Estate Planning

If you are named in a will as the executor of an estate, Texas law imposes upon you certain responsibilities. One of those responsibilities is to hire an attorney to guide you through the process. This is because as executor, you represent the interests of both beneficiaries and creditors, and only a licensed attorney can represent the interest of others.

There are exceptions to this rule which your attorney will discuss with you. Briefly, one exception is if you are the sole beneficiary.

Responsibilities of the Executor of an Estate

Specific responsibilities imposed by Texas law include:

Notifying the beneficiaries of the decedent’s death. If they cannot easily be located, you may need to put a notice of death in newspapers.

Locating and inventorying assets. This includes locating:

• Personal property such as vehicles, boats, checking accounts, jewelry, antiques, safe deposit box contents, and others.
• Financial holdings. Retirement accounts, stocks and bonds, investment accounts.
• Real estate the decedent owned in Texas and any real estate the decedent owned in another state.
• Businesses owned by decedent or owned in partnership with others.

You must inventory the assets and the value each asset at the time of the decedent’s death. This document must usually be filed with the court.

Paying decedent’s debts and taxes. All creditors must be given notice of the death and the opening of probate. Creditors can file a claim and the executor has a duty to verify it is a legitimate debt. If so the debt must be paid.

Tax returns must be filed, the Social Security Administration notified of the death, and all credit cards must be canceled.

You also have a duty to identify estate property that is exempt from creditors and set it aside for the beneficiaries.

Recognizing priority rights. Spouses and minor children have rights which may include payment of an allowance while the estate is being probated.

Distribution of assets. After all other duties have been fulfilled, you then distribute the assets to the beneficiaries according to the terms of the will.

In fulfilling your duties as an executor, keep in mind at every step of the way, you have a fiduciary duty to preserve assets and to act always in the best interest and with loyalty to the beneficiaries.

Contact The Reecer Law Firm PLLC for Assistance

This is just an overview of the responsibilities of an executor. Depending on the will and the size of the estate, there may be other responsibilities you must fulfill as the executor.

Dena Reecer, founder and owner of The Reecer Law Firm PLLC, is one of just a few Texas attorneys who are Board Certified in Estate Planning and Probate Law by the Texas Board of Legal Specialization. Contact the firm for more information about your responsibilities as the executor of an estate.

Many people believe they must have millions of dollars in assets and investments to need an estate plan, but that is not true. Anyone who wants to ensure that their spouse and/or children receives their assets when they pass away should think about establishing an estate plan.

Understanding Texas Estate Planning, Wills, Trusts, Powers of Attorney, and More

To begin the estate planning process in Texas, you will need to prepare some important documents that will empower others to carry out your instructions. The following are some of the most common documents a good estate planning or probate law attorney can help you with:

• A Will. A Will outlines how you wish for your assets to be distributed upon your death and who they will be distributed to. If you have minor children, you can also designate a guardian who will care for them if they do not have a surviving parent after you’ve passed. Upon your death, a Will is generally submitted to the probate court, which will admit your Will to probate and give your Executor the authority to carry out the terms of your Will.
• A Trust. A Trust is a fiduciary agreement in which you (the Grantor) transfer your assets to the Trust during your lifetime and designate a Trustee (yourself or a third party) to control those assets during your lifetime and to administer the Trust after your death in order to distribute the Trust assets to your family or friends (the Beneficiaries). A Trust allows you to pass assets to your Beneficiaries by avoiding probate, saving costs and time. Further, there are generally tax benefits for your heirs who receive assets through a Trust.
• Statutory Durable Power of Attorney. A Statutory Durable Power of Attorney (also called a financial power of attorney) authorizes someone to make financial decisions on your behalf during your lifetime if you are unable to make those decisions on your own.
• Texas Medical Power of Attorney. A Texas Medical Power of Attorney is a statutory form that authorizes someone to make medical decisions on your behalf during your lifetime if you are unable to make those decisions on your own.
• An Advance Directive or Living Will. An Advance Directive memorializes your intent that you be kept comfortable, free of pain, and hydrated but allowed to pass away naturally if you are in a permanent vegetative state.

What Happens if You Die Without a Plan?

The legal term for dying without a Will or Trust is dying “intestate.” If you die intestate, any assets that do not have a beneficiary designation will pass to your Heirs-at-law, determined according to Texas law. Texas does not allow for oral Wills – your wishes must be written down. If you die intestate, the probate court will need to determine who your Heirs-at-law are and appoint an Administrator to distribute your assets to your Heirs-at-law, pay any debts, and wind up your affairs. If it is important to you to control who benefits from your estate, then having an estate plan in order should be a top priority.

For assistance with estate planning, probate law, and other matters related to Wills and Trusts in the Denton and DFW area, contact our attorneys at The Reecer Law Firm, PLLC. Dena A. Reecer, principal and founder, has been Board Certified in Estate Planning and Probate Law by the Texas Board of Legal Specialization since 2008 and has decades of experience in helping clients carry out their final wishes.