It’s important to have a will, no matter what level of wealth you have accumulated or where you live.
However, each state has different inheritance laws, so if you live in the Longhorn State, you need to know what happens when you and a loved one dies, and how your estate will be handled. These laws are detailed, so the more you know about them, the more you’ll be able to address this process.
Check out the following points so you are well versed on Texas inheritance laws.
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Know the Tax Implications
Taxes are among the most important parts of the process when you’re addressing issues of inheritance.
The beauty of Texas is that there is no estate tax or inheritance tax. This is beneficial to you because it lets you enjoy your inheritance without taxes cutting into it.
You may, however, have to pay some of your loved one’s taxes after they die, which must be noted on your annual tax return.
Learn the Details of the Probate Process
When handling matters of inheritance, you need to know exactly how the state of Texas handles the probate process.
If your loved one has a will, they will have appointed an executor — the person that will handle the facilitation of the inheritance. If they didn’t have a will, Texas law states that the courts will appoint one for them.
The probate process combs through every detail to make sure that the inheritance is legitimate.
Understand How Wills Are Handled
Texas, like any state, makes the estate process easier when you have a will and living trust.
The laws of how inheritances are handled differently based on whether the deceased had a will or not. In the case of having a will, the estate attorney or court system will go point by point, divvying up the inheritance the way that the deceased desired.
A big part of the process involves producing the will and making sure it is legitimate. In most cases, the estate attorney will have one on file, and your loved one might also have a copy in a secure deposit box. This is why it’s so important to lay out every detail in writing so that the inheritance is handled properly.
How Property is Broken Down in Texas
When handling an estate, property values and inheritances become a huge part of the process.
Texas is a community property state.
This means that any property owned by the deceased will be passed to their spouse first and foremost. The property can be anything from a house to cash, vehicles or jewelry.
Texas Inheritance Laws — Know Your Rights and Obligations
To handle an estate, you need to first and foremost understand Texas inheritance laws. When you know the process based on where you live, you will be more informed and able to have it go through smoothly.
Information is everything, so continuously do your research so you’re prepared.
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