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1. What is an
inheritance?
That which is
inherited; a title, property or estate that passes by law to the heir
upon the death of the owner.
2. Can my spouse
take part or all of my inheritance if our marriage ends in divorce?
Property that is
inherited is separate property and is not subject to division in a
divorce if:
-
has remained yours
alone and has not been jointly titled
-
has not been used
for marital purposes (i.e., purchase of a home)
-
has not been
commingled with marital assets
-
has a traceable
history
However, if it has
been commingled, it is possible that the court will include it. It is
best to seek the assistance of an experienced inheritance attorney at
Heard and Smith to advise you on your rights and the laws regarding
inheritance.
3. Will my
children receive their inheritance all at once? What if I wish them to
receive it over a period of time?
You may specify an
age or ages when your child is to receive their inheritance. Although
children are legal adults at age 18, very few 18 year old children can
properly manage an inheritance. Often parents make provisions in their
wills so that children do not actually receive control of an
inheritance until they are 25 or older. You can also authorize an
Executor or Trustee to pay for the expenses of a child’s health,
education and maintenance until the child is old enough to properly
manage these responsibilities on their own.
4. What kind of
taxes will I have to pay on my inheritance?
The federal estate
tax rules apply to everyone in America. Some states also impose
various taxes that effect estates or inheritances. Some states charge
an additional estate tax similar to the national one, and some impose
an inheritance tax. Unless your state has an inheritance tax, your
beneficiaries do not pay tax when they receive money from your estate.
Since an inheritance is not income, no income taxes are paid as a
result of an inheritance. However, income taxes will be paid on any
earnings after they invest the bequest. An experienced inheritance tax
attorney can assist you with federal and state tax laws.
5. Do I need an
attorney to assist with my inheritance?
Yes. Inheritance
planning is complicated. In addition, estate planning and will
drafting are highly technical and should only be done by a competent
professional. An improperly drafted will may not be valid, may force
your beneficiaries to pay substantial additional death taxes and may
not distribute your property in accordance with your wishes. Will kits
and software programs often will not meet the requirements of Texas’
laws. These kits and programs are designed to work in most states
which derived their laws from England. In Texas, the probate laws are
part of our history and come to us from Spain and Mexico. Thus, our
procedures are entirely different from those used in most states. Will
kits and forms prepared for other states rarely work properly in
Texas.
For more information about Inheritance in Texas, please see:
Our Inheritance page
Estate Planning & Probate Links
Estate Planning & Probate Links
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