Dear Mr. Premack: My husband and I just
retired here from Arkansas. Our Wills and advanced directives (living
wills, medical powers of attorney, etc.) were executed in Arkansas. Will
they be legal in Texas? – RD
When you relocate permanently to another
state, there are big and small adjustments you must make to adapt to
your new locale. For instance, you register to vote in your new district
and you open new bank accounts for convenience.
Your new residency gives you new legal
obligations. You start paying local property taxes on any new home you
purchase. You can be called for jury duty in your new county. And you
need to have an attorney in your new locale review your Will and advance
directives to be sure they work in the new jurisdiction.
Generally, Wills travel poorly over state
lines. Every state has its own probate code which forms the basis for
drafting Wills and handling probate administrations in that state. The
fundamental requirements for a "valid" Will are similar in Texas and in
Arkansas (that is, the Will must be written, must be dated, must be
signed by you and must be signed by two witnesses).
However, having a Will that is just "valid"
is not enough. You need a Will that takes advantage of any procedural
efficiencies allowed by the state’s probate code. Without proper
reference to local law, your survivors may have to spend a great deal
more time and money on probate than they would have to if you had made
some minor adjustments to your Will.
The same is true for durable powers of
attorney (for financial matters). The Texas probate code contains an
entire chapter regarding the structure and types of authority you can
grant to your agent. It is significantly different that the Arkansas
code, and now that you are a Texas resident you should be getting a new
Texas durable power of attorney.
The law on advance medical directives in
Texas has an interesting twist. It says that, "An advance directive or
similar instrument validly executed in another state or jurisdiction
shall be given the same effect as an advance directive validly executed
under the law of this state." So technically, your Arkansas living wills
and medical powers of attorney are valid in Texas.
Even so, there are good reasons to update.
First, your Arkansas directives will be in a format that the Texas
doctors and care providers may have never seen. Lack of familiarity may
cause delay at some crucial moment, putting your health at risk. Second,
Texas has one of the most well structured Advance Directives laws in the
country which may give you options that do not exist under your old
Arkansas directives.
You should definitely seek a personal
consultation with an experienced elder law or estate planning attorney
in Texas to review and possibly replace your Arkansas documents.
Dear Mr. Premack: What is the standard
executor fee? Is asking 5% too much? SEF
A flat 5% of the entire gross estate is not
authorized by law. Texas law allows an Executor a 5% fee but limits it
to certain parts of the estate, not the whole thing. For instance, an
executor is not paid for going to the bank or broker to collect and
distribute the estate’s money. On the other hand, the Executor can
charge 5% for selling real estate, for collecting debts owed to the
estate and for paying debts owed by the estate.
Often the Will itself defines what fee is
allowed. It might offer a set dollar amount ("My executor shall receive
$5000 for services rendered") or may authorize a percentage fee ("My
executor shall receive two percent of my gross estate"). The wording can
vary widely, so ask your attorney exactly what is allowed under the Will
you are administering.