7 Estate Planning Mistakes That Could Cost Your Loved Ones in Houston
If you are ready to finally tackle estate planning, it is natural to feel worried about making costly mistakes that could hurt the people you care about most.
Unfortunately, estate planning errors happen more often than you think, and in Texas, some of these mistakes can be particularly expensive for your family. However, fortunately, most of these problems are completely preventable when you know what to watch out for.
Whether you’re starting from scratch or updating documents you created years ago, understanding these common pitfalls can save your loved ones thousands of dollars, months of legal headaches, and unnecessary heartache during an already difficult time.
At Roger G. Jain & Associates, P.C., our Houston estate planning attorneys know what mistakes to watch out for in Houston. From outdated beneficiary designations to overlooking Texas-specific laws, we’ll help you avoid them all. Call us today at 713-981-0600.
Mistake #1: Not Having a Will (Yes, Really)
It sounds obvious, but nearly 68% of Americans don’t have a basic will. In Texas, if you die without a will, state law decides who gets your stuff, and it might not be who you’d choose.
Texas intestacy laws can be surprising. If you’re married with kids, your spouse doesn’t automatically inherit everything. Your children also receive a portion, which can create complicated situations. Even worse, if you have a blended family, your stepchildren may get nothing while your biological children inherit everything.
The fix is simple: create a will that clearly states your wishes. Don’t rely on state law to make these important decisions for your family.
Mistake #2: Forgetting to Update Beneficiaries
Life changes, but many people forget to update their beneficiary designations. That 401(k) from your old job still lists your ex-spouse. Your life insurance policy names your sister, who passed away last year. These oversights can cause major problems.
In Texas, beneficiary designations on retirement accounts and life insurance policies override what’s in your will. So even if your will says everything goes to your current spouse, your ex could still inherit your retirement savings if you never updated those forms.
Make it a habit to review and update beneficiaries after major life events like marriage, divorce, births, or deaths in the family.
Mistake #3: Ignoring Texas Homestead Laws
Texas has unique homestead protections that can affect your estate plan. Your primary residence may be protected from creditors, but this protection doesn’t automatically transfer to your heirs in the way you might expect.
If you own a home in Houston, you need to understand how Texas homestead laws work with your estate plan. Without proper planning, your family might face unexpected complications when trying to keep or sell the family home.
Mistake #4: Skipping the Medical Power of Attorney
Nobody wants to think about being unable to make their own medical decisions, but it happens more often than we’d like. Without a medical power of attorney, your family may need to go to court to make healthcare decisions for you.
In Texas, this process can be time-consuming and expensive. Even worse, the person the court appoints might not be who you would have chosen. A simple medical power of attorney document prevents this entire headache.
Mistake #5: Not Planning for Business Ownership
If you own a business in Houston, such as a food truck, consulting firm, or family restaurant, failing to plan for business succession can destroy everything you’ve built.
Many business owners assume their spouse or children can just step in and run things. But without proper legal documentation, your business might get tied up in probate for months or even years. Your employees, customers, and family all suffer while lawyers sort things out.
Mistake #6: Assuming DIY Documents Are Enough
Online will templates and DIY estate planning kits seem convenient and cheap. But generic documents often miss important Texas-specific considerations that could cost your family later.
Texas has its own probate procedures, property laws, and tax considerations. A document that works in California might create problems here in Houston. What seems like savings upfront can turn into expensive legal battles for your loved ones.
Mistake #7: Not Discussing Your Plans
Even the most perfectly drafted estate plan can cause family drama if nobody knows what you intended. Surprised family members may contest your will or make decisions based on assumptions rather than your actual wishes.
Consider having honest conversations with your family about your plans. You don’t need to share every detail, but giving them a general idea of your thinking can prevent conflicts later.
Each of these mistakes can cost your loved ones time, money, and emotional stress during an already difficult period. The probate process in Harris County can take months or even years when problems arise. Attorney fees, court costs, and family conflicts add up quickly.
But here’s the encouraging part: every single one of these problems is preventable with proper planning.
Contact Our Houston Estate Planning Attorneys Today
Your loved ones deserve better than legal battles and financial stress during their time of grief. They deserve the peace of mind that comes from knowing you took care of everything ahead of time.
The best time to create or update your estate plan was yesterday. The second-best time is right now.
Ready to protect your Houston family from these costly mistakes? Contact our experienced estate planning attorneys at (713) 981-0600 or fill out our confidential contact form to learn more about your legal options.
Roger Jain is a dedicated trial lawyer who assists his clients in the following areas of practice: civil litigation, business law, criminal defense, juvenile law, estate planning and family Law.