Richard C. Harris drafted a will in which he declared that arbitration would be the sole means of resolving a dispute relating to the will or trust he created. Beneficiaries who did not agree to this term would forfeit any benefit conferred by his estate planning instruments. Harris specifically included breach of fiduciary duty claims within the mandatory arbitration provision. Moreover, the will said the clause would apply even in situations where the dispute was based on appropriate grounds. 

The Court of Appeals for Texas in Waco reviewed the Texas Arbitration Act (TAA) to determine if parties to a probate or trust dispute could be compelled to go to arbitration. While the TAA does bar mandatory arbitration provisions in certain situations, such as collective bargaining agreements, no such prohibition applies to probate matters. The court emphasized a basic principle of statutory interpretation: if the Legislature had intended to exclude probate disputes from arbitration, it could have said so. 

Similarly, the court rejected the argument that enforcing the arbitration clause would usurp the probate court’s authority to resolve disagreements among parties to a will. Justice Steve Smith’s decision noted that the court retains the power to confirm or deny the arbitrator’s holding. Given that the grandchildren who brought the challenge had accepted their bequests, the mandatory arbitration provision in the Harris will was held to be valid and enforceable. 

If you are concerned that loved ones will engage in a dispute over your will or trust after you are gone, there are several options you can discuss with your attorney. Many testators include a no-contest, or in terrorem, clause, which prevents someone who contests a will from receiving any part of the estate. However, these provisions usually will not be enforced if the challenge is made in good faith. That could be why Richard Harris opted for an arbitration requirement instead. 

Grob & Associates Law Firm PC advises clients on estate planning and represents parties in probate litigation matters. We have two North Texas offices, located in Rockwall and Wylie. To schedule a consultation, call us at 972-777-5701 or contact us online. 

One simple, common method of shifting real estate title is through a transfer-on-death deed. This legal instrument, authorized by statute, allows a property owner to name one or more beneficiaries who will assume title upon the owner’s death. This transaction occurs outside the probate process, so the recipient(s) will not have to wait until the estate is settled to take control. While the original owner is alive, they retain exclusive title to the parcel and can revise or revoke the transfer-on-death designation at any time. 

A “Lady Bird” deed, also known as an enhanced life estate deed, has many similarities to a transfer-on death deed, including the benefit of probate avoidance. However, a Lady Bird designation might offer advantages when it comes to protecting beneficiaries from creditors. Also, should the original owner be unable to execute the deed, their agent can do so. This is not allowed with a transfer-on-death instrument. 

There are also options that give eventual beneficiaries a legal interest in the property while the original owner is still alive. Under joint tenancy with right of survivorship, two or more owners possess the title and must consent to transactions, such as sales and loans secured by the property. When one owner dies, the other(s) take full ownership without the parcel going into the decedent’s estate. In situations where the joint owners are married spouses, this can be referred to as community property with right of survivorship. 

You can also help your loved ones bypass probate by transferring real estate into a trust. Terms of the trust can state that you are able to enjoy the property during your lifetime, then have it shifted to people you name once you pass away. A strategic gift is another possibility. 

As each tool has advantages and possible pitfalls depending on your situation, you should speak with a knowledgeable estate planning attorney concerning which option works best for you, as well as other ways to transfer assets outside of the probate system.  

Grob & Associates Law Firm PC handles a wide range of estate planning and probate matters for North Texas residents from offices in Rockwall and Wylie. Please call us at 972-777-5701 or contact us online to make an appointment. 

When the COVID-19 pandemic swept through the United States starting in 2020, many people became acutely aware that a sudden injury or illness could leave someone without the time they need to draft a legal last will and testament. Accordingly, adults of various ages made estate planning a priority. However, a recent study shows that this trend has subsided and the percentage of Americans with a will is dropping, particularly within younger demographics. The research from Caring.com shows that only 43 percent of people 55 and over have a will, down from 48 percent in 2020. 

Estate planning is an important responsibility for any adult, not just seniors and the wealthy. You deserve to decide where the assets you’ve accumulated should go upon your death. Even if your family is not blessed with a great fortune, the funds and property you leave behind could be enormously valuable to someone you love. Likewise, though people who have not yet reached middle age often don’t think about estate planning, there are key concerns facing individuals in their 20s, 30s and 40s. These are the typical parenting years, and a document outlining guardianship preferences should be included within the estate plans of anyone with a minor son or daughter. 

Your attorney can make the will drafting process suit your situation and goals. Estate planning should be a continuing process, possibly starting with a simple will and expanding over many years to reflect changing relationships, financial circumstances and objectives. Don’t be someone who left their family in a bad position because they procrastinated. 

At Grob & Associates Law Firm PC, we create personalized wills, trusts and other estate planning instruments for Texas clients. To discuss the best ways to protect your loved ones and accomplish your goals, please call 972-777-5701 or contact us online. Our offices are in Rockwall or Wylie.