Texas Probate, Estate and Trust Administration
Central Texas Probate Attorneys.
If someone dies, certain assets may pass to heirs free of court interference; however, many assets do not automatically pass to heirs without a court process. This court process is called probate. If a loved one has died, it is a good idea to meet with an attorney to determine what specifically needs to be done to ensure title passes correctly.
During the probate process, if the deceased person created a will during their lifetime, that will is presented to the proper court and certain tasks must be performed. For example, the debts and taxes of the deceased person must be paid, it must be determined what the deceased person owns so that the assets can be divided accordingly. Finally, after all the necessary legal requirements have been completed, the property may be distributed as directed by a will or by Texas law.
Probate in the state of Texas can be fairly quick and inexpensive; however, it can also become lengthy and time-consuming. Probate can be supervised or unsupervised. In an unsupervised probate, the appointed estate administrator manages assets, pays any debts, files required tax returns and various court documents, and distributes the estate assets. In a supervised probate, the probate judge must approve every detail of the estate administration.
Probate can be overwhelming, especially during a times of grief. The attorneys at Nickerson Law Group understand this and do what we can to bring peace through trusted advice. Our probate process provides our clients with an understanding of what to expect, a timeline with set goals and organizational tools to ensure the process stays on track.
If a loved one has passed away and you require probate assistance, the attorneys and team at Nickerson Law Group can help.
Because probate can be a lengthy, costly and public process, many people choose to avoid it. There are a number of legal strategies that will allow you to pass property to another person after death, without going through probate.
- Joint Tenancy & Tenancy by the Entirety. Adding another person to your assets as a joint owner or "joint tenant with rights of survivorship" will allow your property to pass to them upon your death without going through probate. There are pitfalls to this strategy, however, to include subjecting such assets to any claims (such as lawsuits) against the co-owner and making them available to the co-owner's creditors -- all while you are still alive and planning on using the assets yourself
- Beneficiary Designations. Texas allows Transfer on Death (TOD) or Pay on Death (POD) beneficiary designations to be added to bank accounts. Beneficiary designations like these are preferable to joint tenancy in that they allow you to transfer property only upon your death without giving away current ownership. One of the drawbacks, however, is that it can be difficult to obtain an equitable distribution of property among your heirs by utilizing beneficiary designations. Additionally, understand that if you have beneficiaries listed on your assets, those assets will be distributed upon your death to the listed beneficiaries, even if your last will and testament states otherwise.
- Revocable Living Trust. A Revocable Living Trust is a legal document that allows you to establish a separate entity (the trust) to "hold" legal title to your assets while you are alive, and to name trustees to manage those assets according to the trust terms. Typically, you serve as the trustee while you are alive, managing your assets for your own benefit. Upon your disability or death, the trust terms appoint your successor trustee who then continues to manage -- or distribute -- the assets held in trust. A properly drafted trust can accomplish many goals, including guardianship and probate avoidance for your estate and bloodline, marital and creditor protection for your children.
Texas Estate and Trust Administration
A properly drafted and funded trust will generally avoid probate. The trust need not be filed with the probate court. Nonetheless, there are still steps necessary to administer the trust: beneficiaries must be contacted; assets must be gathered, valued and managed; potential creditors must be notified; debts, taxes and final expenses must be paid; and, ultimately, any remaining income and assets must be distributed in compliance with the trust terms. Successor trustees often lack the time, resources or knowledge to personally administer the trust, and therefore may call upon legal, accounting and investment professionals for assistance. Oftentimes, a corporate fiduciary (e.g., a trust company) is an excellent alternative to relying solely on busy family members or friends to serve as trustee. We can help your successor trustee(s) deal with the complexities of administering your trust. Please call our office and we will be happy to schedule a consultation, whether or not our office has drafted the original trust.