In Texas, estate owners mitigate common risks by starting the estate planning process. The process presents them with measures to achieve asset protection. This level of protection is necessary to lower the chances of seizure through the probate process. An Estate Planning Attorney offers further insight into the planning process.
Lowering the Value of the Estate
The most common practice for lowering the value of the estate is to transfer assets out of the estate quickly. The transfer must be completed before the estate owner becomes mentally incapacitated. If they are diagnosed with Alzheimer’s disease, they must transfer ownership within two years of admission into a nursing home. Their attorney can coordinate the transfer of ownership to their preferred family member.
Mitigating Inheritance Tax Liabilities
Earlier transfers of ownership can also mitigate inheritance tax liabilities. The family members will be required to pay property taxes as required by the county. They won’t have to pay any inheritance taxes if the transfers are managed before the owner’s death. Additionally, the estate owner can transfer monetary assets early to lower inheritance tax requirements for their family members.
How Do Irrevocable Trusts Help Families
An irrevocable trust helps families protect their wealth more effectively. Assets are transferred into the trust to protect them from the probate process. Once they are transferred, they are no longer the property of estate owner. The owner retains all legal rights to the property. They can remove any assets from the trust as they see fit. They also define who their successor is when they die.
Health Care Directives
The estate owner can also set up a health care directive through the estate planning process as well. The directive defines the wishes of the estate owner. This includes a living will as well as the identity of a health care proxy to make medical decisions for them.
In Texas, estate owners manage their estate and assets through the estate planning process. The process allows them to make decisions about all properties and assets they own. They can also create a will during the process to define their last wishes.