How an Estate Plan Saves You Money

Inflation and high cost of living was clearly an important issue the United States’ 2024 Presidential Election. People are looking for ways to reduce costs any way they can. Creating an estate plan may seem like an expense that can be pushed off for later, but the reality is that a well-structured plan can save a substantial amount of money. Here’s a breakdown of the costs that estate planning can help you avoid:

1. Save Money by Reducing or Avoiding Probate Costs

Probate is required in Texas whenever someone owns an asset in their name alone, without a trust, beneficiary designation, or right of survivorship to transfer the asset. Despite common belief, real estate in Texas does not automatically pass to a co-owner when the other owner dies. Probate is necessary to transfer real estate upon death, even to a surviving spouse. Probate costs in Texas range from $3,000 to $5,500 for an uncontested case with a valid will that meets Texas legal requirements. If a person dies without a will, the probate process becomes more complex, leading to higher fees, additional legal expenses, and delays. A trust-based estate plan like the Texas Family Will and Trust Plan can reduce or completely avoid these costs, allowing for a faster, more affordable transfer of assets to beneficiaries.

2. Save Money by Guarding Against Legal Fees from Family Disputes

When there is no estate plan in place, disputes over assets, guardianship, or financial management are more likely, often leading to costly legal battles. By clearly outlining your wishes in a will or trust, you can reduce the chance of misunderstandings or disagreements that may result in expensive litigation, preserving more of your estate for your loved ones.

3. Save Money by Reducing or Avoiding Guardianship Costs

If you become incapacitated and do not have a financial or medical power of attorney, your family may need to petition the court for guardianship to manage your medical or financial affairs. In Texas, guardianship costs start at $10,000 and can escalate significantly depending on the guardian’s responsibilities and if family members fight over who should be named guardian. By setting up a medical and financial power of attorney, you can spare your family these burdensome costs and ensure that trusted individuals will manage your care and finances if you’re unable to do so.

4. Ensuring Efficient Wealth Transfer

By creating a comprehensive estate plan, you streamline the transfer of assets, which can reduce the administrative costs that often arise when there’s no clear plan. Designating who inherits from you and specifying asset distribution avoids delays, keeps costs down, and ensures that assets pass directly to your loved ones without excessive expense.

Conclusion

By creating a solid estate plan, you can protect your family from the financial and emotional costs of probate while ensuring your wishes are followed. The Texas Family Will and Trust Plan can save you even more money compared to traditional estate planning, which typically ranges from $2,500 to $10,000. At Texan Wills and Trusts, our mission is to make high-quality estate planning accessible to all Texans, which is why our Texas Family Will and Trust Plan is available for only $199! Take control of your legacy today—visit TexanWillsandTrusts.com to purchase your plan and enjoy peace of mind knowing your family is protected without breaking the bank.