The Reecer Law Firm

Texas Estate Planning & Probate Law

Trusts

What Is a Revocable Trust?

By

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.

Special Needs Trusts: What Do I Need to Know?

By

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.

My Parents Did Not Have a Will: What Should I do Now?

By

The passing of parents is an emotionally challenging experience, and dealing with their affairs can be overwhelming, especially when they did not leave behind a will. In Texas, intestate succession laws govern the distribution of assets and property when a person dies without a will. By following certain steps, you can navigate the situation effectively.

Parents don't have a will

Consult with an Attorney

Seek the guidance of a qualified estate attorney who is familiar with the state’s laws on intestate succession. An attorney can provide essential advice and help you understand the legal process involved in distributing the estate.

Stay Organized: Gather Important Documents

Start by collecting all relevant documents, such as birth certificates, marriage certificates, property deeds, bank account statements, investment records, insurance policies and other paperwork related to their assets and liabilities. Having these documents organized will make the process smoother.

Determining the Legal Heirs

When a person dies without a will, they are said to have died “intestate.” The laws will dictate who the legal heirs are. In most cases, the surviving spouse and children are considered primary heirs. If your parents were unmarried or their spouse predeceased them, the distribution becomes more complex and may include parents, siblings, and other relatives.

Appointing an Administrator

In Texas, an “administrator” is appointed by the court to oversee the estate’s distribution when there is no will. The court will typically appoint a close family member, such as a surviving spouse or an adult child, as the administrator. If there is a disagreement among potential administrators, the court will make the final decision.

Inventory and Valuation of Assets

The appointed administrator will need to create an inventory of the deceased’s assets, including real estate, bank accounts, investments, and personal property. This inventory should be as detailed as possible, and it may require the help of a professional appraiser to accurately value certain assets.

Paying Debts and Taxes

Before any distribution of assets, the estate’s debts and taxes must be settled. This includes outstanding bills, funeral expenses, and any other debts your parents may have had. The administrator should also file the final income tax return for the deceased and, if necessary, an estate tax return.

Distributing the Estate

Texas laws dictate how the estate will be distributed among the legal heirs. The distribution may vary depending on the surviving family members’ relationships, such as whether there is a surviving spouse, children, or other close relatives. The estate distribution process can be complex, especially when there are blended families, stepchildren, or distant relatives involved.

If there is a surviving spouse and children:

  • The surviving spouse may receive a portion of the estate, and the rest will be divided among the children.

If there is no surviving spouse but there are children:

  • The estate will be divided equally among the children.

If there is no surviving spouse or children:

  • The estate may go to the deceased’s parents, siblings, or other relatives.

Avoiding Probate with a Small Estate Affidavit

In some cases, if the value of the estate is small, it may be possible to avoid probate altogether by using a Small Estate Affidavit. This process allows for a simplified distribution of assets without the need for court involvement. However, specific conditions must be met for this option to be applicable.

Dealing with the passing of parents is a challenging time, and not having a will can make it more complex. In Texas, intestate succession laws govern the distribution of assets when a person dies without a will. To ensure a smooth and legal distribution, it is crucial to understand the laws, determine the legal heirs, and follow the appropriate legal procedures. Seeking the guidance of an experienced estate attorney can be beneficial during this process, helping you navigate the complexities of Texas intestate succession laws.

Contact The Reecer Law Firm PLLC for Assistance

Dena Reecer, founder, and owner of the Reecer Law Firm PLLC, is one of a few Texas attorneys who are Board Certified in Estate Planning and Probate Law by the Texas Board of Legal Specialization. If you have questions regarding estate planning, contact us for more information about how we can help you. The Reecer Law Firm is located at 3105 Unicorn Lake Blvd., Denton, Texas 76210.

Understanding The Importance of a Digital Estate Plan

By

In the digital age, our lives have become increasingly intertwined with online platforms and digital assets. From social media accounts to online banking and digital photographs, we accumulate a vast amount of digital property throughout our lives. But what happens to these digital assets after we pass away? This is where a digital estate plan comes into play.

What is a Digital Estate Plan?

Digital Estate Plan

A digital estate plan is a set of instructions that outline how you want your digital assets to be managed, preserved, or distributed after your death or incapacity. It encompasses all the online accounts, files, and digital possessions you have accumulated over the years, including email accounts, social media profiles, online photo albums, digital documents, cryptocurrency, and more.

Why is a Digital Estate Plan Important?

  1. Preservation of Digital Legacy: Just as you make arrangements for your physical assets and personal belongings, it’s crucial to consider your digital legacy as well. A digital estate plan ensures that your online presence, memories, and personal information are handled according to your wishes.
  2. Access and Account Management: Without proper planning, your loved ones may encounter difficulties accessing your online accounts after your demise. By including instructions for accessing these accounts in your digital estate plan, you can alleviate the stress and confusion your family might face.
  3. Privacy and Security: A comprehensive digital estate plan takes into account the security and privacy aspects of your digital assets. It enables you to specify what should happen to your sensitive information, such as account passwords or financial records, ensuring that they are appropriately protected or disposed of.

Creating a Digital Estate Plan:

  1. Take Inventory: Begin by identifying all your digital assets, including online accounts, devices, and digital files. Make a list of each item and its location, along with any associated login credentials or access codes.
  2. Appoint a Digital Executor: Choose a trustworthy individual to act as your digital executor or designate this responsibility to your regular executor. This person will be responsible for carrying out your wishes as outlined in your digital estate plan.
  3. Specify Your Wishes: Clearly state what you want to happen with each digital asset. You might want your social media profiles to be memorialized, certain files to be deleted, or digital photographs to be passed on to specific individuals. Provide explicit instructions for each asset.
  4. Store and Share: Ensure that your digital estate plan is accessible to your designated executor. Store it securely, either in a physical location (such as a safe deposit box) or a password-protected digital file. Inform your executor about its location and any necessary access credentials.
  5. Review and Update: Regularly review and update your digital estate plan, particularly when there are changes in your digital assets, passwords, or preferences. Stay informed about any changes in online platforms’ policies regarding the management of digital assets.

A digital estate plan is an essential aspect of modern estate planning. It ensures the smooth management and distribution of your digital assets while protecting your privacy and preserving your digital legacy. The Reecer Law Firm can provide expert guidance in creating a comprehensive digital estate plan that aligns with your overall estate planning goals. Don’t overlook the importance of planning for your digital assets—start the process today and provide peace of mind for yourself and your loved ones.

Contact The Reecer Law Firm PLLC for Assistance

Dena Reecer, founder and owner of the Reecer Law Firm PLLC, is one of a few Texas attorneys who are Board Certified in Estate Planning and Probate Law by the Texas Board of Legal Specialization. If you are considering preparing or revising your will, contact us for more information about how we can help you. The Reecer Law Firm is located at 3105 Unicorn Lake Blvd., Denton, Texas 76210.

Can I Change My Irrevocable Trust?

By

If you have an irrevocable trust, you are familiar with the advantages. For example, you most likely know that the trust assets cannot be reached by creditors or court judgments. There are also tax advantages to you during your lifetime and the assets pass to your named beneficiaries without going through the probate process.

Irrevocable Trust

All this works well for you until you want to make changes to the irrevocable trust. The word irrevocable means “not able to be changed.” While that is technically true, with the assistance of an experienced trust attorney, you may be able to make the modifications you want.

Begin by Evaluating the Trust Document

Before using any strategy to make changes to the irrevocable trust, evaluate the trust document itself. Look at:

  • The parties to the trust. Are they alive and competent? Can they agree with the changes you propose making?
  • The trust provisions. Has there ever been changes to it? What law governs the trust and is there a provision within it about changing the terms?
  • The trust assets. What is their value? Is stock included? Life insurance? Real estate?
  • The tax status of the trust.

Ways to Change an Irrevocable Trust

All methods of change are complicated and take the skill of a knowledgeable and experienced trust attorney. Some examples are:

  • Judicial modification. You must submit your proposed changes to the court and the reasons behind your modification request. If the court agrees, it will issue an order allowing the modification.
  • Decanting. This means that you move assets from the irrevocable trust into an entirely new trust.
  • Sale of trust assets. An asset may be sold to another trust or the trust can be merged with another trust that has more favorable terms.

Each method has its own requirements that must be met to be certain the changes comply with Texas law.

Contact Wills and Trusts Attorneys at The Reecer Law Firm, P.L.L.C.

Our attorneys at The Reecer Law Firm, P.L.L.C., will evaluate your irrevocable trust document to determine if changes can be made and, if so, the best method to make the changes you desire.

Our founder, Dena A. Reecer, is Board Certified in Estate Planning and Probate Law by the Texas Board of Legal Specialization. She is one of just a few attorneys who specialize in the preparation of wills and trusts. You can contact our firm online or call us at 940-382-3168 to schedule a consultation.