Chaparral Estate Planning Lawyer

Having an estate plan means being prepared for the worst. You can meet with a Chaparral estate planning lawyer to go over all of your options and choose the perfect plan for yourself, your family, and the future you want to see. 

With a will in place, you know who gets what from your hard-earned property after you die. An advance directive gives your loved ones instructions just in case you fall into a medical coma. You also have options to form a trust, which can separate some of your assets to help you qualify for Medicaid. A trust also names someone who can take over your business in an emergency, and different types of trusts can provide other significant advantages.

Schedule a confidential appointment to discuss what the future might hold by calling New Mexico Financial & Estate Planning Attorneys or by contacting us online.

Services Offered by a Chaparral Estate Planning Attorney

Chaparral is a small town with a big heart. The people here are all hardworking, including a high number of military personnel connected to Fort Bliss and other nearby installations.

When you’ve worked hard all of your life, you know the value of being ready for whatever tomorrow might bring. You also want to ensure that your hard work can make life easier for your family members and loved ones, even in the face of tragedy.

To ensure you are prepared for nearly any situation, it is helpful to consult with a Chaparral estate planning attorney. These lawyers specialize in helping families form plans and strategies just in case the unexpected happens.

The significant parts of an estate plan include:

• Last will and testament — A legal document that tells the courts who your heirs are and what they are supposed to inherit. To be enforceable, a will must be put in writing, signed, and then signed by two witnesses.

• Power of attorney — A document giving someone the legal ability to act in your place. Durable powers of attorney can be used even when you are unconscious (incapacitated). There are separate powers of attorney for healthcare decisions and financial transactions.

• Living will — Also known as instructions for care, this document tells your medical teams and loved ones what types of care you would want if you are left unconscious and/or on the verge of death and cannot speak for yourself.

• Trusts — A special legal arrangement that takes ownership of your property. Many trusts, but not all of them, give you the ability to still use the property as your own. A trust can be created during your lifetime or after your death. Forming a trust can give you certain benefits, such as removing property from your ownership to help you qualify for Medicaid long-term care.

• Estate tax planning — Helps your loved ones handle your final tax return for the year you die, along with any back taxes or special taxes that might be owed.
• Other key estate planning tasks include making sure your accounts have transfer-on-death declarations or beneficiaries listed.

Don’t get caught off guard without an estate plan. Less than half of the U.S. population has a will ready in case they die. 

Writing a will allows you to legally decide who gets what property. Without one, the state chooses you. So, at the very least, reach out to our Chaparral estate planning law firm to get help with writing a will. Having one ready ensures that the people who matter most to you are going to be taken care of, no matter what.

What Do I Need for a Valid Will in Chaparral?

For a will to be legally enforceable, it has to meet the following requirements, per New Mexico law (NM Stat § 45-2-502):

• The person creating the will (the testator) must be of sound mind and at least 18 years old (or an emancipated minor)
• The will must be in writing, meaning it has to be written in permanent ink or typed and printed out
• The will must be signed by the testator or in their name at their direction and in their presence
• The signing of the will must be observed by two witnesses, who then must sign the will in the presence of each other and the testator.

State law (NM Stat § 45-2-506) also recognizes wills created in other states or jurisdictions if they complied with the laws for a valid will at the time and place of creation.

You can always have a Chaparral estate planning lawyer review any plans or drafts of wills you have and use them to create a legally valid will. Your attorney can also go through other estate planning options with you to help ensure your will is carried out the way you intended.

What Happens If I Die Without a Valid Will?

If you die without a will that can be legally entered into probate, then you have what is called an “intestate” estate. In these cases, state laws (N.M. Stat. §§ 45-2-102; 45-2-103) say that the following people inherit all of your property automatically:

• If you have a surviving spouse and children, your spouse inherits all community property and ¼ of your separate property, with all children splitting the remaining ¾ of your separate property between them
• If you have surviving children (or other surviving descendants) without a surviving spouse, your children (or the next-closest generation of descendants) split all of your property equally
• If you have a surviving spouse but don’t have surviving children, then your spouse inherits everything
• If you have neither a surviving spouse nor any surviving children, then your next-of-kin inherit your property, split evenly between the type of relative in the following order of priority:
  • Parents
  • Siblings
  • Grandparents
  • Other surviving next-of-kin

While these arrangements may seem suitable for some families, the reality is that an intestate estate can create problems, confusion, and even sadness. For example, your family might be forced to sell your home so that everyone can split the proceeds, as is legally required. You also won’t be able to will specific property to specific relatives, in addition to other potential problems.

A will can be created relatively quickly with the help of a Chaparral estate planning lawyer. The effort invested in creating it also means you now have an inventory of your belongings and a list of the people you want to inherit them from. With this information, it will be easier to modify your will in the future if your situation changes.

Can Property Be Transferred Without a Will?

Some types of property can be transferred without having to use a will:

• Transfer-on-death (TOD) or payable-on-death (POD) accounts
• Accounts and policies with beneficiary designations, including life insurance policies, investment accounts, retirement accounts, etc
• Property titled with joint tenancy with rights of survivorship (JTWROT)
• Property held in an estate worth less than $50,000
• Certain property transferred through an affidavit
• Property held in trust

Refer to a Chaparral estate planning attorney to review all the assets you own and figure out what needs to be included in your will versus what can be transferred outside of it.

What Is Probate? Why Would I Want to Avoid Probate in Chaparral?

When you die, the court system must review all property that would typically be transferred through a will. This process is called probate.

During probate, the person you appoint as your representative (AKA, your executor) first has to account for all property in your estate. Then, they have to pay off any debts you owe to creditors, including for back state or federal taxes. They present your will (or declare your estate intestate) and give people the opportunity to contest it or otherwise make their case for receiving some of your estate.

After the will has been reviewed, all debts have been settled, and all challenges to the estate are resolved, the personal representative can then distribute property to your heirs, according to your will (or the rules of intestate succession).

Probate can be time-consuming and expensive to navigate. A typical probate might last four to six months, but it could be longer for complicated estates or those with disputes. Creditors have the opportunity to make claims, which may be difficult to verify or disprove. As a result, loved ones can go through significant delays before they inherit anything and, in some cases, they might not be able to inherit anything at all.

If you want to make the probate process quicker and easier for your family, you can transfer as much property as you can outside of probate (see the list in the “Can Property Be Transferred Without a Will?” section for examples). If you have a small estate, you can use transfer-on-death and beneficiary designations to transfer most of your property, and your personal representative can go through a quicker probate process for the rest. 

If you have holdings well over $50,000 — or a complicated estate — you can use a living trust to remove belongings from your estate. Your trustee (who can be the same person as your estate representative) can then transfer property to trust beneficiaries after you have been legally declared deceased.

Speak to a Chaparral estate planning attorney for more guidance on lowering the effort needed for your personal representative to go through probate after you pass.

What Is an Advance Healthcare Directive? How Is It Different Than a Living Will?

An advance healthcare directive is a set of documents that activate when you are medically incapacitated. A complete directive includes:

• A durable power of attorney for healthcare — Names the person who you want to make decisions for you when you are incapacitated. This person can be limited by the instructions you provide and other rules you set, or you can let them make any decision they feel is best for your situation.

• Instructions for healthcare — Also known as a “living will,” this document informs the person with power of attorney and your care team about the types of care you would prefer to have (or avoid), such as the use of a respirator, a feeding tube, etc.
• Primary physician designation — Names your primary care doctor, who has to be consulted before you are declared incapacitated.

All of these documents have to be in writing and signed by you before they can be used. You can revoke your directive in part or in full at any time by writing or saying that you want to do so. However, it is better to maintain a written record in case you need to revoke your old directive or make changes to it.

Do I Need a Trust as Part of My Estate Plan?

Trusts create a special legal arrangement that technically removes property from your estate. The property is managed by a trustee (who can be you during your lifetime) and is promised to an eventual beneficiary. 

Your trustee has to manage the trust according to your instructions. For example, when you die, they can hold onto your property for a while or immediately transfer it to your heirs, depending on the instructions you leave them.

Reasons to create a trust include:

• Avoiding probate — Property placed into a trust during your lifetime (AKA, a “living trust”) is technically not part of your estate, helping you avoid probate and potentially transfer property more quickly to heirs.

• Medicaid planning — Medicaid’s long-term care program has strict asset and income requirements. A Medicaid trust can remove property from your estate, helping you possibly qualify. Please note that you must transfer the property at least five years before being evaluated.

• Asset protection — Assets placed into a trust might be safe from future creditors. In other words, a trust can’t “hide” money promised to pay existing debts, but it can shelter assets in certain situations from debts acquired after the trust was established.
• Charitable giving and legacy planning — Trusts can hold onto property after you die. This can mean that investments can grow. Alternatively, certain trusts can enable you to reduce taxes on your estate while donating to a charity.

There are many other reasons to form a trust, so speak with a Chaparral estate planning lawyer about your options to see if creating a trust is the right choice for you.

Get Help From a Chaparral Estate Planning Law Firm With a Reputation for Excellent Client Service

From creating wills and trusts to making sure your loved ones don’t pay extra taxes or have to endure a lengthy probate, estate planning can help you achieve a wide range of goals. With the right plans in place, you can sleep more easily at night knowing that you are prepared for nearly any situation.

Get started by reaching out to a reputable New Mexico estate planning law firm that’s ready to help you. At New Mexico Financial & Estate Planning Attorneys, we always listen closely to you so we can customize your estate plan to fit your unique situation and specific goals.

Schedule an appointment with a Chaparral estate planning lawyer who cares when you call our firm at (505) 503-1637 or contact us online.