30 May
When you’re busy living life to the fullest, discussing its end with an estate planning lawyer is likely the last thing on your mind. However, as daunting and overwhelming as thinking about your own mortality can be, wills and estate planning is crucial for ensuring your wishes are considered in the event of your untimely demise or a health challenge.
If you’re getting ready to meet with an estate planning attorney in Dallas or elsewhere in Texas, here are some of the most crucial documents they’ll recommend having:
Last Will and Testament
Also commonly known as a will, a last will and testament is a legal document that outlines how your assets will be distributed upon your death. This important legal document also names an executor to manage your estate and guardians for any minor children.
While thinking about what to include in your will can be tough, an estate planning lawyer can guide you toward producing a comprehensive document that covers all bases. Inclusions can be:
- Executors and trustees
- Guardianship
- Assets and beneficiaries, such as your general estate, bequests, and charitable donations
- Funeral and burial wishes and instructions
- Digital assets
If you die without a will in Texas, your assets are distributed according to state intestate laws. Under Texas intestacy law (Texas Estates Code Chapter 201), what distribution looks like depends on the property you own and your family dynamic.
- Married with children from your current marriage: Your spouse inherits all community property. They also receive one-third of your separate personal property, and your children inherit the rest. Your children inherit all your separate real estate, subject to your spouse’s right to live there for life.
- Married with children from a previous relationship: Your spouse keeps half of your community property, and half goes to your children, as well as a portion of your separate property.
- Married with no children: Your spouse inherits all of your community property, separate personal property, and, potentially, all of your separate real estate, depending on living siblings or parents.
- Single/widowed/divorced with children/descendents: Your estate is divided equally among your children or grandchildren if a child is deceased.
- Single/widowed/divorced without children/descendents: Your assets go to your parents. If one parent is alive, they get 50%, and your siblings or their descendants get the remaining half. If there are no living parents or siblings, the estate is divided between maternal and paternal relatives.
Revocable Living Trust
A revocable living trust is a legal document that lets you put your assets into a trust while you’re still living. You remain in full control of the assets, and you can change, amend, or dissolve the trust at any time.
There are generally three roles within a trust:
1. Grantor: The person who creates the trust, which is you.
2. Trustee: The person who manages the trust, which can be you, to continue managing everything within it normally.
3. Beneficiary: The person or entity who will receive the assets. While you’re alive, you’re the beneficiary.
There are many standout benefits of a revocable living trust, including:
- Avoiding the often-lengthy probate process in which the court supervises your assets’ distribution
- Saving money from your estate if someone contests the asset distribution
- Maintaining privacy, as revocable living trusts are private, but wills are available to the public
- A successor trustee that you’ve appointed can take over and manage your trust assets without court involvement if you become legally incapacitated
Durable Power of Attorney
While there are multiple types of power of attorney in Texas, one of the most commonly discussed with an estate planning lawyer is a durable power of attorney. Also known as an enduring power of attorney, a trusted person can make decisions and act on your behalf. It remains valid even if you become mentally incapacitated due to your age, poor health, or an injury.
In most cases, a durable power of attorney will:
- Pay your bills, including rent or mortgage
- Manage your investments and bank accounts
- Collect due debts
- Buy, maintain, or sell real estate
- Operate or sell your business
Medical Power of Attorney
Like a durable power of attorney, a medical power of attorney is a crucial component of estate planning in Dallas, TX, and other parts of the state for ensuring someone can communicate your medical wishes and make decisions on your behalf. Powers of attorney normally function alongside living wills.
If you want to be sure that your needs and wishes will always be considered when you can’t make decisions for yourself, choose someone you trust to act as your medical power of attorney. This person can consent to treatment, services, maintenance procedures, and other healthcare components relating to both physical and mental health. However, they don’t have unlimited decision-making power.
They can’t make decisions relating to:
- Psychosurgery
- Convulsive treatments
- Abortion
- Inpatient mental health services
- Withholding care that’s primarily intended to provide patient comfort
If you’re exploring your legal options surrounding long-term care planning, discuss the appointment of a medical power of attorney with your trusted estate planning lawyer today.
Living Will
A living will, also called an advance directive, is essentially a set of instructions for your loved ones that leaves no doubt about your preferences. In the event that you’re in the last stages of your life, your family members can refer to your advance directive to understand your preferred treatment options.
If you would prefer to make your own decisions even when you’re no longer physically or mentally able to, your estate planning attorney in Dallas and further afield will likely recommend this legal document.
Start Estate Planning with Livens & Reed Attorneys At Law Today
Whether you want to learn more about the different types of power of attorney in Texas or you’re ready to implement a will, trust, or another legal document, you’re in good hands at Livens & Reed Attorneys At Law. Our experienced estate planning lawyers in Dallas and throughout North Texas are here to advise and represent you during Medicaid planning, estate planning, probate administration, and more.
Ready to learn more? Contact us for a no-obligation consultation today. We’re ready to provide the exceptional client service and responsive communication you deserve.