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The assets you hold are already subject to taxation. Income that you make through work, royalties and properties, as well as rental or ranching income, is all subject to taxation when you first earn it. If you reinvest those earnings, you will then also pay taxes on your investment earnings eventually.  Given that you have already paid taxes at least once on the resources that comprise your personal wealth, you may feel like it is a reasonable expectation to pass your legacy onto your loved ones without additional taxation. For some people, that assumption leads to issues for their heirs when they die.

Estate planning is necessary if you want to protect your assets from uncertainty, liability or extra taxes in Texas. Your will details how assets are managed after your death, but a trust may offer more safety for your estate. Here are some differences between the two. 

Even after devoting decades to building and maintaining a successful business, many individuals might lose track of the importance of planning an exit strategy. Whether you want to keep the business in the family or sell it to reap the benefits of your hard work, a strong plan is crucial. Business owners should take the time to develop a comprehensive estate plan as well as an efficient succession plan for their business. The succession plan forces owners to take an objective look at the future of the organization and set a plan in motion that encourages growth. At the very least, the business succession plan should detail the transfer of management and ownership of the business. Additionally, the succession plan can include: A development and training agenda for successors An outline for the delegation of responsibility for successors An overview of future growth and retention plans for the organization A list of outside resources who can provide insight, guidance and objectivity to the business when necessary In addition, the succession plan can detail the coordination between the new owners and new managers, if they are different people. This coordination can include elements such as growth potential, changes that are already in motion, the division of responsibility and guidance regarding the business owner’s family. An attorney who has experience in both business law and estate planning can help you carefully evaluate your business needs and the goals of a succession plan. Whether you are planning to sell now or planning for the future control of your company, thoughtful and careful preparation is a key element.

If your family has a strong tie to the land, you may intend to pass your property on to the next generation. Whether you grow crops for human consumption, produce commodity crops, graze livestock or farm trees, the land that you own is the crucial part of your family’s identity and legacy. If you inherited a parcel that once belonged to your parents and possibly many other prior generations of your family, you probably want to protect that land so that it passes on to your children and then your grandchildren. Many issues, ranging from you or one of your family members getting divorced to major estate taxes, could affect your family’s ownership of the land. Thankfully, there is a relatively straightforward way for you to limit the risk to your farmland.

You have been fortunate and worked hard to get where you are today, and your estate has grown beyond what you imagined. You have several properties, and you have land that you want to preserve for your family’s future. If you’re working on your estate plan, finding a way to protect those properties is essential. Fortunately, there are options that you can use, such as a joint tenancy or irrevocable trust, which will help protect your property and your beneficiaries’ inheritances.