The Law Office of Whitney L. Thompson, PLLC

Estate Tax in Houston

A New Year brings not only resolutions to improve one’s health, but also resolutions to plan for the future. One such plan involves the creation of an estate plan that will help ensure that family members receive inheritances and avoid paying unnecessary taxes. An estate planning attorney Houston can help you create a plan that meets your goals.

A key consideration in establishing an estate plan is the possibility of having to pay federal and state inheritance or estate taxes. These taxes are imposed on the assets of the deceased person’s estate and are paid before the funds can be distributed to heirs. Consult an experienced estate planning attorney Houston for legal advice.

The amount of the taxable estate is determined by determining the value of all property in the deceased person’s name on the date of death. This includes real property, bank accounts, life insurance policies, 401(k) plans, and more. Deductions or reductions to this number may be allowed for items such as unpaid mortgages and debts, estate administration expenses, and the value of some operating business interests and farms. The value of lifetime taxable gifts made by the deceased person is added to this net figure and reduced by the available unified credit.

Since the 2017 Tax Cuts and Jobs Act, the gift exemption has increased from $5 million to $11.4 million per person. This means that a married couple can transfer up to $22.8 million in assets without having to pay estate taxes. This exemption is adjusted for inflation and indexed for future years.

In addition to the changes brought about by the Tax Cuts and Jobs Act, many individuals have the opportunity to transfer significant wealth during their lifetimes and avoid estate taxes through the use of trusts. An experienced estate planning attorney Houston can explain the advantages of this type of tax planning and can assist with implementing the appropriate documents to take advantage of the exemptions available.

As you can see, the rules regarding inheritance and estate taxes are complex. In addition, some of the laws are subject to change. As such, it is important for individuals to keep up with the current rules in order to avoid unforeseen complications and to determine how their existing estate plan needs to be modified. An estate planning attorney Houston can assist with all aspects of estate planning, including the preparation of an accurate and up-to-date will and other documents. Contact a estate planning attorney Houston to schedule a consultation. 

Role of a Houston Estate Planning Attorney

An effective estate plan is vital for anyone, regardless of age or wealth. An estate planning attorney Houston with experience in the field can assist you in setting up trusts, wills, and other legal documents that can protect your family’s financial interests after your death. They can also help you avoid pitfalls such as guardianship during life, probate at death, and Medicaid estate recovery. In addition to creating the proper legal instruments, an experienced Houston estate planning attorney can provide guidance on various complexities involving your specific situation.

An estate planning attorney Houston who specializes in the field of estate law should understand the unique issues facing wealthy and elderly clients. These individuals may be more likely to suffer from dementia, which can lead to memory loss and the inability to make sound decisions about their affairs. Additionally, they may have complex family dynamics involving stepchildren, grandchildren, and other heirs. This can complicate the legal process as it requires careful attention to all parties involved.

The role of an estate planning attorney Houston involves drafting wills, establishing trusts, designing healthcare directives, and providing general legal counsel for their clients. This is a broad area of practice, and estate planning attorneys Houston must be well-versed in state and federal laws to effectively advise their clients. Moreover, Houston is a diverse city and many of its residents are culturally and ethnically distinct, which can further complicate the legal process.

While a majority of estate planning matters are transactional in nature, there is a small percentage that require litigation to resolve the matter. These disputes can involve contests to the distribution of an estate’s assets and contested tax returns. Consequently, it is important for aspiring estate planning attorneys to acquire litigation skills during their law school studies.

One of the primary responsibilities of an estate planning attorney Houston is to interview their clients to obtain detailed information regarding the client’s personal and financial situations. This information is used to create estate plans that accurately portray the clients’ financial portfolios and objectives.

Additionally, an attorney must be able to determine which parties are entitled to certain portions of the estate based on applicable law and controlling documents. This is essential for avoiding disputed claims between beneficiaries. This is especially true for large estates, which often involve heirs and beneficiaries with differing relationships and viewpoints.

The Role of an estate planning attorney Houston is an extensive and complicated area of legal practice. Individuals who are seeking an estate planning attorney should do their research to find an attorney with a proven track record of success. 

The Importance of Estate Planning Law

Whether planning to pass on assets to loved ones or attempting to prevent family members from fighting over the estate after death, people should seek the help of qualified professionals. An estate planning attorney Houston will assist individuals in organizing their cherished belongings, financial resources, and medical decisions so that they can be carried out according to their wishes after death or disability.

An experienced estate planning attorney Houston will know how to create a trust to protect valuables and ensure that the proper person takes possession of an asset when a client passes away. This legal professional will also be able to offer counsel on other estate matters, such as probate law and taxes. Choosing the right estate planning attorney Houston will depend on an individual’s unique needs and situation, as well as their personal preferences, communication style, and availability.

While many people associate estate planning with the wealthy, anyone with significant property or a family that would benefit from a carefully drafted will should consult an estate planner. The scope of a person’s financial portfolio determines which documents an attorney will have to draft, but typically, the documents include a will, power of attorneys, special deeds for real estate, and a set of advance directives (Directive to Physicians and Family or Surrogates, Medical Power of Attorney, and Out-of-Hospital Do-Not-Resuscitate).

Creating an estate plan is not just for the elderly or wealthy; even those with modest wealth should consider it. This will make it easier for heirs to obtain immediate access to assets, shield their estate from costly probate fees, and allow them to avoid lengthy or expensive disputes.

After a person dies, an estate planning attorney will be responsible for gathering the assets and paying any outstanding debts of the estate. They will then distribute the remaining assets to beneficiaries. Depending on the complexity of a case, an estate attorney may be required to engage in alternative dispute resolution techniques to resolve disagreements between heirs or between the estate and creditors.

Estate planning lawyers are required to have an in-depth understanding of state and federal laws, as well as local court procedures and rules. They will also be knowledgeable about the types of documents a client might need, including a living will and a durable power of attorney. An attorney will have to have the ability to communicate effectively with clients and understand their goals, values, and concerns.

It is important to choose a trustworthy estate planning attorney Houston who will take the time to get to know their clients. This will ensure that the final documents reflect current wishes and circumstances and that any changes can be made quickly. It is not uncommon for people to discover that the beneficiary designations on their old documents do not match their current desires, which can devastate their desired heirs. The best estate planning attorney Houston will have a good track record of completing all necessary tasks on time and within budget. 

The Law Office of Whitney L. Thompson, PLLC

The Law Office of Whitney L. Thompson, PLLC

4201 Farm to Market 1960 Rd W Suite 219, Box #116B, Houston, TX 77068, United States

(281) 214-0173