Estate planning needed for minors
Q: My wife and I bought a house in Houston after moving here from another community property state. Although we understand community property, we’ve noted that everything is done differently in Texas, so I’m looking for resources to tell me what forms of ownership are available here for a husband and wife. We want to avoid probate both for the surviving spouse and our 5-year-old daughter.
Does Texas recognize rights of survivorship or some form of beneficiary deed to bypass probate for our daughter? Where can I go to find all of our options?
A: The best way to find the answers to all of your questions is to meet with an attorney, preferably one who is board certified in estate planning. You can find one at tbls.org.
But if you want to read up on all the issues, or even try to do the planning yourself, go to texaslawhelp.org, and from the home page, click on “Money & Debt” and then on “Wills & Estate Planning.”
Note though, with a minor child who might inherit property from you and your wife, you shouldn’t leave property to her outright, which would happen with most of the probate avoidance techniques. Instead, it is better to have her inheritance pass to her in a trust. Without a trust, there will be a costly and frustrating guardianship proceeding, and she would receive her inheritance at age 18.
Q: My sister died this year, leaving her two adult children and her surviving spouse. I am named as executor in her will. However, I am unable to serve due to age and health reasons. No backup is named.
Her children want to settle her estate (which is just the house and two old cars), but I have explained to them that
the surviving spouse (not their father) has a “life estate” whereby he is able to live in the residence until his death. I’ve told the children they should wait until he dies and then hire an attorney, if they can come up with the funds.
However, they don’t have that kind of money. What are your thoughts?
A:
The two cars can be sold by the children through a used car dealer by using an heirship form called VTR-262.
Nearly all probates are being done online these days, so you could do your job and never leave your residence. Of course, it sounds like you will be spend
ing your own money, unless the children reimburse you with the money they get from selling the cars.
Alternatively, one of the children could attempt to probate the will and request to be appointed to serve as administrator. But this will require hiring a lawyer and spending several thousand dollars, most likely.
As you suggest, a better plan
might be for them to wait until their stepfather dies, and then they can try to sell the house by hiring a real estate agent. There is a good chance the title company would then simply prepare and file an Affidavit of Heirship to clear up title.
The information in this column is intended to provide a general understanding of the law, not
legal advice. Readers with legal problems, including those whose questions are addressed here, should consult attorneys for advice on their particular circumstances. Ronald Lipman of the Houston law firm Lipman & Associates is board-certified in estate planning and probate law by the Texas Board of Legal Specialization. Email questions to stateyourcase@lipmanpc.com