Living in the heart of Northeast Texas means valuing the legacy you build for your family. A thoughtful and comprehensive estate plan prepared with the guidance of a Greenville estate planning lawyer can establish financial security for yourself and those you care about most.
Effective estate planning is more than just writing a will, and it isn’t only for the affluent or the elderly. Estate planning is essential for Texas families, business owners, and anyone else who intends to provide for those they love.
Estate planning creates a set of detailed legal documents that protect your assets and ensure your instructions are followed after you pass away. A Greenville estate planning attorney can help you avoid the most common mistakes Texas families make when planning their estates.
Mistake #1: Relying on a Handwritten Will Without Legal Review
The Texas Estates Code recognizes handwritten wills (also known as “holographic” wills), but these documents often cause more problems than they solve. For a handwritten will to be valid in Texas, it must be entirely in the testator’s handwriting and signed by the testator.
Legal trouble with a handwritten will can arise during probate. If the handwriting is difficult to verify or if the language is vague, the court may find the will invalid. That finding sometimes leads to family disputes that can turn into lengthy, costly legal battles.
A handwritten will risks ambiguity and illegibility. Items that should be included in a will are often missing from handwritten wills. A formal, comprehensive will prepared by a Texas estate planning lawyer provides clarity and makes the probate process easier for everyone involved.
Mistake #2: Failing to Plan for Incapacity
Estate planning is not only about what happens after you pass away. It is also about who makes decisions for you if you become seriously ill, injured, or disabled. Many people fail to include a Durable Statutory Power of Attorney or a Medical Power of Attorney as part of their estate plans.
Under the Texas Estates Code, a Durable Statutory Power of Attorney lets you appoint someone to manage your finances if you cannot manage them. A Medical Power of Attorney assigns someone to make your medical choices if doctors determine that you cannot make your own treatment decisions.
We can’t predict the future, but preparing a Durable Statutory Power of Attorney and a Medical Power of Attorney ensures that your instructions will be followed and your loved ones will know what to do if you become disabled or incapacitated.
Mistake #3: Not Updating Beneficiary Designations
Your will does not account for everything you own. Particular assets, such as life insurance policies, 401(k) accounts, and POD (Payable on Death) bank accounts, pass directly to the person named on the account’s beneficiary form.
If you named an ex-spouse as a beneficiary twenty years ago and never changed the beneficiary designation, that person could legally receive those funds, regardless of what your current will says.
The Texas Estates Code provides some protections regarding divorced spouses by treating them as having predeceased the testator in certain documents, but relying on these protections is risky. Keeping beneficiary designations current ensures your assets go exactly where you intend.
Mistake #4: Overlooking Medicaid Eligibility and Long-Term Care
Many families in Northeast Texas may have concerns about the cost of nursing home care. The average cost of a private room in a Texas nursing home exceeds $7,000 a month; semi-private rooms average more than $5,000 a month. Without proper planning, long-term healthcare can quickly consume almost anyone’s assets and savings.
You can’t give away assets for the purpose of qualifying for Medicaid within five years of applying for benefits. If you place assets in a trust or give away assets within five years of your application for Medicaid care coverage, those assets will be counted as yours and will count against you for qualification purposes, so you may face a penalty period of ineligibility.
This ineligibility can leave families struggling to pay for care at nursing home facilities. And if you receive Medicaid long-term services and support, the state of Texas has a legal right to ask for money back from your estate after your death, but the right planning may protect your assets.
Medicaid Planning Options
You shouldn’t try to qualify for Medicaid by giving away your properties, savings, or other assets. A long-term healthcare planning attorney can suggest several alternatives that are less risky and more effective.
An attorney can help you prepare a Medicaid plan that strategically transfers your assets so that a significant percentage of your resources will not be counted when you apply for Medicaid benefits. Your lawyer will help you decide on the planning strategy that works best for you.
Mistake #5: “Do-It-Yourself” Estate Planning
Downloadable estate planning documents may seem like a bargain, but they rarely account for the specific complexities of Texas estate planning law. Texas has unique rules regarding community property and administration that generic forms usually miss.
Blank estate planning forms and do-it-yourself “kits” offer incomplete legal protection. Your estate and your family need more. A Greenville estate planning lawyer may know about planning options you are not aware of, options that may be just right for you.
Saving a few dollars now could cost your heirs thousands in unnecessary legal fees and court costs later. An estate planning attorney’s guidance ensures that your legal documents comply with the Texas Estates Code and reflect the specific needs of your family.
Let Us Help You Protect Your Legacy
Every Texas family has different priorities and goals. Whether you’re welcoming a new grandchild, nearing retirement, or managing a family business, your estate plan should grow with you. Take the time to consider estate planning and speak to an estate planning professional.
The Council Firm, PLLC, has been serving the Greenville community for more than 14 years. We focus on making the estate planning process clear and trouble-free for our neighbors in Hunt County and across Northeast Texas.
To begin planning your estate or to review your current plan, we’re ready to help. Would you like to speak with us about your estate planning needs? Call The Council Firm, PLLC, at 903-494-3380 to schedule a consultation with a Greenville estate planning attorney.
