Doehring & Doehring Attorneys at Law Houston Estate Planning Lawyer | Doehring & Doehring2024-03-18T20:08:17Zhttps://www.doehringlaw.com/feed/atom/WordPress/wp-content/uploads/sites/1201825/2020/08/cropped-site-icon-min-32x32.pngOn Behalf of Doehring & Doehring Attorneys at Lawhttps://www.doehringlaw.com/?p=527762024-03-15T20:09:19Z2024-03-18T20:08:17ZMyth 1: Probate is unavoidable
Many believe that probate is something individuals cannot escape. However, not all estates go through probate. Assets held in joint ownership, living trusts or those with designated beneficiaries typically skip the probate process altogether.
Myth 2: Probate is quick
Some think probate is a speedy affair. In reality, probate can take quite a bit of time, sometimes stretching over several months or years. Factors like the estate's complexity, creditor claims and disagreements among beneficiaries can make the process longer.
Myth 3: Probate is expensive
There is a misconception that probate costs a lot. While it does involve fees like court costs and executor compensation, the expenses can vary depending on the estate's size and complexity. Often, the benefits of probate in terms of asset distribution and legal clarity outweigh the costs.
Myth 4: Probate is totally public
Some worry that probate exposes an individual's personal matters to the public eye. While probate proceedings are public record, not all information is out for everyone to see.
Certain documents, like wills and inventories, are often accessible. Other information, such as specific asset values, usually remains private.
Myth 5: Probate is trouble-free
Many believe probate proceedings always go smoothly. However, conflicts can happen among heirs, beneficiaries or creditors, leading to tense probate proceedings. Disputes over asset distribution or will validity can complicate matters.
Dealing with these issues may be even more frustrating when a person feels rushed during probate administration. Throughout this hectic time, individuals should focus on speaking up for themselves and asking for clarification on anything they do not understand.]]>On Behalf of Doehring & Doehring Attorneys at Lawhttps://www.doehringlaw.com/?p=527752024-03-14T18:59:17Z2024-03-15T18:58:43ZLack of testamentary capacity
One way someone could invalidate your estate plan in Texas is by arguing that you lacked testamentary capacity when you created the plan. Testamentary capacity refers to your mental ability to understand the nature and extent of your property, the natural objects of your bounty (such as your family members) and the distribution you are making through your estate plan.
Undue influence
Another challenge to your estate plan could arise if someone claims that another person unduly influenced you when you created the plan. This could occur if someone exerted pressure on you to change your estate plan to benefit them unfairly. To invalidate your plan on this basis, the challenger would need to provide evidence that the influencer had a significant impact on your decisions regarding your estate.
Fraud or forgery
Your estate plan could face invalidation if someone proves that you or another person created it under fraudulent circumstances or it contains forged signatures. For example, if someone altered the terms of your will without your knowledge or forged your signature on important documents, a court could deem your estate plan invalid.
Failure to comply with legal formalities
In Texas, estate planning documents must follow specific legal formalities to be valid. For instance, the testator (the person making the will) must sign a will, and at least two credible witnesses must witness the signing. If your estate plan fails to meet these formal requirements, it could be subject to challenge and potentially invalidated.
One way to protect your estate plan from potential challenges is to write a letter of instruction and suggestion. It serves as a roadmap and can include passwords to various accounts. Another way is to communicate openly with your loved ones. Doing this can help prevent misunderstandings and disputes.
By understanding the potential challenges to your estate plan and taking proactive measures to address them, you can help carry out your final wishes as intended in Texas.]]>On Behalf of Doehring & Doehring Attorneys at Lawhttps://www.doehringlaw.com/?p=527742024-03-11T19:44:47Z2024-03-12T19:44:40ZThe business may exist in a different form
If the certificate is for a business that is no longer active, do not assume the certificate is worthless. The company may have undergone a name change since your relative acquired the stock. Alternatively, another business may have merged with the company on the stock or simply acquired it and its assets.
Another possibility is that the company split into two separate businesses under different names. Regardless, if the business on the stock manages to continue in some capacity, the certificate may still have worth. Contacting the transfer agent on the certificate or the state agency that oversaw the incorporation of the business might yield some answers.
The certificate could be a collectible
Even if the certificate no longer holds any value as an investment, it does not mean it is completely worthless. Some certificates become valuable as collector items. They may represent a bygone business that is famous to some degree, so people may want to buy them on that basis.
Some certificates have a value of hundreds or even thousands of dollars, while others may run for much cheaper prices, as low as $12. Still, even a cheap stock certificate may yield some value for the estate if none of the beneficiaries want it.
Knowing how to find the worth of an asset can help reduce stress when working as an executor. Even if a piece of property seems to be nothing of note, you might discover, to your surprise, that it is still valuable.]]>On Behalf of Doehring & Doehring Attorneys at Lawhttps://www.doehringlaw.com/?p=527732024-03-09T21:07:58Z2024-03-11T20:06:56ZWhat should a final accounting contain?
The final accounting of an estate depends on the specific property owned by the estate. In general, the accounting should present a complete picture of the financial status of the estate.
First, the accounting should describe the assets of the estate and their values. From there, the account must describe any estate payments of outstanding debts the decedent still owed and any sales of estate property. Also, if the estate also paid any taxes or any other expenses, the accounting should include them.
Will the accounting receive automatic approval?
The accounting may seem complete to you, but the heirs to the estate must still examine it themselves. Hopefully, they will decide that everything is in order and approve it. However, they could have problems with parts of it and contest the findings. Ideally, the disagreement will find swift resolution, but a beneficiary dispute might also drag out probate and lead to court action.
When is final approval?
Assuming no parties find fault with the accounting, the court is likely to accept it. You can then move on to the final actions needed to close out the estate, including the distribution of the estate assets to the beneficiaries. If there are no other outstanding debts, you may file a motion with the probate court to close the estate.
Estate administration can be a tough task to pull off, but figuring out key steps in advance might save you from stressful delays and bring closure that much quicker.]]>On Behalf of Doehring & Doehring Attorneys at Lawhttps://www.doehringlaw.com/?p=527722024-02-28T02:27:39Z2024-03-05T02:26:20ZWhat is succession planning?
Succession planning involves deciding how the business continues after decease. This includes deciding who will take over its running. The goal is to ensure the business has what it needs to keep on after the primary decision maker's passing. Succession planning is not estate planning and does not necessarily deal with ownership, which is part of the latter, though it can.
Key parts of succession planning?
Succession planning involves certain key steps. The first is to identify potential successors within the family who have the skills, experience and desire to take over the business. Successors need the opportunity to gain the skills and experience needed to take over the business. After identifying them, the owners need to provide it, whether that be formal education, on-the-job training and/or mentoring from him or herself or other senior leaders in the business.
After finding successors, the business owner needs to develop a formal succession plan. This plan should outline the transference of ownership and management responsibilities in the event of the owner's death. It should also include contingency plans in case the chosen successor is unable or unwilling to take over. It is important to communicate the succession plan to all family members and key stakeholders. The owner also needs to create a business continuity plan outlining how the business will continue to operate in the short term if he or she dies before finding and training a successor.
Succession planning is important to ensure a smooth transition of ownership and management in the event of the owner's death, retirement or disability. Without it, businesses stand to lose a great deal.]]>On Behalf of Doehring & Doehring Attorneys at Lawhttps://www.doehringlaw.com/?p=527692024-02-27T16:44:53Z2024-03-04T16:44:04ZWorse financial security
When a fiduciary does not do their job right, beneficiaries often suffer financially. Money that should be theirs to support them or inherit might get mishandled or lost. This can create great amounts of stress for beneficiaries and make it hard to pay for food and housing.
Emotional pain and distrust
Beyond the money problems, breaches of trust can hurt beneficiaries emotionally. They feel let down and may not trust others in the future. This can cause a lot of stress, anger and sadness that lingers even after the financial issues stop.
Legal battles and costs
Fixing fiduciary mistakes usually means going to court, which can make things worse for beneficiaries. Lawsuits take time and cost a lot of money, draining resources that could have gone to the beneficiaries directly. It is a stressful process that adds to the emotional and financial toll.
Loss of opportunity and delayed goals
When fiduciaries mess up, beneficiaries may have to wait longer to get important assets. This can delay their plans for things like going to college, buying a home or starting a business. It is frustrating and can make it harder for beneficiaries to achieve their goals.
The impact of fiduciary breaches on beneficiaries extends far beyond financial loss. By understanding this, people can work to prevent breaches and protect the rights and well-being of beneficiaries.]]>On Behalf of Doehring & Doehring Attorneys at Lawhttps://www.doehringlaw.com/?p=527702024-02-27T19:26:36Z2024-03-01T19:25:08ZAsset protection
According to CNBC, a survey found that 67% of Americans have no estate plan. One advantage of a trust is its ability to protect your assets. You can shield them from various risks, such as creditors or legal disputes. This protection can provide peace of mind.
Avoiding probate
Probate, the legal process of validating a will, can be time-consuming and costly. However, assets held in a trust can bypass probate entirely. This means that your beneficiaries can receive their inheritance faster and with fewer complications.
Privacy
Unlike wills, which become public record upon probate, trusts offer a greater degree of privacy. The details of your estate plan remain confidential.
Control over distribution
With a trust, you have the flexibility to dictate the distribution timeline of your assets to your beneficiaries. You can establish specific conditions, ensuring the proper and responsible use of your assets in accordance with your wishes.
Tax efficiency
You may be able to reduce estate taxes and maximize the value of your estate for your beneficiaries. Trusts offer various tax planning strategies that can help minimize tax liabilities, allowing you to preserve more of your wealth for future generations.
Everyone should have an estate plan. You can use a will or a trust. The advantages of a trust make it worth considering.]]>On Behalf of Doehring & Doehring Attorneys at Lawhttps://www.doehringlaw.com/?p=527712024-02-28T02:24:59Z2024-02-28T02:24:59ZDesignation of a successor executor
Like an original executor, a successor executor is a person a testator designates in a will to take over the duties of the original executor if that person is unable or unwilling to serve. The designation is no more complicated than naming an ordinary executor in a will, and can serve as a backup plan to keep an estate in the hands of someone loyal to the testator.
When a successor takes over
A successor executor can step up in just about any situation when the original executor cannot serve. Aside from the death of the first executor, a successor can also fill in if the first executor becomes incapacitated due to illness, dementia or injury.
Sometimes other situations necessitate the activation of a successor. The original executor may decline the appointment or resign from it, deciding the duties are too time-consuming or complicated to take on. Also, the first executor choice may have moved too far away to contact or just refused communication.
The advantages of a successor executor
Having a designated backup executor offers several advantages for an estate plan. It provides continuity if the first executor cannot serve. The successor can step in and settle the estate without court intervention. Naming a successor also helps ensure there will be an executor familiar with the estate.
Also, it is more efficient than having the probate court appoint another administrator. Multiple persons may want the executor position, adding time to the probate process while the court makes a decision.
Successor executors are a simple way to avoid complications and ensure the proper handling of an estate. It is also possible to name a second or third successor executor in a series of backups in case a successor executor also cannot serve, helping to add further protection to an estate plan.]]>On Behalf of Doehring & Doehring Attorneys at Lawhttps://www.doehringlaw.com/?p=527682024-02-22T18:44:36Z2024-02-22T18:44:36ZFoster open communication
One of the most effective ways to reduce arguments during probate is through open communication. Encourage all parties involved to express their thoughts and concerns respectfully. Listening actively to each other's perspectives can help foster understanding and empathy, ultimately leading to more productive discussions.
Focus on common goals
During probate, it is important to focus on common goals rather than individual interests. Remind family members that the ultimate objective is to honor the wishes of the dead. By keeping this overarching goal in mind, individuals can set aside personal differences and work towards a mutually beneficial resolution.
Seek mediation
In cases where disagreements continue, seeking mediation can be a helpful option. A neutral third-party mediator can help family members find common ground. Mediation provides a structured environment for addressing concerns and exploring potential solutions.
Take breaks
Emotions can run high during probate proceedings, leading to heated arguments and irrational behavior. Encourage family members to take breaks when tensions escalate. Stepping away from the situation allows everyone to cool down and approach discussions with a clearer mindset.
Document agreements
To prevent misunderstandings and future disputes, it is important to document any agreements reached during probate discussions. Keep detailed records of decisions made, including who agreed to what and when. Having a written record can provide clarity and serve as a reference point if problems arise later on.
Serious disagreements during probate can harm families and the bonds between them. By approaching probate proceedings with patience, individuals can navigate this challenging time with minimal conflict and stress.]]>On Behalf of Doehring & Doehring Attorneys at Lawhttps://www.doehringlaw.com/?p=527662024-02-13T23:35:59Z2024-02-19T23:35:52ZSpecify distribution of personal items
Items that do not have much value to them in terms of dollars and cents can still mean a lot to one or more of your relatives. Through a letter of instruction, you can establish who should get what so your family members do not fight over your plate collection or jewelry. This is also an opportunity to leave instructions for how to care for your pet.
List financial information
Dispersing your estate can be difficult if your heirs do not know where to locate your accounts and other assets. In a letter of instruction, you can list your bank and investment accounts with account numbers, as well as passwords, logins and PINs for accessing online accounts.
This is also a good time to provide contact information for your financial advisors and insurance agents. Essentially, you can create a roadmap to the estate for the executor.
Describe funeral arrangements
Your letter of instruction should also outline your funeral and memorial service preferences in detail. This includes type of service, officiant, music and readings.
The letter can also share if you prepaid your funeral arrangements and note the location of the burial plot deed. For cremation, your letter should state the desired placement of ashes. You can also specify charities to receive donations and your organ donation wishes.
Share personal messages
People sometimes contest a will because they feel angry or confused about why the testator made certain decisions. In your letter of instruction, you can leave a personal message explaining your choices. Also, you can provide some words of comfort that may help your family process their grief.
While a will ensures the appropriate distribution of your property, supplementing your will with a letter of instruction shares personal details and helpful logistics for a smoother inheritance process.]]>