What is an Estate Plan?

You most likely have an estate, whether you realize it or not. Anything you own is considered an asset and needs to be taken care of if something happens to you.

An estate plan is a way for you to legally and officially declare what your wishes are should you become incapacitated or die.

A basic tool used in estate planning is a Will. A Will is a written document that details whom you would like your assets distributed to when you pass away. If you die without a Will in Texas, you’re considered to have died “intestate”. When your estate is probated, your assets will be distributed according to the Texas intestate succession chart. Your wishes will not be taken into consideration if you die intestate. On the other hand, if you die and have a valid Will in place, your estate will still need to be probated, but your assets will be distributed according to your instructions, not the Texas intestate succession chart.

A Will is not the only tool, however, that we use in estate planning. Consider for a moment who would take care of things should you become incapacitated. Your bills would still need to be paid, someone would have to make medical decisions for you, and someone would need to take care of your children, for example. A well drafted estate plan anticipates potential circumstances such as these and includes documents detailing your wishes should the unthinkable occur.

Estate planning can also be used to help your loved ones avoid the probate process after your passing. Probate is the name for the process of going through the court system to wrap up and distribute the assets in your estate. Probate is a matter of public record, can take several months or longer to finalize, and hiring a probate attorney has a cost associated with it, to be paid after your death. There are several estate planning tools, including Trusts and Transfer on Death Deeds, that may be used to distribute your assets to whom you desire without going through the probate process.

Every individual’s situation is unique, especially when it comes to estate planning. In most cases, an estate plan would be beneficial to its creator and their beneficiaries. Speaking with an attorney to determine the best estate plan for your needs is an important step in securing your future.