How to Start Estate Planning in Texas for First-Timers

LIGOT DIZON LAW

·February 26, 2025

·20 min read

How to Start Estate Planning in Texas for First-Timers — Image Source: pexels

Estate planning isn’t just for the wealthy—it’s for anyone who wants to protect their loved ones and ensure their wishes are carried out. Estate Planning Texas is especially important, as many residents delay this process for various reasons. Some believe they don’t have enough assets to justify it, while others assume everything will automatically fall into place after they’re gone. Unfortunately, that’s not how it works. Procrastination is also common, often because the process feels overwhelming. However, starting your Estate Planning Texas journey now can save you and your family from unnecessary stress later. It’s about taking control of your future and ensuring your legacy reflects your values.

Understanding Estate Planning in Texas

What Is Estate Planning?

Estate planning is the process of deciding how your assets will be managed and distributed after your lifetime. It’s not just about writing a will; it’s about creating a comprehensive plan that reflects your wishes. This includes naming guardians for minor children, setting up trusts, and even planning for medical decisions if you’re unable to make them yourself.

Think of it as a roadmap for your loved ones. Without it, the state of Texas decides how your assets are divided, which may not align with your intentions. Estate planning gives you control over your legacy and ensures your family avoids unnecessary legal complications.

Importance of Estate Planning for First-Time Planners

If you’re new to estate planning, you might wonder why it’s so important. For first-time estate planners, it’s about protecting your loved ones and ensuring your wishes are honored. Without a plan, your family could face lengthy legal battles or financial stress.

Many people assume estate planning is only for the wealthy, but that’s a common misconception. Even if you have modest assets, a simple estate planning process can make a big difference. It’s not just about money—it’s about peace of mind. Real-life experiences and tips from others often highlight how much easier life becomes when a solid estate plan is in place.

Unique Considerations for Estate Planning in Texas

Estate planning in Texas comes with its own set of rules and opportunities. Here are some key points to keep in mind:

Wills: Texas recognizes specific types of wills, including holographic (handwritten) wills, which may not be valid in other states.
Trusts: You can create trusts tailored to your needs, such as revocable or irrevocable trusts.
Community Property Rules: Texas is a community property state, meaning assets acquired during marriage are typically shared equally.
Homestead Protections: Unique to Texas, these laws protect your primary residence from certain creditors.
Transfer on Death Deeds: This tool allows you to transfer real estate directly to a beneficiary without probate.

Texas also has no state estate or inheritance tax, which simplifies the process. However, federal estate taxes may apply if your estate exceeds the exemption threshold. By understanding these unique aspects, you can create a plan that works best for you and your family.

Essential Documents for Estate Planning Texas

When you start estate planning in Texas, having the right documents in place is crucial. These essential documents ensure your wishes are honored and your loved ones are protected. Let’s dive into three key ones:

Last Will and Testament

A last will and testament is the cornerstone of any estate plan. It outlines how your assets will be distributed after your lifetime and can also name guardians for minor children. Without a will, Texas law decides who inherits your property, which might not align with your wishes.

To create a valid will in Texas, you need to meet these legal requirements:

Be at least 18 years old or a member of the armed forces.
Have testamentary capacity, meaning you understand the nature of making a will.
Intend for the document to serve as your property distribution plan.
Ensure the will is in writing—either handwritten (holographic) or typewritten with signatures.

By taking the time to create a will, you gain control over your legacy and reduce the risk of family disputes.

Living Trusts

A living trust is another powerful tool in estate planning. Unlike a will, a living trust allows your assets to bypass probate, making the transfer faster and less expensive. It also keeps your estate matters private, as probate records are public.

Here’s why many Texans choose to set up trusts:

They provide flexibility to adapt to life changes.
They protect minors by managing assets until they reach a certain age.
They help heirs with poor financial habits by clearly defining distributions.

Living trusts are especially useful if you own property or have a complex estate. They ensure your loved ones avoid unnecessary delays and costs.

Power of Attorney

A Power of Attorney (POA) is an essential estate planning document that lets you appoint someone to handle your financial or legal matters if you’re unable to do so. This person, known as your agent, can manage tasks like paying bills, handling investments, or even selling property.

It’s important to choose someone you trust completely for this role. A POA ensures your affairs are managed smoothly, even during unexpected circumstances.

By including these essential documents in your estate plan, you can protect your assets, simplify the process for your family, and ensure your wishes are carried out.

Advance Healthcare Directive

An advance healthcare directive is one of the most important tools in your estate planning toolkit. It allows you to outline your medical preferences if you’re unable to make decisions for yourself. This document ensures your loved ones and healthcare providers know exactly what you want, avoiding confusion during stressful times.

In Texas, an advance healthcare directive typically includes two parts: a living will and a medical power of attorney. A living will lets you specify your wishes for end-of-life care, such as whether you want life-sustaining treatments. A medical power of attorney allows you to appoint someone you trust to make healthcare decisions on your behalf.

Tip: Choose someone who understands your values and will respect your wishes. This person may need to make tough decisions, so trust is key.

Having this document in place not only gives you peace of mind but also reduces the emotional burden on your family. They won’t have to guess what you would’ve wanted in a medical emergency. It’s one of the essential estate planning documents that ensures your voice is heard, even when you can’t speak for yourself.

Beneficiary Designations

Beneficiary designations are another critical part of estate planning. These designations determine who will receive specific assets, such as life insurance policies, retirement accounts, or payable-on-death bank accounts, after your lifetime. They override what’s written in your will or living trust, so keeping them updated is crucial.

Here’s why beneficiary designations matter:

They simplify the transfer of assets.
They help your loved ones avoid probate for certain accounts.
They ensure your assets go directly to the people you choose.

To get started, review all your accounts and confirm the beneficiaries listed. Make sure they align with your current wishes. For example, if you’ve experienced a major life event like marriage, divorce, or the birth of a child, you may need to update these designations.

Note: Failing to update your beneficiaries can lead to unintended consequences. For instance, an ex-spouse could inherit your retirement account if you forget to make changes.

Beneficiary designations are simple yet powerful. They’re one of the essential documents that ensure your assets are distributed according to your wishes. By keeping them current, you can protect your loved ones and avoid unnecessary complications.

Steps to Start Estate Planning in Texas

Organize Your Assets

The first step in estate planning is getting a clear picture of what you own and owe. Start by listing all your assets, including real estate, bank accounts, investments, and personal belongings. Don’t forget to include debts like mortgages, loans, or credit card balances. This inventory will help you understand the value of your estate and ensure nothing gets overlooked.

Here’s a simple way to organize your assets:

Gather financial statements, deeds, and account information.
Include details about any existing estate planning documents.
Make a note of your beneficiaries for accounts like life insurance or retirement plans.

By organizing your assets, you’ll make the process smoother for yourself and your estate planning attorney. It also ensures your loved ones won’t face unnecessary confusion later.

Tip: Keep this list updated regularly to reflect changes in your financial situation.

Identify Your Goals and Priorities

Once you’ve organized your assets, think about what you want to achieve with your estate plan. This step is all about setting clear goals and priorities. Do you want to minimize taxes? Avoid probate? Ensure your loved ones are financially secure?

Here are some key factors to consider:

Taxes and probate
Liquidity of assets
Planning for incapacity

You should also focus on personal goals, like the well-being of your family, healthcare decisions, and final arrangements. Identifying these priorities will guide the decisions you make during the estate planning process.

Real-life experiences and tips from others often highlight how setting clear goals can simplify estate planning. Take the time to reflect on what matters most to you.

Find a Qualified Estate Planning Attorney

Estate planning in Texas can be complex, so it’s essential to consult an attorney who understands the state’s laws. A qualified estate planning attorney will guide you through the process and help you avoid common pitfalls.

Before your first meeting, prepare by gathering important documents like financial statements, deeds, and information about your beneficiaries. This preparation will save time and ensure your attorney has everything they need to create a comprehensive estate plan.

Note: Look for an attorney with experience in estate planning Texas laws. Their expertise will help you navigate unique considerations like community property rules and homestead protections.

By working with a professional, you’ll gain peace of mind knowing your estate plan is legally sound and tailored to your needs.

Prepare for Your First Meeting

Getting ready for your first meeting with an estate planning attorney can feel a little intimidating, but it doesn’t have to be. Preparation is key to making the most of your time and ensuring the process goes smoothly. Here’s how you can get started:

Gather Important Documents: Bring any existing estate planning documents, like a will or trust, if you have them. Include financial statements, property deeds, and information about your retirement accounts or life insurance policies. This gives your attorney a clear picture of your assets.
List Your Questions: Write down any questions or concerns you have about the process. For example, you might want to ask about minimizing taxes, avoiding probate, or protecting your family’s financial future. Having a list ensures you won’t forget anything during the meeting.
Think About Your Goals: Reflect on what you want to achieve with your estate plan. Do you want to provide for your children, support a charity, or ensure your healthcare wishes are honored? Knowing your priorities will help your attorney tailor the plan to your needs.

Tip: Be honest and open during the meeting. The more information you share, the better your attorney can help you create a comprehensive plan.

By preparing ahead of time, you’ll feel more confident and ready to tackle the next steps in your estate planning journey.

Draft and Finalize Your Documents

Once you’ve had your initial meeting, it’s time to start drafting your estate planning documents. This step turns your goals and priorities into a legally binding plan. Here’s what you can expect:

Collaborate with Your Attorney: Your estate planning attorney will draft documents like your will, trust, and power of attorney based on the information you provided. They’ll ensure everything complies with Texas laws and reflects your wishes.
Review the Drafts Carefully: Take the time to read through each document. Look for any errors or areas that need clarification. Don’t hesitate to ask questions or request changes. This is your plan, and it should be exactly how you want it.
Sign and Finalize: Once you’re satisfied with the drafts, you’ll sign the documents in the presence of witnesses or a notary, as required by Texas law. This step makes your estate plan official and enforceable.

Note: Keep your finalized documents in a safe but accessible place. Let your executor or trusted family members know where to find them.

Drafting and finalizing your documents is a big milestone in your estate planning process. It ensures your wishes are legally protected and gives you peace of mind knowing your loved ones will be taken care of.

Common Mistakes First-Time Estate Planners Should Avoid

Procrastinating the Process

One of the most common mistakes first-time estate planners make is putting off the process. It’s easy to think you have plenty of time or that estate planning isn’t necessary yet. But life is unpredictable, and delaying this important step can leave your loved ones unprotected. Without a plan, the state of Texas decides how your assets are distributed, which may not align with your wishes.

Procrastination often stems from feeling overwhelmed by the process. However, breaking it into smaller steps can make it more manageable. Start by creating a simple will to ensure your basic wishes are documented. Then, gradually add other elements like trusts or powers of attorney. Taking action now, even if it’s just a small step, can save your family from unnecessary stress later.

Tip: Don’t wait for the “perfect time” to start. Begin today, and you’ll thank yourself later.

Failing to Update Your Plan

Creating an estate plan is a great start, but failing to update it regularly is another common mistake. Life changes—marriages, divorces, births, or even financial shifts—can make your original plan outdated. If you don’t revisit your plan, it may no longer reflect your current wishes or financial situation.

For example, if you forget to update your beneficiaries after a divorce, an ex-spouse could inherit your assets. This oversight can lead to legal disputes among family members and cause unnecessary heartache. To avoid these issues, review your estate plan every few years or after major life events.

Note: Keeping your plan updated ensures it aligns with your goals and avoids potential conflicts.

Overlooking Digital Assets

In today’s digital age, ignoring your online presence is a mistake you can’t afford to make. Digital assets include everything from social media accounts to cryptocurrency and cloud-stored files. If you don’t include these in your estate plan, your loved ones may struggle to access or manage them.

To avoid this, start by making a list of your digital assets, including usernames and passwords. Back up important data and work with your attorney to ensure your legal documents provide access to these accounts. For example, you can include a clause in your will or trust that grants your executor permission to manage your digital assets.

Tip: Keep your password list separate from your estate plan for security reasons.

By addressing your digital assets, you’ll ensure nothing gets overlooked and your loved ones can handle your online presence smoothly.

Not Communicating Your Wishes

One of the most common mistakes in estate planning is failing to communicate your wishes to your loved ones. You might think your documents speak for themselves, but misunderstandings can still arise. If your family doesn’t know your intentions, they may face confusion or even conflict when the time comes to carry out your plan.

Talking about estate planning can feel uncomfortable, but it’s essential. Start by having an open conversation with your family. Share the basics of your plan, like who you’ve chosen as your executor or trustee and why. Explain your decisions about asset distribution, guardianship, or healthcare preferences. This helps everyone understand your reasoning and reduces the chances of disputes later.

Tip: Keep the conversation simple and focus on your goals. You don’t need to share every detail, just enough to provide clarity.

By communicating your wishes, you’re not only avoiding common mistakes but also giving your family peace of mind. They’ll know exactly what you want, which makes it easier for them to honor your legacy.

Choosing the Wrong Executor or Trustee

Choosing the right executor or trustee is one of the most critical decisions in estate planning. This person will manage your estate, distribute assets, and ensure your wishes are followed. Picking the wrong person can lead to delays, legal issues, or even financial mismanagement.

When selecting an executor, think about their reliability and organizational skills. Are they trustworthy? Can they handle the responsibility? Avoid choosing someone just because they’re a close family member. Instead, focus on their ability to handle the role effectively.

Here are some qualities to look for in an executor:

Trustworthiness: They’ll have access to your assets, so honesty is crucial.
Attention to Detail: Managing an estate involves paperwork and deadlines.
Communication Skills: They’ll need to work with beneficiaries and possibly attorneys.

Note: If you’re unsure about choosing an executor, consider hiring a professional or consulting your estate planning attorney.

By carefully selecting your executor or trustee, you’re avoiding common mistakes that could complicate your estate plan. This ensures your wishes are carried out smoothly and your loved ones are protected.

Tips for Keeping Your Estate Plan Updated

Review Your Plan Regularly

Keeping your estate plan up-to-date is essential to ensure it reflects your current wishes. Life changes quickly, and your plan should keep pace. Regular reviews help you catch any outdated information or gaps that need attention.

Here’s how often you should review your plan:

Younger families should revisit their estate plans every 3 to 5 years.
Older families benefit from annual reviews, especially as health and financial situations change.
Major life events, like marriage, divorce, or buying a home, should trigger an immediate review.

Tip: Set a reminder on your calendar to review your estate plan. This simple habit ensures your plan stays relevant and effective.

By reviewing your plan regularly, you can avoid surprises and ensure your loved ones are protected.

Update After Major Life Events

Significant life events often require changes to your estate plan. These moments can shift your priorities or introduce new responsibilities. Updating your estate plan ensures it aligns with your current situation.

Here are some events that typically call for updates:

Marriage, divorce, or remarriage
Birth or adoption of a child or grandchild
Death of a spouse, beneficiary, or family member
Buying, selling, or inheriting property
Starting, selling, or buying a business
Changes in wealth, health, or family dynamics
Relocation to another state or country

For example, if you move to Texas, you’ll need to adjust your plan to comply with Texas laws. Similarly, if you’ve had more children, updating your estate plan ensures they’re included as beneficiaries.

Note: Keeping your plan updated after major life events prevents confusion and ensures your wishes are honored.

Stay Informed About Estate Planning Laws in Texas

Estate planning laws can change, and staying informed helps you avoid legal issues. Texas has unique rules, like community property laws and homestead protections, that may impact your plan. Regularly reviewing these laws ensures your plan complies with current regulations.

Working with an estate planning attorney is one of the best practices to follow. They’ll help you navigate complex legal updates and ensure your plan remains valid. Attorneys also ask the right questions to create a comprehensive plan tailored to your needs.

Tip: Subscribe to newsletters or follow trusted legal resources to stay updated on changes in Texas laws.

By staying informed, you can protect your assets and ensure your estate plan works as intended.

Work with Your Attorney for Adjustments

Estate planning isn’t a one-and-done process. Life changes, and so should your estate plan. That’s why working with your attorney for adjustments is essential. They can help you keep your plan up-to-date and aligned with your current goals.

Start by scheduling regular check-ins with your attorney. These meetings don’t have to be frequent, but they should happen after major life events. For example, if you’ve moved, married, or had children, your estate plan might need updates. Your attorney will ensure your documents comply with texas laws and reflect your new circumstances.

During these meetings, don’t hesitate to ask questions. Maybe you’re unsure about how a new law affects your plan or whether your executor is still the right choice. Your attorney is there to guide you and provide clarity. They can also help you address overlooked areas, like digital assets or changes in tax regulations.

Tip: Keep a list of questions or concerns to discuss during your meeting. This helps you stay organized and ensures nothing gets missed.

Finally, remember to review your plan carefully after any adjustments. Your attorney will handle the legal details, but it’s your responsibility to confirm everything matches your wishes. By staying proactive and working closely with your attorney, you can ensure your estate plan remains effective and stress-free for your loved ones.

Estate planning in Texas is a vital step to secure your future and protect your loved ones. By starting early, you can control what happens to your assets, minimize taxes, and avoid family disputes. Without a plan, Texas intestate succession laws may decide for you, which could lead to outcomes you don’t want.

Taking the time to create an estate plan ensures your wishes are honored. It also provides peace of mind, knowing your family won’t face unnecessary stress. Whether it’s drafting a will, designating guardians for minor children, or protecting your assets, every step you take brings you closer to a comprehensive plan.

Tip: Don’t wait for the perfect moment. Start your estate planning journey today to simplify the process and safeguard your legacy.

FAQ

What happens if I don’t have an estate plan in Texas?

Without an estate plan, Texas intestate succession laws decide how your assets are distributed. This process may not align with your wishes and could lead to family disputes. Creating a plan ensures your loved ones are protected and your intentions are honored.

Can I create my own will without an attorney?

Yes, you can create your own will in Texas. However, it must meet legal requirements to be valid. Consulting an estate planning attorney ensures your will is properly drafted and avoids potential issues.

Tip: A poorly written will can lead to legal complications. Professional guidance is always a good idea.

How often should I update my estate plan?

You should review your estate plan every 3-5 years or after major life events like marriage, divorce, or the birth of a child. Regular updates keep your plan aligned with your current wishes and circumstances.

Do I need a trust if I already have a will?

A trust isn’t mandatory, but it offers benefits like avoiding probate and maintaining privacy. It’s especially useful for complex estates or if you want to manage how assets are distributed over time.

Note: Trusts can complement your will, providing more control and flexibility.

What’s the difference between a living will and a last will?

A living will outlines your medical preferences if you can’t make decisions yourself. A last will specifies how your assets are distributed after your lifetime. Both are essential for a comprehensive estate plan.

Emoji Reminder: 🏥 Living will = healthcare decisions. 🏠 Last will = asset distribution.