You can protect your family and ensure your property is handled correctly by creating a clear legal plan. Estate planning is the process of deciding who will manage your medical care, your finances and your belongings if you cannot speak for yourself.
While many think this is only for the wealthy, starting early prevents stress for your loved ones. Texas law has specific rules to ensure these documents are valid and followed.
Drafting a formal will
A will is often the first step in the planning process. It allows you to name an executor to manage your estate and a guardian to care for your children. While formal wills usually require witnesses, Texas also recognizes wills written entirely in your own handwriting and signed by you. Without a will, the state uses rigid rules to distribute your assets, which may not match your wishes.
Establishing powers of attorney
A statutory durable power of attorney lets you pick someone to handle your finances either immediately or only if you become incapacitated. In contrast, a medical power of attorney only allows someone to make healthcare choices for you after a doctor certifies in writing that you cannot make them yourself. These documents help your family avoid expensive court processes to gain permission to help you.
Using trusts and directives
Some families use trusts to transfer property privately without going through the public court system. Additionally, a directive to physicians tells doctors exactly what medical treatment you want in end-of-life situations. This removes the burden of difficult decision making from your family during a crisis.
Checking beneficiary lists
Certain assets pass directly to the people you name on specific forms, regardless of what your will says. Common items include:
- Life insurance policies and retirement accounts
- Bank accounts set to be “paid upon death”
- Real estate with a transfer-on-death deed that was signed, notarized and recorded in county records during your lifetime
You should review these every few years to ensure they are up to date.
Securing your family’s future
Taking the time to organize these papers now provides peace of mind for you and your famiy. Since laws and family situations change, you should check that your plan still meets your goals. If you want to ensure your documents follow current Texas rules, you should consider speaking with a lawyer to review your estate plan.