Life can change in an instant, and when it does, Texans need to be prepared. Incapacity, or the inability to make decisions due to illness or injury, is a reality many families face. Whether you live in Houston, Dallas, or a small Texas town, understanding what happens when someone becomes incapacitated and how to prepare is crucial for protecting your loved ones and your assets as our Katy, TX estate planning lawyer can share who has been part of our firm since its founding in 2021.
What Does Incapacity Mean In Texas?
Incapacity occurs when a person cannot make informed decisions about their finances, healthcare, or daily life due to a mental or physical condition. Common causes include:
- Traumatic brain injuries from car accidents on Texas highways
- Strokes or severe illnesses
- Progressive diseases like Alzheimer’s or dementia
When someone in Texas becomes incapacitated, their ability to handle responsibilities such as paying bills, signing legal documents, or making medical decisions is significantly impacted. This can create challenges for their family members, who may not automatically have the authority to step in without legal documentation.
How Is Incapacity Determined In Texas?
In Texas, incapacity is often determined through medical evaluations and legal proceedings. A physician may assess the person’s ability to make decisions, and a court may require formal documentation or a hearing to declare someone legally incapacitated.
This legal step is essential because it allows someone to step in and manage the incapacitated person’s affairs under Texas law. Without this determination, family members may face difficulties accessing bank accounts, making healthcare decisions, or managing assets.
Who Makes Decisions For An Incapacitated Texan?
When a Texan becomes incapacitated, someone must step up to handle their financial, medical, and personal decisions. Here’s how that process works in the Lone Star State:
1. Using A Power Of Attorney (Poa)
Texans can prepare for potential incapacity by signing a Power of Attorney (POA) while they are still competent. A POA allows a trusted individual to act on their behalf.
- Financial POA: Handles financial matters, such as managing bank accounts, paying property taxes, or overseeing oil and gas royalties — common considerations for many Texans.
- Medical POA: Makes healthcare decisions, such as consenting to medical procedures or deciding on long-term care.
Without a POA, family members may need to seek guardianship, which can be a lengthy and expensive process in Texas courts.
2. Court-Appointed Guardianship
If no POA exists, a Texas court may appoint a guardian to manage the incapacitated person’s affairs. This is often a last resort, as the process can be time-consuming and costly.
- A guardian of the person makes healthcare and personal decisions.
- A guardian of the estate manages financial matters.
The guardianship process is governed by Texas probate laws, which require a judge’s approval to ensure the guardian acts in the incapacitated person’s best interest.
Financial Challenges For Texans
In Texas, managing finances for an incapacitated person can be particularly challenging without proper planning. Property taxes, business interests, and other assets unique to Texas residents, such as mineral rights or ranch operations, may go unmanaged if no one has legal authority to oversee them.
For example, if a ranch owner in West Texas becomes incapacitated without naming a POA, their family may struggle to manage the day-to-day operations, leading to potential financial losses.
Medical Decisions And Texas Laws
Healthcare decisions are among the most critical challenges during incapacity. In Texas, if a person hasn’t created a Medical Power of Attorney or Advance Directive, doctors may rely on family members to make decisions.
However, disagreements can arise if relatives have different opinions about the type of care their loved one should receive. An Advance Directive can prevent such conflicts by outlining the individual’s preferences for treatments, including whether they want life-sustaining measures like ventilators or feeding tubes.
In a state like Texas, where residents value independence and self-determination, these documents ensure that your wishes are honored.
Why Texans Need To Plan Ahead
In Texas, the laws surrounding incapacity are designed to protect individuals and their families, but they can also be complex. Planning ahead can make all the difference, and it is important to remember that only an attorney can actually draft estate documents. Here are some steps Texas residents should consider:
1. Sign A Texas Power Of Attorney
Designate someone you trust to manage your finances and healthcare decisions if you become incapacitated.
2. Create A Texas Living Will
Specify your medical preferences, including end-of-life care, so your family isn’t burdened with making tough decisions.
3. Establish A Revocable Living Trust
A trust can streamline asset management, particularly for Texans with complex estates or properties.
4. Organize Important Documents
Ensure your family knows where to find your will, POA, and other critical documents. In Texas, storing these in a secure but accessible place, such as a bank safe deposit box, can be a good option.
By taking these steps, Texans can ensure their wishes are followed and spare their loved ones unnecessary stress during an already difficult time.
What Happens Without A Plan?
Without proper planning — whether that is estate planning or financial planning for Texans — a person’s incapacity can create legal and financial headaches for their family in Texas. Guardianship proceedings in Texas probate courts can be expensive and time-consuming. Additionally, disagreements among family members about who should handle responsibilities can lead to strained relationships.
For example, a family in Austin might face delays accessing funds to pay for medical bills or long-term care facilities if no legal authority is established. These delays can impact the quality of care their loved one receives.
Incapacity is a tough subject to think about, but planning for it is essential, especially in Texas. Whether you’re managing a small business in Houston or overseeing a family ranch in Amarillo, having the right legal documents in place can protect your assets and ensure your wishes are respected.
By preparing ahead, you can avoid the legal and financial challenges that often come with incapacity and provide peace of mind for your family. Texans pride themselves on independence and responsibility — taking steps to prepare for incapacity is one more way to honor those values. 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 to get started today!