Your legacy. Your wishes. Your people.
Wills, trusts, probate and all the paperwork nobody puts on their weekend to-do list. Here's your Texas guide to getting organized, protecting the people you love and making your wishes easier to carry out.
Future you has
a few things to say.
Estate planning isn't just for retirement or people with enormous houses. It's about making decisions now so the people you love have clearer instructions when they need them.
Whether you're starting your first will, helping your parents get organized or settling a loved one's estate, here's what to know in Texas.
What's in an estate plan, anyway?
Think of your estate plan as instructions for your property, finances, healthcare and the people who may need to make decisions on your behalf.
Put your wishes in writing.
A will can explain who should inherit your property, nominate an executor and name preferred guardians for minor children.
Choose someone you trust.
A durable financial power of attorney can authorize someone to handle specified financial matters during your lifetime.
Make your preferences known.
A medical power of attorney and advance directives can help communicate your healthcare wishes.
Check the names on your accounts.
Review beneficiary designations on life insurance, retirement accounts and eligible financial accounts.
Do you need a lawyer?
A Texas estate planning attorney can help make sure your documents meet state requirements and work together, especially if you own a business, have a blended family or hold property in multiple states.
Two familiar words. Different jobs.
Wills and trusts can both play a role in estate planning, but they work differently. Which documents make sense depends on your assets, family and goals.
Your instructions after death.
A properly executed will directs the distribution of probate property and can nominate an executor. It generally must go through probate to establish rights to property.
Another way to organize assets.
A properly created and funded trust may allow assets held in the trust to pass outside probate. It doesn't automatically protect assets from creditors or eliminate taxes.
A Texas probate feature.
A will may authorize an independent executor, allowing qualifying estates to be administered with less ongoing court supervision.
A tool for Texas real estate.
A properly executed and recorded transfer on death deed can pass qualifying Texas real property to a named beneficiary without probate of that property.
One very important detail.
Creating a trust isn't the same as funding it. Assets generally must be properly transferred or titled to the trust for it to accomplish its intended purpose.
So, what exactly
is probate?
Probate is the legal process used to establish authority over a deceased person's estate, address qualifying debts and distribute property when court involvement is required.
Step one: Find the will.
Locate the original will and contact the appropriate probate court or a Texas probate attorney. Texas generally has a four-year deadline to offer a will for probate, subject to exceptions.
Step two: Determine the process.
Depending on the estate, the court may appoint an executor or administrator. Some estates qualify for independent administration or simplified procedures.
Step three: Identify assets and debts.
The authorized representative generally gathers estate information, addresses required notices and inventories assets as applicable.
Step four: Distribute the estate.
After required debts, expenses and other obligations are addressed, remaining property can be distributed to the people entitled to receive it.
What if there's no will?
Texas intestacy law determines who inherits probate property. The outcome depends on family relationships, the type of property and whether it is separate or community property.
Not every estate needs the same process.
Texas provides several estate procedures. An attorney can help determine whether a simplified option fits your family's circumstances.
For certain estates without a will.
Some qualifying intestate estates valued at no more than $75,000, excluding homestead and exempt property, may use a court-approved small estate affidavit. Additional conditions apply.
When administration may not be necessary.
In qualifying cases, a court can admit a will as a muniment of title without appointing an executor to administer the estate.
Less ongoing court supervision.
Texas permits qualifying estates to use independent administration, often simplifying routine estate tasks.
Some assets transfer differently.
Certain jointly owned accounts, beneficiary-designated assets and properly funded trust property may pass outside probate.
Small estate doesn't mean no rules.
A small estate affidavit has specific requirements, including a waiting period, asset and debt limits, and court approval. It generally cannot transfer most real property, although a qualifying homestead exception may apply.
One folder. A lot less searching.
Your family shouldn't have to play detective to find important information. A secure, organized record can make a difficult time easier to navigate.
List real estate, financial accounts, retirement savings, business interests and valuable property.
Organize wills, trust documents, deeds, insurance policies and powers of attorney.
Check life insurance policies, retirement plans and eligible financial accounts, especially after major life changes.
Discuss executor, trustee, financial agent and healthcare agent responsibilities with the people involved.
Store originals securely and let the appropriate trusted people know how to locate them. Protect passwords and sensitive data.
When should you update your plan?
Marriage, divorce, a new child, buying property, starting a business or losing a loved one are good reasons to review your documents.
Think about what happens to the house.
For many families, a home is one of their most significant assets. Texas property rules make it especially important to understand ownership and inheritance arrangements.
Check how the property is titled.
Ownership arrangements affect what happens after a death. Marriage alone doesn't mean every asset automatically transfers to a spouse.
Texas has its own rules.
Texas distinguishes between separate and community property. Inheritance can become more complex in blended families.
Plan for real estate.
A properly executed and recorded transfer on death deed may be one option for qualifying Texas real estate.
Plan for the people who depend on you.
Discuss guardianship nominations, financial arrangements and how inherited assets should be managed for children.
Own property in more than one state?
Multiple properties can create additional estate administration issues. Discuss your situation with an attorney familiar with multistate planning.
Oh yeah.
Insurance.
Estate planning is primarily a legal and financial conversation. But insurance can play an important role in helping protect your family and your assets.
Life insurance
Life insurance may provide financial support for loved ones, help replace income or provide funds for other financial obligations.
Review your beneficiaries
Make sure your life insurance beneficiary designations reflect your current wishes and coordinate with your estate plan.
Homeowners insurance
If a property changes ownership, becomes vacant or is transferred into a trust, discuss potential insurance implications with your agent.
Umbrella insurance
Additional liability coverage may help protect against certain large covered claims, depending on your underlying policies and coverage terms.
Business insurance
If you own a business, coordinate insurance reviews with succession planning and any changes in ownership or operations.
Hey Charley is independent, so we can help you review available insurance options as your family, assets and plans change. For legal estate planning, work with a qualified Texas attorney.
Your future matters.
Let's talk protection.
Reviewing life insurance? Updating beneficiaries? Making changes to your home or business? Let Charley take a look at your insurance options.
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