Although Texas does not enforce a state estate tax, also known as a death tax, if your taxable estate is worth over the lifetime exemption amount-$5.6 million for individuals in 2018-then your estate will be subject to the federal estate tax. And even though most Americans fall far below the tax's reach, the estate tax has been a point of contention throughout most presidential elections, as candidates often have differing views on its importance to our nation's economy.
Choosing between a revocable living trust and a will for your estate plan depends on your personal concerns and goals. The main difference between the two estate planning options is the necessity of probate. A will requires probate, which is a court-supervised process that administers your estate to your heirs and beneficiaries. On the other hand, a revocable living trust does not require the court-supervised probate process. Consequently, this option obtains more privacy by creating a trust agreement between the trust creator, or grantor, and the trust entity. The grantor often serves as the trustee, managing the property placed within the trust, until he or she dies and a successor trustee takes over, distributing trust property per the trust agreement.
Your estate plan is something that you can personalize as you see fit. Even if you already have an estate plan made, you must update that plan if you get a divorce. This ensures your loved ones know your wishes for when you can't convey them yourself. You probably know that you should divide up your assets when you make the plan. There are also many other things that you should consider when updating your estate plan after a divorce.