, a corporation or limited liability company, a trust, and/or a testamentary trust.
This plan can substantially reduce taxes and allow control over assets so as to prevent them from being subject to claims and unconventional dissipation by a beneficiary who may not be as astute or mature as is necessary to effectively management income producing assets.
Last Will & Testament
Creating a will – a legal will – is one of the smartest legal moves you can make. Legal wills allow you to determine how your assets will be distributed after your death. Creating a will is usually a simple matter and should be overseen by a Texas lawyer. Beware of a free living will or free forms for wills because they are “boilerplate” documents that may not address your specific needs. Legal wills are important documents and one simple omission can cost your heirs dearly. When creating a will or last will and testament, you should consult with an attorney because legal wills are only one part of a basic estate plan.