A Step-By-Step Guide To Creating A Texas Estate Plan In 2024

Planning for your future is an essential step to protect your loved ones and ensure your wishes are honored according to local laws. While the process may seem complex, creating an estate plan offers clarity and peace of mind, knowing your assets will be handled just as you intend. 

By taking control now, you can safeguard your family’s future and avoid potential legal complications. This guide will walk you through the key steps of estate planning in Texas, helping you feel confident and empowered as you prepare for the road ahead. Let’s get started together.

In this article, you can learn about…

• The initial steps of estate planning in Texas, including evaluating your assets and meeting with an attorney.
• Key documents for a Texas estate plan, such as a will, beneficiary designations, and powers of attorney.
• Important factors to consider when choosing an executor, minimizing estate taxes, and planning for long-term care.

How Do I Begin The Estate Planning Process In Texas?

The first step in beginning the estate planning process is to assess all of your assets and determine if any already have beneficiary designations or predetermined distribution plans, such as those tied to an employment plan. 

Once you have a clear understanding of your assets, the next step is to meet with an estate planning attorney who can guide you through the process, discuss your wishes, and explore the available options to ensure your estate is managed according to your preferences after your passing.

What Key Documents Should I Include In My Texas Estate Plan?

The most important document in any estate plan is a will, which serves as a backstop in case other plans fail or assets are missed. In addition to a will, other key documents include beneficiary designations, such as Transfer on Death Deeds for real property and similar designations for vehicles and financial accounts. It’s also important to keep copies of these designations, as institutions may lose track of them.

Other essential documents include powers of attorney to avoid the need for guardianship, a directive to physicians, and guardian designations for children, which the court typically follows, though this is not always guaranteed.

How Can I Choose An Executor For My Texas Estate?

Choosing an executor for your estate in Texas should focus on selecting someone you trust to manage your affairs after you’re gone. You may feel compelled to avoid hurting someone’s feelings as a result of not selecting them, but you really need to be more concerned with choosing someone reliable. The executor primarily makes decisions and signs documents, but an attorney will handle most of the legal work. 

Avoid appointing co-executors unless you anticipate conflict, as it can dramatically complicate the process. If necessary, a third-party executor—someone impartial who isn’t an heir—can be chosen, though it can be costly. No matter the specific circumstances you find yourself in, trust is the key factor in making this decision.

Richard Cahan, founder of the Law Office of Richard Cahan in Texas, brings years of experience guiding clients through the estate planning process. With a focus on understanding each individual’s unique needs, Richard has helped countless Texans protect their assets and ensure their wishes are honored. Whether creating comprehensive estate plans or addressing tax concerns for high-value estates, Richard will provide you with thoughtful solutions that meet your unique needs. His commitment to simplifying complex processes has allowed families to navigate difficult decisions with confidence and security.

Ready to secure your future? Contact the Law Office of Richard Cahan today.

What Texas Laws Affect Estate Planning?

Texas probate code is the primary law that affects estate planning, but there are other laws that also affect it.

How Can I Minimize Taxes On My Estate?

Texas has no state estate or probate tax, so you don’t need to worry about that at the state level. The primary concern would be federal estate taxes, which currently apply to estates valued at approximately $15 million per person.

If your estate falls under this threshold, tax concerns are minimal. For larger estates, specialized tax attorneys or financial planners can offer strategies to minimize federal taxes, but that typically involves more advanced planning, such as trusts or gifting strategies. This level of planning falls outside the scope of general estate management.

How Do I Plan For Long-Term Care In My Estate Plan?

Planning for long-term care in your estate plan involves several key steps, including the following:

Power Of Attorney

You’ll need to designate someone to make financial and healthcare decisions on your behalf if you become incapacitated. This ensures your wishes regarding medical treatment and long-term care are honored.

Advance Directives

It’s good to include healthcare directives to guide your physicians and loved ones on the type of care you want should you be unable to communicate your preferences yourself.

Long-Term Care Insurance

Consider purchasing long-term care insurance to cover the costs of extended care, such as nursing homes or in-home care.

Medicaid Planning

Explore options to structure your estate in a way that may help you qualify for Medicaid, which can assist in covering long-term care costs. Keep in mind that Medicaid planning may limit your choice of care facilities, so it’s important to weigh your options.

You should review these strategies with an attorney or financial planner to ensure they align with your goals and resources.

What Should I Do If I Move Away From Texas With An Existing Estate Plan?

If you move from Texas with an existing estate plan, it’s important to have it reviewed by an attorney in your new state. Different states have varying laws regarding trusts, wills, and estate planning, so local counsel can help ensure everything complies with the new state’s legal requirements.

For example, while trusts may be common in other states, they may not be as beneficial in Texas unless you have specific needs, such as a large estate or a special needs beneficiary. 

Wills are often valid across state lines, but it’s still advisable to update your will to ensure full compliance with local laws, avoiding potential issues during probate. Having local counsel review and possibly update your estate plan ensures it aligns with the laws of your new state and prevents complications down the road.

Still Have Questions? Ready To Get Started?

For more information on Estate Planning In Texas, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (512) 829-6100 today.