Some of the gifts were easier to classify than others. The court found, for example, that a 1993 Buick had been given by the father only to Gina, and not for the use of both husband and wife. Four different gifts of $10,000 each from the father, made to qualify for the annual gift tax exemption, had clearly been made to one or the other of the parties, making it easy for the court to put each such gift in Gina’s or Edward’s column. When considering that Gina’s father had paid off a credit card debt of $12,500, the court treated the payoff as a gift to both parties because Gina and Edward had both purchased items with the credit card, so that payment of the debt benefited both of them.

As to one gift from Gina’s father, you could say that one critical word (or contraction) made the court regard the gift as having been made to both parties. Gina’s father had given $15,000 towards bricking the jointly owned house and garage. This obviously enhanced the value of the marital home and benefited both Gina and Edward. More than that, there was evidence that when Gina’s father made that particular gift, he had said it was for “ya’ll.” Some outside the South think that “ya’ll” is used below the Mason-Dixon line to refer to one person or more than one. In this instance, though, as in most cases, “ya’ll” was a plural pronoun referring to both Gina and Edward, thus supporting a ruling that the gift had been to them both.

My point in this week’s column is that when dealing with real property or gifts through an estate, it should be done in writing with the help of a professional.  In this case, had an attorney to document the gift in writing, then the father’s intent would have been clear.

When drafting legal documents, you should hire an attorney.  The assistance they provide you will make the matter much easier and clarify the details properly.  In today’s world of chat gbt and AI, there are way too many options to choose from.  If you want certainty that your document properly transfers the property in accordance with your wishes, then an attorney familiar with your jurisdictions laws, customs and requirements is invaluable.

The post “Y’all” Means Marital Property appeared first on Moak & Moak, P.C. -Attorneys At Law.

A testator is a person who leaves a Will in force at his or her death.  A Will is a legal instrument which states how the testator’s property is to be distributed at death.  A valid Will avoids many of the problems that may arise from dying without a Will and allows a person to leave property to the persons he or she desires.  You do not have to leave property to your children or grandchildren, especially if they have been disrespectful.  If your heirs have not treated you correctly or respectfully, then you can sell your property and spend your money on you.  If there is anything left, then you can name a charity or someone who has been respectful and appreciative as the recipient of your estate.  However, you MUST have a Will drafted to correctly state your intent and include provisions in the event the disrespectful folks are not successful in challenging your Will.

In addition to naming the recipients of the testator’s property, the Will also designates the individual(s) who will manage the property, make distributions in accordance with your wishes  and possibly care for minor children or grandchildren.

For a Will to accomplish any or all of these results, it must have been properly signed.  Texas recognizes three kinds of Wills: oral, handwritten and typewritten.

To sign or execute any of these Wills, the testator must meet the following basic requirements:

            1) Be at least 18 years of age, married, or serving in the armed forces;

            2) Be of sound mind at the time of execution;

            3) Not be unduly or fraudulently induced (forced or deceived) to make the Will; and

            4) Have testamentary intent.

Additional requirements exist depending on whether the Will is oral, handwritten or typewritten.  There are “cookie cutter” Will forms available, however, often they originated from another state, are outdated, or fail to meet additional requirements not listed here. For these reasons, the best approach is to have an attorney prepare a typewritten (or formal) Will and oversee the proper execution of the Will.  The attorney can also assist in adding provisions to avoid potential conflicts or contests as well as language which makes it easier to understand the testator’s intent.

To probate a Will, it must be established in court that the Will meets the requirements of execution and that the Will was not canceled or revoked. Additionally, unless the Will is “self-proved,” proof of a handwritten Will requires testimony of two witnesses to the testator’s handwriting and proof of a typewritten Will requires the testimony of one of the attesting witnesses.

A self-proved Will is one that has attached a specific form of affidavit containing certain required statements which is executed before a notary public at the same time the Will is signed or anytime thereafter but before the testator dies. A standard notary acknowledgment alone is insufficient to make the Will “self-proved.”  A self-proved Will is admitted to probate on the basis of the self-proving affidavit and there is no need to call witnesses.

A Will that is not proved in court is denied probate.  In this event, the decedent’s property passes to his or her heirs as if she died without a Will.  Again, this further emphasizes how important it is to execute a Will which meets all legal requirements so that property will pass as the testator wishes.  After proving the validity of a Will, the next step in the probate process is the administration of the estate.

Hiring an attorney to write your Will can help you ensure that the technical formalities of Texas law are followed and that your gifts are clear and easily understood.  Spending a few dollars now will save your family and loved ones from spending more later.  Not to mention the confusion and grief  that will be avoided.

The post WHAT IS A WILL ? appeared first on Moak & Moak, P.C. -Attorneys At Law.

While the monetary compensation is certainly an important factor for a landowner to consider, the nonmonetary  terms of the easement may be more important and more valuable.  Therefore, it is imperative to document any statement or promise made by the company seeking the pipeline into a written agreement.

Each property is unique, and the following considerations may not apply the same way to different properties because of their specific use and characteristics.  While this list is based on a pipeline easement, these terms may also be helpful in negotiating other easements, such as those for electric or transmission lines, water, wastewater, drainage, or related infrastructure easements.

I will start with a money saving tip.  Because most attorneys bill by a percentage of the increased payment they can negotiate with the pipeline company, a client can make this negotiation easier by doing as much legwork as possible before going to the attorney’s office.  For example, a landowner could collect necessary documents such as the legal description or plat of the property, saving the attorney the time of locating that information.  Another time saver would be for the landowner to prepare a draft of the easement agreement or a list of terms they desire.  This will save time when sitting down with the attorney.

Check on Eminent Domain Authority:

Often the company seeking the pipeline will tell the landowner they have the ability to obtain what they want through eminent domain.  However, you should check to see if the company is validly registered with the State Comproller’s office as having eminent domain power.  Ask the company representative for a copy of the statute that grants them eminent domain power and evidence supporting their claim as a common carrier.  If it is a transmission line, obtain a copy of the company’s Certificate of Convenience and Necessity from the Public Utility Commission.  This will explain what condemnation power the company has and may provide additional information about the proposed project.

Determine Compensation:

Generally, payment is based per rod (a rod is 16.5 feet), per acre or per foot of the pipeline.  Consider seeking payment per square foot rather than per foot or per rod  to be adequately compensated for the entire area the company will use.  It is common for the company to seek a temporary work area, as well, and you should seek compensation for this temporary work area.

It is important to know that Texas courts recognize remainder damages for the decreased value of the remainder of the property outside of the easement strip.  For instance, if a pipeline splits a 10 acre tract, the acreage remaining outside the easement will likely be worth less per acre than if the 10 acres were sold as a whole.

You should also discuss the payment’s tax implications with your CPA or financial advisor.  How the payment is described or structured will make a difference.

The following list of key points may be helpful:

• Seek a Specific Easement
• Seek a Nonexclusive Easement
• Limit Easement to One pipeline
• Determine Pipeline Diameter
• Require a Specific Pipeline Depth
• Request Payment for Damages
• Have a Timber Management Company or Agricultural Consultant evaluate the property
• Have Property Appraised
• Specify Fencing Requirements
• Include Repairs to existing roads
• Determine Maintenance requirements
• Define when the easement will terminate
• State Requirements for Removing Pipe and Facilities
• State Remedies for Violating Agreement
• Include Liability and Indemnification Provisions
• List Landowner as “Additional Insured”
• Do Not be responsible for Warranty of Title
• Limit Terms of Transferability
• Request a Most-Favored-Nations Clause
• Use Choice of Law provision
• Include a Forum Clause

Finally, a licensed attorney familiar with easement negotiation issues should review all pipeline easement agreements BEFORE signing.  Although hiring an attorney who specializes in representing landowners in these type of transactions may be an additional cost, it could save money in the long run by preventing a dispute from arising due to an unclear or inadequate easement agreement.  Additionally, the fee arrangement with attorneys in these matters is usually a contingency fee agreement.  This means the attorney is paid based on the increased amount of compensation they produce for the landowner who’s property is being taken.  So, no cost up front.  You are not likely to stop the pipeline, but you can negotiate what is on your property, possibly where it crosses your property and certainly how much you are paid for the permanent taking of your property.

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Not only do I write Wills, I also see a lot of homemade Wills.  All Wills are not the same and while there are some similarities, each situation requires thought and detail in the way their affairs are handled.  Homemade or Will forms can cause many issues, so I thought I would present you with a “homemade” Will that I was asked to probate.  The names have been changed to protect the individuals involved.  The following is a rendition of the Will:

            “I am writing of my will mineself that dam lawyir want he should have too much money, he ask too many answers about the family.  First thing I want I don’t want mine brother Oscar get a G    D     thing I got.  He is a mumser he done me out of forty dollars fourteen years since.

            I want it that mine sister hilda get the North Sixtie Akers of at where I am homing it now, I bet she don’t get that gonoph husband of hers to brake twenty akers next plowing.  She can’t have it if she lets Oscar live on it, I want I should have it back if she does.

            Tell Mamma that six hundret dollars she been looking for ten years is buried from the backhouse behind about ten feet down.  She better let little Frederich do the digging and count it when he come up.

            Pastor Luchnitz can have three hundret dollars if he kisses the book he won’t preach no more dumhead talk about politiks, He should a roof put on the meeting house with and the elders should the bills look at.

            Mamma should the rest get, but I want it so mine brother Adolph should tell here what not she should do so no more slick irishers sell her vakom cleaners.  They noise like hell and a broom don’t cost so much.

            I want it that mine brother Adolph be my execter and I want it that the judge please make Adolph plenty bond put up and watch him like hell.  Adolph is a good bisness man but only a dumkopf would trust him with a busted pfennig.

            I want dam sure that schliemiel Oscar don’t nothing get, tell Adolph he can have a hundret dollars if he proves judge, Oscar don’t nothing get.  That dam sure fix Oscar.

            Signed: Herman Oberweiss”

Probating Mr. Oberweiss’ “will”, unfortunately, was difficult if not impossible because it has several problems.

To be a valid Will in Texas a Will must show testamentary intent.  However, Mr. Oberweiss states in paragraph two of his Will that “if she lets Oscar live on it, I want I should have it back if she does.”  This seems to indicate Mr. Oberweiss would still be alive.

Texas law also requires two witnesses subscribe their names to the Will in the testator’s presence.  Mr. Oberweiss’ Will lacks the signature of any witnesses.

Another problem area for Mr. Oberweiss is his failure to adequately identify his heirs.  Who are “Oscar”, “hilda”, “Mamma”, “Little Frederich” and “Adolph?”  They appear to be family but we do not have their last names and so identifying them is difficult.  For example, while Mr. Oberweiss is familiar with who “Mamma” is, we do not know from the Will.  Several “Mammas” could appear claiming to be the one referred to in the Will.

Mr. Oberweiss would like “Mamma” to get at least six hundred dollars, that she has been trying to find for ten years, however, we do not have an adequate description of where the money really is.  It is apparently buried behind what Mr. Oberweiss calls the “backhouse,” but where is the backhouse ?

Further, it is Mr. Oberweiss’ desire “helda” get the “North Sixtie Akers.” How do we know where the “North Sixtie Akers” is?  Apparently it is where he was “homing” at the time he wrote the Will.  But what does “homing” mean?  Where he lived is a good guess, but we really do not know that is what he meant.  What if Mr. Oberweiss was no longer “homing” the property he refers to when he died?   What then ?

It is clear Mr. Oberweiss belonged to a congregation led by a “pastor.”  While several denominations use this term, Mr. Oberweiss was obviously German and therefore would have probably been Lutheran or, possibly, Roman Catholic.  But would a member of either denomination (or several others who use the term “pastor”) have referred to his church as a “meeting house?”  Neither Lutherans nor Roman Catholics have “elders” at the congregational level.  Presbyterians do, and, on occasion, a Presbyterian minister is addressed as “pastor.”  But “meeting house?”  The term is commonly associated with the Society of Friends, who have no “pastors.”  Even more to the point, however – Mr. Oberweiss had a “pastor” and therefore could hardly have been Jewish.  Yet don’t you wonder why a well to do farmer of German descent, living in East Texas, would use Yiddish words of execration is speaking of Oscar and Hilda’s husband?

I must confess Herman Oberweiss, nor his family, really exist.  He was the creation of Will Sears.  Mr. Sears was an attorney in Houston who created Herman Oberweiss’ Will for a Law School Banquet.  Mr. Sears passed away in December of 1990.  This was one of my father’s favorite articles, so thinking of him this Thanksgiving, I decided to publish it again.

While Herman Oberweiss does not exist, this Will does afford me the opportunity to caution you on the hazards of writing your own Will using a form from the Internet or Do-It-Yourself Will kit.  You may save a few dollars, as did Herman, but in the long run the goal of a Will is to make sure your last wishes are accomplished.  Hiring an attorney to write your Will can help you ensure that the technical formalities of Texas law are followed and that your gifts are clear and easily understood.  Spending a few dollars now will save your family and loved ones from spending more later.  Not to mention the confusion and grief  that will be avoided.  THAT will damn sure fix Oscar.

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The Executor is the person who carries out the instructions in your Will and who pays the estate’s debts and taxes.  Now I do not mean the Executor pays these out of his or her pocket, but instead makes sure these items are paid with the proceeds of the estate.  Sometimes the Executor does pay these bills and therefore must keep an accurate ledger so that they can be reimbursed from the estate.  Because the Executor will have broad responsibilities and powers it is important to choose a competent and trustworthy Executor.

An Executor can be any person or institution (such as a bank or trust company) you choose.  Here are some tips on what you should consider when choosing an Executor:

• Are they experienced and competent in business matters?
• Are they familiar with your business, finances and property?
• Are they willing and able to act as your Executor?
• Are they able to spend the time necessary to perform the duties of an Executor?
• Are they able to work with the estate’s attorney and accountant?
• Are they able to provide for the continuation of your business?

Another important item to consider when selecting an Executor is what would occur if they are unable to act as Executor when the need arises?  It is best to have an alternate Executor and, if possible, a third.  The reason for this is simple.  If you do not select an alternate, then it is up to the court to do so.  The person the court selects may not be someone you would want.

The Executor’s responsibilities include the following:

• The first step is to file the the Will.  In order to do that, an   application must be filed with the Probate Court located in the jurisdiction in which the decedent was domiciled at the time of his or her death;

• A hearing will be held in order for the judge to review the Will to make sure it is proper and then to be presented proof of death; 

• Following the probate hearing, and after the judge signs an order admitting the Will, the County Clerk will issue Letters Testamentary to the individual or institution designated in the Will as the Executor (after the Executor has signed an Oath of Office);

• Giving a general notice to unsecured creditors within 30 days of his or her appointment;
• Within 60 days of the Executor’s appointment, giving notice by certified or registered mail to each secured creditor whose debt is secured by a lien on Texas real property or personal property owned by the estate

• Collecting the following documents to establish rights for insurance, pensions, Social Security, and ownership: Will, birth and marriage certificates, Social Security number, citizenship papers, insurance policies (life, health, accident, and property), bank books and statements, deeds, leases, care title/registration, income tax returns, veterans discharge certificates, disability claims, unpaid bills, property tax bills, and credit card information;
• Notify the post office, relatives, friends, employer, insurance agents (life, health, and accident), religious, fraternal, civic, and veterans organizations, and unions of your death;
• Collecting, preserving, and appraising the personal property of the estate;
• Securing the residence and reviewing the insurance coverage.
• Preparing an Inventory, Appraisement and List of Claim’s for your estate.  The Inventory, Appraisement, and List of Claims must list all the decedent’s probate assets and all claims that are owed by third persons to the estate.  (Note that the term “claims” in this context refers not to the decedent’s debts or claims the decedent owes to others, but only to amounts that other people owe to the decedent.)
• Paying all valid debts including funeral costs, fees and expenses incurred in administration, medical bills, and utilities from your estate account;
• Applying for Social Security benefits and employer identification number;Determine whether your estate has any tax liability and making sure your final tax return is filed;
• Distributing the money and property in accordance with the Will.

As you can see, the Executor plays a very important role in the administration of the Testator’s estate.  Usually the attorney handling the estate will assist the Executor with the above duties, but it still requires someone who is familiar with your affairs so that all of the above information can be collected and addressed.

While you can elect to pay the Executor compensation for their time and effort, this is not always the case.  Thus, make sure you have talked over your decision with the person you select to make sure they are up to the task.  And as always, consult with an attorney when making this choice.

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Probate is the process a person goes through in court when a person dies leaving a Will.  Remember, just because someone dies with a Will does not automatically mean they must go through the probate process.  This depends on what type of property they owned at their death and how well their Will was drafted.  If someone passed away and left a will, be sure to check with an attorney skilled in this area to determine if there is a need to probate the Will.

Only property owned by the decedent at death can be disposed of by a Will.  A Will cannot dispose of “nonprobate assets.”   What are nonprobate assets ?  They are assets which pass at death other than by Will or intestacy.  The principal types of nonprobate assets include property passing by contract, property passing by survivorship, and property held in trust.

Property passing by contract includes life insurance proceeds, IRAs and employee benefit plan proceeds, such as the proceeds payable under a pension, profit-sharing, or employee retirement plan. These assets pass outside the Will to the persons named by the decedent in the appropriate beneficiary designations.  Thus, it is important to periodically review the beneficiary designations with respect to these types of assets and to update them as necessary.

Property held by the decedent and another person and with rights of survivorship passes outside the Will directly to the survivor.  Survivorship assets typically include certain types of bank accounts, certificates of deposit, stocks and bonds, and certain savings bonds issued by the United States Government, such as Series EE savings bonds.  If these are not addressed when you prepare your Will, then all your careful estate planning could be for naught.

Vehicles, farm equipment, recreational vehicles and guns are another example of assets that could pass outside of probate, if structured properly.

Yet another category of property that passes outside of probate is property held in trust for the benefit of the decedent.  The trust may have been created by the decedent during his or her lifetime for property management purposes or by someone else, such as a parent of the decedent.  Trust assets pass under the terms of the trust rather than under the terms of the decedent’s Will.

Many people set up accounts with one of their children.  Thinking this will make it easier for the child to pay bills.  However, this could open the parent up to liabilities the child has.  Another potential problem is they feel the selected child can then gift the account equally to their siblings.  However, there is no legal requirement they do so, and if they do equally divide the account with their siblings, there are possible tax consequences.

It is important to determine the extent of one’s nonprobate assets when planning the disposition of one’s property at death.  If a substantial portion of the assets are nonprobate assets that do not pass under the Will, even a well-drafted Will may be insufficient to carry out the testator’s intent in disposing of his or her property.  Therefore, be sure to provide your attorney with information regarding all of your possessions so that he may be sure to address them when discussing your Will.

The post WHAT ARE NONPROBATE ASSETS? appeared first on Moak & Moak, P.C. -Attorneys At Law.

Whether you’re sitting on a chest of gold or planning to amass one, knowing how to navigate the estate tax landscape is crucial.  You will need a CPA that can provide the basic understanding of portability for your benefit.

Estate tax, the levy on the transfer of the deceased’s estate, stands as a pivotal consideration in estate planning.  This tax, while federal, affects Texans in profound ways, influencing decisions on estate distribution and planning strategies.  Its purpose, to tax wealth transfers, impacts estate sizes variably, with specific exemptions providing some relief.

The concept of portability within estate tax legislation marks a significant shift in how spouses can manage their combined estate’s tax burden.  By allowing the surviving spouse to inherit any unused federal estate tax exemption from their deceased partner, portability offers a pathway to substantial tax savings.  This mechanism, pertinent under federal law, requires strategic application to maximize its benefits within Texas.

Portability’s benefits, while significant, come with strict eligibility criteria. The Internal Revenue Service (IRS) delineates these, emphasizing the necessity of a timely and accurate estate tax return filing.  For Texans, understanding these criteria is fundamental to leveraging portability effectively, ensuring that no potential tax advantage goes unutilized.  The deadline for filing is 9 months after the date of death.  This deadline can be extended, but again a proper filing must be made by your CPA or tax professional.

The election process for portability involves procedural diligence.  Filing IRS Form 706, a step necessary even when no estate tax is due, embodies this process’s core.  For Texans, adhering to the IRS’s filing deadlines is critical, as any oversight here can negate the opportunity for tax savings.

Married couples in Texas stand to gain a significant benefit from portability.  This provision can mitigate estate taxes dramatically, ensuring a larger portion of the estate benefits the heirs.  Through strategic use of portability, countless Texan families have navigated the estate tax landscape more favorably, securing financial legacies.

If you have recently lost a loved one, you should seek the assistance of an estate attorney with experience in handling estates AND a tax professional.  These two professionals should be able to walk you through the process of transferring assets (probate) and protect any tax protections that you are available.

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Most of us have adjusted to balancing children, work and finding some time for ourselves.  But when we add caring for an aging parent(s), it often becomes too much.  And usually it’s the “me” part that is sacrificed…until you hit burn out.

Here are some ways to leverage your time and resources so you can also take care of yourself.

Enlist Your Kids

Even the smallest child can spend charming one-on-one time with a grandparent.  If your parent lives with or near you, they can spend time together in person.  If your parent is not near you, they can Skype on the computer, use FaceTime or play multi-player online games.  Your children, no matter what their ages, will benefit from spending time with Grandma or Grandpa, they will see how you value and care for aging family members—and you will get some extra time to return phone calls, make dinner, or even catch a quick nap!

Ask About Options at Work

Check with your employer’s human resources department about resources that might be available to you. Depending on how long you expect to be caring for your parent, there may be a multitude of options available to you, including elder care research and referral services, flex time, even working from home options.  The Family and Medical Leave Act (FMLA) calls for eligible employees to receive 12 weeks of unpaid job-protected leave. (Private employers with less than 50 employees are exempt.)

Seek Assistance

There are legal and community resources that can help you make the best care and financial decisions for your parent.  A local Elder Care attorney can prepare the necessary legal documents and help you maximize your parent’s income, long-term care insurance and retirement savings, and qualify for VA or Medicaid benefits, if applicable.  He/she will also be familiar with various living communities in the area and in-home care agencies. You can also hire someone to review and verify/dispute insurance claims and medical billing.

Find Your “Me” Time

Stress is your biggest enemy and you have to find ways to reduce it.  Joining a caregiver group, in person or online, will let you share your questions and frustrations, and learn how other caregivers are coping.  Don’t be afraid to ask favors of friends and other relatives, such as picking up your kids while you go to the doctor with your parent.  You could also learn to order in dinner every now and then without feeling guilty. Learn what you need to maintain your stamina, energy and positive outlook. That may include regular exercise (a yoga class, walk or run), a weekly outing with friends, or time to read or simply watch TV.

The post How to Take Care of Yourself as You Take Care of Others appeared first on Moak & Moak, P.C. -Attorneys At Law.

Be sure to update your address with key agencies.  After settling into your new home, one of your first tasks should be updating your mailing address with the necessary agencies.  Start by notifying the U.S. Postal Service, this can be done in person or conveniently online, to make sure your mail is forwarded without interruption.

It’s also essential to inform your tax professional so that they can notify the IRS by submitting Form 8822. This helps prevent any delays in receiving tax documents, refunds, or other important communications tied to your legal and financial responsibilities.

Align your home title with your estate plan.  Take a moment to review your deed and confirm how the property is titled.  It’s important that this aligns with your estate planning strategy to ensure your goals are carried out smoothly.

If your estate plan included instructions related to a former property, be sure to update those details now that you’ve moved.

Revisit your life insurance and beneficiaries.  If you have taken out a mortgage to finance your new home, now is the time to review your life insurance coverage. It is essential to ensure your policy is sufficient to cover the mortgage balance in the event of your death, especially if you have a spouse or children who may continue living in the home.  Even if they don’t remain in the home, the insurance payout can provide financial security during a difficult transition.

This is also a smart moment to revisit your beneficiary designations with your financial institutions.  Major life events like purchasing a home can quickly make parts of your estate plan outdated. If your designations aren’t aligned with your overall estate planning documents, you risk unintentionally excluding a loved one or distributing assets in a way that doesn’t reflect your wishes.

Lastly, connect with your insurance provider to confirm you are receiving any available discounts. Many companies offer reduced rates for bundling homeowner’s and auto insurance, and owning a home may qualify you for savings not available to renters. Taking these steps ensures you’re financially protected, and making the most of your coverage.

Make your estate plan work with your new home.  Buying a home changes your financial picture, and your estate plan should reflect that. Whether you are updating a Will, changing beneficiaries, or making sure your deed is properly titled, professional guidance makes a difference, so seek an attorney experienced in estate planning to assist you.

The post Important Estate Planning Steps for New Homeowners appeared first on Moak & Moak, P.C. -Attorneys At Law.

Everyone should have the basic estate plan components.  A life insurance policy, a Will, a designation of agent to control disposition of remains, a durable power of attorney and an advance directive are all important aspects of an estate plan that should be established at the beginning of the planning process.

The prospect of estate planning can seem overwhelming, but don’t put it off. Having an estate plan is crucial to ensuring your money and assets go to your intended heirs.

The good news is your family probably won’t have to worry about paying estate taxes. In 2026, you’d have to die with assets exceeding $15 million (twice that for a couple) to trigger the estate tax.  You should be aware, there is a proposal in Congress that would cut the exemption in half.

Most estates would still be exempt from this tax even with a $6 million exemption though. The estate tax impacts a tiny percentage of the population,  While some people worry about how the estate tax affects family farms and small businesses, provisions in the law help shield them from big tax bills.

The bad news is that avoiding estate tax is only one of your worries.  Heirs may be responsible for paying federal income taxes on some assets, such as capital gains, and retirement accounts, and if you don’t plan correctly, your money could end up in the hands of an ex-spouse or creditor.

You want to make sure your stuff goes to the right people. That means everyone can benefit from estate planning.

1. Have an Insurance Strategy Session.

Life insurance, long-term care insurance, and health care insurance are all important pieces in the advance planning puzzle. Sit down with your spouse and map out your probable needs for the future, including the possibility that one or both of you might require some form of long-term care in the future (as the majority of seniors do). Match those needs with your income. That way, you’ll have numbers on paper, which is a great way to get the ball rolling.

2. Buy a Box.

That’s right, a single box can make all the difference. By putting all of your essential documents in one, you’ll ensure that everything you need throughout the estate planning process is at your fingertips. As an added bonus, your loved ones will be able to easily retrieve everything they need, should you ever become incapacitated (or when you pass away).

3. Check your beneficiaries

One way to avoid probate court is to have beneficiaries named for your assets. Some accounts, such as retirement funds and life insurance policies, let owners name beneficiaries who will receive that particular asset.

If your vehicle(s) are paid off, you can utilize the right of survivorship provision on your vehicle title.  Signing this section of the vehicle title can make transferring ownership of vehicles very easy.

A beneficiary or TOD designation trumps anything written in a will.  So, it’s a good idea to review beneficiary information after every major life change, including the birth of children, marriage or divorce.

Additionally, you might want to convert traditional IRA or 401(k) accounts to Roth accounts to avoid tax penatlies.

4. Make an appointment.

Hiring an experienced professional takes an enormous burden off your shoulders and lends confidence in an error-free planning process. An experienced estate planning attorney can look at your insurance worksheet, thumb through the documents in that box, and begin crafting a plan to protect your assets and your loved ones for the future. There’s a lot to think about it, but with an attorney on your side, there’s nothing to worry about.

Your estate plan should never be a “one and done thing.” You should review the plan every five to seven years, to adapt to significant life events, tax law changes, the addition of more children or their changing needs.  It is also important to keep tabs on your insurance policies and investments, as they all tie into the estate plan and can fluctuate based on the economic environment.

When drafting these documents, you should seek professionals who are trained and familiar with estate planning and probate.  The advice they provide will assist you in making the best and least complicated plan.

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