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Several types of trust exist to help people protect their assets, avoid costly estate taxes, or ensure their beneficiaries get the assets they are entitled to while avoiding the expensive and lengthy probate process. One of the ways someone can distribute their assets after they are gone is via a charitable remainder trust.

What is a Charitable Remainder Trust?

A charitable remainder trust is intended for a grantor who has built a sizable estate and is searching for a way to receive reliable payments.

This type of trust provides the grantor or their beneficiaries with income from assets inside the trust for the rest of their life or a period not exceeding 20 years. At the end of the term of the trust, the remaining balance within the trust is donated to the charity of the grantor’s choice established at the beginning of the trust’s terms.

There are two types of charitable remainder trusts (CRTs):

• Charitable remainder annuity trusts (CRATs) pay a fixed annual annuity amount, disallowing new contributions. CRATs do not change their annuity amount.
• Charitable remainder unitrusts (CRUTs), which pay a fixed percentage of the trust’s assets, are reviewed annually, and allow contributions. Each year, the income received from a CRUT will vary.

What Are the Advantages of a Charitable Remainder Trust?

• You receive partial tax deductions for the donated assets through a CRT
• There are no capital gains taxes paid when donated assets are sold
• Contributed assets are no longer part of your estate, meaning they are not included when figuring estate taxes
• You can receive income from reinvested CRT proceeds
• Upon a CRT’s termination, you can decide which charities receive its assets

What Are the Disadvantages of a Charitable Remainder Trust?

• For there to be income for yourself and value to the charity, you must make large contributions to the CRT
• A CRT is typically irrevocable; therefore, you cannot change your mind once you have finalized your provisions and terms
• The funds placed in a CRT are no longer in your control, and you do not have access to them
• Income received from your CRT can reduce the total contribution left to your charity of choice
• If you plan to obtain high amounts of income from your CRT, you risk leaving nothing to the charity once the terms are completed or you pass away

How Can I Decide If a Charitable Remainder Trust is Right for Me?

If used for the right reasons and set up correctly, a charitable remainder trust can be a significantly beneficial type of trust, not only to the person setting it up but to the charity receiving the donation at the end of the CRT’s term.

If you are looking to correctly set up a charitable remainder trust in terms that are beneficial to yourself and the charity of your choice, call Rainey & Rainey, Attorneys at Law, LP at (254) 457-5083 to set up your initial consultation.

A handwritten Will, also known as a “holographic Will,” is not valid or recognized in every state. Laws regarding estate planning, final wishes, and dissemination of property after someone passes are set in place by locality; often, a state or county may have different laws than neighboring areas.

The way a Will is written and its determining validity in the court in which the decedent resided can go a long way to deciding how effective and reasonable the probate process is and whether or not it will be a giant headache for the family left behind.

So, if a loved one has left behind a Will, written by hand and not typed, is that a valid interpretation of the deceased’s last wishes?

Are Holographic or Handwritten Wills Valid in Texas?

The short answer is yes, a handwritten, holographic Will is valid in Texas. In fact, if the Will is properly notarized and satisfies all of the state’s requirements of being called a Will, a handwritten or holographic Will is just as effective as one that has been typed.

What Are the Requirements of Holographic Wills to Ensure Validity in Texas?

A Texas court Will honor a holographic Will so long as its creation meets the legal requirements put forth by the State. Those validity requirements are as follows:

• The testator (owner of the estate) writes the Will in its entirety.
• The testator provides a valid signature on the Will.
• It is determined that, at the time of the Will’s creation, the testator has testamentary capacity and intent.

What is Testamentary Capacity and Intent?

In movies or television, perhaps you’ve seen spurned family members throw the legitimacy of a Will into question based on its creator being “not of sound mind or body.” Those that would challenge the legality of the Will in that piece of media are questioning the creator’s testamentary capacity and intent, which is determining that the following is true of the testator:

• They understand that they are, in fact, creating a last or living Will;
• They understand the effect of making such a Will;
• They are aware of what property they own and can Will to their beneficiaries;
• They can identify family members and;
• They can mentally process they are creating a Will and can form a judgment about it that can be considered reasonable.

Who Can Help Me With a Holographic Will?

The lawyers at Rainey & Rainey, Attorneys at Law, LP, would be happy to help with the legitimacy of a handwritten or holographic Will. If you need to ensure that you leave behind a holographic Will that the court in Texas will recognize, are concerned that a handwritten Will of a deceased family member is not valid, or would like to defend the validity of a holographic Will against a challenge; our experienced lawyers can do any of the above. Contact us today at (254) 457-5083.

When someone dies, the finances surrounding their estate need to be settled. From debts and taxes, which are as assured as death itself, to the dissemination of assets to their heirs, municipalities must designate an established process to confirm that these issues are resolved. This process is known as probate.

If you or someone you know is suffering the loss of a loved one, the last thing they need is to struggle with a complicated court-heavy probate system. Get help for your loved one’s probate process, and while you’re at it, keep your family from the headache when you die by putting the proper documentation in place for yourself. Call Rainey & Rainey, Attorneys at Law, LP, today at (254) 457-5083 to kill both birds with the same stone.

What Factors Into Probate Cost in Central Texas?

Every situation is different, and the same is true regarding probate. A probate process price can vary depending on factors such as:

• Estate size and complexity
• Fair contestants of the Will’s legitimacy
• Estate Planning the deceased had in place
• If probate attorneys are present
• Various other factors, to some extent

What Are the Common Fees Associated With Probate in Central Texas?

As in the previous point, probate costs can differ significantly depending on numerous factors. Several of those extant factors are the associated fees, such as but not limited to:

• Filing fees
• Court costs
• Various professional and attorney fees
• Surety Bond, protecting the estate’s and beneficiaries’ interests
• 5% Executor or Personal Representative compensation
• Others.

The court process of probate is long and arduous, and each step requires new sets of professional eyes and skill sets to be present. And with that comes several costly fees, as these are jobs that professionals hold just like your own.

Do All Estates Go Through Probate in Central Texas?

The short answer to the above question is no; not every estate will have to suffer through a probate process. Some factors that may help an estate avoid probate are:

• The estate’s size: if it is less than $75,000 in value and there is no Will present, typically, a “small estate affidavit” is used instead of the entire probate process
• If any of the following were established before the estate’s owner died;
• Revocable Living Trust
• Joint Tenancy over title property and assets with a survivor
• Transfer on Death/Payable on Death policies for the estate or assets

How Much Does a Probate Lawyer Charge in Texas?

Depending on the situation and case, a lawyer may charge hourly or as a flat fee. There is no surefire way to guarantee a set price for a service as vast and varied as probate.

If you wish for a professional probate lawyer to consult you on what you can expect when entering or establishing probate measures, call the experienced team at Rainey & Rainey, Attorneys at Law, LP today: (254) 457-5083.

No two wills of the same type are the same; additionally, several different types of Will exist. So when someone asks about the price of a Will, you’ll want to get a little bit more information regarding what it is they are looking for, specifically.

Typically, a person would be looking for a simple or basic Will that designates assets to a beneficiary after the owner of the Will dies. Though, possibly, they mean a Living Will: the documentation that expresses wants and wishes should the person become medically or otherwise incapacitated and deemed unable to communicate their best interests expressly.

How Much Does a Basic Will, or Last Will and Testament Cost?

In estate planning, no plan comes in ‘one-size-fits-all,’ Therefore, there is no set price for a Will as it is a complicated and varying legal document. Some lawyers charge by the hour, while some have flat rates.

A typical simple or basic Will in Texas will average between $250 and $2,500 or more. This range reflects the differences between the estates that the Wills would concern with and the experience or prestige level of the lawyer who draws up the Will. A more experienced, reputable lawyer will charge more, typically at a minimum of $500, to properly draft and execute the Will.

What is the Price of a Living Will

In Texas, the average price of a professionally drawn Living Will is between $2,500 and $5,000+, depending on the experience of the attorney in charge of the Living Will’s draft.

A Living Will can include medical directives. If these are not completed properly, the medical care provider or insurance will not enforce them, and they will not be considered effective to the patient being treated. As such, the lawyer must do more work to complete the documents, and therefore a reputable attorney typically charges at least $2,000 for this service.

How Can I Get One of These Types of Wills Drafted?

Once you decide, hopefully with the assistance of a qualified attorney, which Will you need to put in place, it is time to create the document. You may not be to this point yet, but no matter where you are in the process, the firm at Rainey & Rainey, Attorneys at Law, LP, is waiting to schedule you for an initial consultation today at (254) 457-5083.

In the wake of an event as traumatic as losing a spouse, the idea that you may be forced to go through the long, costly, arduous task of probate can be an unnecessary added stressor for many surviving spouses.

Today we’ll learn when probate is unnecessary, when a spouse may be required to go through probate, and how a probate attorney could help you and your spouse protect your assets after one of you passes.

Is Probate Necessary in Every Estate Case?

Not all estates or assets within an estate are required to enter probate. If an estate is worth less than $75,000, the estate doesn’t have to go through probate; the surviving spouse may fill out an Affidavit instead.

If a spouse dies, the only assets that need to go through a process are ones that the surviving spouse does not have joint ownership over. If the assets are jointly titled or designated to a beneficiary, probation isn’t necessary.

Any property that the pair of spouses acquire during their marriage is known as community property, and, by law, both spouses own one-half of the property. This means it does not have to go through a probate process.

Does a Surviving Spouse Have a Right to the Deceased Spouse’s Property in Texas?

The surviving spouse does not always get all their deceased spouse’s assets and belongings after they perish. At least not without a will or trust that dictates those terms.

If the state of Texas does not find a valid will, or if the will does not designate particular parcels of property, that property is intestate and goes into Texas intestate succession law.

If you and your spouse share children and your spouse has no other surviving children, or your spouse has no surviving children or other blood relatives, then you will retain your portion of the community property and your spouse’s half.

Can an Attorney Help My Spouse and I Protect Our Assets?

An estate attorney or attorney with a history of probate and succession laws will be able to look at your particular situation and distinguish which paperwork would be needed to ensure that your will is done if you or your spouse perish.

It is better to act now rather than force your spouse to react after you are long gone to the prospect of losing assets that would rightfully be theirs if only for a simple legal document. Call the attorneys at Rainey & Rainey, Attorneys at Law, LP, today and schedule an appointment to put you and your spouse at peace long before these prospects hopefully enter your life. Call (254) 457-5083.