An estate plan is a tool that is used for a person's eventual death. An estate is considered anything of value that an individual has ownership of. Estate planning assists with the distribution of assets and other personal valuables to surviving Texas family members.
The most common items in an estate include life insurance and retirement accounts. The estate plan maps out where these assets will be distributed to when a person is deceased. One of the major components of estate planning is creating a well-organized will that stipulates a person's intentions. A will is usually thought of as a document that is not needed until someone reaches an older age, but that is not necessarily true and there is no particular age requirement for someone to draft up a will.
Other components of estate planning include trust funds and even creating living wills in case a person should become medically or mentally incapacitated. Estate plans are usually needed by those who are wealthy, but anyone with assets can benefit by having an estate plan. Surviving family members may end up in probate litigation for the court to decide who gets what if an estate plan is not put in place. This can create a very long and exhausting process for loved ones to go through.
Estate planning is an important component of carrying out a person's wishes when they become deceased. It can also alleviate the task of family members quarreling with each other on what they believe they are entitled to. Without an estate plan, the courts will distribute the assets based on state laws. Some individuals fall into the trap of waiting and fail to create an estate plan. When the distribution of assets turns into an intense battlefield, the Texas court system may need to get involved to resolve any disputes.
Source: wtxl.com, Estate Plans: What Are They And Who Needs One?, No author, Nov. 8, 2013