Retaining trust might make estate planning a bit simpler
Q: Years ago, my husband and I set up a trust and transferred all of our assets to it. We now own no real property, and all of our investments are in our names with each other as beneficiaries. Do we need to revoke the trust?
A: No, you don’t need to revoke the trust. However, you might want to revoke it to make your estate plan a bit simpler.
Also, you may want to keep the trust in force and fund it with your investments that are currently held in your names.
Keep in mind that probate might be avoided when one of you passes away since all of your investments should pass to the surviving spouse automatically, but when the surviving spouse dies, there will be a need for probate. If you want to avoid this expense and hassle on behalf of your children (or other beneficiaries of your estate), then you can fund the trust and take advantage of its probate avoidance feature.
Q: My father passed away and left a will leaving everything to my mother. The entire estate is basically just their home. Does the will have to be probated? It’s my understanding that because Texas is a community property state, the house belongs to my mother anyway. Is this correct?
A: No, your understanding is not correct.
The house is owned half by your father’s estate and half by your mother. In order to have title changed to your mother’s name, some sort of probate will be required.
There are several kinds of probate that might be utilized, but without more information, it is impossible to tell you which one would be required or most cost-effective.
It is possible that a regular probate would be needed, but it is also possible that your mother could proceed with a much simpler kind of probate.
Your mother should meet with an estate planning attorney to explore her options.
Q: My wife is deceased, and my sole heir is my daughter, who is my only child. She is the beneficiary of all my insurance policies and is the “pay on death” beneficiary of all my financial assets. I have no debts. My only other assets are an old car and household goods of nominal value. Will she need to have my will probated?
A: No, it sounds like she will be able to claim your entire estate without the need for probate.
However, you are assuming your daughter will be living when you die.
If you outlive her, then you may no longer have a beneficiary named on all of your investments. In that case, your will would need to be probated.