As with the famous and diets, myths abound in estate planning and probate too.  We’ve compiled our TOP TWELVE LIST that we are sharing in five installments.

Myth #1:  The best way to handle estate planning is with beneficiary designations.  This is almost never true.  Beneficiaries designations have at least two flaws:  inflexibility and avoidance of other estate planning.  The second point is more complex, but the inflexibility is this:  If the named beneficiary dies, there is no substitute for that beneficiary.  It can lead to the disinheritance of grandchildren, or lead to assets unequally split.  Almost always, a will is drafted so that assets that we leave to our children pass to a predeceased child’s children, i.e., the grandchildren.  Beneficiary designations do not work that way.  If you name your two children to receive your accounts by beneficiary designations, and one dies, the survivor gets all of the assets.  That is almost never what people want.

Myth #2:  Probate is always lengthy and costly.  Not in Texas.  In this great and wonderful State, a probate of a well-drafted will is quick, easy, and avoids further court oversight and expense.  This myth leads people to think beneficiary designation are the way to go, but we will address this myth later in this series.

Final Thoughts

Estate planning and probate should not be overwhelming—but they do require accurate information and thoughtful planning.

Taking the time to understand the facts can help you:

  • Protect your family
  • Avoid unnecessary complications
  • Ensure your wishes are honored

Have Questions About Your Estate Plan?

Every family’s situation is different. If you’re unsure where to start—or want to make sure your current plan is on the right track—speaking with an experienced attorney at Pyke Balen & Moncure, P.C. can make all the difference.

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, specific tax, legal or accounting advice. We can only give specific advice upon consulting directly with you and reviewing your exact situation.