Due to unemployment and the downturn in the economy, more people are neglecting to make plans for their property and assets in the event of their death. Young people especially are so focused on trying to stay afloat today that they are not considering what will happen in the future. It is important for young adults to create wills and powers of attorney in the event of death or severe injury. A number of adults die prematurely due to injury and disease so it is necessary to make plans before it is too late.

It is never too early to begin estate planning, and young adults especially need to start planning their estate. Even if you do not have a great deal of wealth, property or family, it is still a good idea to designate what will happen to your assets in the case of your death. Drafting a will is one of the easiest ways to begin estate planning.

Who can make a will in Texas

In Texas, you must be 18 years or older to make a will. You may be younger than 18 and execute a valid will if you are married or in the Armed Forces. There are two ways to make a will in Texas. Either you can attest a will which means that you formally draw up a will and have the document signed by two witnesses. Usually you can hire an attorney to help you draft your will, but it is possible to make a holographic or handwritten will which does not need to be signed by witnesses. However, it is best to get legal advice when making a will to make sure that the will is legally valid.

If you do not have a will, then at the time of your death, your property and assets will be distributed through intestacy. In Texas, intestacy and the heirship process can be complicated. It is best to create a will so that your wishes will be carried out instead of leaving it up to the laws of intestacy in the State of Texas to divide your property.

Reasons for Young Adults to Draft Wills in Texas

It would be especially beneficial to create a will if you have minor children. In the will, it should appoint guardians and designate people who you want to take care of your children in the event both parents are no longer living. Also, even though it is possible for children to inherit property, assets, and money, they do not have the legal capacity to manage it. A trust should be created with a trustee in charge of the assets until the children reach the age of majority, or an older age when you believe your children will have the ability to responsibly manage their property. It is better to appoint someone you trust than to let the court appoint someone who may or may not have your children’s best interest at heart.

Even if you have no children, it is still necessary to have a will if you are married. It may be surprising to find out that your spouse may not inherit all of your property in the event of your death. Your siblings, parents and other family members may be entitled to a portion of your estate if it has to pass under the intestacy laws of Texas. Especially if you have a large family, it is possible that some family members will contest the division of property. A valid will may not prevent people from challenging the division of property, but the will can provide the court guidance concerning your wishes, and will make it much more difficult for a challenge to be successful. Usually courts try to honor the wishes and directions in a will.

Some people believe that if they do not have any spouses, children, family or property they do not need to draw up a will or do any form of estate planning. Even if you do not have property and family, it is still wise to have a power of attorney for you in case you are incapacitated during your lifetime and need someone to take care of financial and health care matters.

Probate Concerns in Texas

Probate is the legal process of validating the will and settling the estate of the deceased. If the there is a will then a probate attorney can file an application to the court to admit the will for probate. Usually an executor is named in the will and the executor’s purpose is to make sure all the provisions of the will are followed closely. Most people are apprehensive about the probate process. They believe that it is an expensive and complicated process. However, in most cases where there is a valid will, probate is a smooth and straight-forward process.

The default rule in Texas is that all estates are administered as dependent administrations during probate. This means that the administrator must make an application for court approval before the administrator can take any action such as paying off debts. Dependent administrations are considered costly and time consuming. The judge will appoint an administrator who needs to submit periodic reports to the court and obtain the judge’s approval before taking any action. Due to the reports and waiting for court authorization, there are a lot of administrative costs involved in a dependent administration.

It is not always necessary to go through dependent administrations. There is another option called independent administration where an administrator submits an inventory of all the assets and debts to the court where it is filed. The administrator continues to wind up the estate without any further approval from the court after the inventory is filed. The majority of the estates probated in Texas actually qualify for independent administrations. An estimated 80-90% of Texas probate cases are independent administrations. In order to be eligible, the will must specifically call for an independent administration. If the will does not call for such administration, an independent administration may still be utilized if all parties under the will agree to it. If there is no will, then all the parties may still agree to an independent administration.

Conclusion

Estate planning sounds complex, difficult and costly, but in reality you can take very simple steps to create an estate plan. The easiest thing to do is to hire an attorney to execute a will and a power of attorney for you. If your will is going to be probated in Texas, make sure that the lawyer includes your wish for an independent administration during probate. An independent administration will cut down on the administrative costs involved in probating the will. Remember that you do not need to have several beneficiaries and assets to create a will. Executing wills, financial powers of attorney and medical powers of attorney are also beneficial in managing your assets while you are alive in the event you are unable to make your own decisions for health-related or other reasons.