If you are like the majority of residents in the Lone Star State, you don't have a will. And if you don't have a will, you probably haven't given too much thought to an estate planning strategy. The good news is that estate planning is usually a lot less complicated than it sounds. Below is a look at the key role of estate planning and some important points to consider as you create a will and plan for your future.
Why Is Estate Planning So Important?
"I think many Americans avoid setting up a will because they simply don't want to think about their death. However, setting up a will not only takes care of your loved ones financially, it can save them a lot of emotional stress after you're gone." - Craig Dacy, Financial Coach, Austin, Texas
Estate planning is critical for a variety of reasons. But for most people, the value of estate planning lies in the protection their loved ones receive. By preparing a will, you can ensure that your children are cared for by people you designate and your assets are dispersed according to your wishes. Here is a look at just a few reasons why you should have a will:
- Reduce stress for your loved ones. Estate planning can eliminate uncertainty and stress that could arise if you pass away without a will.
- Minimize delays. With a will in place, the process of settling your estate will flow more smoothly and take less time.
- Eliminate confusion about your assets. When you pass away, distributing your assets becomes much easier if you have a will and plan in place.
- Save money. Estate planning helps you reduce or eliminate taxes that your beneficiaries may otherwise have to pay.
Who Needs an Estate Plan?
Every adult needs an estate plan. If you are 18 years of age or older, you should set aside some time to begin planning for the future. The planning process becomes even more important if you have a spouse, parents, children, or other loved ones you long to protect.
What Are Some Common Myths Surrounding Estate Plans?
Myths often stand in the way of sound estate planning. They can also become convenient excuses to delay the planning process. Here are some examples of myths that often derail estate planning for many adults:
1) "Young People Don't Have to Worry About Estate Planning."
Adults in their 20s, 30s, and 40s often feel like they are invincible. And they are often so focused on their careers, children, homes, and aging parents that estate planning ranks very low on their priority lists. In reality, changes in your marital status, career, and family size are all good reasons why you should put a plan in place right now.
As your assets continue to grow, it's important to make sure they will end up in the hands of your loved ones. After all, you worked hard to accumulate property and build a family. But those assets could end up being managed and distributed by unknown legal authorities if you pass away without the proper estate planning documents in place.
2) "If You Don't Own a House or Have Much Money You Don't Need an Estate Plan."
Some people think that it's pointless to have an estate plan if they don't own a house or have a lot of money in the bank. Another misguided notion is thinking that you can avoid planning since you don't have any children or a spouse to inherit your assets.
In reality, every adult has an estate - even if that estate is a modest one. For instance, you may have a car or bike that you would like to leave to niece or nephew. Or, you may have a small retirement account that could make a big difference to a local charity you feel passionate about.
3) "People in Good Health Can Think About Estate Planning Later."
If you are lucky enough to be living a healthy, active lifestyle, you may feel that estate planning is something that can wait. But your health and well-being can change in a matter of seconds. It only takes one unexpected medical diagnosis or one injury to forever change your life.
While all of us aspire to live long healthy lives, it's best to be prepared for any and all potential health challenges. Rather than waiting until your health starts to decline to focus on estate planning, carve out a little time to get your affairs in order now.
4) "Estate Planning Takes a Long Time."
The concept of estate planning sounds intimidating and time-consuming to many people. But the truth is that the process often takes a lot less time than people think. Today's top estate lawyers in Texas will tell you exactly what you need to be prepared for your planning meeting.
If you arrive on time and ready for your meeting, you may be able to take care of the key aspects of your plan during a single meeting. And depending on your individual situation, you may even be able to receive a completed draft of your will within 48 ours.
What Can Happen If You Don't Have a Plan?
The consequences of not having an estate plan can prove to be devastating to your loved ones. Unfortunately, by the time these consequences unfold, it will be too late for you to take action. Here are just a few of the unpleasant challenges that may arise if you don't have an estate plan:
- Your money and property could end up in the hands of people you would never choose
- Your children and pets could end up in the care of guardians who don't share your values
- A person you don't trust could end up deciding how your money will be allocated
- Your favorite charity may end up not receiving any of your estate
- Your loved ones could end up facing costly taxes or legal fees associated with your estate
In addition to these potential problems, your loved ones could find themselves waiting months or even years for final decisions to be made about your estate. Rather than face the possibility of these potential consequences, you can prevent them by beginning the planning process today.
When Should You Begin the Planning Process?
Today. Far too many Americans put off the estate planning process, often citing excuses about being too busy or being too young to think about the prospect of death. You can set yourself apart from the 60% of Americans who don't have a will by making the future a top priority. You can get the process started today by reaching out to a Texas wills and estate planning lawyer.
What Are Some Common Estate Planning Mistakes and How Can You Avoid Them?
Now that you have decided to plan for your future, you may feel that you are well on your way to an invincible estate plan. But there is more to estate planning than making up your mind to put a plan in place. And if you forge ahead without being careful, you can fall prey to one of these common estate planning mistakes:
1) Creating a Will Without Professional Guidance
Advances in technology and do-it-yourself websites have made it possible for virtually anyone to create their own will online. And while using online resources is better than not having a plan, you leave yourself vulnerable to planning errors and omissions. For example, you may create a will that turns out to be invalid because it is not properly witnessed or lacks a signature. The best way to avoid these pitfalls is to work with an estate lawyer.
2) Not Naming an Executor in Your Will
Texas law does not require you to name an executor in your will. However, failure to designate an executor in your will may cause your loved ones to face lengthy probate delays and costly legal fees as your estate details are sorted out. A legal advisor can help you select an executor who you trust to work professionally with your beneficiaries.
3) Failing to Revisit Your Plan From Time to Time
Estate planning should not occur in a vacuum. You should view your estate plan as a work in progress that you should review and update from time to time. In addition to reviewing your plan once per year, you should revisit your plan when you experience a life changing event such as one of the following:
- A marriage, divorce, or marital separation
- A life-threatening illness or accident
- The birth of a child or expansion of your family
- The death of a spouse or other close family member
- Acquisition of new properties
What Is the Key to a Bulletproof Estate Plan?
Mapping out an estate plan is one of the most important things you will do in your life. While the process can be intimidating, you can avoid common missteps by seeking the guidance of a Texas estate planning attorney. With an experienced legal expert in your corner, you can rest assured that your plan reflects your wishes and is compliant with Texas laws.
We invite you to contact us at R. Dean Davenport Attorney at Law to schedule a complimentary estate planning consultation. Conveniently located at 2150 S. Central Expressway in McKinney, Texas, we make the estate planning process simple and pleasant for our clients. We work hard to deliver quality service and give you the peace of mind you deserve as you plan for your future. We look forward to helping you prepare a bulletproof estate plan!
For more information please request a copy of our Legal Services Schedule (PDF format).
