For Texans, hard work and family go hand in hand. Residents of the Lone Star State understand and take seriously the need to build a career and care for their loved ones. Part of that is ensuring they are protected in the future.
Still, thinking about creating an estate plan often takes a backseat to what they perceive are more pressing issues. This can lead to a failure to plan effectively and cause problems if the unexpected happens. To be prepared, it is important to craft an estate plan.
The ramifications of dying intestate can have a negative impact on loved ones
Having a basic estate planning document like a will is imperative since dying without one has negative consequences the person might not anticipate. The law is clear as to what happens to a person’s property if they die without a will. The circumstances are key as to how property will be distributed.
If the person did not have a spouse, the property left behind will go to other relatives like children, parents and siblings. If, for example, they did not have children, had one surviving parent and siblings, their estate would be split among them with one portion going to the parent and the other to the siblings.
When the person leaves behind a spouse and children, that spouse will get one-third of the separate property while the children will get two-thirds. In addition, the spouse will get one-third of any land owned as part of a life estate.
The other two-thirds also go to the children. Community property will generally be awarded to the surviving spouse except in cases where the decedent had a child with someone other than the surviving spouse.
It is wise to think about the benefits of creating a will
Not having an estate plan can complicate matters for those who had accrued significant assets. If a business was built, they purchased property, had retirement accounts, owned collectibles, automobiles and more, this can lead to rampant dispute among loved ones.
Even those who do not think they have enough property to make it necessary to have a will or other estate planning strategy might find, upon deeper analysis, that they do have extensive holdings that should be addressed in an estate plan. Without a will, the property might not go where the person wants it to go. Having help with understanding the basics is key and can be beneficial to everyone involved.