FAQs

A will is a foundational document in estate planning that outlines how your assets should be distributed after your death, informing your loved ones and the court. To create a valid will, you typically need to be at least 18 years old and possess testamentary capacity—that is, you must understand the nature and scope of your property, the implications of creating a will, and be able to make sound decisions regarding its contents. At a minimum, a will must be written and signed by you in the presence of two witnesses who are at least 14 years old. However, a will alone does not automatically transfer your property to beneficiaries; this usually requires a legal process known as probate (see more on Probate below).

Trusts are legal arrangements in which a designated individual or entity, known as the trustee, is entrusted with the responsibility of holding, managing, and investing assets for the benefit of one or more beneficiaries. The person who establishes the trust—referred to as the settlor—selects the trustee(s), designates the beneficiaries, and outlines specific instructions regarding how the trust assets are to be managed and distributed. In some cases, the settlor may also serve as both the trustee and the primary beneficiary. When properly structured, trusts can offer a range of advantages, including asset protection, control over the timing and manner of wealth distribution, potential estate tax benefits, and long-term financial support for dependents, such as children with special needs. Additionally, trusts can help avoid the probate process, resulting in reduced administrative costs, expedited asset distribution, and enhanced privacy.

A Power of Attorney is a legal instrument that grants one or more individuals the authority to act on your behalf. This authority may be broad, encompassing a wide range of decisions, or narrowly tailored to a specific transaction or purpose. Two common types of Powers of Attorney are the Medical Power of Attorney and the Statutory Durable Power of Attorney. A Medical Power of Attorney enables a designated individual to make healthcare decisions and access medical information on your behalf should you become incapacitated. A Statutory Durable Power of Attorney authorizes someone to manage your personal affairs, such as paying bills, handling financial matters, and managing property. This authority can be effective immediately or structured to become active only upon your incapacitation, depending on your preferences.

An executor is the individual you appoint in your will to manage and oversee the administration and distribution of your estate after your death. Executors are often close family members—such as a spouse or adult child—who are also beneficiaries under the will, but anyone trustworthy, responsible, and detail-oriented may serve in this role. Key responsibilities of the executor include:

• Appearing in probate court to be formally appointed as the estate’s legal representative
• Identifying, collecting, and safeguarding estate assets
• Managing estate finances and settling outstanding debts and obligations
• Distributing assets to beneficiaries by the terms of the will
• Finalizing and closing the estate

The qualities to consider when selecting a trustee are similar to those for choosing an executor. A trustee is responsible for managing the assets held in the trust during its term and has a legal obligation (fiduciary duty) to protect those assets and use them solely for the benefit of the beneficiaries, according to the trust’s instructions. Given that some trusts are intended to operate over many years, it is essential to appoint a trustee—along with at least one successor—who is capable and committed to managing the trust over the long term. In some cases, individuals may choose a corporate trustee, such as a bank or trust company, which brings professional expertise and continuity for a fee, typically a small percentage of the trust’s assets.

It is advisable to review your estate plan every two to three years to ensure it continues to reflect your current circumstances and intentions. Periodic reviews help ensure that your plan remains legally effective and aligned with your goals. Common reasons to revisit and potentially update your estate plan include:

• Relocating outside of Texas may impact the validity or applicability of certain legal documents
• Marriage or divorce, which can significantly affect beneficiary designations and inheritance rights
• The death of a spouse, beneficiary, named trustee, or guardian
• Receiving a substantial inheritance or experiencing a significant increase in the value of your assets
• A child or other beneficiary developing a special needs condition that may require long-term planning and support

When a loved one passes away, probate and estate administration is the legal process used to collect their assets, settle outstanding debts, and distribute the remaining property by their will—or, if there is no will, by state law. While not every estate requires probate or formal administration, consulting with an experienced probate or estate administration attorney is the best way to determine whether these steps are necessary. An estate generally includes most assets owned by the decedent at the time of death, such as real estate, vehicles, household belongings, valuables and collectibles, financial accounts, and business interests. However, assets that pass automatically upon death—such as bank or investment accounts with designated payable-on-death beneficiaries—are typically excluded from probate. It is important to note that, in Texas, a will must be submitted for probate within four years of the date of death.

Although probate in Texas is generally more efficient and affordable than in many other states, it can still be time-consuming, costly, and public. The process often takes several months, may cost thousands of dollars, and makes estate details part of the public record. To avoid probate, you can set up a trust to hold your assets or name payable-on-death beneficiaries on your bank and investment accounts. For real estate, a Lady Bird Deed allows you to transfer property directly to your loved ones upon your death without going through probate.

A limited liability company (LLC) is a legal structure used to hold business assets such as real estate, vehicles, and financial accounts. An LLC can also be owned by another legal entity, like a trust. When personal assets and debts are kept separate from those of the LLC, any lawsuit or claim involving the business is generally limited to the assets within the LLC, helping protect your assets. An LLC can also be divided into separate units called Registered Series (like Series A, B, C, etc.), offering additional protection. If each Series keeps its assets and debts separate, a claim involving one Series—such as Series A—won’t affect the assets of the others. This setup is especially useful for people who own multiple rental properties.

A Lady Bird Deed lets you transfer real estate to loved ones when you pass away without going through probate. You sign and file the deed while you're alive, but it doesn’t take effect until after your death. Until then, you keep full ownership and control of the property, and you can cancel the deed at any time if you decide to sell the property or change your mind.

Wealth protection is about keeping the money and assets you already have safe and reducing the chances of losing them. Some simple and effective strategies include:

• Spreading your investments across different types of assets like stocks, bonds, and real estate
• Having insurance coverage, such as life, disability, and long-term care insurance
• Keeping an emergency fund for unexpected expenses
• Creating a solid estate plan
• Staying away from high-risk investments
• Getting advice from a trusted financial advisor