Q. My business partner and I have a good business and don’t use a lawyer too often. We want to execute simple wills on our own. Can we handwrite them and notarize them? Is that valid?
Holographic wills, or handwritten wills, in Texas are valid so long as they are signed and wholly in your handwriting. If you type a section or include some section that is not in your handwriting, it may not be valid. Even though you may write a handwritten will, there are several items that you will likely need to include in that will which are too lengthy to list here. For example, you need to discuss your business and any assets related to it, stocks, bonds, real estate and any specific bequests to various individuals. Since you have your own business, it may be a good idea to consult a lawyer to do some more extensive estate planning. I usually only recommend holographic wills to those people who have limited income and/or assets or who must write something in an emergency and don’t have time to do a more extensive will. You may end up saving money initially writing your own will, but you might cost your heirs significant sums after your death with the ambiguities and defects.
Q. Is it legal to put in my will what happens to my business stock after I die? And, can I put in my will who I want to run my company?
Your will is intended to describe your wishes for your assets and property after your death. Some of those assets include money, stocks, bonds, real estate and specific personal items. So, you can certainly bequeath stock to anyone in your will. If you have stock in Exxon, you can bequeath that stock to someone. The more complicated problem is running your company immediately after your death. To illustrate, your executor will step into your shoes after your death and appointment by the Court. That may take some time depending on what county you live in.
The stock will not be transferred until after the Court appoints the executor and the executor actually transfers the stock. You may also want to consult a lawyer about your options of who will run your company. Placing language in your will about your wishes is a good idea so that people are aware; however, that does not solve your problem. Instead, you may want to think about appointing various vice presidents with various capacity to handle affairs during your lifetime so that upon your death, those vice presidents can continue to run the company. I do advise you to up the best plan for your company based on all circumstances and caution you not to simply rely on my limited advice based on a general question.
Q. I don’t have a spouse or any children. I don’t have a will either. What happens to my company if I should die tomorrow?
In Texas, an heirship proceeding would be conducted to determine your heirs entitled to your property. This can be a complicated, expensive and troublesome procedure. First, I would recommend that you write a handwritten will wholly in your handwriting. Then, I would contact a lawyer to do estate planning with you since you likely have some assets in your name or your company’s name. Texas law specifically describes the line of descent to determine heirs entitled to your property. If you are not married and do not have children, then your property will be apportioned among your parents. If they are no longer alive, then the property will likely be apportioned to your siblings. If none of them are alive, then the heirship gets more complicated and goes to the next level of descendants. As you can see, the process can be tedious to determine. Further, I would recommend that you do some internal planning within your company to make sure that you have managers and qualified employees in positions to ensure the company continues to operate and you have empower various employees with powers to continue that business in your absence.
Editor's note: The information in this column is not intended as legal advice but to provide a general understanding of the law. Readers with legal problems, including those whose questions are addressed here, should consult attorneys for advice on their particular circumstances.
