Everyone with assets should have an estate plan. An estate plan is a group of documents that outline how you want your assets managed and distributed after death, and how you want medical and financial decisions made for you should you become incapacitated. We have identified three individuals most in need of an estate plan to protect their loved ones and themselves.
#1: Spouses in Blended Families
Texas inheritance rights of spouses and children in blended families can create challenges for the management and distribution of an estate in the absence of an estate plan. A surviving spouse will need the consent of the deceased spouse’s children to sell or refinance community real estate; consent may even be needed to collect homeowner’s insurance proceeds for repairs after a catastrophic event. Children of the deceased spouse will not be able to sell their parent’s separate real estate without consent from the surviving spouse.
Any positive relationship that existed between unrelated individuals in blended families can quickly sour upon the death of the spouse (parent) that links everyone together. Court intervention may be necessary which can be costly, prolonged, and not always truly in the best interest of all parties.
#2: Parents with Minor Children or with Children Who Have Special Needs
Minor children cannot open probate, cannot open a bank account, and therefore cannot access assets without an adult. Without an estate plan in place, court intervention will be necessary to appoint a qualifying adult to oversee the management and distribution of your assets for the benefit of your children. The same will be true if you have adult children with special needs. Court intervention is costly and is not always in the best interest of your children.
#3: Unmarried Individuals with No Children
Protecting yourself in the event of your temporary or permanent incapacity is the most pressing reason to have an estate plan if you are in this group. Documents that appoint someone to make medical decisions on your behalf and manage your finances reduce the risk of court intervention in the event of your temporary or permanent incapacity. Court intervention can be costly, pro-longed, and is not always in your best interest.
Anyone with assets can benefit from having an estate plan. Meeting with a licensed and experienced Estate Planning Attorney can help guide you in making sure that you and your loved ones are protected.