Wills & Trusts
Will
A will is a legal document that leaves a set of instructions for who you want to receive your property at the time of your death. It also appoints an executor, which is the person responsible for carrying out the instructions in the will.
A will is an essential part of any estate plan and, in the state of Texas, it must be probated in a court of law within four (4) years of the date of death of the testator*. Once a will is probated, it becomes part of the public record.
If you die without leaving a will, the Texas Laws of Descent and Distribution found in the Texas Estates Code will determine who receives your property upon your passing. In other words, it will determine who your heirs are in the absence of a will. The Texas Laws of Descent and Distribution may not align with your wishes. This may be especially true if:
- You are married, but you and your spouse do not share all of the same children
- You are married, but are estranged from your spouse
- You are married and do not have any children
- You are single and do not have any children
- You do not wish to leave an inheritance to your next of kin
- You want to make charitable contributions upon your passing
A will gives you control over your estate so that the assets in your estate pass according to your specific wishes.
A will is essential, particularly if you have minor children, as it provides the method for you to designate a guardian to care for them in the event of your passing.
*The person leaving the will is called a testator.
Trusts
A trust is a legal entity set up to control your assets. The creator of the trust is called the Grantor. The person who administers the terms of the trust is called the Trustee. The person who receives property under the trust is called a Beneficiary.
Unlike a will, a trust can be used to control your assets while you are alive. Upon your passing, the terms of your trust can continue to be administered without court intervention (probate). Thus, trusts can help create a smoother and more efficient transfer of property upon the death of the grantor.
In addition, because a trust does not go through probate, it generally remains private.
There are many different types of trusts, used for different purposes each with its own additional advantages and disadvantages. A trust may be advisable if:
- You have minor children
- You own real estate including a homestead
- You wish to keep the assets and value of your estate private
- You wish to provide creditor protected gifts to your children and/or other beneficiaries
To determine whether a will or trust is right for you and your estate, it is best to speak with an experienced Estate Planning Attorney. To schedule an Estate Planning consultation with Attorney Steven K. Schwartz II, give us a call or fill out the contact form below.