A Penny Saved is a Penny Earned

A Penny Saved is a Penny Earned -
Benjamin Franklin

Wednesday, August 1, 2018

Avoiding Probate in Texas

Note: I'm sharing my own research and I don't advise using this information instead of speaking with an attorney and getting legal advice, but it will give you an idea of what questions to ask.

Avoiding Probate (see details here)

As I don't have any debts (see how to get out of debt here), planning to transfer assets is fairly easy for me. But a couple of things you may want to look into.

1. Make sure your bank accounts and any savings you have are payable on death (POD) to your beneficiaries.

3.  Write a Last Will and Testament.

2. The Ladybird Deed was once popular here in Texas but has since been replaced by the Transfer on Death Deed (as of September 1, 2015). This document needs to be notarized and filed with the county court but will not go into effect until death and you still have total control of the property until that time. You can view/use the form here. It will over-ride a will. The beneficiaries will need to file an affidavit with the court to transfer the property after death.

3.  Also, ask the attorney which documents will show your wishes (both medical and financial) in case of incapacity. A Revocable Living Trust may be one document to look into and a Medical Power of Attorney.

4. If you have young children make sure you set up a trust for them and have enough life insurance to support them. You will need to find someone trustworthy as a trustee and guardian.

5.  Keep all your documents and a list of financial institutions and account numbers in a safe place and let a trustworthy member of the family know where to find these.

By having your assets transferred directly to your beneficiaries, there should be no need to use the court for probate purposes here in Texas.

Texas Probate Information

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