Houston Texas Estate Planning Blog

If you are a Texan unfamiliar with estate planning, you may not be familiar with the term "irrevocable life insurance trust." According to FindLaw, an irrevocable life insurance trust is a life insurance policy managed by a designated trustee who distributes benefits to your heirs after your death according to the terms that you specify when creating the trust. Once you have successfully created an irrevocable trust, you can no longer change it, nor can your trustee or anyone else.

Due to the unchangeable nature of an irrevocable life insurance trust, you must take care with its creation. However, it has advantages over a traditional life insurance policy under certain circumstances, particularly if your beneficiaries also receive government aid or if your estate may be subject to a death tax, also known as an estate tax liability.

Most parents agree that their most valuable asset is their child. However, only 36 percent of parents with children under 18 years old have estate planning documents, such as a will or trust. Estate planning is a significant aspect of managing assets and protecting your children.

Parents can start small by choosing a guardian for your children in case of a tragedy. Selecting the right guardian may seem daunting, but there are three techniques parents should consider easing the process.

When people begin to coordinate their long-term care needs in the form of a will, they are going to need to make many important decisions regarding their wealth, possessions and personal needs. In many cases, they will need to designate an executor in Texas who will have the responsibility of overseeing their requests upon their death. This person should be trustworthy and someone who knows the deceased well. 

According to Forbes.com, an executor maintains several responsibilities that must be carefully fulfilled to guarantee that the deceased's will is followed and his or her wishes are honored. Some of their responsibilities may include the following:

• They should protect all estate assets. 
• They should thoroughly assess and understand all documents related to the estate and trust.
• They should see that all debts are paid off in a timely manner.
• They should make sure that all named beneficiaries get the allotted payouts listed on the deceased's will. 

You are knee-deep in the process of writing a will and planning your estate and things are only getting more confusing. As you prepare to pick apart your future and create a plan for the rest of your life, it is important that you do things the right way. When you are writing a will in Texas, failure to pay attention and follow the rules can negate your will entirely or leave parts of it open to individual interpretation. Your awareness of common mistakes that people make when writing a will can help you to avoid the same missteps as you coordinate your future plan.

According to nasdaq.com, financial advisors report that when mistakes are made, you could be left with consequences that cost a lot of money and time to correct. Additionally, if the outcome is not what you had envisioned, you could be dealing with heartbreaking consequences despite your efforts to have a will in place. As you begin articulating your final wishes, consider these tips along the way: 

• Should you ever come across a clause that you would like to modify and update, make sure you do it right away. Assuming that your wishes will be honored if they are not in writing can be exceptionally risky. 
• Remember that you are signing a contract when you sign your will. If you wish to make changes to the names listed as your beneficiaries, it will need to be approved by a legal professional. 
• All of the details that you wish to be known must be written out in your will. The more concise you are, the less that is left up to individual discretion.