Legal Question in Wills and Trusts in Texas

Re: Wills and Trusts

To make some brief answers: Even if you have a trust, you will still need some sort of will. Trusts are appropriate in certain situations, such as estates with minors, special needs, or estates with fighting family members. You asked several questions about doing a will yourself. This is a Bad Idea. A will is a piece of paper that will dispose of every single piece of property that you own. If you mess something up, the results can be disasterous.

I strongly recommend your calling a few attorneys and aksing them about your estate plan. Go with whom you are most comfortable, even if it's not the least expensive. The stakes are high--everything you own. Now is not the time to bargain shop. You should have someone who listens to your questions, answers them to your satisfaction, and can accomplish your objectives.

I think it's a good idea to speak with your accountant about this. You may also ask him/her for a referral to an estate planning attorney.

Re: Wills and Trusts

1. Trusts are better than wills? What's most recommendable?

It all depends. A trust is an estate planning tool, and not an end in itself.

2. Should we have separate documents or can we make one jointly?

You should have separate documents, since a joint will binds the survivor without regard to changed circumstances. That allows a 'dead hand from the grave' to rule the survivor's life.

3. Can we include in the document the house we are still paying to the bank?

You could, but it's not necessary. You don't need to list all you property in a will.

4. Do we need witnesses?

Yes. Texas requires two witnesses. Some states require three.

5. Do we have to notarize the signatures?

Yes.

6. Do we need a lawyer to do the document?

It's highly recommended. If you don't do the will properly, it's too late to change it when you need it (for obvious reasons). An improper will is no will.

7. If so, are the fees too high?

Depends upon what you need. Tax planning for a multi-million dollar estate can run into the thousands (while saving hundreds of thousands). A basic will should run a few hundred dollars.

8. Where can we find information about wills and trusts to know the difference between them and to learn which one is more convenient?

You could take a look at our website, www.bradie-law.com. It has a lot of information. After that, you'd need to go to the county law library and do some researching.

9. Are the wills differents if we are just permanent residents of USA and no citizens?

No.

10. If one of us die, how long it will take to execute the will or trust, whichever we have?

A will can be probated somewhere between two weeks and a month after date of death, depending upon the court's calendar. A trust is immediately self-executing upon death of the trustor. However, there should also be a will with a pourover provision just in case some property has been left out of the trust.

11. Do we have to talk to our accountant before deciding about this matter?

It might not hurt, if you think you may have a taxable estate. But do not rely upon your accountant for legal advice; that's not the accountant's area of expertise.

Re: Wills and Trusts

Most people do not need complicated estate plans and a simple will package will be all they need. Most people who have trusts don't really need them nor need to pay the extra costs involved in administering the trust. Unfortunately there is a little sub-industry that sells trusts and they make money doing this. With that said, trusts may be very appropriate under certain circumstances such as those with step-children, large estates, Medicare/Medicaid planning, etc. You can go to my website at www.riverasmith.com and read about trusts and why you may or may not need one. For a simple will package I normally charge $500 for both husband and wife. This includes 2 wills, powers-of-attorney, medical directives, and medical powers-of-attorney. This is a true bargain considering the grief a family goes through when there has been no advance planning. By the way, do-it-your-self packages almost never pass a simple probate and ultimately cost the heirs much more in legal and administrative costs than would have been required had proper forms been used. Don't be penney-wise and pound-foolish.