Austin Texas Estate Planning Law Firm
Our estate planning clients usually come to us to eliminate taxes, avoid probate and provide for their family. We routinely help our Austin estate planning clients achieve all of these goals. Most people, when they initially sit down with us, only see estate planning as death planning. But planning for your death is only half of the problem. The other, potentially more critical part, is disability planning. With proper disability planning, if you cannot make your own decisions because of an accident or illness, your bills can be paid, your assets can be managed, and your health care decisions can be made by the people you love and trust the most. Unfortunately, whether you are married or single, faulty and inadequate estate planning often results in a judge stepping in; the family then loses a large measure of a very precious commodity: CONTROL.
At Texas Trust Law, we not only focus on the critical disability and death, we will strive to maximize your control during your lifetime and the control you want your loved ones to have at the time of your death.
Death and Disability Concerns
In addressing both death and disability concerns, we have a toolbox full of proven legal techniques to help your family reach all of your goals. These include Revocable Living Trusts, Wills, Financial and Medical Powers of Attorney, Living Wills Designations of Guardians for minor children and Special Needs Trusts for families with special children. Because probate often comes with a substantial amount of legal, financial and emotional costs, most of our estate planning clients elect to avoid it. We can specifically design your estate plan to achieve this and the other goals that you have. Our clients with estates over $5 million will often need to use additional tools to eliminate or reduce taxes. These may include Life Insurance Trusts, Family Limited Partnerships, Limited Liability Companies, and Charitable Trusts among others.
Whatever legal instruments are implemented, two other very important matters must be attended to:
- Your assets must be coordinated with you estate plan; and,
- Your estate plan must be kept up-to-date with the changes in your family, your finances – and the Law.
Our LifePlanning Legal Services™ program is designed to eliminate all of these concerns and provide what all of our clients seek — the maximum amount of peace of mind possible.
More About Estate Planning Services:
Your Last Will and Testament
Your last will and testament is just one part of a comprehensive estate plan. If a person dies without a Will they are said to have died “intestate” and state laws will determine how and to whom the person’s assets will be distributed. Some things you should know about wills:
- A will has no legal authority until after death. So, a will does not help manage a person’s affairs when they are incapacitated, whether by illness or injury.
- A will does not help an estate avoid probate. A will is the legal document submitted to the probate court, so it is basically an “admission ticket” to probate.
- A will is a good place to nominate the guardians (or back-up parents) of your minor children if they are orphaned. All parents of minor children should document their choice of guardians. If you leave this to chance, you could be setting up a family battle royal, and your children could end up with the wrong guardians.
Trusts come in many “flavors,” they can be simple or complex, and serve a variety of legal, personal, investment or tax planning purposes. At the most basic level, a trust is a legal entity with at least three parties involved: the trust-maker, the trustee (trust manager), and the trust beneficiary. Oftentimes, all three parties are represented by one person or a married couple. In the case of a revocable living trust, for example, a person may create a trust (the trust-maker) and name themselves the current trustees (trust managers) who manage the trust assets for their own benefit (trust beneficiary).
Depending on the situation, there may be many advantages to establishing a trust, including avoiding probate court. In most cases, assets owned in a revocable living trust will pass to the trust beneficiaries (or heirs) immediately upon the death of the trust-maker(s) with no probate required. Certain trusts also may result in tax advantages both for the trust-maker and the beneficiary. Or they may be used to protect property from creditors, or simply to provide for someone else to manage and invest property for the trust-maker(s) and the named beneficiaries. If well drafted, another advantage of trusts is their continuing effectiveness even if the trust-maker dies or becomes incapacitated.
Powers of Attorney
A power of attorney is a legal document giving another person (the attorney-in-fact) the legal right (powers) to do certain things for you. What those powers are depends on the terms of the document. A power of attorney may be very broad or very limited and specific. All powers of attorney terminate upon the death of the maker, and may terminate when the maker (principal) becomes incapacitated (unable to make or communicate decisions). When the intent is to designate a back-up decision-maker in the event of incapacity, then a durable power of attorney should be used. Durable Powers of Attorney should be frequently updated because banks and other financial institutions may hesitate to honor a power of attorney that is more than a year old.
Health Care Documents (or Advance Directives)
An advance directive is a document that specifies the type of medical and personal care you would want should you lose the ability to make and communicate your own decisions. Anyone over the age of 18 may execute an advance directive, and this document is legally binding in Texas. Your advance directive can specify who will make and communicate decisions for you, and it can set out the circumstances under which you would not like your life to be prolonged if, for example, you were in a coma with no reasonable chance of recovery.
A document that goes hand-in-hand with your advance directive is an authorization to your medical providers to allow specified individuals to access your medical information. Without this authorization, your doctor may refuse to communicate with your hand-picked decision maker.