The Reecer Law Firm

Texas Estate Planning & Probate Law

Archives for December 2024

What Is a Revocable Trust?

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Estate planning is a critical step towards ensuring your assets are managed and distributed according to your wishes, even after you’re gone. Among the various estate planning tools available, one that stands out is the revocable trust. But what exactly does it entail, and how can it benefit you?

Revocable Trust

A revocable trust, often referred to as a living trust, is a legal arrangement where you transfer ownership of your assets into a trust during your lifetime. As the grantor, you maintain control over the assets while you’re alive. Upon your passing, the assets are then transferred to your designated beneficiaries as per the terms outlined in the trust.

Embracing the Advantages

There are several compelling reasons to consider incorporating a revocable trust into your estate planning strategy. Firstly, it provides an effective means to bypass the probate process, which can be time-consuming, expensive, and subject to public scrutiny. By placing assets in a revocable trust, they can seamlessly pass to beneficiaries without the need for probate, saving valuable time and resources for your loved ones.

Moreover, revocable trusts offer a layer of privacy that other estate planning tools may not provide. Unlike a will, which becomes a matter of public record upon probate, a revocable trust allows your estate details to remain private, safeguarding your financial affairs from unwanted public scrutiny.

Flexibility is another valuable aspect of revocable trusts. As the grantor, you maintain the ability to modify or revoke the trust during your lifetime, offering you the flexibility to adapt to changing circumstances or wishes without the need for extensive legal proceedings.

Understanding Legal Considerations

Navigating the legal landscape of revocable trusts requires careful attention to detail. While the basic principles remain consistent, each state may have its own nuances and requirements regarding trust laws. Consulting with an experienced estate planning attorney can ensure that your revocable trust is drafted and executed in compliance with applicable regulations, providing you with confidence in your estate’s management and distribution.

In conclusion, a revocable trust is a versatile and effective tool in estate planning, offering numerous benefits. By simplifying asset distribution, avoiding probate, maintaining privacy, and allowing for flexibility, revocable trusts empower individuals to protect their legacy and ensure the well-being of their loved ones. Whether you’re in Texas or elsewhere, considering the advantages of a revocable trust can be crucial in securing your financial future and finding peace of mind. As you start your estate planning journey, seeking guidance from a qualified legal professional can help tailor a revocable trust to suit your specific needs and ensure a smooth transition for your beneficiaries, leaving a lasting legacy for generations to come.

Contact the Reecer Law Firm

Dena Reecer, founder and owner of the Reecer Law Firm PLLC, is Board Certified in Estate Planning and Probate Law by the Texas Board of Legal Specialization. If you have questions or concerns regarding estate planning, please call us at (940) 382-3168 or contact us for more information about how we can help you. Our office is located at 3105 Unicorn Lake Blvd., Denton, TX 76210.

Divorce and Estate Planning: What You Need to Know

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Divorce is a challenging process, and it can significantly impact your estate planning. If you’re going through a divorce in Texas, it’s crucial to understand how your assets, wills, and beneficiaries might be affected. Here’s what you need to know to protect your interests and ensure your estate plan remains effective.  The following recommendations are always subject to any temporary orders that the family court may have put in place during a divorce proceeding so please also consult with your family law attorney.

Revising Your Will

Family Estate Planning

One of the first steps you should take during a divorce is to revise your will. Your existing will likely includes provisions for your spouse, and you may want to change those.

  • Update Beneficiaries: Ensure your assets go to the intended recipients by updating the beneficiaries in your will.
  • Choose New Executors: If your spouse was named as an executor, appoint someone else who you trust to handle your estate.

Managing Joint Accounts and Property

Joint accounts and property can be tricky during a divorce. Texas is a community property state, meaning that most assets acquired during the marriage are considered jointly owned.

  • Close Joint Accounts: Close any joint accounts to prevent your spouse from accessing funds without your consent.
  • Retitle Property: Retitle property that you plan to keep in your name only to avoid complications.

Updating Beneficiary Designations

Beneficiary designations on life insurance policies, retirement accounts, and other financial assets need to be updated as soon as possible. Failure to do so could result in your ex-spouse receiving these assets even if your divorce agreement states otherwise.

Addressing Guardianship for Minor Children

If you have minor children, updating guardianship provisions in your will is essential. Consider who will care for your children if something happens to you.

  • Ex-Spouse as Guardian: In most cases, your ex-spouse will be the natural guardian of your children if you pass away. However, it’s wise to have a contingency plan.
  • Coordinate with Your Ex-Spouse: Ensure you and your ex-spouse agree on guardianship arrangements to avoid future disputes.
  • Choose a Secondary Guardian: Select a secondary guardian who you trust and who is willing to take on this responsibility if your ex-spouse is unable or unwilling to do so.
  • Create a Trust: Establish a trust to manage assets for your children’s benefit until they reach adulthood.

Estate Taxes and Asset Division

Understanding how your divorce will impact estate taxes, and the division of assets is crucial.

  • Consult with Professionals: Work with a financial planner and an attorney to navigate the complexities of asset division and minimize tax liabilities.
  • Plan for the Future: Consider how the division of assets will affect your long-term financial goals and estate planning.

Conclusion

Divorce necessitates a thorough review and update of your estate planning. By taking proactive steps, you can protect your interests and ensure your estate plan reflects your current wishes. Don’t wait until the divorce is final to address these critical issues.

Contact The Reecer Law Firm

At The Reecer Law Firm, we understand the complexities of divorce and estate planning. Our experienced attorneys are here to help you navigate this challenging time.

Dena Reecer, founder and owner of the Reecer Law Firm PLLC, is Board Certified in Estate Planning and Probate Law by the Texas Board of Legal Specialization. If you have questions or need guidance with estate planning, please contact us at (940) 382-3168.

The Reecer Law Firm is located at 3105 Unicorn Lake Blvd., Denton, TX 76210.

Special Needs Trusts: What Do I Need to Know?

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If you’re considering the financial future of a loved one with special needs, you may have heard about Special Needs Trusts (SNTs). These trusts serve as a safety net, ensuring the financial stability of individuals with disabilities. Let’s explore what they entail and how they can benefit you and your family.

Understanding Special Needs Trusts

Special Needs Trusts

An SNT is a legal tool tailored to manage assets for the benefit of individuals with disabilities, serving as a shield to safeguard their financial interests. It ensures that they maintain eligibility for vital programs like Medicaid and Supplemental Security Income (SSI), providing a crucial safety net for their future.

Eligibility for Special Needs Trusts

In Texas, anyone with a disability who relies on or may rely on means-tested government benefits can benefit from an SNT. Whether your loved one currently receives assistance or may need it in the future, an SNT can provide invaluable support.

The Importance of Special Needs Trusts

Without an SNT, inherited assets or financial gifts could jeopardize your loved one’s eligibility for essential government benefits. By establishing an SNT, you safeguard their resources while preserving their access to vital assistance programs.

Utilizing a Special Needs Trust

The flexibility of an SNT is unparalleled. Funds can be utilized for various expenses, including medical care, education, housing, transportation, and recreational activities. It’s a versatile tool for enhancing your loved one’s quality of life.

Establishing a Special Needs Trust

Setting up an SNT involves navigating legal processes, but you don’t have to tackle it alone. Consult with a specialized attorney familiar with Texas trust laws. They’ll guide you through the setup, ensuring everything is tailored to your family’s unique needs.

Funding a Special Needs Trust

You have multiple options for funding an SNT. Assets such as cash, real estate, or investments can be transferred into the trust. Additionally, relatives and friends can contribute, with annual gifts up to $18,000 (as of 2024) being permissible without gift tax reporting.

Remember that an SNT isn’t just a financial tool—it’s a source of security and stability for your loved one’s future. Make sure to understand its ins and outs, consider its advantages, and consult with professionals to guide you. Your loved one deserves a future safeguarded by the strength of a well-crafted Special Needs Trust.

Contact The Reecer Law Firm

Dena Reecer, founder and owner of The Reecer Law Firm PLLC, is Board Certified in Estate Planning and Probate Law by the Texas Board of Legal Specialization. If you have questions or concerns regarding Special Needs Trusts or Estate Planning, please call us at (940) 382-3168 or contact us for more information about how we can help you. Our office is located at 3105 Unicorn Lake Blvd., Denton, TX 76210.

Understanding Joint Tenancy with Right of Survivorship in Texas

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Have you ever wondered what happens to property when one of the owners passes away? If you’re in Texas and considering owning property with someone else, it’s essential to understand the concept of Joint Tenancy with Right of Survivorship (JTWROS). This arrangement offers unique advantages and considerations that you should know about.

What is Joint Tenancy with Right of Survivorship?

Joint Tenancy

 Joint Tenancy with Right of Survivorship, commonly abbreviated as JTWROS, is a way of owning property with one or more people in Texas. Here’s how it works: when you and another person own property as joint tenants, each of you owns the account in proportion to your contribution to the account. However, the key feature of JTWROS is that if one owner passes away, their share automatically transfers to the surviving owner(s). This type of ownership designation controls over any provision in a Will or Trust.

How Does it Work in Texas?

In Texas, JTWROS is recognized as a form of co-ownership. This means that when you buy property with someone else and specify that you want it to be held in joint tenancy, the ownership rights and responsibilities are governed by Texas law.

Benefits of Joint Tenancy with Right of Survivorship

Avoiding Probate: One significant advantage of JTWROS is that it allows the property to pass directly to the surviving owner(s) without going through probate. This can save time and money for your loved ones after your passing.

Clear Succession: With JTWROS, there’s no ambiguity about who inherits the property when one owner dies. The transfer of ownership is automatic and immediate.

Creditor Protection: In some cases, JTWROS may offer protection against creditors. If one owner faces financial difficulties, creditors generally cannot seize the property as long as it’s held in joint tenancy.

Considerations and Risks

Equal Ownership: Each owner in a joint tenancy holds a share of the property. This means that decisions regarding the property usually must be made jointly, and disagreements can arise.

Potential Tax Implications: While JTWROS can simplify the transfer of property, there may be tax implications to consider, especially regarding capital gains tax upon sale of the property.

Relationship Dynamics: Owning property with someone else, especially under JTWROS, requires a high level of trust and communication. It’s essential to consider the implications for your relationship with the co-owner(s).

Joint Tenancy with Right of Survivorship can be a valuable option for property ownership in Texas, offering benefits such as probate avoidance and clear succession. However, it’s crucial to weigh the advantages against the considerations and risks involved. Before entering into a joint tenancy arrangement, it’s wise to consult with a legal professional to ensure it aligns with your specific circumstances and goals.

Contact The Reecer Law Firm Today

At The Reecer Law Firm, we help families across Texas create estate plans that fits their specific needs. Whether you’re just getting started or updating your plan, we’re here to guide you. Dena Reecer, founder and owner of the Reecer Law Firm PLLC, is among a select group of Texas attorneys recognized as Board Certified in Estate Planning and Probate Law by the Texas Board of Legal Specialization. Call us today at (940) 382-3168 or contact us for more information about how we can help you. Our office is located at 3105 Unicorn Lake Blvd., Denton, TX 76210.

Estate Planning for Blended Families

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Estate planning is important for everyone, but it takes on special importance when you are part of a blended family. With multiple relationships and unique family dynamics, careful planning helps you protect your loved ones and honor your wishes.  If you fail to plan, then the state where you live will determine who inherits your estate.

Start with Clear Goals

Blended Family and the Holidays

Think about what you want for your family’s future. Consider the needs of your spouse, your children, and any stepchildren. Do you want to provide for everyone equally? Do you have specific goals for certain family members? Being clear about your intentions helps create a plan that reflects your priorities.

Decide Who Will Handle Things

In blended families, choosing the right people to manage your estate is an important step. Select an executor or trustee who can be impartial and responsible. This might mean choosing someone outside the family to avoid potential conflicts. Discuss your choice with them to make sure they’re willing to take on the role.

Create a Trust

A trust can be a great tool for blended families. It allows you to provide for your spouse while also protecting the inheritance of your children. For example, you might use a trust to give your spouse income from your estate while preserving the principal for your children. A trust offers flexibility and control that a simple will might not.

Update Beneficiaries

Don’t forget about your financial accounts, retirement plans, and life insurance policies. Make sure your beneficiary designations match your wishes. These designations typically override what’s written in your will, so keeping them updated is key.

Communicate Your Plan

Open communication with your family can help prevent misunderstandings later. Explain your decisions to your spouse and children so they know your intentions. This doesn’t mean you have to share every detail, but giving an overview can make everyone feel more prepared.

Work with an Estate Planning Attorney

Blended families can benefit from tailored advice. Working with an experienced estate planning attorney gives you peace of mind knowing your plan fits your family’s unique situation.

Contact The Reecer Law Firm Today

At The Reecer Law Firm, we help families across Texas create estate plans that fits their specific needs. Whether you’re just getting started or updating your plan, we’re here to guide you. Dena Reecer, founder and owner of the Reecer Law Firm PLLC, is among a select group of Texas attorneys recognized as Board Certified in Estate Planning and Probate Law by the Texas Board of Legal Specialization. Call us today at (940) 382-3168 or contact us for more information about how we can help you. Our office is located at 3105 Unicorn Lake Blvd., Denton, TX 76210.