Estate Planning in Texas: Key Steps
- Texas Attorney Ryan Putz
- Sep 22
- 4 min read
Estate planning is not just for the wealthy. It is a practical step everyone should consider, especially in Texas where laws and family dynamics can complicate matters. I want to walk you through the essential steps to create a solid estate plan. This guide will help you understand what you need to do, why it matters, and how to get started.
Understanding the Texas Estate Planning Guide
Estate planning involves preparing for the management and distribution of your assets after you pass away or become incapacitated. In Texas, this process has specific legal requirements and options that differ from other states. Knowing these details can save your loved ones time, money, and stress.
First, you need to identify your assets. These include your home, bank accounts, investments, personal belongings, and any business interests. Next, consider your family situation. Are you married? Do you have children? Are there any special circumstances like blended families or dependents with special needs? These factors influence your plan.
A basic estate plan usually includes:
A will to specify how your assets should be distributed.
A durable power of attorney to appoint someone to handle your financial affairs if you become unable.
A medical power of attorney or advance directive to outline your healthcare wishes.
Possibly a trust to manage assets more efficiently and avoid probate.
Each document serves a purpose. For example, a will alone might not be enough if you want to avoid probate or protect assets for minor children. Trusts can be complex but offer control and privacy.
How to Start Your Texas Estate Planning Process
Starting your estate plan can feel overwhelming. Here’s a straightforward approach:
Take Inventory: List all your assets and debts. Include everything from real estate to retirement accounts.
Choose Your Beneficiaries: Decide who will inherit your assets. Be clear and specific to avoid confusion.
Select Your Executors and Trustees: These are the people who will carry out your wishes. Choose trustworthy individuals who understand your values.
Draft Your Documents: Work with an experienced attorney to create legally sound documents tailored to Texas laws.
Review and Update Regularly: Life changes like marriage, divorce, or the birth of a child require updates to your plan.
Remember, estate planning is not a one-time event. It’s a living process that evolves with your life circumstances.
What is the 5 by 5 Rule in Estate Planning?
The 5 by 5 rule is a practical guideline to help you organize your estate plan efficiently. It suggests you should:
Review your estate plan every 5 years.
Update it within 5 months after any major life event.
Why does this matter? Because laws change, and so do your personal circumstances. Ignoring this rule can lead to outdated documents that no longer reflect your wishes or comply with Texas law.
For example, if you get divorced, your will might still name your ex-spouse as a beneficiary unless you update it. Similarly, tax laws affecting your estate might change, impacting how much your heirs owe.
Following the 5 by 5 rule keeps your plan current and effective.
Common Mistakes to Avoid in Texas Estate Planning
Many people make avoidable errors that complicate their estate plans. Here are some pitfalls to watch out for:
Not Having a Will: Without a will, Texas law decides how your assets are distributed, which might not align with your wishes.
Ignoring Beneficiary Designations: Accounts like life insurance and retirement plans pass outside the will. Make sure these are up to date.
Failing to Plan for Incapacity: Without powers of attorney, your family may face court battles to manage your affairs if you become incapacitated.
Overlooking Taxes and Debts: Estate taxes and outstanding debts can reduce what your heirs receive. Plan accordingly.
Not Communicating Your Plan: Keep your family informed about your estate plan to avoid surprises and disputes.
Avoiding these mistakes requires careful planning and professional advice.
Why Professional Help Matters in Texas Estate Planning
Estate planning laws in Texas can be complex. Hiring a qualified attorney ensures your documents are valid and your wishes are enforceable. A lawyer can also help you:
Navigate probate and trust administration.
Minimize estate taxes.
Protect assets from creditors.
Address unique family situations like blended families or special needs.
The Law Office of Ryan Putz specializes in helping individuals with family law, divorce, and estate planning needs across Houston and surrounding counties. Their expertise can make the process smoother and more secure.
If you want to start your Texas estate planning journey with confidence, consulting a professional is the best first step.
Taking Control of Your Legacy Today
Estate planning is about control - control over your assets, your healthcare, and your family’s future. It’s not just paperwork; it’s peace of mind. The sooner you start, the better prepared you will be for whatever life brings.
Don’t wait for a crisis to force decisions on your loved ones. Take the time now to create a clear, comprehensive plan. Review it regularly. Update it as needed. And seek professional guidance to ensure it meets Texas legal standards.
Your legacy deserves nothing less.