New Year, New Estate Plan: Essential Updates for Texas Parents

Jan 3

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As we step into a new year, many of us reflect on how we can make life better for our families. For Texas parents, especially those with young children, there’s one critical resolution that often gets overlooked—updating your estate plan.

An estate plan isn’t just a legal formality; it’s a powerful tool to ensure your children’s future is secure, no matter what life throws your way. At Reyna Law, we specialize in helping families like yours create and update estate plans that truly protect your loved ones. Let’s explore why this New Year is the perfect time to focus on this vital task.

Why It's Time for an Estate Plan Refresh

If you're a Texas parent in search of an estate lawyer in areas like Austin and Dripping Springs, grasping the significance of a current, bespoke estate plan is paramount. Reyna Law excels in estate planning, offering comprehensive services including wills, trusts, asset protection, and beyond. Our adept estate planning attorneys are committed to aiding Texas families in understanding estate law intricacies, ensuring your directives are honored and your family’s financial well-being is safeguarded.

Entering a new year heralds a prime opportunity to evaluate your estate plan and implement essential modifications, such as beneficiary revisions, guardianship updates, and new asset management strategies. An estate plan demands regular reviews, like annual estate plan updates, to stay abreast of life changes and legal adjustments. With the anticipated expiration of the present estate, gift, and generation-skipping transfer (GST) tax exemptions by the end of 2025, revisiting your estate plan is more urgent than ever to avoid probate and reduce taxes, thereby guaranteeing its effectiveness and alignment with your goals.

Refreshing your estate plan offers peace of mind, securing your family's future and ensuring asset distribution as per your desires. Whether life's significant events like marriage, divorce, or a new addition to the family have occurred, or you simply seek reassurance that your affairs are in order, updating your estate plan is a strategic move to protect your family’s financial future.

Understanding Recent Changes in Texas Estate Law

Overview of Legislative Updates

In 2025, Texas has implemented several significant changes to its estate laws, which are important for families and individuals to understand. The 88th Texas Legislature introduced various amendments that affect guardianships, trusts, and other aspects of estate planning.

For instance, Senate Bill 1457 has updated the methods for giving notice in guardianship proceedings, allowing for the use of "qualified delivery methods" instead of the traditional "certified mail return receipt requested" approach. This change aims to streamline the process and make it more efficient.

Additionally, Senate Bill 1624 has clarified several aspects of guardianship, including the roles of the guardian ad litem and the attorney ad litem. It also updates the requirements for the annual reports of guardians of the person and enhances the training requirements for judges and court investigators dealing with guardianships.

This bill further strengthens the ward’s bill of rights, ensuring that wards have the right to private communications with medical professionals unless a court orders otherwise due to potential harm or undue burden.

Implications for Guardianship and Asset Distribution

These legislative updates have substantial implications for guardianship and asset distribution. For example, a guardian of the person can now control up to $20,000 of the ward’s funds without the need for a guardian of the estate, provided they obtain a bond and file an annual report on the use of these funds. This change allows for more flexibility in managing the financial affairs of individuals under guardianship.

The laws also address the distribution of assets, particularly in cases involving real property. The value of real property that can be sold on behalf of a minor or ward without the necessity of a guardian of the estate has been increased from $100,000 to $250,000.

Furthermore, courts can now order a third party, such as a bank, to transfer the ward’s interest in a community property account to the guardian of the estate if the ward’s spouse refuses to make such a transfer.

These guardianship updates underscore the importance of staying informed about the latest changes in Texas estate law to ensure that your estate plan remains compliant and effective in protecting your family’s interests. Consulting with an experienced estate planning attorney like Reyna Law can help you navigate these changes and make the necessary beneficiary revisions to your estate plan.

Adjusting Your Estate Plan to Match Life Changes

Significant life events such as marriage, divorce, births, adoptions, and remarriage can profoundly impact your estate plan. When you get married, it's important to update your estate planning documents to include your new spouse.

This includes revising your will, powers of attorney, and beneficiary designations to ensure your new spouse is protected and included in your estate plan. For instance, you may want to name your new spouse as a beneficiary or as the personal representative (executor) of your estate.

Divorce is another critical juncture that requires immediate attention to your estate plan. Automatic revocations may void certain provisions granted to your former spouse, such as their role as a trustee or executor, but this does not eliminate the need for a thorough update.

Failing to update your plan after a divorce can lead to unintended outcomes, such as your ex-spouse inheriting assets or retaining decision-making power over your healthcare. It is important to remove your ex-spouse from all relevant documents and designate new individuals to fill these roles.

Remarriage also necessitates a review of your estate plan, especially if you have children from a previous marriage. You need to ensure that your new spouse and any children from both marriages are included in your plan in a way that aligns with your wishes. This may involve revising trusts, updating beneficiary designations, and reevaluating guardianship decisions to protect the interests of all family members.

The birth or adoption of a child is a significant life event that demands updates to your estate plan. When a new child is added to your family, you should review and revise your guardianship designations, trusts, and other estate planning documents to ensure the child's future is secure.

For example, you may need to establish a trust to provide for the child's financial needs and specify how assets will be distributed among all your children to avoid any disputes.

Adopted children have the same legal rights as biological children, but step-parent or "second parent" adoptions can introduce additional complexities that need to be addressed in your estate plan. Consulting with an experienced estate planning attorney can help you navigate these complexities and create a plan that accurately reflects your intentions.

Life doesn’t stay the same, and neither should your estate plan. Changes like these can significantly impact your estate plan’s effectiveness. Estate planning laws vary by state, and Texas has specific nuances, such as community property rules and probate processes, that make it essential to consult with a knowledgeable attorney.

Reyna Law is here to guide you through these updates and ensure your plan is airtight for your family’s needs. A well-structured estate plan can help prevent confusion and disputes, ensuring that your wishes are respected and your family's needs are met.

Strategies for Protecting Your Children's Future

Setting Up Trusts and Educational Funds

Protecting your children's future involves more than just distributing assets; it requires a thoughtful and structured approach to ensure their financial and educational well-being. One of the most effective strategies is setting up trusts and educational funds.

A trust can hold assets on behalf of your children until they reach a certain age, providing control over how and when these assets are distributed. For instance, a revocable living trust allows you to maintain control over your assets during your lifetime and specify the amount and timing of distributions to your children, keeping these assets out of probate.

For educational expenses, you can establish an education trust fund. An education trust fund offers more control and flexibility, allowing you to set conditions for distributions, such as requiring beneficiaries to maintain a certain GPA or attend specific types of educational institutions. These trusts can also provide estate-tax reduction by enabling qualified and tax-exempt transfers to the beneficiary's educational institution.

Trusts are a cornerstone of estate planning for parents of young children. A trust allows you to specify how and when your children receive their inheritance. At Reyna Law, we’ll tailor a trust that fits your family’s unique situation and Texas’ legal requirements. By setting clear guidelines, you can prevent mismanagement of funds and ensure your children’s inheritance is used wisely.

Choosing the Right Guardians and Trustees

Selecting the right guardians and trustees is a critical aspect of protecting your children's future. When choosing a guardian for your minor children, it is essential to consider individuals who share your personal and religious beliefs, are interested in your children's extracurricular activities, and are capable of providing daily care and support.

A good successor trustee should be someone who is financially savvy and can manage the trust assets according to your instructions. This person should be able to act in your children's best interest and make critical financial decisions as needed. Ensuring that the guardian and trustee can work together harmoniously is important, especially if your children have special needs that require ongoing care beyond their teenage years.

With Reyna Law’s guidance, we’ll help you choose someone who shares your values and parenting philosophy. We’ll also ensure you have a backup plan because life can be unpredictable.

By carefully selecting these roles and setting up the appropriate trusts and educational funds, you can ensure that your children's future is secure and that their needs are met even if you are no longer present.

Keeping Your Beneficiaries Up to Date

Did you know that failing to update your beneficiaries can lead to unintended consequences? For example, if you’ve had a child since creating your plan, they may not automatically inherit what you intend unless explicitly stated. This oversight could lead to costly legal disputes.

Our team at Reyna Law will thoroughly review your beneficiary designations on all your accounts, from your will and trust to life insurance and retirement funds. We’ll ensure everything aligns with your current wishes so that your loved ones are protected without unnecessary delays or conflicts.

Conclusion: Securing Your Family's Needs with Proactive Planning

The New Year is a fresh start—the perfect time to take the proactive step of reviewing and updating your estate plan. Updating your estate plan ensures you’re prepared for whatever lies ahead. At Reyna Law, we’re passionate about helping Texas families protect what matters most.

By working with Reyna Law, you gain an advocate who understands the ins and outs of Texas estate planning. We’re here to ensure your plan is not only legally sound but also deeply personalized to reflect your values and priorities.

Start the new year right by scheduling your free Peace-of-Mind Planning Session with Reyna Law today to ensure your wishes are honored and your loved ones are protected, providing a fresh start for the family's financial security this new year. Together, we’ll make this year the one where you take charge of your legacy.

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FAQ

How much does an estate lawyer cost?

Estate lawyer costs vary widely. Hourly rates range from $150 to $500 per hour, depending on experience and location. Flat fees for a basic will can be $300-$1,200, a living trust $1,000-$1,500, and comprehensive estate planning $2,500-$5,000.

What is an estate lawyer called?

An estate lawyer is commonly referred to as an "estate planning lawyer." They specialize in the intricacies of property rights, wills, probate, and trusts, providing legal advice and assistance to ensure client assets are handled correctly.

What is the difference between a probate lawyer and an estate lawyer?

The primary difference between a probate lawyer and an estate lawyer is the timing and focus of their work. An estate lawyer focuses on planning and preparing wills, trusts, and other estate documents during the individual's lifetime. In contrast, a probate lawyer is involved after the individual's death, guiding the executor through the probate process, validating the will, settling debts, and distributing assets according to the will or intestacy laws.

What type of lawyer is best for wills?

The best type of lawyer for wills is a Certified Specialist in Estate Planning, Trust, and Probate Law. These lawyers have passed a comprehensive examination, demonstrated high expertise, fulfilled ongoing education requirements, and been favorably evaluated by peers and judges.

They specialize in will preparation, estate planning, and probate law.