Texans who are getting ready to do some estate planning, such as having a last will and testament drawn up, may want to consider their heirs. You probably already know who your heirs will be, but by “consider your heirs,” we mean consider their personalities — their strong points and their weak points.

This way, as you plan your last will and testament, you can set your heirs to be winners and not losers. You don’t want to see the inheritance you have built through hard work squandered away, do you? Unfortunately, depending on who your heirs are, that could be just what happens.

There are some common mistakes that heirs make when they receive an inheritance. The most common is careless spending. People who have had little money for most of their life are inexperienced with how to make a windfall of money last and work for them. They buy large items, such as houses, cars or boats. However, as time moves on and the money is gone, they haven’t planned for how they were going to support those assets.

Another common mistake that heirs make is letting an inheritance — theirs or someone else’s — cause problems between them and their families. Inheritances can cause jealousy when everyone doesn’t get the same. It often harbors feelings of “they don’t deserve it.”

Finally, new heirs will probably need some advice from someone who can direct them on what to do with their inheritance. Many heirs just think it is their money now, and they can make their own decisions.

To avoid these problems, do some thorough estate planning with your attorney. When deciding who gets what, know and consider your heirs. Put safeguards in place, such a trust. It may be time-consuming, but it will make a great deal of difference for those you love.

Source: U.S. News and World Report, “5 Inheritance Mistakes for Heirs to Avoid” Susan Johnston, Jul. 15, 2014

If you are an heir or beneficiary of a property owner in Texas, you may not be happy about the possible news of tax relief in the upcoming year.

Political pundits and lawmakers have been tossing around the idea for a while now, having been exacerbated by primary elections and runoffs. One candidate for governor promised to cut Texas property taxes and emphasized the cuts would be particularly beneficial for older voters. The litany has continued on his social media site.

The liberals and independents in the Lone Star State might be happy to hear the potential cuts. While the state property taxes are levied by the local governments, lawmakers have little power to change the rates doled out to unhappy homeowners. The news is not all bad, however, given that the state can prevail over allowing provisions for citizens over 65 as well as for farms.

While the law says some older homeowners are eligible for a freeze in taxes, they can also reduce or eliminate them in favor of liens payable after their deaths. This is not appealing for heirs and beneficiaries but helps older voters to continue to survive financially and keep their homes.

Implicit in state control is the financial repercussions trickling down to school districts and city municipalities that would have to scramble to get funding in other areas. If legal provisions allow for freezing appraisals and tax bills, exemptions could be extended to younger homeowners, who might find the new guidelines unfair and prejudiced according to age.

In Texas, as in other states, it is all about revenue. To keep funds flowing, local governments would have to penalize those not eligible for exemptions. Beneficiaries and heirs to property owners will be affected by this situation. To protect yourself and your financial future, you should contact a legal professional who can assist you in understanding your rights as a beneficiary or heir, and what tax implications might be upon the death of a loved one who has designated you in his or her will.

Source: ;The Texas Tribune, “Analysis: Finding Property Tax Cuts That Taxpayers Feel“, June 27, 2014