If you are one of the two million people who have moved to Texas in the last five years, we need to talk because you may be in danger of making the biggest mistakes of your life.
Not your move to Texas – no, that was brilliant. No income tax, no estate tax, very few blizzards, exceptionally friendly people, and wonderful lawyers.
I made up the last one, but still. Texas is a great place, and we are happy to welcome you to our state. The mistake you are getting ready to make is not having your estate planning documents updated to conform to Texas law.
Benefits of Updating Your Estate Planning Documents in Texas
Probating a Will
Let’s say you moved here from California. You probably have a California trust so that you can avoid probating your will. Why? Because California probate is so drawn out, complicated, and expensive that Californians will do anything to avoid it.
But Texas has an easy probate system, so there is no need to have a trust to avoid it. Most people sail through probate. It usually takes less than 60 days, from start to finish, for the will to be admitted to probate and an independent executor appointed. In some counties it takes less than three weeks. From there, the executor operates without court supervision and without having to post a bond. Executor’s fees, if they are charged, are minimal.
Avoiding Out-of-State Laws
Let’s talk about other reasons why you need to review your California trust. It probably provides that California law applies to your trust, and that the situs of the trust is California. You should strongly consider changing both to Texas. If your trustee is still in California, you probably want to change that, too. There is no sense in making your trust estate subject to California’s onerous taxes and judicial system, is there?
Self-Proving Wills
As for your California will – we will recognize it in Texas, but we won’t be happy about it. Most California wills use provisions that work in California but are pretty worthless in Texas. We require certain language in our wills to take advantage of our great Texas probate system for independent executorship. We also require certain language for our wills to be self-proving, so we won’t need to bring witnesses to prove the signature on the will is valid.
Probating Assets
Another reason to review your California will – it is likely to provide that the probate assets from your estate pour over into your California trust. That may not be a good outcome for your beneficiaries.
Durable and Medical Powers of Attorney
Now let’s move on to your California durable (financial) power of attorney and medical power of attorney. They are probably just fine in California, but you aren’t, thank goodness, in California anymore. Texas has wonderful, comprehensive, and friendly statutes for powers of attorney. In Texas, our people like Texas documents. They recognize the basic forms, and they are familiar with the protections and definitions contained in the Texas statutes.
If you want Texas companies to accept your powers of attorney, then it is better to have the Texas version of your documents.
Additional Benefits
Finally, Texas has statutes that cover your designation of guardian, directive to physician, and burial instructions. We also have our very own HIPAA laws. You will want the Texas-specific version of these documents.
Texas Newcomers Need Texas Documents
I have picked on California, but the same concerns apply to documents from Florida, Colorado, New Mexico, New York, Illinois – in short, from anywhere that is not Texas.
You moved here. Now let’s move your documents here, too.
If you need to update your estate planning documents now that you’ve moved to Texas, schedule a consultation with our team of expert attorneys today.
Virginia Hammerle is an accredited estate planner and represents clients in estate planning, probate, guardianship, and contested litigation. She may be reached at legaltalktexas@hammerle.com. This blog contains general information only and does not constitute legal advice.
