Myth 2 – I Don’t Need a Will Because My Spouse Gets Everything
The biggest surprise and greatest source of frustration for your spouse – when they are grieving the loss of you – is learning the life you built together doesn’t automatically pass to them.
You may recall from the Myth 1 blog that if you don’t have an estate plan, the State of Texas has one for you. Spoiler Alert . . . you’re not going to like it! Inheritance through marriage is no exception. There is no “automatic my spouse gets everything” rule! In fact, in several situations, it’s just the opposite.
The 3 complicated spousal inheritance rules are:
- If a person passes away with no children, then half of the property that is classified as “separate property,” will go to the that person’s parents, and possibly their siblings.
- If a person passes away who has children with you, the children will inherit all of the “separate property” except for a 1/3 interest in a life estate.
- If a person passes away who has children from another marriage, that person’s interest in their “community property” will pass to the children, and their “separate property” will pass to the children as well, except for a 1/3 interest in a life estate that you will retain.
What is community property?
What is separate property?
What is a life estate?
These are complicated questions with complicated answers.
The important thing for everyone to know is that if you don’t have a will, these rules can lead to some inconvenient, and sometimes, even absurd results. Your spouse could end up owning property with your parents. Your spouse could end up living in a home that is now almost exclusively owned by their stepchildren.
The best way to avoid all of these situations is to create a will. Wills override Texas law and the complicated spousal inheritance rules so that you can control who gets the assets that you worked so hard for.
Contact DebnamRust to schedule a consultation to see what estate planning documents are right for you and move beyond the myth that your spouse automatically gets everything!