What Is the Best Age to Start Planning for an Estate in Texas?
When it comes to planning for the future, there is no time like the present. But what is the best age to start planning for an estate? Estate planning might seem like something for older adults, but the best age to start planning for an estate is sooner than most people think. Below, our Texas estate planning lawyers discuss why you should start estate planning early and how it can benefit you and your loved ones.
A family of five, including two seniors, two adults, and a child, stand outdoors holding up a house-shaped frame, smiling for the photo on a grassy area with trees in the background.
Why You Should Have a Texas Estate Plan
You may feel that you do not need an estate plan because you are young or do not have enough assets to warrant one. However, estate planning is not just about what happens to your assets after you pass away. It is also about protecting yourself in emergencies and protecting your family.
Estate planning allows you to choose who can make decisions for you and act on your behalf if you cannot do so yourself. You can also decide who will care for your minor children and pets if you pass away and ensure they are provided for according to your instructions.
Life is unpredictable. Any adult can face a serious illness or injury that could leave them incapacitated. Because of this risk, having an estate plan can benefit anyone.
What Age Should You Start Estate Planning?
Our Texas estate planning lawyers recommend starting an estate plan when you become a legal adult. In Texas, you become a legal adult when you turn 18.
When you turn 18, you have many new freedoms. You can vote, serve on a jury, join the military, and enter into contracts. You also become legally independent from your parents or guardians. Your parents no longer have the automatic right to make medical, financial, and legal decisions on your behalf.
Given these significant changes, adults should set up certain legal documents when they turn 18 to protect themselves in emergencies. These documents ensure that your parents or other loved ones can help support you when you cannot make decisions for yourself or act on your own behalf. The legal documents you should set up include, but are not limited to:
Medical Power of Attorney
A medical power of attorney allows you to appoint someone you trust to make medical decisions for you if you cannot. This person is your medical agent. If you are unconscious or incapacitated, your medical agent can support you by making treatment and care decisions on your behalf.
HIPAA Release
The Health Insurance Portability and Accountability Act (HIPAA) keeps your medical information private. However, you can use a HIPAA release form to specify who can access your health information and what information they can access.
A HIPAA release is essential in emergencies where your medical agent needs access to your medical information to make informed decisions on your behalf. However, it also allows your loved ones to talk to your medical providers and receive updates about your health status and treatment in emergencies.
Financial Power of Attorney
A financial power of attorney allows you to designate someone you trust to handle your financial matters on your behalf. Examples of financial affairs can include paying your bills, accessing and managing your bank accounts, and signing your taxes. You can choose whether your financial agent can act on your behalf immediately or only in the event of incapacitation.
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Call (888) 584-9614 or click here to submit a consultation request form now.
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Will
A will specifies how you want your assets handled and distributed after your death. Even if you do not believe you have significant assets to distribute, you may have personal belongings that you wish to leave to specific loved ones.
For parents, a will provides a critical opportunity to designate guardianship for their minor children. If you and your child’s other parent pass away, you can ensure your child is cared for by someone you trust.
What Life Events Should Trigger You to Create an Estate Plan?
Beyond turning 18, other significant life events can serve as critical times to start estate planning. These life events may include:
- Marriage
- Birth or adoption of a child
- Buying a home or property
- Receiving an inheritance
- Changes in health
- Retirement
Our Texas estate planning attorneys break down a few of these examples below.
Birth or Adoption of a Child
The arrival of a new child is a joyous occasion and a critical time to ensure their protection if anything happens to you. Using a will or a declaration of guardian, you can appoint a trusted guardian for your minor children in the event of your death or incapacity, ensuring they are cared for by someone you trust.
You may also consider setting up a revocable living trust for your child’s financial security. A trust protects your child’s inheritance until they are mature enough to manage it themselves. It also allows for more specific control over when and how the funds are distributed.
Buying a Home or Property
When you acquire significant assets such as a home or other property, you should consider how you want them handled and distributed upon death. For example, one option is to establish a revocable living trust, which allows for the transfer of property to your beneficiaries without the lengthy and costly probate process.
On the other hand, you may consider using a transfer on death deed or TODD for real estate. This tool directly transfers ownership to a beneficiary upon death, bypassing probate and simplifying the transfer process.
Changes in Health
Significant changes in health can prompt the need for power of attorney documents, a HIPAA release, and an advance healthcare directive. An advance healthcare directive lets you specify your wishes for medical treatment regarding life support and end-of-life care. It ensures that your healthcare wishes are understood, even if you cannot communicate them yourself.
Contact Our Texas Estate Planning Lawyers Today
Are you ready to start estate planning? At Warren & Migliaccio, we offer three levels of estate planning services to help Texans prepare for the future. One of our services, Estate Plan Express, is entirely online and includes everything you need for a simple estate plan.
Visit our estate planning portal or contact us to schedule a consultation with our experienced estate planning attorneys. We can help you understand your options and create an estate plan that fits your needs and goals. Call us at (888) 584-9614 or contact us online.
