Estate Planning is an area of law where an attorney assists an individual in preparing legal documents and offers advice to ensure that the individual's property, assets, and estate are distributed according to their wishes upon death or incapacitation. This involves considering tax implications, drafting wills, establishing trusts, arranging insurance, making gifts, and preparing other legal instruments like Wills and Powers of Attorney.
A Will is a fundamental and crucial document for an individual or family. It dictates the distribution of one's estate, including homes, vehicles, and other significant assets. Without a Will, an individual’s estate is allocated according to Texas law, which may lead to undesired inheritance outcomes, such as unintended property distribution to children from a previous marriage. A Will becomes effective immediately after the individual's death, at which point any existing Powers of Attorney become invalid. Caution is advised when using a generic online Will, as these do not cater to Texas-specific laws and pose various issues which often lead to unexpected costs and delays.
Durable Power of Attorney
A Durable Power of Attorney grants another person the ability to act on your behalf in handling your everyday affairs such as paying bills.
Living Wills or Directive to Physicians
A "Living Will," also known as a Directive to Physicians and Family or Surrogates, is a legal document that allows you to communicate to your doctor and loved ones your preferences regarding life-sustaining treatment, should you become unable to express your wishes. This document comes into effect once your physician determines that you have a terminal or irreversible condition.
Medical Power of Attorney
A Medical Power of Attorney enables you to appoint someone you trust (an "agent”) to make medical care decisions for you should you become unable to make these decisions for yourself. Your agent is able to make a broad range of medical care decisions for you, including agreeing to or refusing medical care, deciding to stop medical care and deciding to stop or not start life-sustaining treatment. A seperate type of Medical Power of Attorney now exists to deal with mental health matters specifically, as these can present challenges distinct from those contemplated by the traditional powers of attorney.
Do-Not-Resuscitate (DNR)(Inpatient)
Your consent to a DNR order enables you to refuse certain life sustaining treatments while in a hospital inpatient setting.
Out-of-Hospital Do-Not-Resuscitate (DNR)
An Out-of-Hospital DNR order enables you to refuse certain life-sustaining treatments outside of a hospital.
Declaration of Guardianship
A legal document used to designate an individual to manage your estate and personal care in the event you are unable to express your wishes, such as in the case of a stroke or automobile accident. This is applicable if you require admission to a rehabilitation facility and need someone to authorize placement and treatments on your behalf.
Transfer on Death Deed
For someone whose primary asset is their home, a Transfer on Death Deed could be the most efficient method to transfer property between spouses, partners, or to children. This new mechanism, established by the Texas Legislature, facilitates the transfer of a home in a manner akin to a joint bank account to a surviving individual, potentially circumventing the probate process.
Trust
A legal entity created for the purpose of handling assets of an estate during a lifetime or after the death of a person. The primary purpose is to protect assets, such as for a child with special needs or disabled parent. A trust may not replace the need for a Will which is meant for a whole estate. In our experience, Trusts are the most misunderstood of all of the Estate Planning tools that can be used. It's important to realize that without excellent planning, Trusts can present the following risks:
- May not reduce tax liabilities beyond what traditional methods provide;
- May not avoid probate, as it's usually the case that some assets are "forgotten about" until after a person passes;
- For smaller estates, Trusts can be the most expensive Estate Planning option available;
- May not protect assets from creditors;
- Cannot prevent contests by disgruntled heirs or other family members;
- May not avoid the need for Guardianship in the event of later mental incapacity;
- Corporate/bank Trustees may be far more difficult and expensive to deal with than the Probate Courts.
Probate
Probate involves the legal process of transferring a deceased person's estate through Probate Court. This process includes assessing whether probate is necessary. With proper planning, an individual may avoid or minimize the extent of probate. Such planning can involve designating beneficiaries for financial accounts, adding co-signers, and naming life insurance beneficiaries.
Military Veterans
Veterans and their spouses are eligible for specific benefits in recognition of their service to our nation. Upon their passing, it is important to notify the funeral home to facilitate contact and burial arrangements. They may also qualify for interment at the DFW National Cemetery. For these arrangements, or for further assistance, one should reach out to the cemetery directly or contact the Veterans Administration.
