Estate planning is a process of preparing for your assets and affairs during your lifetime and after your death and probate is the step that occurs after that. Probate is the legal process that happens after your death that validates your will. Understanding the differences between these terms but also how they work hand in hand is crucial for creating a successful estate plan and avoiding or mitigating the challenges of the probate process. For experienced legal assistance, contact our Dallas, TX probate lawyer today to schedule a consultation.
Estate planning includes certain key components such as wills, which are legal documents that specify how a person wants their property and assets distributed after their death occurs. This also allows a name executor to carry out certain and specific things like instructions, define who guardianship is granted to certain children, and charitable givings, if wished for. Another key component is trusts, trusts are used for estate planning , protecting assets from lawsuits or providing other beneficiaries with different specified needs. Two different types of trusts are revocable and irrevocable, revocable trusts can have a change or be cancelled at any given time. This allows flexibility, full control over assets, asset protection, and is considered part of estate tax. And irrevocable trust is a trust that typically cannot be changed under any circumstances when it has been established. This trust does not have the best flexibility due to it not being able to have any modifications, it allows the creator to give up their ownership, and assets are removed from the creator’s estate which reduces the taxes that are implicated. The last important key component is the power of an attorney to ensure and process the wishes that are followed to potentially avoid probate which turns into no plan according to the state law.
Probate includes key components as well such as having an opening case and appointing a representative. This process includes filing the will, court validation, and notification. These processes occur due to the need of formally initiating the legal process and establishing who is in the charge of the case. The second component is administering the estate, identifying and inventorying the assets, paying debts and taxes, and managing assets are imperative due to the executor or administrator who is officially appointed having their primary duties being the involvement of managing the deceased person’s property and financial obligations that were wished for and hopefully granted. The last key component is closing the estate and distributing assets which includes, distribution, final accounting, and a formal closure. Once all obligations are met, a representative will get the court to close the estate and transfer their financials and assists to heirs of their wishing.
While probate and estate planning go hand in hand, they vary in their own ways as well. The proper preparation for both processes is extremely important and imperative to secure the financial situations of future generations. Having experienced and dedicated legal assistance by your side is crucial. Contact our team at the Brandy Austin Law Firm today to schedule a consultation.