Ford + Bergner LLPFord + Bergner LLP2024-03-07T17:31:25Zhttps://www.fordbergner.com/feed/atom/WordPress/wp-content/uploads/sites/1400261/2020/07/cropped-fab-32x32.jpgOn Behalf of Ford + Bergner LLPhttps://www.fordbergner.com/?p=497962024-03-07T17:31:25Z2024-03-07T17:31:25ZOutline the responsibilities
Explain the role of an executor in detail to help them know what to expect. Some tasks they may be responsible for include:
Gathering assets
Identifying and locating beneficiaries
Settling debts and taxes
Initiating the process of probate
Distributing your assets as directed in your will or trust is also a critical aspect of estate administration.
Encourage them to be organized
New executors often fail to anticipate the many detailed tasks involved in managing an estate, but thoughtful organization can help substantially. Some tips to suggest that may facilitate efficiency include the following:
Using a dedicated workspace
Creating an easy-to-follow filing system
Storing copies of documents securely online for fast access
Labeling files and folders (physical and digital) clearly and consistently
Attention to organization saves time and prevents stress, allowing executors to complete their duties efficiently.
Invite questions
Your estate executor may have questions or even concerns about the role of an executor. Urge them to voice their concerns and pose questions about anything they do not understand. Consider recommending authoritative resources to help them learn more about estate administration and probate in Texas.
Finally, reassure your executor that they need not shoulder the burden alone. Let them know it is okay and sometimes necessary to seek legal guidance for complex estate and financial matters.]]>On Behalf of Ford + Bergner LLPhttps://www.fordbergner.com/?p=497932024-02-20T21:18:19Z2024-02-20T21:18:19ZFrom the moment we are born, we look to our parents for guidance. Throughout our childhood, they taught us how to walk, talk, eat and everything else we needed to learn to be independent one day.
That is why it is so hard to accept that there may come a time when they can no longer make sound decisions. And while you don’t want to limit their independence too early, you also don’t want to wait until it’s too late.
The signs your parent may need a guardian
A guardian is an individual or entity appointed by the court to make decisions on behalf of another person when they can no longer make decisions for themselves. This arrangement is typically put in place when an individual is deemed incapacitated due to a cognitive decline or other health issue.There are usually signs that your elderly parent may need support in managing their affairs, such as:
Memory loss
Confusion
Unpaid bills
Unusual spending patterns
Living in unsafe conditions
Forgetting to take medications
Neglecting personal hygiene
The elderly are often at risk of exploitation by unscrupulous individuals. These people take advantage of an older person’s vulnerability to rob them of their assets and dignity.Before gaining guardianship, having an open and honest conversation with your parents about their needs and wishes is crucial. It is often a difficult and uncomfortable discussion, but it will help guide the decision-making process.Guardianship is basically taking away someone’s rights, so it is usually only considered a last resort. There may be less restrictive alternatives, such as establishing powers of attorney or creating trusts.You will want to discuss your situation with someone who can guide you through the requirements of seeking guardianship. They can help you navigate the complex process and ensure your parent’s best interests are upheld.
]]>On Behalf of Ford + Bergner LLPhttps://www.fordbergner.com/?p=497912024-02-15T02:09:28Z2024-02-15T02:09:28ZAsset protection
One of the primary benefits of an irrevocable trust is its ability to protect assets. Once assets are placed into the trust, they are generally considered to no longer belong to the grantor but to the trust itself. This separation can protect the assets from creditors and legal judgments against the grantor.
It's also beneficial for safeguarding assets for future generations. Terms of a trust can ensure that the assets are used according to the grantor's wishes rather than being subject to the potential beneficiaries' creditors or poor financial decisions.
Tax advantages
Irrevocable trusts can offer significant tax benefits. For instance, by transferring assets out of the grantor's estate, the trust can reduce the estate's size, potentially lowering estate taxes upon a grantor's death.
Certain irrevocable trusts are designed to provide income to the grantor or another beneficiary while they’re alive. Then, the remaining assets pass to other beneficiaries upon the grantor's death. This may avoid or minimize estate and gift taxes.
Privacy
Since the assets transferred into an irrevocable trust aren’t part of the grantor's estate at the time of death, they aren’t subject to the probate process. Probate is a public process that can reveal the extent and beneficiaries of an estate. An irrevocable trust keeps the distribution of assets private, which can be an essential consideration for many families.
Remember, an irrevocable trust is only one component of a comprehensive estate plan. Taking the time to set everything up in a manner that makes it possible for a creator’s wishes to be followed broadly will likely require the assistance of a legal representative.]]>On Behalf of Ford + Bergner LLPhttps://www.fordbergner.com/?p=497892024-02-06T16:21:12Z2024-02-06T16:21:12Zopting to bypass probate, your heirs can gain immediate access to the full spectrum of assets you left behind.
Property in a living trust
A living trust is an invaluable tool that can allow you to transfer ownership of your assets into a trust during your lifetime for the benefit of the trust’s eventual beneficiary. This legal arrangement not only helps in avoiding probate but can also provide flexibility and control over the distribution of your assets. Assets held in a living trust can be allocated to beneficiaries without the need for probate, potentially ensuring a more expedited transfer process. Moreover, unlike probate proceedings, which are public, a living trust offers a level of privacy as it operates outside the court system.
Life insurance proceeds with named beneficiaries
Life insurance is another powerful financial tool when it comes to estate planning. The key to ensuring life insurance proceeds avoid probate lies in designating specific beneficiaries. Selecting beneficiaries can ensure that the life insurance proceeds directly go to the named individuals, bypassing probate proceedings.
Retirement accounts with named beneficiaries
Retirement accounts, such as IRAs and 401(k)s, are integral parts of many Texans’ financial portfolios. Naming beneficiaries is crucial to help prevent these assets from going through probate. By designating beneficiaries, you facilitate the seamless transfer of retirement account funds directly to the intended recipients. Proper beneficiary designation can also have tax benefits that allow heirs to stretch distributions over their lifetimes.
Understanding the nuances of probate and exceptions to the process is vital for effective estate planning. By leveraging living trusts and naming beneficiaries for life insurance and retirement accounts, you can better ensure that your assets pass smoothly to your loved ones without the delays and complexities of probate.]]>On Behalf of Ford + Bergner LLPhttps://www.fordbergner.com/?p=497862024-01-23T15:01:41Z2024-01-23T15:01:41Zthinking of contesting a will, it’s crucial to have evidence to back up your claims. Simply having suspicions, a hunch or a sense of unfairness may not suffice. Exploring instances where beneficiaries have valid reasons to contest a will can help you choose the best course of action for your situation.
Lack of testamentary capacity
One common reason that beneficiaries contest a will is the alleged lack of testamentary capacity on the part of the testator. Testamentary capacity refers to the mental competence of an individual to understand the consequences of making a will. Beneficiaries may argue that the testator was not of sound mind at the time of creating the will, thereby questioning the validity of its contents.
Undue influence
Undue influence occurs when an individual exerts pressure on a testator, compelling them to make decisions against their own wishes. In cases where beneficiaries suspect undue influence, contesting the will can become a plausible course of action. Successfully proving undue influence demands substantial evidence. Beneficiaries must demonstrate that the influencer had a significant impact on the testator’s decisions, consequently overpowering their free will.
Fraudulent activities
Instances of fraudulent activities can also be grounds for contesting a will. Beneficiaries may assert that a will was tampered with or that a testator’s signature was forged, leaving the document’s authenticity in question. Contesting a will due to fraud necessitates thorough investigation and presentation of concrete evidence. Forensic analysis of signatures and expert testimonies may be pivotal in establishing the fraudulent nature of the will.
If you’re a beneficiary with solid reasons to contest a will, you should know that there isn’t a one-fits-all legal solution and that each situation requires a personalized approach. Therefore, you should engage a legal team that can help you choose the best course of action for your unique circumstances.]]>On Behalf of Ford + Bergner LLPhttps://www.fordbergner.com/?p=497832024-01-10T22:10:27Z2024-01-10T22:10:27ZWhen a parent passes away, one of the jobs for the estate executor is to make an inventory of their assets. The executor may be an adult child or a third party. They’ve been named in the estate plan as the person who is supposed to inventory assets and help distribute them to the appropriate parties.
But say that the estate executor goes into the parent’s old home, sees items that they would like for themselves, and removes those items from the house. Are they allowed to do this? They are in charge of the probate process, but how much freedom does that give them?
The executor must respect the estate plan
As a general rule, estate executors and other beneficiaries are prohibited from removing items from the house or the estate. Even if these are just small items, like family heirlooms, everything is supposed to stay together while it is inventoried, as the will and the estate planning documents are considered. Only after the proper steps have been taken will those assets be given to the correct people.Removing items in advance can cause numerous problems. Say that the estate executor takes items out of the house, but those items are assigned to a different beneficiary in the estate plan. This could lead to a major dispute or allegations that the executor has abused their power. Additionally, there may be certain financial obligations – such as paying off outstanding debts – that have to be met before assets can be distributed to beneficiaries.The process of dividing an estate takes many different steps, and it can be complicated. Those involved need to understand what legal options they have.
]]>On Behalf of Ford + Bergner LLPhttps://www.fordbergner.com/?p=497812023-12-28T04:22:25Z2023-12-28T04:22:25ZRevisit and revise your will
Has your life changed significantly since your last update? Perhaps a new family member arrived or some assets changed hands. A checkup with your estate planning professional can ensure your will reflects your current wishes and circumstances.
Appoint guardians for your children
Designating guardians for your kids or incapacitated adult family members in your estate plan is an act of love and responsibility. Choose individuals you trust implicitly, who share your values and can give your children a nurturing and stable environment.
Have the difficult conversations
Estate planning often necessitates uncomfortable conversations about death and illness. Do not shy away from discussing your medical and end-of-life concerns with loved ones. Open communication can help ensure that your wishes are respected when the time comes.
Find out how the law can help you
The laws that govern wills and other estate documents in Texas can change rapidly and without much notice. However, many new laws take effect at the start of a new year. Your estate planning representative can help you understand any recent changes to state law.
Navigating the intricacies of estate planning can be overwhelming. Addressing them early in the new year helps ensure that your plan is current as we start a new year.]]>On Behalf of Ford + Bergner LLPhttps://www.fordbergner.com/?p=497792023-12-14T03:37:51Z2023-12-14T03:37:51ZTexas conservatorship is only for children
The laws about parental responsibility and third-party oversight for adults differ from state to state. In many states, guardianship refers to control over a person and responsibility for their daily life. Conservatorship, on the other hand, involves a different adult taking responsibility for the management of someone's financial resources and obligations.
Texas does sometimes grant conservatorship in scenarios involving children. However, adult conservatorships are not an option in Texas. Those seeking to protect a vulnerable adult's resources will instead need to pursue guardianship. Guardianship of someone's estate is essentially the equivalent of conservatorship in other states. The courts can grant someone the authority needed to manage their finances.
When someone has proven that they cannot pay their bills and otherwise manage their resources and responsibilities, they may require the support of another concerned individual to protect them from indigence. Someone with guardianship responsibilities in Texas can help preserve someone's resources to ensure that they have financial assets to improve their quality of life for as long as possible.
Generally, those seeking guardianship in Texas need evidence that someone cannot manage their own affairs. Understanding the rules that apply in cases involving incapacitated adults may benefit those concerned about someone with a debilitating condition.]]>On Behalf of Ford + Bergner LLPhttps://www.fordbergner.com/?p=497762023-12-13T21:31:22Z2023-12-13T21:31:22ZWhether you’re considering someone’s request that you be the executor (also known as “personal representative”) of their estate when the time comes or you’re preparing to begin that role after a death, it’s important to understand what Texas law says about compensation.
Many executors don’t even realize that they have a legal right to compensation. However, administering an estate is a job – sometimes a long and difficult one. Even those who don’t leave behind a vast estate may leave a lot of problems that have to be addressed before it can be settled.
Why should you consider not taking compensation?
Executor compensation is paid from the estate (and not any one person’s inheritance) before any assets are distributed to beneficiaries. If you’re a beneficiary of the estate, it may be worthwhile to determine whether it’s better for you financially not to take the compensation and have a slightly larger inheritance or if you’ll get more if you take the compensation. This can require some calculations. Note that inheritances aren’t taxable as income, while executor compensation is. Don’t let family members or others dissuade you from taking compensation you have a right to be paid for your work. After all, you may have to take time off work, travel and more to settle the estate.
How much do Texas estate executors get paid?
Under Texas law, executor compensation “may not exceed, in the aggregate, more than five percent of the gross fair market value of the estate subject to administration.” That’s true whether the decedent addressed it in their estate plan or not. If there was no will and you were appointed by the probate court to administer the estate, the law still applies.If you encounter unexpected or significant challenges as you administer the estate, you have the right to ask the probate court for additional compensation. However, be prepared to present a solid case for why that’s warranted. Also, be sure to keep records of any expenses you had to pay out-of-pocket so you can seek reimbursement.As an executor of an estate, you may need to seek professional guidance for help in real estate, tax, financial and other matters. Of course, it’s always wise to have legal guidance to help avoid costly and time-consuming errors.]]>On Behalf of Ford + Bergner LLPhttps://www.fordbergner.com/?p=497652023-11-30T06:04:44Z2023-11-30T06:04:44ZWhat does the state require?
Anyone drafting and signing a will needs to have witnesses present. Those witnesses can attest to the identity of the person signing the documents and their mental state at that time. In Texas, witnesses only need to be 14 years of age and of sound mind.
They will also need to physically sign the will to affirm that the testator was aware of what actions they took and what impact their choices would have on their beneficiaries in the future. At least two witnesses are necessary to create valid documents. They should ideally not be listed among the beneficiaries of the estate to protect against conflicts of interest. The one exception to this rule involves a scenario in which someone fully hand-writes their will in compliance with Texas state law.
Ultimately, ensuring that one has met the witness requirements is important for those drafting testamentary documents in Texas.]]>