When drafting a will, you’ll likely be creating lists and considering which possessions or property you’ll want to leave to each of your loved ones. However, have you made a plan for what they should expect if you unknowingly owe money on any of your property? Without a plan, you could be assigning debt or unpaid taxes to your friends and family. Avoid this mistake by reading on about a few financial matters that you should be familiar with when creating your estate plan.
Prepare for Unforeseen Taxes
If you own a home, have you considered who will become its owner after your passing? If so, it’s important to do your homework beforehand and determine if there are inheritance taxes on your property. Inheritance taxes may be passed onto your loved ones.
Prepare for these possible taxes by:
- Speaking with our attorneys in McAllen to determine if your estate is taxable under state and federal laws.
- Creating a list of all property owned by you and your spouse.
- Gathering documents, such as liens on properties and loans on life insurance policies, that may be taxable.
Add Up Your Current Debts
Another factor to consider when drafting a will is calculating how much debt, if any, you have. One popular misconception about inheritances is that any outstanding debts are forgiven when ownership of property is passed onto someone else. In fact, creditors can collect the debt from your estate.
It is recommended to:
- Choose an executor to handle your affairs.
- Make a list of creditors that you’re indebted to and pass it along to your executor.
- Catalog outstanding balances on each of your possessions.
Get Advice from a Probate Lawyer in McAllen
If you don’t seek advice when drafting your will, you run the risk of leaving behind a legacy of unexpected debt and taxes to your loved ones. Contact our lawyers in McAllen to schedule a free consultation!