A will only conveys property that is in your “estate”. The property that is “yours” is not the same thing as the property in your estate. When you pass, you may have many kinds of property, which could include bank accounts, retirement savings in brokerage accounts, life insurance, real property, such a house, acreage, mineral rights, and personal possessions such as a business, car, furniture, household goods, and jewelry. In Texas, if you have been married; for all the property that you acquired during the marriage, one half automatically belongs to the surviving spouse. Only your half belongs to your estate. For most of your financial accounts, the institution will have given you the opportunity to name a ‘beneficiary’ who will automatically receive the funds in the account when you pass. Therefore, for any account where you have named a beneficiary, that money is not in your estate. In Texas we have a Transfer on Death Deed. This is a deed that is executed when you are still alive. Upon your death, title automatically passes to the grantee. For any property where you executed a Transfer on Death Deed, that property is not part of the estate.
By example, if a single person has a checking account and retirement account where he/she has designated a beneficiary, a house and vacation home where transfer of death deed has been executed, and furniture and personal possessions, when that person passes, the only property in the estate will be the furniture and personal possessions. If there is a will that states, “I give all my possessions to my three sons, Moe, Larry, and Curly, share and share alike”, the only property in the estate that will be divided up to the three sones will be the furniture and personal possessions.
In certain situations, there are advantages to limiting the property that will be part of one’s estate. For more information on drafting a will that will reflect your intentions, and to make an informed decision of what property you want included in your estate, make an appointment to consult with the Law Office of Elliott Klein, PLLC.