Moving to Texas can be an exciting chapter in life, filled with fresh opportunities and new experiences. However, it’s also a time when you need to review your estate plan. Texas has unique laws that govern wills, trusts, and other estate planning documents, and failing to update your plan could lead to unintended consequences for you and your loved ones. Here are some key reasons why updating your estate plan is crucial when you make Texas your new home as shared by a Katy, TX trust lawyer who has been with our firm since its founding in 2021.
Unique Texas Laws
One of the most compelling reasons to update your estate plan after relocating to Texas is that the state’s laws differ significantly from those in other states. For example:
- Community Property Rules: Texas is a community property state, which means that property acquired during your marriage is generally owned equally by both spouses. This can impact how your assets are divided and distributed.
- Homestead Protections: Texas offers robust homestead protections, shielding your primary residence from most creditors. Your estate plan should reflect these benefits to maximize your protection.
- No State Estate Tax: Unlike some states, Texas does not impose a state estate tax. This is good news for residents, but it’s still important to ensure your estate plan aligns with federal estate tax laws, especially with the 2025 federal estate tax exemption of $13.99 million per person.
Updating Key Documents For Texas Compliance
When you move to Texas, several essential estate planning documents may need to be updated or reviewed to protect your privacy and assets:
- Last Will and Testament: Ensure your will complies with Texas laws and reflects your current wishes. For instance, Texas has specific rules about witnesses and self-proving affidavits to make probate simpler.
- Living Trust: If you have a trust, confirm that it aligns with Texas regulations and retitle any property into the trust if needed.
- Powers of Attorney: Texas has its own statutory forms for financial and medical powers of attorney. Updating these documents ensures they’ll be recognized and enforceable.
- Advance Directive: Known in Texas as a Directive to Physicians, this document outlines your medical care preferences. Texas has specific requirements for these directives.
Property Ownership And Beneficiary Designations
If you’ve purchased property in Texas or have retirement accounts, life insurance policies, or other assets with named beneficiaries, you should review these carefully. Moving to Texas may affect:
- Real Estate: If you’ve purchased a home in Texas, make sure it’s properly titled. You may want to retitle it into a trust to avoid probate and simplify the transfer process.
- Beneficiary Designations: Confirm that your beneficiary designations for accounts and policies are up to date. In Texas, these designations often override what’s written in your will.
Guardianship For Minor Children
If you have young children, reviewing your estate plan is especially important after moving to Texas. The state has its own guardianship laws, and you want to ensure your chosen guardianship arrangements are recognized and enforceable. Additionally, if you’re naming a guardian who lives outside Texas, consider any legal or logistical challenges they might face.
Homestead And Asset Protections
Texas offers some of the strongest homestead protections in the country. These protections can shield your primary residence from creditors and provide tax benefits through property tax exemptions. Updating your estate plan ensures you take full advantage of these protections. Additionally, Texas has favorable laws for protecting retirement accounts and life insurance proceeds from creditors.
Adapting To New Relationships And Circumstances
A move to Texas often comes with other changes, such as new relationships, a new job, or changes in financial circumstances. Updating your estate plan allows you to address:
- New Family Members: If you’ve recently married, divorced, or welcomed a child, your estate plan should reflect these changes.
- Updated Financial Goals: A new job or significant financial change may require revising your trust or other documents to align with your goals.
Simplifying The Probate Process In Texas
Texas is known for having a relatively straightforward probate process compared to many other states. However, avoiding probate can still save your loved ones time and stress. Setting up a revocable living trust or ensuring assets are titled to transfer directly to beneficiaries can help avoid unnecessary delays.
Professional Guidance In Texas
Updating your estate plan after moving to Texas isn’t just about changing addresses. It requires an understanding of how Texas laws interact with your existing plan. An experienced Texas estate planning attorney can help ensure your documents are compliant and tailored to your needs.
Additionally, your attorney can guide you on taking advantage of Texas-specific benefits and avoiding pitfalls. For example, they can help you navigate community property laws, homestead protections, and strategies to protect your assets from creditors.
Peace Of Mind For Texas Residents
Finally, updating your estate plan provides peace of mind. Knowing that your plan is up to date and aligns with Texas laws allows you to focus on enjoying your new home and life. You’ll have confidence that your loved ones are protected and your wishes will be honored. If you are eighteen or older, it is important to have estate planning no matter what.
Moving to Texas is a perfect opportunity to review and update your estate plan. With unique state laws and circumstances to consider, ensuring your plan is current is essential to protecting your family, assets, and legacy. Don’t delay — consult an experienced Texas estate planning attorney to make sure your plan works seamlessly in your new home. Stuart Green Law, PLLC has been working on estate plans for families that protect their assets. We are licensed in Texas, Kentucky, Pennsylvania, and South Dakota, so contact us for help today.