Aldrich Law Firm, PLLCAldrich Law Firm, PLLC2024-03-18T21:17:11Zhttps://www.aldrichfirm.com/feed/atom/WordPress/wp-content/uploads/sites/1404284/2021/01/fav-icon-75x75.pngOn Behalf of Aldrich Law Firm, PLLChttps://www.aldrichfirm.com/?p=2509422024-03-18T21:17:11Z2024-03-18T21:17:11ZThe courts oversee estate administration
With rare exceptions for small estates that do not contain real property, most Texas estates require formal probate court oversight. If there is a will or other estate planning paperwork, the courts generally review those documents. They then affirm the appointment of a personal representative, although sometimes that process may take several weeks.
The personal representative must then begin the formal estate administration process. The steps involved in estate administration may include filing tax returns, sending written notice to creditors and securing estate resources. In some cases, personal representatives must conduct estate sales or liquidate estate holdings to pay creditors.
After giving those with an interest in the estate an opportunity to make reimbursement requests in probate court, the personal representative of the estate can then distribute what remains among the beneficiaries of the estate. If there are no major challenges, basic probate proceedings may require anywhere from six to 12 months to complete.
Larger estates and those that face conflict may require more time to resolve. Probate litigation sometimes occurs because of disagreements about the personal representative's actions. Other times, family members may question the validity of estate planning documents. Litigation can significantly increase how long it takes to complete the probate process. Lawsuits against an estate can also consume estate resources and diminish how much the personal representative has to repay creditors or distribute among beneficiaries.
Mistakes during the probate process can sometimes lead to personal liability for the representative overseeing estate administration. Therefore, it is common practice for people to obtain legal representation and to carefully comply with state law to protect themselves.
Knowing what to expect during Texas probate proceedings may help people feel more comfortable about estate administration or understand when they may eventually receive their inheritance. While Texas probate proceedings may take a long time to resolve, the involvement of the courts can help to protect the interests of everyone with an interest in the estate.]]>On Behalf of Aldrich Law Firm, PLLChttps://www.aldrichfirm.com/?p=2503182023-11-17T21:31:15Z2023-11-17T21:31:15Zlead to personal liability for a person who is handling the probate process on behalf of another’s estate. The exact mistakes someone might make largely depend on the resources of the estate and other factors, like the wishes of the decedent. The three mistakes below are among the most common and the riskiest for someone who is managing the probate process.
Failing to act in a timely manner
From securing estate resources to filing initial paperwork with the probate courts, there are many steps someone will need to take in the days immediately after someone dies. Particularly if the personal representative of the estate is a busy person, they may put off dealing with certain aspects of estate administration for a few weeks or a few months. That mistake could lead to someone's removal from their role or even claims from beneficiaries that they deserve compensation because of how someone's inaction diminished the value of the estate.
Distributing resources too quickly
Those named as beneficiaries of an estate are often eager to receive their inheritances as quickly as possible. However, it is often necessary to wait until the end of the probate process to distribute the largest and most valuable assets to beneficiaries. Otherwise, there may not be enough resources to pay for someone's taxes and personal debts after their death. The personal representative of an estate can sometimes be financially liable for debts and taxes owed by the estate if they improperly distribute resources.
Overlooking the need to keep records
Parties ranging from beneficiaries and family members to tax authorities and creditors may try to claim that someone mismanaged or even embezzled estate resources. The personal representative needs to maintain very clear records of exactly what they do with different resources.
From receipts showing that they have paid utility bills and credit card balances to paperwork signed by individual beneficiaries acknowledging that they have received certain property, the documentation someone maintains during estate administration can be their first line of defense when others seek to remove them from their role or demand financial compensation based on what they perceive as misconduct or negligence on the part of the representative.
The easiest way for people to avoid these and other common mistakes is to seek support from a legal professional throughout the probate process. Connecting with the right support can make all the difference for those managing the administration of someone's estate.]]>On Behalf of Aldrich Law Firm, PLLChttps://www.aldrichfirm.com/?p=2502612023-09-19T13:22:19Z2023-09-19T13:22:19Zhas a fiduciary duty to the beneficiaries who should receive assets. A fiduciary duty makes one party responsible for putting another party's best interests ahead of their own. Breaches of fiduciary duty are common during estate administration, and they often fall into one of the categories below.
Failure to act in a timely, competent manner
Someone with fiduciary duty to an estate will need to properly manage the probate process and provide information to the beneficiaries about the estate. Their obligations will typically include submitting paperwork to the probate courts and properly securing the assets of the deceased. Those who fail to act could reduce the value of the estate and create other complications that open them up to claims that they have breached their duty. There is also a duty of care which requires that the representative do their best to protect the assets within the estate and maximize their value.
Embezzlement or self-dealing
Another common way that an executor or trustee might breach their fiduciary duty is through seeking to directly financially benefit from their position. They could misappropriate resources from the estate or hire a company that they own or work for to render services to the estate.
Allowing bias to affect their efforts
The representative of an estate has a duty to remain impartial. Their personal feelings should not impact their performance of their tasks. The instructions provided by the testator and also the unique probate code in Texas determine who should receive property from the estate.
Unfortunately, those tasked with estate administration often have pre-existing relationships with the beneficiaries and may let their personal biases influence how they perform their jobs. They may fail to communicate or put their own interests ahead of the best interests of estate beneficiaries. Being able to recognize warning signs of a breach of fiduciary duty can help beneficiaries and family members fight back when someone administering an estate does not act in their best interests.]]>On Behalf of Aldrich Law Firm, PLLChttps://www.aldrichfirm.com/?p=2497702023-08-21T21:53:37Z2023-07-17T20:05:01ZChanges to their resources
Maybe someone created an estate plan years ago when they still rented and they have since acquired real property. Perhaps the testator started or inherited a business or sold valuable assets that were once a cornerstone of their estate planning paperwork. Significant changes to someone's financial circumstances may warrant revisions to testamentary documents to include or eliminate certain property so that the paperwork is as accurate as possible.
Evolving family circumstances
Maybe a testator created their estate plan when their children were in college and based all of their instructions on the youthful personalities of their children. However, family dynamics may have changed drastically in the years since the children finished school. Estrangement, issues with addiction and even unstable marriages may be reason for someone to change who they name as the beneficiaries in their will. Not only does a list of beneficiaries potentially require an update, but it may also be necessary to review which family members will hold the position of authority during estate administration. Divorce, marriage and changing relationships are all reasons to revise documents.
New health information
Perhaps someone has recently learned that they will never have any more children because of health issues, or maybe they face a condition that will cause chronic or fatal symptoms. Not only can one's looting decline in health or imminent death change someone's wishes regarding the distribution of their property, but those new health issues might make the creation of advance directives and powers of attorney more pressing.
Anytime there has been a significant change to somebody's financial, medical or familial circumstances, they may need to reconsider their prior estate planning choices. Knowing when to update estate planning paperwork can be as important for someone's protection as drafting documents initially.
]]>On Behalf of Aldrich Law Firm, PLLChttps://www.aldrichfirm.com/?p=2497712023-08-21T21:53:44Z2023-05-18T13:44:39ZRevocable and irrevocable trusts
There are many specialized types of trusts, but all trusts generally fall into one of two categories. Irrevocable trusts become separate legal entities at the time of their creation and are not changeable. Revocable trusts, on the other hand, are excellent tools for those who believe their circumstances will change and who envision likely updating some of the terms included in their estate plan later. Both categories have their benefits and drawbacks depending on someone's circumstances and goals.
There are trusts for many purposes
Most trusts that people include in their estate plans have a specific intention. Each type of trust has its uses for people in certain personal situations. For example, a Special Needs Trust helps provide supplementary resources for someone with special needs without making them ineligible for any state benefits on which they currently depend. A generation-skipping trust allows a testator to leave resources for grandchildren but not children. A charitable trust allocates resources to support a particular goal or organization.
Alternatively, some married couples create marital trusts to support one another without disinheriting their children or incurring taxes. There are also bypass trusts used to reduce the taxes that someone's beneficiaries must pay when inheriting trust assets.
Each type of trust has unique benefits to offer individuals and also some limitations. Discussion of someone's goals and the resources they intend to use to fund the trust can be a good starting point for determining the best option for someone's estate planning needs. Seeking legal guidance to learn more about trusts and other estate planning tools can potentially help people to care for themselves and provide for their loved ones as they age.
]]>On Behalf of Aldrich Law Firm, PLLChttps://www.aldrichfirm.com/?p=485912023-08-21T21:53:49Z2023-03-23T04:36:52ZThe basic steps involved in probate
You have up to four years to actually file and get the process started, but there’s usually no reason to delay (and every reason to move forward as quickly as possible). To get through probate:
Application: You need to file an Application for Probate with the Texas Probate Court in the county where the decedent lived.
Posting: You will have to go through what is usually a two-week waiting period before the first hearing. During that time, the County Clerk will post a public notice at the courthouse that informs the public that your application has been filed. This notice serves to allow anybody who wants to contest the will (or your position as executor) a chance to act. If nothing is contested, the court can proceed with the hearing.
Hearing: During the hearing, the judge can formally recognize the death of your loved one, verify that there is a will and verify your appointment as the executor (or appoint someone as an administrator).
Cataloging: Once you’re formally named as executor, you need to prepare an inventory, appraisement and list of claims within 90 days. This allows the court to understand exactly what is in the estate, the approximate value of the estate and any outstanding creditor claims against those assets.
Notifications: As the executor, you need to notify the decedent’s heirs and creditors. This helps facilitate the probate process so that all claims can be addressed.
Once all disputes (if there are any) are settled, then you’ll finally be able to distribute any remaining inheritances.
Handling probate can be a lot of work – and it can get confusing when you’re unfamiliar with how things work. Experienced legal guidance can make the process much easier.]]>On Behalf of Aldrich Law Firm, PLLChttps://www.aldrichfirm.com/?p=478472023-08-21T21:53:54Z2023-02-09T21:11:05ZUndue influence means using manipulation, deception or threats to overcome a person's free will can force them to do (or not do) something. In this context, it refers to causing a person to change their estate plan to include you as an heir or beneficiary when they would not have done so otherwise. Elderly people, especially those struggling with dementia, can be vulnerable to an unscrupulous person who wants a senior's assets for themselves.
Were they unduly influenced?
From the outside, it is not always easy to tell if your loved one was the victim of undue influence, especially after they are gone. Some signs that a will was created or changed under undue influence include:
The new heir was the one who suggested changing the will or was the person who contacted the lawyer who drafted the document.
The new heir kept the deceased away from their relatives and friends.
The new heir had a lot of authority over the deceased, such as by being their caretaker.
The deceased showed signs of mental decline around the time the new will was executed.
These are only examples. There could be other evidence that the deceased was under undue influence. If you suspect a loved one's will is invalid due to someone's undue influence, discuss it with a probate attorney. A lawyer with experience in probate litigation will know what to look for and how to build a compelling case to challenge the will.]]>On Behalf of Aldrich Law Firm, PLLChttps://www.aldrichfirm.com/?p=477662023-08-21T21:53:58Z2022-11-10T22:06:31ZThey reduce the risk of mistakes
Did you know that you could be held personally accountable for debts and taxes owed by the decedent if you improperly distribute assets from the estate? Did you know that family members could initiate litigation and try to remove you from your position if they believe that you have mismanaged assets or violated the instructions in the will?
It is very easy for someone unfamiliar with probate proceedings to make mistakes during estate administration. An attorney can help you at every step of the process, from presenting the will to the courts to notifying creditors about estate proceeding probate proceedings.
They can relieve you of the duty to appear in court
Often, those handling the estate of a loved one do so while juggling a full-time job and family responsibilities. Needing to take time off of work every time there is a hearing in court could damage your professional reputation or burn through your paid time off, leaving no reserves in case you need time off for an illness or family matter.
When you have a lawyer supporting you during probate proceedings, they can potentially attend court in your stead when you have other obligations at the same time as a scheduled hearing.
They can handle the technical details
From providing the appropriate notice to creditors to hiring professionals to appraise or manage estate assets, there are numerous obligations that would be very involved for someone unfamiliar with probate and estate administration.
However, for an attorney, such matters will be very easy to resolve. When you have a lawyer assisting you, you can rely on them to handle sending out written notices and signing contracts with service providers technically employed by the estate.
Additionally, you won't have to cover those costs yourself because the estate will pay for the lawyer's work. Understanding what an attorney provides during estate administration could motivate you to get the right help for this complex process.]]>On Behalf of Aldrich Law Firm, PLLChttps://www.aldrichfirm.com/?p=477642023-08-21T21:54:03Z2022-09-13T18:57:16ZYour spouse's separate property will go through probate
The estate of an individual largely consists of the property in their name at the time of their death. The debts that they owe also pass to the estate. Some property, like assets that your spouse owned before they married you or that they set aside as separate in a marital agreement, will be solely in their name and therefore subject to probate proceedings.
However, you and your spouse can plan to significantly reduce which assets must pass through probate to transfer to the surviving spouse. Moving them to a trust can work. You can execute a transfer on death deed for your real estate. You can also create transfer on death designations for financial accounts and other valuable resources.
Any property that is solely owned by your ex and does not already have documents in place to transfer to you or a trust at the time of their death will likely be subject to probate proceedings.
What if there isn't an estate plan?
One of the most difficult possible scenarios for an individual who just lost a spouse is a situation where there is no estate plan on record. Without a will or transfer on death documents, a significant portion of what your spouse owned may have to go through probate court before you become the owner of that property.
It is only through proper planning both when acquiring new assets and when reviewing your estate documents, that you and your spouse can prevent probate delays and complications from affecting one another if either of you dies.
Navigating probate can be a challenging process. Even when there aren't significant creditor claims or other complications that will affect your spouse's estate, simply waiting for adjudication in the probate courts can take months. During that time, you may struggle to meet your financial obligations or may recognize that some of your valuable assets are at risk of losing value.
Connecting with the right support during probate proceedings will decrease the likelihood of frustrating and expensive delays in the transfer of property after your spouse dies.]]>On Behalf of Aldrich Law Firm, PLLChttps://www.aldrichfirm.com/?p=477592023-08-21T21:54:10Z2022-07-15T21:35:01ZThink about who should receive those resources
One of the most important considerations when deciding how to pass on certain property will be who you intend to inherit that property. Do you want to skip a generation and pass your investments to your grandchildren, so that they can continue to accrue value for decades? Do you want them to go to a specific child, with your other child receiving your real estate?
Deciding who the intended beneficiary should be will help you determine the best way to pass those assets to the next generation.
Decide between direct ownership and access
There are typically three ways to handle your investment accounts in your estate plan. The first two involve giving direct ownership to beneficiaries. You can either arrange for the account to transfer, possibly with a transfer on death designation, directly to a specific beneficiary. Otherwise, you can leave instructions for the liquidation of the accounts and the distribution of the proceeds among specific beneficiaries.
The second solution involves giving someone access to investment resources but not necessarily ownership of or control over those assets. Changing the ownership of those investments to a trust can allow you to name a trustee who will manage the investments after your death. A trust offers the secondary protection of having a trustee manage the account and ensuring that there won't be an immediate obligation to liquidate investments, possibly when the market is at a low point that would mean taking a loss.
They can then make strategic withdrawals when necessary for specific, pre-approved purposes as outlined in your trust. You might allow family members to ask for investment-based resources to pay for college tuition, fund a business venture or assist with the down payment on a home.
Properly addressing investment accounts and other valuable property in your estate plan will ensure you leave behind a meaningful legacy when you die.]]>