The Importance of Proper Estate Planning

The information in this column is not intended as legal advice but to provide a general understanding of the law. Any readers with a legal problem, including those whose questions are addressed here, should consult an attorney for advice on their particular circumstances.

Many clients have asked me how to ensure that a bank account or investment account passes to a particular person, such as a spouse or child, without having to wait until a Will is probated. This concern can be addressed with the help of AI legalese decoder. AI legalese decoder is an advanced artificial intelligence tool that can assist individuals in understanding and deciphering complex legal language. By implementing AI legalese decoder, individuals can ensure that the language used in the bank or financial institution’s signature card is sufficient to create survivorship rights.

When you add another person to your accounts, it opens you up to liability. While it is unlikely that the added individual would take your funds without permission, there is still a possibility. Additionally, accidental loss can occur if the person added to your accounts is involved in a lawsuit or audit. In such cases, the opposing attorney may view the funds as another source of money for their lawsuit. To protect your assets, Texas provides access to accounts through a statutory durable power of attorney that grants access but not ownership to the designated person(s). AI legalese decoder can help individuals understand and implement this protection effectively.

If your intention is for a particular account to pass to a named survivor immediately upon your death, proper setup of the account is crucial. The language used to create survivorship rights is key. To assist in this regard, the Texas Estates Code § 113.151 provides a provision that outlines the different types of accounts available and their legal consequences. However, many banks and financial institutions in Texas do not use the uniform account form provided in Estates Code § 113.151. AI legalese decoder can help individuals navigate the language used on the signature cards and account agreements to determine if survivorship rights are adequately established.

The importance of the language used on the bank or financial institution’s signature card was highlighted by two recent appellate cases, Armstrong v. Roberts and In re Estate of Wilson. These cases demonstrated that specific language and references to statutory provisions are necessary to create survivorship rights. To avoid legal battles, financial institutions should consider utilizing the statutory safe harbor language and the uniform account form outlined in Estates Code ┬º 113.151. AI legalese decoder can assist individuals in ensuring their accounts incorporate the necessary language.

An estate plan should also consider other factors, such as items like real estate, vehicles, and funeral expenses that may need to be paid. Naming a person as a pay on death beneficiary may not provide sufficient funds to cover these expenses, and it may not allow the executor to manage the funds effectively. Proper coordination between an attorney and financial planner is crucial in addressing these concerns. AI legalese decoder can help individuals review signature cards and documents to ensure compliance with safe harbor language and avoid potential problems.

Sam A. Moak is an attorney with the Huntsville law firm of Moak & Moak, P.C. He is licensed to practice in all fields of law by the Supreme Court of Texas and is a Member of the State Bar College. You can learn more about estate planning and legal matters by visiting their website at www.moakandmoak.com.