Estate Planning
Estate Planning
Estate planning is a strategy for addressing the possible incapacity of an individual, and transferring property to loved ones with a minimum of expense after death. Planning your estate may involve making gifts, buying insurance, and creating a will, living trust, health care directives, durable power of attorney for finances, or other documents. A good estate plan will allow you to eliminate uncertainties over the administration of a probate and maximize the value of the estate by reducing taxes and other expenses.
Jack Whitworth has extensive experience in counseling clients regarding their estate planning needs. He strives to create and maintain long-term professional relationships with clients based on mutual respect and trust.
Wills
Wills
A Will is used to spell out how a person wants his or her assets divided at the time of death. It should be drafted as a part of an overall estate plan for the person or couple considering the Will. A Will can be designed to be as simple or as complex as you desire in order to include tax planning and/or trusts for minor or disabled children.
Jack Whitworth will meet with you for an initial consult to help you determine the options most appropriate for you. He’s available for evening and weekend appointments. Contact him today to schedule and appointment.
Trusts
Trusts
Revocable Living Trusts are widely used in some states as an alternative to a traditional Will in order to avoid probate. However the probate process in Texas is less costly and cumbersome than in some states and the use of trusts in Texas is not nearly as prevalent as in some states.
A Living Trust is useful in Texas when the person owns real estate in another state. The out of state real estate can be transferred into the Trust and distributed according to Texas law at death, rather than requiring the need for a formal probate proceeding in that other state at the time of death.
Testamentary Trusts are often used to provide for the management of assets for minors in the event they are entitled to receive property under a Will.
Power of Attorney
Power of Attorney
A medical power of attorney is a document that appoints someone to make medical decisions on your behalf should you become too ill to make decisions for yourself. A directive to physicians is a document that describes your wishes regarding resuscitation, life support machines and other end of life measures. A HIPAA authorization assures your designated agent has full access to your medical records and may discuss your condition with your doctors.
Appointing powers of attorney in advance will allow you to clearly state your preferences in naming the person or persons who you want to have responsibility over your affairs if you become physically or mentally incapacitated. The greatest benefit of these documents is that it may prevent a guardianship in the event of your incapacity. These documents are applicable only when someone is still alive, but typically have significance when they are incapable of making rational decisions for themselves. In most cases, people designate a spouse and/or trusted family member or friend to make these decisions.
A financial power of attorney allows you to appoint a particular person to manage your financial matters. The person you choose will have your authorization to manage your assets and pay any necessary debts. Adults may also make guardianship designations for themselves in the event they later suffer incapacity and require a guardian.
Probate
Probate
Probate is the legal process whereby the court appoints an individual to administer the estate of a decedent by resolving all claims against the estate and transferring the decedent’s property under a valid Will. This process is required whether the decedent had a Will or died intestate (without a valid Will). A valid Will allows assets to be distributed as per the wishes of the decedent. If the decedent died without a Will, known as intestacy, the estate will be distributed according to Texas law. Though the process of Probate in Texas is a relatively economical and efficient process in Texas when supervised by an experienced attorney, there are occasions when alternatives to probate are appropriate
Alternatives to Probate
Alternatives to Probate
Small Estate Affidavits – Under Texas statute, where an estate is valued at less than $50,000 exclusive of a homestead and exempt property, an interested party may, thirty (30) days after the death of the decedent, file an affidavit with the clerk of the court having jurisdiction and venue over the estate. After the affidavit has been approved by the court without a hearing, the affidavit may be used to collect debts owed to the decedent.
Other non-probate transfers include:
• Life Insurance
• Retirement Plans (IRAs, pensions)
• Joint Tenant/Survivorship Accounts
• Payable on Death Accounts
Guardianships
Guardianships
Guardianship is a legal relationship designed to protect vulnerable persons from abuse, neglect (including self-neglect), and exploitation. Typically, guardianships are sought for the care of an elderly parent or a loved one with special needs. After the court declares a person legally incapacitated a Guardian is appointed to make some or all of the necessary decisions for the incapacitated person. A Guardian of the Person is appointed by the court to care for the physical well-being of the incapacitated person while a Guardian of the Estate is appointed to manage financial affairs. A guardian may be appointed to care for the person and the estate or one guardian may be assigned for the person while another assumes responsibility for the estate. If your elderly parents or a loved one with special needs seem to be unable to make decisions, handle money appropriately or otherwise care for themselves, it may be time to seek a guardianship.
Business
Business & Contracts
• Counseling regarding choice of business entity
• Corporations
• Limited Liability Companies
• Partnership Agreements
• Contract Drafting and Review