Five Estate Planning Documents Every Texan Needs
When preparing an estate plan in Texas, having the right legal documents in place is essential. These five estate planning documents help protect your assets, ensure your wishes are honored, and reduce stress for your family. What Documents are Needed for Estate Planning Last Will and Testament Statutory Durable Power of Attorney Living Will (Advanced Directive to Physicians) Medical Power of Attorney HIPAA Authorization Last Will and Testament This document outlines how, when, and in what percentages the property will be distributed upon a person’s death. It can also appoint guardians for minor children. Wills may contain trusts, which are called testamentary trusts, to accomplish specific goals of the person writing the will. A will only becomes legally effective after your death and once it is admitted to probate. It does not provide any authority in the event you become incapacitated during your lifetime, which is why additional planning documents are necessary. Without a will, your estate may be subject to intestate succession, where the probate court determines how assets are distributed according to Texas law. Statutory Durable Power of Attorney (POA) This power of attorney is a financial power of attorney. This document allows a person (the principal) to appoint another person (the agent) to manage their financial and property matters, even if the principal becomes incapacitated. This is an important document and enables someone to handle affairs like paying bills, managing bank accounts, and selling property, and ensuring continuity if the principal cannot act for themselves. A power of attorney is only effective while the person is alive and dies with the person at the time of death. Living Will (Advanced Directive to Physicians) This document may be referred to as a living will or as an advanced directive. This document outlines how a person would like to die. This document addresses a person’s end-of-life care preferences when suffering from a terminal condition or irreversible condition. It lets family and doctors know the wishes in the event that one is unable to make health-care decisions. Medical Power of Attorney This document appoints someone to make healthcare decisions when one is unable to do so. This document is an essential part of advance care planning, ensuring wishes are followed even if incapacitated. This is a document similar to the Durable Power of Attorney, except it deals with medical decisions instead of financial decisions. It gives decision-making authority to a third person. HIPAA Authorization HIPAA authorization is a document that allows a healthcare provider to share protected health information with a specific individual. Without this document, loved ones may not be able to: Communicate with doctors Access your records Help manage your care Including this form with your important estate planning documents ensures transparency and supports informed decisions. How an Estate Planning Attorney Can Help Working with an experienced Houston estate planning attorney ensures your documents are valid, tailored to your situation, and aligned with Texas law. An attorney can: Explain the legal implications of each document Ensure your beneficiary designations and guardianship preferences are enforceable Help you create a trust that meets your goals Coordinate your estate plan with […]
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What Happens If Someone Dies Without a Will in Texas
If you’re settling the estate of a deceased person who didn’t have a will, the family and loved ones often want to know what happens if someone dies without a will. In this situation, the distribution of the estate is governed by Texas intestacy laws, which determine who will inherit, how much will they inherit and in what order. Understanding how these laws work can help reduce confusion and prevent disputes during an already difficult time. What Types of Property Aren’t Passed by a Will Not all property is handled through intestate succession laws. Certain types of property pass directly to beneficiaries when designated, bypassing probate. Examples include: Life insurance proceeds Transfer on death real property deeds Payable on death bank accounts IRA, 401(k), or retirement plan where the beneficiary is named Stocks or other securities held in a transfer-on-death (TOD) account Who Becomes Executor if There Is No Will When there is no will, there is also no named executor to handle the deceased person’s estate. In this case, the probate court will follow Texas law, which sets out a specific order of priority for appointing someone to serve as the estate’s personal representative. This person is often called an administrator rather than an executor. The list in the Texas Estates Code generally begins with the surviving spouse, followed by the principal heirs, and then other eligible family members. If none of these individuals are willing or able to serve, the court may appoint another qualified person, such as a creditor or even a public administrator. Understanding Intestate Succession in Texas In Texas, intestate succession determines how an estate is divided when someone dies without a will. Who inherits depends on whether the deceased had a surviving spouse, living children, parents, or other close relatives. If you die without a will, determining where your property will go can be complicated and stressful for the family. In Texas, your family must first determine if the property is community property or separate property. We help our clients to make this determination. What Happens When a Married Person Dies Without a Will? In Texas, the spouse’s share of the property is determined based on whether the property is separate property or community property and whether the deceased spouse had children outside of the current marriage. Community property: This is property acquired during the marriage. The spouse will inherit all community property if there are no other children outside the marriage. If there are children outside the marriage, the surviving spouse does not inherit any of the deceased spouse’s community property, and the children split the deceased spouse’s share of community property. Separate personal and real property: This is property acquired before marriage or by gift or inheritance. This is divided according to Texas intestate succession laws which can be confusing and complicated. Our firm assists clients before death in preparing their estate planning documents so that they are not surprised. What Happens When a Parent Dies Without a Will? In Texas, your children may receive a share of your property when you die without a will. The size of the child’s share […]
Continue ReadingDo I Need a Trust?
Frequently, my clients ask, “Do I need a trust?” and wonder how to avoid probate. My answer is that it depends but there is a good chance that a trust is not what you need. There are times when a revocable living trust is an effective estate planning tool, but for many clients, it is a waste of money. Trusts are promoted by many websites and literature that the public receives. Trusts are not a solution for all. To determine if a trust is a good idea for you, it should be discussed with an estate planning attorney. Please call our office to set up a free consultation. What Is a Trust? A trust is a legal arrangement where one party (the trustee) holds and manages assets for the benefit of another party (the beneficiary). Trusts are often used in estate planning to ensure the assets are distributed according to your wishes, both during your lifetime and after death. Trusts can also be used to manage assets in the event you become incapacitated. There are different types of trusts, such as: Revocable trust: Can be changed or revoked during your lifetime. Irrevocable trust: Cannot be altered after it is created. Testamentary trust: Created through your will and takes effect after your death. Reasons A Living Trust Might Not Be Necessary 1. Probate is Not Complicated or Expensive with Proper Planning The price for creating a revocable living trust, funding it, making transfers into the trust, and related documents may exceed the cost of probate for a will that is properly drawn up to provide for independent administration. 2. Probate Under a Well-Drafted Will is Timely and Efficient Texas law streamlines the probate process, and there are rarely long delays when there is a properly drafted will. An independent administration under a valid will requires only one hearing and minimal court involvement in the process. A competent and conscientious executor will move the process along quickly unless there are unusual complications. 3. Avoiding Probate Without a Trust You can avoid probate of many assets by placing them in a transfer on death deed or account with the right of survivorship, beneficiary designation, or payable on death designations. This may be a simpler way of passing on many assets upon death rather than spending the money to place assets in a living trust. If beneficiaries are minors or have special needs, you may require a trust, but maybe a will can also accomplish these desires. 4. Estate Tax Planning is Not Needed for Most People Under current estate tax regulations, unless you have an estate worth well more than $12 million per person, you have no need for a living trust to avoid estate taxes. This could change in the future if Congress changes the estate tax laws. 5. A Trust Is Only Effective If Properly Funded If assets are not properly funded to the trust, the value of the trust is void, and probate is still required. When a person has a revocable living trust, all assets must be properly titled. If this is not done, there may still be a […]
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