The Law Offices of Richard C. McConathy offers comprehensive estate planning services in Texas. Our experienced estate planning attorneys will counsel you on the most effective and appropriate planning for your specific estate and family circumstances.
We use sophisticated planning techniques to preserve family wealth. We also have the experience and capacity to deal with all matters related to planning for high-net-worth clients. However, we also offer our services to those who do not require complex tax planning.
Whether your estate requires state-of-the-art planning techniques or more routine planning documents, we will help you understand the planning options that are appropriate for your goals, family situation, and assets.
We recognize that developing plans for the appropriate and responsible transfer of wealth and dealing with unique family issues requires a high level of attention and sensitivity to the goals and desires of each client. We do not use a “cookie-cutter” approach to planning. Instead, we work to understand each client’s specific situation and intentions. We strive to make the planning experience one in which our clients know that all options have been considered and the final results will accurately reflect their wishes.
We believe that our relationships with our estate planning clients are based on trust, and we work diligently to earn the trust of each of our clients.
Estate planning in Texas involves developing a plan to distribute your property and assets to your heirs after your death. One of the most important factors that your Texas estate planning attorney will consider when developing your plan is how state and federal tax laws can affect your estate and potential tax consequences. An estate plan should also include instructions in case you become incapacitated and unable to manage your own affairs.
Here are some things to consider when preparing your estate plan:
Here are some common documents that an experienced Texas estate planning law firm may use:
The purpose of a will package is to protect your assets, both while you are alive and after your death. A will package is the foundation of your estate plan.
It includes the following documents:
Once you have met with an estate planning attorney and they have drafted the documents, you should review them every year to make sure they still reflect your wishes. As your life and family changes, you may want to review your plans and change them. We also recommend that you have an attorney review the documents to make sure they are still compatible with any changes in estate tax and federal law.
A trust is an agreement in which one person (the grantor) gives property to another person (the trustee) to manage for the benefit of a third person (the beneficiary). Trusts can be created to be effective during the grantor’s lifetime or only after their death.
There are many types of trusts, but the two main categories are revocable and irrevocable.
Revocable trusts allow the grantor to change or terminate the trust at any time. This type of trust is often used to avoid probate, hold property in other states, or for privacy reasons. For estate tax purposes, the grantor is still considered the owner of the property held in a revocable trust.
Irrevocable trusts cannot be changed or terminated by the grantor once they are created. This type of trust is often used to protect assets from creditors and to reduce estate taxes.
Here are some other types of trusts:
Our attorneys have extensive experience in representing individuals and trustees in trust litigation matters, including breach of fiduciary duty. There are many reasons why you may find yourself involved in trust litigation.
For example, if you are a beneficiary of a trust and you have issues with the trustee regarding distributions, investments, or lack of information, or if you have an issue with the trust agreement or how the trust was created. In general, the Texas Trust Code requires trustees to exercise the following duties:
The terms of the trust document can override the Texas Trust Code. If there is a conflict between the trust agreement and the Texas Trust Code, the trust agreement will prevail.
If you are a beneficiary and you have any questions or concerns about a trust, please contact our office to discuss your situation.
Our attorneys have extensive experience in representing individuals, banks, and trust companies in breach of fiduciary duty litigation. If you are a trustee of a trust agreement, you may find yourself involved in such litigation.
As a trustee, it is important to understand the high standard of care to which you are held by the beneficiary of the trust. You must act in the best interest of the beneficiary, and you are held to the standards set out in the trust agreement, as well as those set out in the Texas Trust Code.
In general, the Texas Trust Code requires that a trustee exercise the following duties:
As a trustee, you may have a beneficiary who is not happy with the distributions you are making, or the investments you have chosen. You may even have a situation where the terms of the trust agreement conflict with the Texas Trust Code.
It is important for you to understand your role as a trustee and to seek legal counsel if you find yourself involved in potential fiduciary litigation. We handle various types of litigation including guardianships, will and trust disputes, powers of attorney, interpretation of a will, and trustee-beneficiary disputes.
Currently, the estate tax exemption amount is $12.06 million for U.S. residents and citizens. This means that the first $12.06 million of a person’s property is exempt from estate taxes when they die. If a person has made gifts during their lifetime, the exemption may be reduced by the amount of the gifts.
There is also an annual gift tax exclusion of $16,000. This means that a person can give $16,000 each year to as many people as they choose without incurring any gift tax. The gifts do not have to be reported on a gift tax return.
Finally, there is a generation-skipping transfer tax (GST) that applies to property that is passed to “skip persons.” A skip person is someone who is two or more generations below the generation of the person making the transfer. The GST tax exemption is currently equal to the estate tax exemption.
The following table summarizes the estate tax, gift tax, and GST tax for 2022:
2019 | 2020 | 2021 | 2022 | |
Estate/Gift Tax Exemption | $11,400,000 | $11,580,000 | $11,700,000 | $12,060,00 |
GST Tax Exemption | $11,400,000 | $11,580,000 | $11,700,000 | $12,060,000 |
Annual Gift Tax Exclusion per Donee | $15,000 | $15,000 | $15,000 | $16,000 |
Estate & Gift Tax Maximum Rate | 40 percent | 40 percent | 40 percent | 40 percent |
GST Rate | 40 percent | 40 percent | 40 percent | 40 percent |
Portability of Unused Exemption Amount | Yes | Yes | Yes | Yes |
The Law Offices of Richard C. McConathy can help you with matters involving estate planning in Fort Worth, Arlington, Grapevine, Keller, Southlake, or other cities in Tarrant County, TX. We provide compassionate counsel that is always geared toward our clients’ needs and well-being. We will do whatever it takes to ensure that any legal issue you are facing is resolved as quickly and painlessly as possible.
Contact us today at (817) 422-5350 or contact us online to get the help you need. Our firm also provides a wide range of family law practice areas for clients who happen to require those services, including divorce allegations.