Wills and Trusts in Texas

Most of us at some time in our lives have been told by a spouse, relative, friend, or professional advisor, that we should write a Will. However, we have no real idea as to why it is so important to have a Will (a further discussion of this topic may be found under the Probate section of this site). For starters, a Will allows you to name the guardians of your minor children, specify who will serve as executor, and leave property to specific individuals. Additionally, a Will can designate your executor to serve independently and without bond. This designation alone can save your estate from significant financial costs.

Along with a Will, I encourage clients to put in place Powers of Attorney, a Guardian Declaration, and a Living Will. The following briefly describes these instruments:

Simple Will: More specifically, this instrument will appoint an executor, direct how property may be disposed, appoint a guardian for children, etc. A trust can be added in order to financially take care of a minor child.

Durable General Power of Attorney: This document authorizes a personal representative to manage and convey property in the event you cannot act on your own behalf.

Health Care Power of Attorney: This document authorizes a personal representative the authority to make any and all health care decisions for you in accordance with your wishes, including your religious and moral beliefs, when you are no longer capable of making them yourself.

Living Will/Directive to Physicians: This document enables you to relieve loved ones of decisions that may be faced during a last illness, such as whether or not life-sustaining equipment or procedures should be utilized.

Declaration of Guardian in the Event of Later Incompetence: This document authorizes a personal representative to act as guardian of your estate and person and more specifically can list people you do not want involved with your estate. The Durable General Power of Attorney will suffice in most circumstances; however, it is reasonable to foresee a situation in which the Power of Attorney will not be able to handle the matter. When and if this situation arises this document will aid the court in appointing a guardian to handle your estate.

Advanced Planning: If your estate is currently more than $2,000,000, an estate plan including a credit shelter trust can save your estate thousands of dollars in estate taxes.