Dallas Estate Planning Law Blog

Small business owners in Texas and elsewhere around the country have a mountain of details to manage. Whether dealing with day-to-day operations or future goals, it is important to consider the long-term viability of the business. Most owners have likely not given much thought to how their companies should be run after they are gone. However, experts strongly suggest that business owners go through the estate planning process to avoid future complications.

Aretha Franklin recently passed away, and it was noted that she died without a will, leaving family members in a quandary about how to disperse her estate. Countless people, whether celebrities or not, have done this through the years. Unfortunately, when someone dies without a will, a court will determine who gets what according to the state's laws of intestacy. This prospect seems unimaginable to the owners of small businesses.

Aretha Franklin, known as the Queen of Soul, recently passed away at the age of 76. Though her estate was estimated at over $80 million, she reportedly died without a will. Many Texas residents and others all across the country are in the same situation, leaving heirs in uncertainty about their inheritances. Even those with wills in place may find themselves in the process of probate litigation, depending on how an estate plan is established. Experts offer recommendation on how to ensure one's assets are distributed the way they wish.

Like Ms. Franklin, the entertainer Prince also died without a will. Reportedly, none of his $200 million estate has been distributed to date. It is important to communicate how one intends to divide assets in the details of a will. A will can also address guardianship for minor children and designate who the executor for one's estate will be.

Many Texas residents and others around the country have spent a lot of time planning for their retirement years. While some may intend to travel. others might be looking forward to starting a completely different career or devoting time to a hobby. Most people don't like to think about how life might be for them should they become incapacitated and are unable to care for themselves. While not necessarily a welcome topic to discuss, long-term care planning can alleviate many potential concerns in the future.

Financial planners stress the importance of addressing long-term care issues while someone is able to make all the appropriate decisions personally. One key question to consider is the preferred location of the long-term care. While most may hope to remain in their own homes as they grow older, provisions may be made to accommodate that through home health care. Or, if certain conditions are present, a nursing home or assisted-care facility may be warranted. Whichever option is chosen, a long-term care plan will denote how the care will be funded.

Those who receive considerable assets from generous loved ones who passed away are usually appreciative but sometimes don't know what to do with their new-found wealth. Such situations can be overwhelming to beneficiaries, and concerns quickly surface about how much will be owed to the IRS. Residents of Texas and elsewhere may have mixed emotions about an inheritance and the tax burdens associated with it.

Beneficiaries are responsible for taxes on any income they receive in an inheritance. There are different tax rules for annuities, investment accounts, IRAs and real estate. Tax burdens are usually minimal or can be reduced depending on the type of assets. It may be in the beneficiary's best interest to have a plan in place and consult with a professional to discuss taxes before taking control of the inheritance.