Texas Estate Planning: Your Complete 2025 Guide

Estate planning can help secure your legacy and provide a clear roadmap for your wishes. Let’s break down the many different components of a robust estate plan, and how they fit into the larger picture.

What are the most important parts of an estate plan?

Estate planning is complex, with many pieces to the puzzle, and each person's plan may look a bit different. The following estate planning tools can protect your assets while ensuring your wishes are followed, and your loved ones are taken care of.

Wills

A will—also called a "last will"—is a legal document that expresses how your assets should be distributed upon your death. There are a few main parties involved in a will.

• Testator: The person who creates and signs the will.
• Beneficiaries: The recipients of your assets.
• Executor(s): The person (or people) in charge of managing your estate and carrying out the instructions in your will.

A will can also be used to appoint an executor, describe how to distribute assets to beneficiaries, name a guardian for minor children, and provide funeral instructions.

Any person of sound mind and above the age of 18 can create a will in Texas. According to the Texas Estates Code (Texas Est. Code § 251.001), a valid will must be:

• Signed by the testator
• A written document
• Attested by two or more witnesses who are above the age of 14

You can use the official will forms provided by the Texas Supreme Court to create your will, but these generic documents may not cover all of your needs. Working with an attorney or an estate planning service is the ideal way to draft a will truly specific to your needs.

One point to note here is that the state of Texas does recognize holographic wills. These handwritten wills must be executed as per the state's laws (Texas Est. Code § 251.052).

Trusts

A trust is a legal arrangement where you (known as the settlor or grantor) appoint a person (a trustee) to hold, manage, and distribute your assets per your instructions. In Texas, any property transferred to a trust usually avoids the probate process after you die. There are many different types of trusts.

Living trusts. A living or inter vivos trust is an arrangement that a settlor sets up during their lifetime and takes effect immediately upon creation. Depending on the type of living trust you set up, you may still be able to manage the assets transferred to the trust while you are alive.

• Revocable trusts. A revocable trust—also called a revocable living trust—allows the grantor to retain control of the assets in the trust until their death or incapacity. Revocable trusts are popular because they offer flexibility and greater control over the asset distribution process.
• Irrevocable trusts. This type of living trust can’t be changed without legal intervention, and the grantor usually doesn’t manage the trust themselves. While this may seem limiting, irrevocable trusts can provide tax advantages as assets placed in the trust are not included in your estate's value. They can also help with asset protection from creditors or lawsuits. If you have a large estate, a prominent business, or a career that's vulnerable to lawsuits, irrevocable trusts may be a more attractive way to safeguard personal property. 

Testamentary trusts. This kind of trust is created through a last will and testament, which is a cheaper and simpler process compared to setting up a living trust. However, unlike living trusts, testamentary trusts undergo the probate process, which can end up adding additional time and expense for your beneficiaries. 

Powers of attorney

A power of attorney (POA) is a form that allows another person (attorney-in-fact or agent) the position and authority to handle financial, legal, or medical affairs on your behalf. There are many types of powers of attorney, each with distinctive features.

POAs can be described in the following ways:

• General power of attorney. This is a generic, sweeping, and versatile POA that grants broad powers to the agent. Unless it is written to be durable, this power of attorney ends when the principal becomes incapacitated. This document could be used for a variety of reasons, for example, if you don't want to manage your own affairs while you are overseas for an extended amount of time.
• Limited power of attorney. This kind of POA comes into effect only for a certain task or time. For example, you can use a limited power of attorney to allow the agent to show and sell your house.
• Durable power of attorney. A durable POA continues to retain its authority even after the principal becomes incapacitated. The Texas Estates Code (§ 752.051) includes a Statutory Durable Power of Attorney form that you can use and customize. Any POA can become a durable POA if it includes specific wording, for example, "This power of attorney is not affected by subsequent disability or incapacity of the principal."
• Springing power of attorney. With this POA, the attorney-in-fact gains powers only after a certain event occurs. For example, a springing POA can come into effect if you become disabled or incapacitated.
• Financial power of attorney. This POA allows the agent to make financial decisions, like paying bills, accessing a bank account, or making investments for you. A financial durable power of attorney is often used for incapacity planning as it allows your family to avoid the process of getting a court-appointed guardian or conservator.

Healthcare directive

A healthcare directive, or medical power of attorney, is a legal document that allows you (the principal) to appoint an individual (the agent) to make healthcare decisions on your behalf when you're unable to do so.

According to Texas Health and Safety Code (§ 166.152), this POA comes into effect only when your physician certifies, in writing, that you are incompetent. It remains in effect until:

• It is revoked
• The principal regains capacity
• The POA expires per its listed termination date

An estate planning attorney can help you seamlessly integrate a healthcare directive into your estate plan, or you can use the Texas Department of Health and Human Services' medical POA form to appoint your healthcare proxy. 

Texas has two other advance directives that can be important during a serious illness.

• Directive to Physicians and Family or Surrogates. This form is designed to help you communicate your wishes for medical care. Through this directive you can also inform your wishes to withhold or withdraw artificial life-sustaining procedures like dialysis or chemotherapy in case of a terminal illness. 
• Out-of-Hospital Do-Not-Resuscitate Order. This legal order instructs healthcare professionals not to perform CPR or any other resuscitation measures if you stop breathing or your heart stops beating in an out-of-hospital setting.

Beneficiary designations

In Texas, beneficiary designations ensure your assets are passed on to the intended people upon your death without undergoing probate. Beneficiary designations are common in retirement accounts, life insurance policies, and annuities. In fact, valid beneficiary designations can even take precedence over what your will states. It's best to consult an estate planning lawyer to make sure your beneficiary designations are soundly defined. 

What's unique about Texas estate plans?

The Lone Star State has its own unique requirements and statutes regarding estate plans. While only an experienced estate planning lawyer can provide accurate guidance about the impact of these laws, it's helpful to be aware about what the law says.

Community property

Texas is one of the nine community property states in the U.S. That means that if there's no will, anything purchased by a couple during their marriage is joint property, and each partner is an equal owner. For example, If you bought a car during your marriage, your partner is automatically a 50% owner.

However, in the event of a spouse's death, the asset distribution of community property isn't so straightforward, especially if children and grandchildren are involved. No law in Texas states that the living spouse will automatically inherit all the jointly owned community property assets. Say your spouse dies without a will, and they have children who aren't related to you (from a previous marriage). Their share of the community property will actually go to their children and not you. You will only get your share of the joint property.

Things are easier for married couples without any children. In such scenarios, the state has the authority to transfer all jointly owned assets to the surviving spouse. Separate property—that is, property purchased by a partner before marriage—will be split 50/50 between the living spouse and the deceased's parents or siblings.

Estate taxes

Texas is one of the thirty-eight U.S. states that levies no state-level estate or inheritance tax. However, you may be subject to federal estate taxes, which range between 18%–40%. You really only have to worry about the federal tax if your estate value exceeds $13,990,000.

There's also a federal gift tax. This tax is applied when assets transferred to a beneficiary exceed a certain amount. For the 2025 tax year, the annual exemption is $19,000. That means if you give someone a gift—which could be cash, property, or stocks and bonds—exceeding $19,000, you need to report it to the Internal Revenue Service using Form 709. 

Texas probate

Probate is the legal process of validating a will and paying off debts and taxes before distributing assets to the listed beneficiaries—and it’s complex. Non-probate assets can skip probate, such as trust assets, transfer on death (TOD) accounts, and property owned through joint tenancy with right of survivorship. However, all other assets, like your home, car, and furniture, have to undergo probate.

In general, probate can take anywhere between a couple months to a year or more. Texas offers three different types of probate proceedings:

• A full, court-supervised administration. In this proceeding, every step is supervised by the court officials. This lengthier and more expensive process is often mandatory for large or complicated estates.
• Independent administration. Texas is one of the few states that allows for probate without court dependence. An estate can undergo independent administration after an executor of estate is approved and an inventory of estate assets is filed with the courts. As a testator, you can facilitate independent administration of your estate by including a clause in your will.
• Muniment of title. An even more shortened process is allowed in circumstances where the only assets in the estate are real-estate, such as a house. To qualify for this speedier probate, a family member or an estate executor needs to testify in court that the estate owes no debts. The court then certifies the will and distributes the assets.

Texas also offers a speedy way to settle estate affairs even if there's no will. Your family members can file a Small Estate Affidavit if your estate value is under $75,000 (Texas Estates Code Sec. 205). This form will be available from your county's probate court. A Texas estate planning or probate lawyer can guide your family members through this expedited process. 

When should you update your estate plan?

You should check in with your estate planning documents every time there's a major life event or change, such as:

• Marriage
• Divorce
• Birth or adoption of a child or grandchild
• Opening or closing of a business
• Death of a beneficiary
• Change in health status

Even if there are no significant changes in your life, you should still make it a habit to revisit your documents every three to five years.

How to start your estate plan today

Planning for your incapacitation or death is a powerful way to help your beneficiaries, even after you’re gone. Creating a living will or trust, drafting special deeds, or executing a durable power of attorney can feel overwhelming—but you don’t have to do it alone. You can get started on these key documents, like your last will, with LegalZoom’s variety of online estate planning services.

Our attorney-backed services can help you set up all the elements of a robust estate plan. Or, you can take it a step further and work with one of our estate planning attorneys to address every area of your estate planning needs.

FAQs

Do you need a will and a trust?

A will and a trust are two tools that serve different purposes and offer distinct advantages. A will, only effective upon your death, allows you to distribute your assets. Without a will, distribution of your assets will be determined by state law or courts.

A trust is a legal document that allows you to assign a trustee to manage your affairs until the listed beneficiary claims ownership of them. While more complex to set up, transferring assets to a trust typically allows an estate to bypass the entire probate process. A will and a trust, together, are two key pieces of an estate plan.

How long does a will last?

Wills, when done correctly, don't necessarily have an expiration date. However, there can be scenarios that impact a will's validity. For instance, drafting a new will usually overrides the powers of any previous will. A poorly-written will can also be challenged in court. Say the testator forgets to sign the will or there are no witnesses—it's possible that Texas courts will invalidate such a will.

What happens if you die without a will in Texas?

If you die without a will, Texas law will pass your assets to the closest living relatives, which could be your spouse, children, parents, or siblings. However, Texas has intricate rules on who gets what percentage of the property.

For instance, if you are a married person and share children with your spouse, your spouse will only inherit all of the community property you held together, but only 1/3 of your personal property and any real-estate investments you had. The children will inherit everything else. If you are married with no children, your spouse will inherit all of the joint property. If you are unmarried, the assets go to your relatives in a specific order—children, parents, and then siblings.