Estate Planning For Families With Young Children In Texas

In this article, you can discover…

• How to consider and choose a guardian for your minor children.
• Must-have estate planning documents for Texas families.
• How to navigate and adapt trusts as your children grow.

What Criteria Should I Consider When Choosing A Guardian For My Minor Children?

Above all, ask yourself if you trust that person. Are they going to raise your children according to your wishes? Do you have the same values? How well do you know them? Do they get along with your family? These are important guidelines to consider as you weigh who you would like to designate as your children’s legal guardian should you pass away before they reach adulthood.

What happens if you do not have a guardian in place? If one parent is deceased, the surviving parent is the natural guardian of the person of the minor child(ren) and is entitled to be appointed guardian of the minor’s estates. If both parents are deceased and the last surviving parent did not appoint a guardian, the nearest ascendant in the direct line of the minor is entitled to guardianship of both the person and the estate of the minor. This could mean that your parents (grandparents) siblings or your minor children’s adult siblings could all be possible options. Not legally naming a guardian can cause conflicts, arguments, and painful friction about who is going to care for your kids.

Having a guardian designated avoids these arguments. It also helps your children transition more smoothly during a difficult time to a trusted and caring person who will raise your children with your values in mind. 

What Are The Must-Have Estate Planning Documents For Texas Families?

The key documents for Texas families are… 

• Power of Attorney

Power of attorney designates someone to take care of your finances and affairs should you become incapacitated and unable to handle them. This will help prevent the requirement of a guardianship in the event you become incapacitated.

• Physicians Directive & Medical Power of Attorney 

A physician’s directive establishes which types of emergency care (such as CPR or life support) you do or do not want, whereas medical power of attorney designates someone to carry out those wishes should you be unable to, a medical power of attorney will also help prevent the unnecessary expense of a guardianship in the event you become incapacitated. 

• Guardianship 

Guardianship directives establish a legal guardian for your minor children should you pass away and for yourself should you become unable to care for yourself as an adult. 

• HIPAA Release Forms

HIPAA release documents allow someone you trust to access your medical records should they be needed in making decisions about your health or healthcare. 

• Wills & Trusts

The type of will I recommend is a pour-over will, which simply allows for any assets left out of your trust to be transferred into your trust and managed according to the instructions you left in trust. 

Your trust will contain the bulk of your express wishes for your assets and helps your family members avoid probate. You can also include your wishes for digital assets, such as social media accounts, crypto-currency, or NFTs. 

A trust can also be established to help care for a pet after you have passed away, and this can be a great way to ensure your furry friend is well-cared for and placed with someone you trust after you have passed on.

• Funeral Directives

Finally, funeral directives establish what you would like done with your remains after you have passed away. Where would you like to be buried? Would you want to be buried or created? This directive also helps clarify what kind of ceremony, funeral, or rites you would like to have conducted. 

Attorney Aurelio Garza is a knowledgeable and compassionate attorney serving Texas. For over 15 years, he has helped clients with young children understand estate planning, consider their one’s future needs, and craft meaningful and helpful trusts.

Have questions about estate planning?
Reach out to The Law Office of Aurelio Garza PLLC at (956) 513-1117 for a Peace of Mind Planning Session today. 

What Types Of Trusts Are The Most Beneficial For A Special Needs Child’s Future?

The most important type of trust to consider setting up for a minor child will be a special needs trust if your child has cognitive or physical disabilities. This is especially important if your special needs child is receiving government benefits, as assets that come to your child might otherwise be counted against those benefits. 

Trusts can also be designed to help ensure your child is cared for and protected financially in the long term. 

Can I Use A Trust To Manage My Children’s Assets Well After They Reach Adulthood?

Yes, in Texas a type of trust called a “dynasty trust” exists that can last up to 300 years after the last beneficiary dies with the exception of real estate assets, which are limited to 100 years. This helps ensure that your children or later generations of beneficiaries only receive your assets after certain conditions are met. And if those conditions are not met, the beneficiaries do not get your assets. 

You can construct a trust to do any number of unique things with regard to how assets are released, when, to whom, and under what circumstances. 

Assets can also be marked as usable only for educational expenses or only belonging to the trust, making it impossible for creditors or spouses to try to claim that money later. 

Can I Make Changes To The Terms Of A Trust As My Children Grow Older?

Absolutely. Revocable trusts can be set up so that you can change, amend, or adjust them as your child’s needs change. Changes in your child’s financial needs, responsibility levels, career, family life, or personal or health circumstances can all allow for a revocable trust to be amended as you see fit.

For example, a trust you had established when your child was younger may have designated that they receive 30% of your assets when they reach 25. But as they enter their 20s, it is apparent that they have a serious drug problem. 

You do not want them squandering their inheritance on drugs, so you can amend this trust to stipulate that your child will now receive your assets only if they complete a drug treatment program and have been sober for three years. 

Setting up a trustee over the trust can help ensure that these terms are respected, even if you are no longer present to enforce them or monitor your child’s well-being. 

What Estate Planning Documents Are Essential For Young Adult Children In Texas?

It is extremely important to have HIPAA documents in place. This allows you to access medical records and information concerning your young adult children. Once your child hits 18, they are legally an adult, and you lose the right to access their medical files or receive information about treatment.

HIPAA documents help you hold onto this access in the event of a sudden illness, accident, or psychiatric episode where you need to be informed of their health and care. These documents also save you from having to battle for access to information in court or battle to be named an adult child’s guardian just to get access to medical records. 

What Else Should I Know About Estate Planning In Texas?

Something I like to let my clients know is that trusts are truly for everyone, and I strongly recommend them. 

There is an assumption that trusts are only for the wealthy or super-wealthy. If you have assets and loved ones whom you would like to receive those assets, you can and should consider a trust. The expenses of probate can be considerable, and typically much more than the cost of setting up a trust that releases those assets according to the instructions you leave in your trust. 

Whatever estate planning options you decide on, I can help you set those up, answer any questions you have, and guide you through the estate planning process with respect, care, and a focus on your wishes and future generations’ needs. 

For more information on Estate Planning For Families With Young Children, a Peace of Mind Planning Session is your next best step. Get the information and legal answers you are seeking by calling (956) 513-1117 today.