Elliott Burdette Interview

“Ask the Experts” on 1190 Talk Radio

M: Elliott, welcome to the show. How are you doing today?

E: I am doing very well, Matt. It is great to be here, particularly on the Mighty 1190. You have introduced a little Rolling Stones music in the background, and that takes me back to when I was a teenage kid growing up in Dallas. Cliff – The Mighty 1190 in Dallas was the rock station we all listened to, and I listened to that song when it was new. That gives you a little sense of my age. So, some nice history with Cliff 1190, and I am pleased to be your guest today. Thank you.

M: It’s a pleasure to have you on. That’s a great song, no better way to start the show. Before we get into questions, I know we have a lot to cover today. Why don’t you give the listeners an overview of what you do?

What Does an Estate Attorney Do?

E: Sure, I’m happy to. I am an estate attorney, and my firm specializes in trusts and estates. Here are the main areas I focus on:

1. Wills and Trusts Preparation: I help people prepare wills and trusts depending on their circumstances—sometimes both.
2. Probate Assistance: I guide families through the probate process when someone dies without a trust.
3. Dispute Resolution: Increasingly, disputes arise over who gets what after someone dies. Sometimes, people don’t plan well and leave a bit of a mess. In other cases, family members might act out of greed, especially if they’re named executor of a will or trustee of a trust. They may act in their own best interests rather than those of the beneficiaries. That’s when our litigation team steps in to protect the rights of those beneficiaries.

Personally, I focus on directing people to the right resources and making sure their estate planning minimizes the risk of these kinds of disputes.

Three Key Areas of Focus in Estate Planning

Today, I’d like to discuss three key areas that come up often in estate planning:

1. Wills vs. Trusts: Should you have a will or a trust, and what are the differences?
2. Protecting Parents: Many people want to protect their parents, especially if they are remarrying later in life. How do you protect your interests and prevent future conflicts between a step-parent and the children?
3. Unintended Consequences of Estate Planning: Sometimes, people have both a will and a trust, and then they make beneficiary designations on certain assets. This can lead to assets going in several different directions, causing confusion and legal issues.

M: Perfect, that was fantastic. I look forward to diving into those questions. So, let’s start with the basics. What is estate planning?

What Is Estate Planning?

E: Estate planning is a broad term used by financial professionals, CPAs, and attorneys. Essentially, it’s planning for who gets what at the time of death and under what conditions. If you don’t have a will, the State of Texas will decide for you. Estate planning allows you to make sure the right people inherit what you want them to, under favorable terms for their circumstances.

Estate planning covers everything you own: life insurance, 401(k)s, savings, investments, and any inheritance you may have received. It’s about creating an orchestrated, coordinated plan to ensure the right people get what you intend.

M: You mentioned wills and living trusts earlier. What’s the difference between them?

The Difference Between Wills and Living Trusts

E: That’s a great question. Let’s start with wills. A will is a document that states who gets what at the time of death. Each state has its own requirements, but generally, the person must have “testamentary capacity,” meaning they know what they’re doing. The will must also be properly executed, usually in the presence of witnesses and a notary public.

A will doesn’t have any legal effect until after the person dies, and it’s submitted to probate court. In Texas, we have a relatively simple probate process compared to other states, but probate is still required.

On the other hand, a living trust is different. A trust is effective immediately after it’s created, not just after death. Property transferred into the trust can be managed by the trustee, and this avoids probate altogether. Another key benefit is that if the person who created the trust becomes incapacitated, the trustee can manage their property without needing court supervision.

Protecting Your Parents’ Estate

M: When should someone be concerned about their parents’ estate planning?

E: Two main issues arise with parents. First, parents can become vulnerable to scams as they age, especially if they’re lonely or frail. Second, when a parent remarries later in life, it’s important to address estate planning to avoid future conflicts between the new spouse and the children.

It’s crucial to be involved, know what attorney is handling their documents, and consider a prenuptial agreement. A prenuptial agreement can ensure that the parent’s assets go to their intended heirs and avoid legal battles after death.