Legal Update with Wesley West Estate Planning Options for Military Service Members If you’ve spent any time in the military, you are no stranger to the Solder Readiness Processing (SRP). You know—that two-day struggle to make your way through the labyrinth of medical and dental visits, personnel stations, records review, and ultimately the attorneys who prepare estate plans to ensure your loved ones get your stuff if the unthinkable should happen. Unfortunately, the rushed and chaotic atmosphere at a SRP is not the ideal environment for serious estate planning. Proper estate planning will reduce pressure and anxiety on those who are left to deal with the permanent absence of the family member, and provide immediate access to assets for burial, continuing to make the house payment, etc.
The Last Will and Testament is the normal method for Soldiers and Airman to dispose of their property to their heirs. It is accepted in all states, and a will can do all things necessary to accomplish disposition. Unfortunately, distributing assets in a Will requires court involvement called “probate,” which often requires additional costs and attorney fees. Probating a will can be even more expensive if there are many heirs, disputes, or worse if there was a technical error in drafting or executing the instrument. Wills are solid tools, but other methods exist to avoid exposing assets to probate courts, and creditors. In 2015, the Legislature enacted the Texas Real Property Transfer on Death Act (TRPTODA) which allows an owner to name a beneficiary to receive real estate located within the State of Texas. The real estate passes to the beneficiary outside the regular probate process by means of a transfer on death deed (TODD). The owner retains the absolute right to revoke the deed or sell, mortgage or otherwise encumber the property. The TODD is a huge win because generally the largest portion of most estates is real property.
Banking and investment accounts may also be disposed in a Last Will and Testament, but there are more efficient ways to transfer outside of probate. Every financial institution that holds depositor’s or investor’s cash has options to transfer decedent assets without the necessity of probate. These types of accounts are normally called “transfer on death” or “payable on death” options. Be mindful to ask your financial representative to ensure that should you expire; the person or persons of your choosing will become immediate owners of those assets without the necessity of court involvement. Estate planning can seem like an arduous task. However, failing to plan can erode what you’ve worked so hard to build, and leave your loved ones in confusing and expensive situations just to maintain the homestead, or have access to your savings account. H Attorney Wesley West is a NGAT Life Member and partner at O’Connell & West, PLLC. Wes can be reached at (512) 547-7265.
W i n t e r 2 0 2 2 H N a t i o n a l G u a r d A s s o c i a t i o n o f Te x a s
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