Estate plans are not only for the super wealthy so they can protect their assets and money. Although it’s difficult to think about what will happen to your assets, home, and children if you pass away. Unfortunately, without a plan in place, there will be long-lasting impacts on your loved ones. However, with the correct guidance, estate planning can be easy. You need to consider the future and protect your loved ones. Did you know that estate planning can be done at any age? In this article, our family law firm attorneys discuss the benefits of creating an estate plan.
What is an estate plan?
An estate plan is a set of documents that directs others on managing your assets during your lifetime and at death. In addition, an estate plan includes specific instructions on your financial and medical care if you cannot make those decisions.
Your estate plan may include the following documents:
- Your will and trusts
- Power of attorney
- A medical power of attorney and Advance Directives for Medical Decisions
- Beneficiary Designations
An experienced estate planning attorney will be able to walk you through these documents and explain how to approach delegating your assets and wishes if something should happen to you.
Also, if, in the future, you decide to file for divorce in Texas, you will need to make sure that you revisit your estate plan because your divorce can affect your estate plan.
Five benefits of creating an estate plan
Preparing an estate plan will ensure that your loved ones do not have to make difficult decisions without your guidance and give them much-needed certainty regarding your wishes and final affairs. Below are other factors to consider as considerable benefits to creating an estate plan.
Deciding who gets your assets, money, and your children
Estate plans allow you to decide who will get your assets when you die. Your plan can be specific as you like and lay out different options depending on things such as; the age of your children.
Along with an estate plan, you will want to have a trust. Your trust will specify how you want your assets managed and distributed after death. A trust is beneficial for parents of children who want to ensure that any money they leave behind will be protected until their children are at a certain age and can be responsible.
You can also list a representative in your estate plan who will ensure your assets and money will be distributed and all your wishes are seen through. It’s also essential to think about a guardian for your children. If you unexpectedly die and your children are under 18, you will want to list a trusted person who will take care of your children.
You Want to Avoid Texas’s Interstate Succession Laws and Probate
“Interstate” is a legal term meaning “without a will.” Therefore, if you don’t prepare an estate plan to distribute your assets, the alternative is that percentages of your assets will be distributed to your family members. So, by preparing an estate plan, you can structure your estate to avoid probate and ensure that your family’s estate administration process will be as simple and straightforward as possible.
Establishing a medical power of attorney and a living will
If something happens to you, whether you get sick or severely injured, and you can no longer make decisions regarding your medical care and financial affairs, you will need someone you trust to make these decisions for you.
Protecting your business and unique wishes
If you have a business in Texas, it is essential to have a specific plan in place as to what should happen to your business if you die, become sick, or are severely injured. You might also have some unique estate planning needs and goals. For example, a portion of your estate to charity, or you have a request for who should have your pets or animals.
Reduce taxes on your estate.
By putting together a specific estate plan, you should minimize the amount of taxes collected on your estate, which results in your beneficiaries keeping more of the money you set aside for them.
Need help with your estate planning?
If you have assets, it’s important to create an estate plan. If you have questions or need guidance in putting your plan and wishes in place, our attorneys are here to help you protect your assets and ensure that your family is taken care of.
C.E. Borman & Associates is an American Lawyer Top 100 Law Firm.
C.E. Borman & Associates have served the Brazos Valley for over 20 years. Our attorneys and legal staff are committed to straight talk and honest advice.
We provide exceptional value to our clients and often make life-long, remarkable changes that benefit future generations. Contact us if you need a divorce or family law attorney. Call (979) 846-4090.