There are a lot of misconceptions about estate planning, and the fact that it is not the most pleasant topic does not help. When you have a better handle on the importance and impact of estate planning, however, you are better prepared to secure your legacy for your loved ones, which comes with considerable peace of mind. The more you understand the benefits of estate planning, the less daunting it becomes. Dispelling common myths is a good place to start.
Another essential first step is consulting with an experienced Killeen estate planning attorney. Contact us today to get the guidance you need.
Myth 1: Estate Planning Only Applies to the Wealthy
Although the term "estate" may bring to mind mansions and sprawling properties, legally, your estate includes all your assets at the time of your death. Regardless of whether your estate is modest or substantial, you likely want it to pass to your loved ones according to your wishes—and with minimal complications. That is the purpose of estate planning.
Leaving the Matter to Chance Is Risky
If you do not have an estate plan, your estate will be subject to Texas laws of intestacy, meaning the state decides how your assets are distributed. This process, called dying intestate, can be time-consuming, costly, and may not reflect your actual wishes.
Make Your Wishes Known to Avoid Disputes
Without a clear estate plan, confusion and conflict among loved ones can arise. Even smaller estates are not immune to legal disputes, which can quickly become expensive and emotionally draining. If you have questions about creating a will or trust, speak with a Killeen estate planning lawyer today.
Myth 2: I Can Wait Until I Reach Middle Age
Many people think estate planning can wait until they are older, but this overlooks life’s unpredictability. If you have minor children or dependents, putting off estate planning puts them at risk.
Protecting Your Children
Estate planning allows you to designate a guardian for your children in case you and your co-parent pass away. While minors can inherit assets, they cannot manage them until they turn 18. Without a will, the state may appoint a guardian to manage their inheritance.
Update Your Plan as Life Changes
Estate planning is not a one-time task. As your life circumstances change, your plan should evolve. Periodic updates to your will help ensure your plan still reflects your wishes. An experienced estate planning attorney can help keep your documents current and effective. Schedule a FREE consultation today.
Myth 3: I Am Married, so I Don’t Need an Estate Plan
Many married individuals assume their estate will automatically go to their spouse, but Texas law may dictate otherwise if you die without a will.
Texas Is a Community Property State
Texas law divides property into community and separate property. Community property is shared equally between spouses. If you have children, your half may not automatically go to your spouse, especially if you have children from a prior relationship.
Separate Property Distribution
Separate property, such as assets owned before marriage, is not divided the same way. Your spouse may only receive part of these assets, with the rest going to children, parents, or siblings. Estate planning ensures that your spouse and heirs receive what you intend.
Life Interest in the Homestead
Even if the home is your separate property, your spouse may be entitled to live in it for life. Still, the distribution of your remaining assets can be complex without a will. If you want control over who inherits what, it is time to consult with a Killeen estate planning attorney.
Myth 4: I Have a Will, so My Estate Will Skip Probate
Having a will does not mean your estate will avoid probate. Probate is the legal process of validating your will and settling your affairs before distributing assets.
What Happens in Probate
During probate, all of the following steps are taken:
Debts and final taxes are paid
Your will is validated in court
Assets are distributed
While some assets like trusts, life insurance, and retirement accounts may bypass probate, a will alone does not exempt your estate. Without a will, however, assets not covered by beneficiary designations will be subject to intestacy laws.
Myth 5: I Have a Will, so I’m All Set
A will is an essential document, but it is just one piece of the estate planning puzzle. Wills are also subject to probate and may not address every need.
Requirements for a Valid Will in Texas
To be valid, your will must meet the following requirements:
Be created when you are at least 18 and of sound mind
Reflect your intent to distribute your assets
Be in writing (typed or handwritten)
Be signed by you and two credible witnesses
Be notarized for added legal weight
For comprehensive coverage of your assets and wishes, additional tools like trusts, powers of attorney, and advance directives may be necessary. A skilled estate planning attorney can help you get these legal tools in order.
Myth 6: Estate Planning Is Not Worth the Hassle
Estate planning might feel overwhelming, but the benefits of estate planning far outweigh the effort. The peace of mind it provides is invaluable.
The Process Is Simpler Than You Think
With the right guidance, estate planning is a straightforward process. Your attorney will help you gather documentation, draft key documents, and make decisions that protect your family. Once your plan is in place, it only needs occasional updates.
Work with a Killeen estate planning lawyer to get started and avoid unnecessary stress in the future.
Myth 7: Estate Planning Only Involves Distributing Assets
Distributing your assets is a major part of estate planning, but it is not the only one. Planning also involves appointing trusted individuals to make financial and medical decisions if you become incapacitated.
Assign Powers of Attorney
Through powers of attorney, you can name someone you trust to make decisions on your behalf. These documents can be tailored to cover specific financial responsibilities or medical needs. Without them, your family may have to go to court to obtain decision-making authority.
A Killeen Estate Planning Lawyer Can Help You Take the First Step
Brett Pritchard at the Law Office of Brett H. Pritchard is a seasoned Killeen estate planning attorney who is ready to guide you through the process. Contact us online or call us at (254) 781-4222 to schedule your FREE consultation today.