A 2020 Gallup Poll revealed that just under half of Americans (46 percent) have a will outlining their wishes for their estate after their passing. Surprisingly, this statistic has remained relatively consistent since 1990. If you are among those who already have a will, you might think your job is done. However, it is crucial to recognize the importance of periodic reviews and updates. 

This becomes particularly critical during significant life events such as marriage, the addition of a new child, or divorce. Seeking guidance from an experienced Denton County estate planning attorney is invaluable in ensuring your estate plan is up-to-date and aligned with your intentions while addressing any potential tax implications.

Review Your Estate Plan After Marriage

Whether it is your first marriage or a subsequent one, tying the knot prompts a necessary review of your estate plan. This moment is opportune for including your new spouse or even stepchildren in your plan. For those who have been through a divorce, this is a crucial juncture to confirm that your former spouse has no unintended entitlement to your estate.

In order for the terms of a will of a deceased person to be fulfilled, the will must have been executed when the writer was of sound mind. However, a person writing a will may have been influenced wrongly by someone who wanted the will to be changed for their own benefit.

Someone who suspects a parent or other loved one was unduly influenced when writing their will may try to challenge the validity of the will in court. Undue influence can be grounds for invalidating a Texas will. 

Undue Influence Means Some Form of Coercion

In an undue influence case, there is someone who has access to or control over a will’s creator, known as the will’s testator. The person exerting undue influence knows that the testator is in a vulnerable position, and they attempt to take advantage of it. There could be the following:

Your choice of an executor for your will is crucial. This person will perform a vital role in administering your estate. Your heirs are relying on the executor to properly execute their duties. You should look for certain qualities in the person who you will trust. A Texas estate planning attorney can help review your situation and advise you on your choice.

Pick Someone Trustworthy

Above all, the person whom you select should be dependable. The executor takes on fiduciary responsibilities to the heirs that they must uphold. The executor may be transacting on behalf of the estate, and they must be trusted to do the right thing. In this context, the “right thing” means both that the executor uses reasonable care, and they put the estate’s interests above their own.

Select Someone with Financial Savvy

The executor may be called on to perform financial transactions on behalf of the estate. They may need to sell estate property or respond to creditor claims. The executor should be someone who is familiar with financial principles. While they do not need to be an expert, they should have some degree of financial literacy. 

You cannot simply move assets out of your name and immediately qualify for Medicaid coverage to pay for your long-term care in Texas. The state will be able to look back for five years to see if you have transferred assets. Thus, you need to establish a Medicaid trust well before the time that you may need long-term care. There is a point where it can be too late to protect your assets from high nursing home costs.

Medicaid Trusts Can Protect Your Family

Families often consider establishing trusts to preserve assets and still be able to receive long-term care. Medicaid has certain income and asset requirements in order to restrict benefits to people with lower incomes. If you do not qualify for Medicaid, you would need to use your own money to pay for nursing home care. With annual costs topping $100,000, your assets may become depleted, keeping you from leaving your money for your loved ones.

You can keep assets and still qualify for Medicaid when you move the assets into a trust, which is managed by a trustee. The fact that the property becomes titled in the name of the trust, and you do not make decisions, is sufficient to ensure that you do not legally own it.

Most of us have experienced situations in which we spend more money than we intended to. Whether we neglected our budget on vacation, overestimated our ability to manage expensive car payments, or let a love for shopping lead to significant credit card bills, overspending is something most people have done at least once in their lives.

If you intend to leave an inheritance to a loved one who tends to overspend, you may be worried about him or her misusing the inheritance funds or spending the funds too quickly. A spendthrift trust is a trust specifically designed for this type of situation.

Basics of Spendthrift Trusts in Texas

Many people assume that the only way to leave an inheritance to a loved one is through a will. Although wills can be useful in a variety of situations, they are also quite limited in their functionality. Trusts offer much greater control over how and when assets are distributed to beneficiaries.