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Wills

What Happens To Your House If You Die Without A Will In Texas?

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When a person dies without a will in Texas, their estate will be distributed according to the state’s intestacy laws. These laws dictate who will inherit the deceased person’s property and assets, and in what order of priority.

your house and no will

First, one might think that any property owned jointly with a right of survivorship, such as a jointly owned home, will automatically pass to the surviving joint owner. However, in Texas this is not true. Home ownership does not automatically pass to the next person, unless there was already a Transfer on Death Deed in Place (TODD).

This means that being joint owner with your spouse, only indicates that both of you own one half of the property, the deceased spouse’s share does not automatically belong to the surviving spouse under intestacy laws. In fact, depending on your family make up, it could cause the surviving spouse to become a co-owner with their step-children.

Unlike a house, assets with a named beneficiary, such as life insurance policies, retirement accounts, or payable-on-death bank accounts, will pass directly to the designated beneficiary. These are also assets that pass outside of probate.

The house, however, will have to be distributed like all other remaining assets based on the deceased person’s family structure.

If the deceased person was married with no children, all assets may not go to the surviving spouse, because Texas intestacy laws, do leave assets to a decedent’s parents or siblings in case of no children.

If the deceased person was married with children, the surviving spouse will receive their share of the community property (property acquired during the marriage) and 1/3rd share of the Community property and one-third of separate property in the form of a life estate (property owned before the marriage or acquired by gift or inheritance). The remaining two-thirds of separate and community property will go to the children or their descendants.

If the deceased person was not married but had children, all assets will go to the children or their descendants. If there are no surviving children or descendants, then the assets will go to the deceased person’s parents, and if they are also deceased, then to the deceased person’s siblings or their descendants. If there are no surviving siblings or descendants, the assets will be distributed to the deceased person’s grandparents, and so on down the line of inheritance.

If the deceased person has no surviving relatives, then the assets will pass to the state of Texas.

It’s important to note that the distribution of assets according to the intestacy laws may not align with the deceased person’s wishes. For example, if the deceased person was unmarried but had a long-term partner, that partner would not inherit anything under the intestacy laws. Additionally, if the deceased person had minor children, the court will appoint a guardian for them, which may not be the person the deceased person would have chosen.

Having a will is crucial to ensuring that your assets are distributed according to your wishes and that your loved ones are taken care of after your death. If you do not have a will, it’s important to consult with an experienced estate planning attorney to understand your options and

5 Reasons To Create A Will

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A will is a legal document allowing individuals to dictate how their assets will be distributed after their death. While many people believe that a will is only necessary for the wealthy or those with complex estates, the truth is that everyone should have a will in place. In this blog post, we will discuss the importance of having a will and why it is essential for everyone, regardless of their financial situation.

1. Control over distribution of assets

    Create a will

    One of the most significant advantages of having a will is that it allows you to have control over the distribution of your assets. Without a will, your estate will be distributed according to the laws of intestacy, which may not align with your wishes. With a will, you can specify who will receive your property, how it will be divided, and when it will be distributed.

    2. Avoiding family disputes

    In the absence of a will, family members may disagree about how your assets should be distributed. This can lead to lengthy and expensive legal battles, which can strain relationships and cause irreparable damage. Having a will in place can help avoid these disputes by providing clear instructions on how your assets should be divided.

    3. Naming a guardian for children

    If you have minor children, a will is especially important. Without a will, the court will decide who will become the legal guardian of your children if both parents die. By creating a will, you can name a guardian for your children and ensure that they will be cared for by someone you trust.

    4. Minimizing estate taxes

    Another advantage of having a will is that it can help minimize estate taxes. By using specific strategies in your will, such as creating a trust, you can reduce the tax burden on your estate and ensure that more of your assets are passed on to your heirs.

    5. Peace of mind

    Finally, having a will can provide peace of mind. There is value in knowing that your assets will be distributed according to your wishes and that your loved ones will be taken care of. People who have created their will have indicated that it gave them a sense of security and reduced stress.

    In conclusion, a will is an essential document that everyone should have in place. It allows you to control the distribution of your assets, avoid family disputes, name a guardian for children, minimize estate taxes, and provides peace of mind. If you do not have a will, it is important to consult with an experienced estate planning attorney to ensure that your wishes are carried out after your death.

    How To Avoid Probate

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    Probate is the court-supervised process of distributing assets after someone passes away. Probate can be time-consuming, expensive, and stressful for loved ones. Fortunately, there are ways to avoid probate. Here are some tips on how to avoid probate:

    Create a Living Trust

    Avoid Probate

    One of the most effective ways to avoid probate is to create a living trust. A living trust is a legal document that allows you to transfer your assets to a trust while you are alive. The assets in the trust can be managed by a trustee, who can distribute them to the beneficiaries according to your wishes after you pass away. Because the assets are owned by the trust and not by you, they do not have to go through probate.

    Joint Ownership

    Another way to avoid probate is to hold assets in joint ownership with another person. For example, you can own property with your spouse as joint tenants with right of survivorship. This means that if one spouse passes away, the other spouse automatically becomes the owner of the property, and it does not have to go through probate.

    Beneficiary Designations

    Certain assets, such as retirement accounts and life insurance policies, allow you to name a beneficiary. When you pass away, these assets go directly to the named beneficiary and do not have to go through probate.

    Transfer on Death (TOD) Designations

    Similar to beneficiary designations, transfer on death (TOD) designations allow you to name a beneficiary to receive certain assets after you pass away. This can include bank accounts, securities, and real estate. When you pass away, the asset is transferred to the named beneficiary without having to go through probate.

    Small Estate Affidavit

    In Texas, if the estate is worth less than $75,000, the beneficiaries may be able to use a small estate affidavit to avoid probate. This is a simplified process that allows the beneficiaries to transfer the assets without having to go through the probate court.

    Conclusion

    Probate can be a time-consuming and expensive process. However, there are ways to avoid probate, such as creating a living trust, joint ownership, beneficiary designations, transfer on death designations, and small estate affidavits. If you are considering ways to avoid probate, it is important to consult with an experienced estate planning attorney to help you create a plan that best fits your needs and goals. An attorney can help you understand your legal options and protect your rights.

    We have helped hundreds of people go through probate, with and without a will; we can help you too! Call our office at 832.408.0505 and book your Legal Strategy Session today!

    How To Prevent Will Contests With A “No Contest” Clause

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    Will Contest Clause

    A will contest is a legal challenge to the validity of a will. In some cases, a disgruntled beneficiary may challenge a will in an attempt to receive a larger share of the estate or to overturn the wishes of the deceased. One way to prevent will contests is to include a “no contest” clause in your will.

    A no contest clause, also known as an in terrorem clause, is a provision in a will that disinherits a beneficiary who contests the validity of the will. This means that if a beneficiary challenges the will and loses, they will receive nothing from the estate.

    Here are some tips on how to prevent will contests with a no contest clause:

    1. Work with an experienced estate planning attorney: An attorney can help you draft a no contest clause that is tailored to your specific needs and that complies with the laws in your state.
    1. Be clear and specific: The no contest clause should be clear and specific about what actions will trigger the clause. For example, it may state that any beneficiary who contests the validity of the will or challenges any provision of the will shall be disinherited.
    1. Be fair: The no contest clause should be fair and reasonable. It should not be so draconian that it discourages beneficiaries from raising legitimate concerns about the validity of the will.
    1. Consider alternative dispute resolution: If you are concerned about the possibility of a will contest, you may want to include a provision that requires beneficiaries to resolve any disputes through mediation or arbitration rather than through the courts.
    1. Communicate with your beneficiaries: It’s important to communicate with your beneficiaries about the reasons for including a no contest clause in your will. This can help prevent misunderstandings and disputes down the road.

    In conclusion, a no contest clause can be an effective tool for preventing will contests. However, it’s important to work with an experienced estate planning attorney to ensure that the clause is drafted properly and is fair to all beneficiaries. By following these tips, you can help ensure that your final wishes are carried out and that your estate is distributed according to your wishes. We have helped hundreds of people get their estate plan in order; we can help you too! Call our office at 832.408.0505 and book your Legal Strategy Session today!

    Estate Planning: Why Me, Why Now and is a Will Enough?

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    You have worked hard for years, have family members and friends you care about, and have approached a time in your life when “estate planning” sounds like something you should do, but you are not exactly sure why. You may feel that you are not wealthy enough or old enough to bother or care. Or you may already have a Will and feel that you are all set on that front. Whatever your current position, consider these common misconceptions about estate planning:

    Estate Planning and Wills
    1. Estate planning is for wealthy(ier) people.
      • False. Anyone who has survived to age eighteen and beyond has likely accumulated a few possessions that are of some monetary or sentimental value. While things like your home, car, and financial accounts are self-evident assets, that collection of superhero figurines or your iTunes library also deserve proper attention. There is no minimum asset value required to justify having a Will, especially since there are many low-cost options, including estate planning attorneys who will not charge an arm and a leg for a basic Will.
    2. Estate planning is for old(er) people.
      • False. Tragedy can strike at any moment, and it is best to have your affairs in order so as not to put your loved ones in a financial or bureaucratic bind while they are grieving. Young parents should ensure that proper guardians are in place to take care of their children if they are no longer around, lest the children end up with the most irresponsible member of the family or, worse, a complete stranger.
    3. Estate planning means having a Will.
      • False. Having a Will is smart because it puts you in charge of the disposition of your assets. A Will allows you to pick your executor, designate the guardians for your minor children, and name any individuals and charitable organizations as beneficiaries of your estate. If you were to die without a Will (i.e., intestate), the law of the state where you reside at your death would govern who receives what part of your estate, who administers your estate, and who takes care of your children. There are some situations where state law may override the provisions in your Will (e.g., a spouse’s elective share), but for the most part, you are in the driver’s seat.

    However, a Will is only one tool in the estate planning toolbox. There are other vehicles that allow you to remain in control of your possessions and family’s future during life and upon death. Depending on your situation, a Will alone may not be the most efficient or the most cost-effective means to achieve your goals.

    Upon your passing, your Will has to go through probate – a process whereby a court reviews your Will and determines its validity. It is a lengthy and often costly process in many states to begin with and can become even lengthier if a Will is contested (e.g., on the grounds that someone coerced or cajoled their way into an inheritance). The delay in the disposition of your assets and the accompanying legal costs may put your family members in financial straits. If your goal is to ensure that your survivors’ cash flow is uninterrupted after your death, it would be wise to incorporate a trust or a life insurance policy into your estate plan. These assets are considered “non-probate” – they pass outside of your Will and the probate process.

    There are other non-probate assets that may constitute a part of your estate. For example, a joint tenancy arrangement on your home, IRA, and payable-on-death (POD) or transfer-on-death (TOD) accounts designate specific beneficiaries upon your death, and the assets pass to them without the delay and cost of the probate process. If your Will provides for a different beneficiary of your IRA account or another non-probate asset, it will be superseded by the beneficiary designation form on file with that accounts or asset’s administrator. Therefore, it is wise to review all of your beneficiary designations periodically, but certainly upon life-altering events like marriage, birth of a child, or divorce.

    You are neither too young nor too poor to engage in estate planning! Just remember that a Will may be a necessary, but not the only means to plan your estate in an efficient and cost-effective manner. Keep on top of your assets, and your survivors will have another good thing to say about you at your memorial.

    Did Whitney Houston Leave Too Much Money To Bobbi Kristina?

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    Whitney Houston Bobbi Kristina

    Whitney Houston’s estate was worth approximately $20 million when she died – plenty to meet the needs of her only daughter – Bobbi Kristina. Sadly, only a few years after Houston’s death, Bobbi Kristina died as well.

    Although Bobbi Kristina’s previous boyfriend, Nick Gordon, is still a suspect in her murder, many say that having access to so much money at a young age was a contributing factor. Sadly, Houston’s estate planning mistakes are all too common.

    Aunt & Grandmother Say Will Did Not Depict Houston’s Intentions

    Houston’s aunt and grandmother filed a lawsuit to re-write the will as they say it didn’t accurately depict what Whitney really wanted for Bobbi-Kristina. They claimed that she was too young to handle so much money.

    Although they likely had the best of intentions, probate courts must follow the terms of the actual will or trust documents, not what the person who died might have otherwise intended.

    Whitney Houston’s will was created in 1993, specifying that a trust would be created after she died for any children she may have (so before Bobbi-Kristina was even born). Unfortunately, she never updated her will before she died.

    Inheriting Money at a Young Age is Never a Good Idea

    Whether this tragedy could have been adverted if Bobbi Kristina’s distributions were delayed until she was older is anyone’s guess. The bottom line is that inheriting large sums of money at a young age is generally never a good idea. Although the young beneficiary might be responsible, young people can be easily manipulated by others.

    While it’s clear that Houston could have better protected that money with a stronger estate plan, she’s certainly not the only one guilty of not following through. In fact, many of us have the best intentions, but simply don’t make the time to create – and update – proper estate planning documents that can help beneficiaries.

    Set Your Beneficiaries Up For Success!

    You do have the power to set your young beneficiaries up for success. In most cases, that means creating a trust that allows them access to money over time and can be managed by someone you trust and has their best interests at heart.

    We can provide you with the tools you need to protect your loved ones – whatever your situation may be. As Houston’s case shows, ignoring estate planning issues can have tragic consequences.  Call or contact us today and let’s get started protecting you and those you love.