What property does not pass under a will in Texas?
When it comes to estate planning in Texas, it's crucial to understand which assets may not pass under a will. Certain types of property are exempt from probate and will be distributed according to specific rules, regardless of what is stated in a will. In this article, we will delve into the various forms of property that do not pass under a will in Texas, including joint property, life insurance policies, and trusts.
Joint Property
One type of property that does not pass under a will in Texas is joint property. When property is held jointly with rights of survivorship, it means that when one owner passes away, the surviving owner automatically inherits the deceased owner's share of the property. This transfer of ownership occurs outside of the probate process and is not governed by the terms of the deceased owner's will.
Life Insurance Policies
Life insurance policies are another example of assets that bypass a will in Texas. The proceeds from a life insurance policy are paid directly to the named beneficiaries upon the policyholder's death. These funds are not considered part of the deceased individual's estate and are not subject to probate. It's essential to keep beneficiary designations up to date to ensure that the policy proceeds are distributed according to your wishes.
Trusts
Assets held in a trust are also exempt from probate and do not pass under a will in Texas. A trust is a legal arrangement where a trustee holds and manages assets on behalf of the beneficiaries. When you transfer assets into a trust, they are no longer considered part of your probate estate. Trusts offer privacy, flexibility, and control over how your assets are distributed after your passing.
Legal Code Reference
It's important to note that the laws governing probate and estate planning in Texas can be found in the Texas Estates Code, specifically Title 2, Subtitle H. Understanding these laws and regulations can help you make informed decisions when creating your estate plan and ensure that your assets are distributed according to your wishes.
Final Considerations on Property Distribution
When planning your estate in Texas, it's essential to consider which assets may not pass under a will and require special attention. By understanding the various types of property that bypass probate, such as joint property, life insurance policies, and trusts, you can ensure that your assets are distributed efficiently and according to your wishes. Consulting with an experienced estate planning attorney can help you navigate the complexities of estate planning and create a comprehensive plan that meets your needs.
Buried in Work's Additional Resources
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