Client Resources
What Is A Will?
A will is a written legal document which is used by an individual to distribute the assets of their estate upon their death. The will provides instructions to the executor of the estate and may provide for the following actions:
- Designation of beneficiaries. Beneficiaries are those people or entities that will receive some or all of your property upon your death. Beneficiaries may be made up of a number of individuals and entities such as your children, grandchildren, other family or friends, churches and charitable organizations, just to name a few. Through your will you have the ability to make specific bequest to a beneficiary such as leaving a child a specific piece of jewelry, leaving college funds for grandchildren or leaving a final donation to your church. Upon your death, our will is irrevocable which helps insure that your final wishes are met.
- Appoint Guardians for Minor Children. One of the most important reasons for you to have a will is to appoint a guardian for your minor children in the event you and your spouse died before your children turn 18. Failure to appoint guardians to oversee your children’s well being and financial estate will generally result in the court appointing someone for you.
- Establishment of an Executor of Your Estate. Through your will you have the opportunity to designate an individual or entity who will be charged with the responsibility of administering your estate. Upon approval by the court, this person or entity will be responsible for working with the court to pay your final debts, expenses and taxes, as well as taking action to distribute the assets of your estate to the beneficiaries named in your will. Your executor plays a vital role in carrying out your final wishes based on the instructions set forth in your will and you should take careful consideration in appointing this person.
- Establish a Trust. Often times a decedent wishes to gift a minor child or grandchild a lump some of money but does not want the gift to be mismanaged when the child or grandchild is a young adult. Through your will you can establish a trust for the benefit of the beneficiary and a trustee who will manage the assets until the beneficiary reaches a predetermined age, at which time the trust is dissolved and distributed outright to the beneficiary.
Why Do I need A Will?
If you die without a will in Texas, you are held to have died “intestate” meaning without a will. If you die intestate, the assets of your estate are distributed to your heirs at law according the statutory guidelines set forth in the Texas Probate Code. Dying without a will means you die without having control over your estate and without any control over who will receive the assets of your estate. Unfortunately this can lead to strife with family members feuding over the assets to be distributed.
Are All of My Assets Controlled by My Will?
- No. Your will only distributes property that is contained in your estate upon your death. Many times individuals hold assets in a manner in which the assets are not affected by a will. In certain instances, removing assets from your estate can be a wise decision when it comes to estate planning as this often allows you greater control over your assets and may reduce the costs associated with the administration of your estate. Some of the assets that are not affected by your will include:
- Life Insurance and Retirement Plans. The cash proceeds of life insurance plans and the assets held in retirement accounts are paid to whomever you have designated as a beneficiary. Upon your death, theses assets pass immediately to the named beneficiary and are not considered part of your estate for administration purposes.
- Joint Tenants with Right of Survivorship (JTWROS). Any assets owned as Joint Tenants with Right of Survivorship pass directly to the surviving joint tenant upon your death. Assets that can be held as JTWROS include, bank accounts, real property, and automobiles just to name a few.
- “Transfer on Death” or “Pay on Death”. Accounts such as non qualified brokerage accounts and regular bank accounts often allow the account holder to name a Transfer on Death (TOD) or Pay on Death (POD). Upon your death the assets of the account pass directly to the named beneficiary.
- Living Trusts. Assets in a living trust are distributed according to the instructions of the trust. Because the assets are held in trust, they are not part of your estate and are not affected by your will.
If you have question regarding estate planning or probate issues, please contact our offices at 817.267.4242 or email us at dmhays@hayslawfirm.com.
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