So, you’ve finally brought your baby home from the hospital, and your life is now a whirlwind of diaper changes, sleepless nights, caffeine-fueled mornings, and you find yourself wondering if you’ll ever sleep more than four hours in a row again.
First off, congratulations! Becoming a new parent in Texas can be an exciting journey.
But between picking out the perfect nursery decor and obsessing over the many milestones, there’s one task that usually gets pushed to the back burner when it comes to your new snuggly baby: estate planning.
Talking about what happens when you aren't around isn’t a fun discussion to have, but estate planning is actually one of the most loving things you can do for your loved ones. In this guide, we’ll share a complete estate planning checklist for new parents in Texas.
This is a major decision.
If something happens to you and your partner, the court needs to know who should raise your child. If you don’t name a guardian, a judge will decide based on state law, and that person might not be who you would have chosen. Naming a guardian lets you retain control over that decision. You get to pick someone who shares your values, parenting style, and general outlook on life.
Take the time to have a real conversation with the person you’re naming. Make sure they’re 100% on board. Guardianship isn’t something you want to surprise someone with after the fact. It’s also wise to name a backup guardian just in case your first choice isn't able to step up when the time comes.
If you already had a will before your child was born, it’s time to update your will. If you never had one, there’s no better time than now to have one drafted. A will does a few important things for new parents: it names your child’s guardian, explains how your assets should be distributed, and appoints someone to handle your estate. In Texas, the state decides how your property is split when there is no will, and that process can quickly become complicated.
Your will should clearly spell out who gets what and how everything should be handled for your child. Even if you don’t think you own much, having a will is still important. Cars, savings accounts, investments, personal items, and even sentimental items all matter, and a will lets you decide what goes where. If you’re unsure of where to begin, our Houston, TX, estate planning attorneys at SimpleLawTX can walk you through all the steps to help ensure your loved ones can have peace of mind when you’re gone.
Children (as well as some adults) aren’t always the best at managing money.
If you leave a large inheritance directly to a minor, they usually can't access it until they turn 18, at which point they receive a lump sum. Imagine an 18-year-old with a sudden influx of $500,000; that’s setting the stage for some questionable life choices and splurges.
A trust allows you to appoint a "trustee" (a responsible adult or a bank) to manage that money for your child's health, education, and support. You can establish rules, such as giving them a portion at age 25 and the rest at age 30, or specifying that the money can be used only for college tuition or a down payment on a house.
Houston, Texas, has some pretty flexible trust laws that let you get creative with how you protect your child’s future by establishing a trust. A trust keeps your money out of the hands of the court and puts it exactly where you want it to go.
Updating your beneficiaries is commonly overlooked. This is where many people get confused because they think their will covers everything. Spoiler alert: it doesn’t.
Some assets don’t follow your plan in your will. Things like life insurance policies, retirement accounts, and certain bank accounts go directly to the named beneficiaries. If a parent, sibling, or ex is still listed as a beneficiary, that’s where the money will go.
After having a child, it’s important for new parents in Texas to review and update their beneficiaries to ensure everything aligns with their overall plan. This is a quick task and incredibly important.
Here’s where people usually need to double-check their beneficiaries:
Make sure these designations match your wishes and will work together with your will or trust. Having an estate planning attorney can help you ensure your will or trust aligns with your listed beneficiaries and can help guide you through the estate planning process.
A good life insurance policy is one of the simplest ways to protect your child financially. When you have a dependent child, the amount of money your family would need to survive without your income usually significantly increases.
Consider your mortgage, everyday expenses, utility bills, daycare costs (which almost amount to a second mortgage these days), and eventually, those ghastly high college tuition costs. Term life insurance is usually the go-to option for new parents because it’s affordable and straightforward.
A good rule of thumb is to have coverage that lasts until your child is grown and financially independent. If you’re not sure how much you need, an insurance professional can help you run the numbers to get a better idea of your needs.
Estate planning also needs to account for what happens if you become sick or injured and can’t make decisions for yourself. This is where Powers of Attorney come into play.
There are two main types:
These documents allow you to choose a person you trust to pay your bills, manage your mortgage, and talk to your doctors in the event you're stuck in a hospital bed.
Without these Powers of Attorney, your spouse or family will likely have to go to court to get "guardianship" over you just to move money around or make medical choices on your behalf. This process is expensive, slow, and incredibly stressful during a crisis.
In Houston, TX, having a Power of Attorney drafted now ensures that someone you trust has your back and can keep your household running while you recover. Contact our Estate Planning Attorney at SimpleLawTX when you want trusted legal guidance when it comes to establishing Powers of Attorney.
Beyond the permanent guardian designations, you should think about the "right now." If you and your spouse are out on a rare date night and tragedy ensues, the police or Child Protective Services might not know who to contact.
Incredibly important, and often missed, is a temporary guardian designation: a simple document that tells authorities who is authorized to take care of your kids in the short term. This is especially important if your permanent guardian lives far away. You can name a local friend or neighbor who can step in for 24 to 48 hours while the long-term arrangements are sorted out.
A Temporary Guardianship Designation prevents your child from spending even one night in the system, which is a peace of mind you just can't put a price on.
You probably have papers scattered throughout three different drawers, a fireproof box, and maybe a random folder in the cloud. Now is the time to gather it together, in one place.
In the event someone needs to step in and help your family, they shouldn't have to play detective to find your house deed, marriage license, bank information, or insurance policies.
At a minimum, you’ll want to organize:
Take some time to get everything together and store it in one secure place. Let your chosen guardian or a trusted family member know where it’s kept. This small step can save your family a lot of frustration later on.
We spend most of our lives online, yet we rarely think about what happens to our digital footprint. This includes everything from your social media accounts and photos stored in the cloud to your Bitcoin wallet or your high-level World of Warcraft character.
Texas law allows your executor to handle these matters, but only if you give them permission.
Make sure you use the "Legacy Contact" features on platforms like Facebook and Apple. Write down instructions on how you want your digital memories handled. Do you want your Instagram memorialized or deleted? Do you want your kids to have access to all those thousands of baby photos on your phone?
If you don't plan for it, those memories could be locked away behind a password forever.
If you have a child with special needs, your estate planning should be even more precise. Leaving money directly to a child with a disability can actually disqualify them from essential government benefits like Medicaid or SSI. In these cases, a Special Needs Trust is a lifesaver.
This trust allows you to provide for your child's "extra" comforts (such as therapy, equipment, or even vacations) without affecting their eligibility for state support. Even if your child doesn't have special needs, you should consider your own long-term care needs. Texas has specific rules about how assets are handled for Medicaid planning.
Working with an estate planning attorney who understands Texas law can make a huge difference in getting this right.
Estate planning isn't a fix-it-and-forget-it kind of planning. Life moves fast in Texas, and your plan should change accordingly. New children, big moves, new jobs, marriage, divorce, or major financial changes are all good reasons to review your documents. Even without major events, a check-in every couple of years helps keep everything up to date.
Laws can also change, so staying updated ensures your plan continues to work the way you expect.
Even well-meaning parents make mistakes with estate planning, usually because they’re busy or overwhelmed. Here are a few common ones we see again and again:
Catching these issues early can save your family a lot of future stress and keep your plan working exactly how you intended.
At the end of the day, estate planning is a way of saying "I love you" to your children. It's making sure they are cared for by the people you trust, that they are financially supported, and that your family isn't left in a legal bind during an already emotional time.
It might feel like a lot to tackle, but you can take it one step at a time. Begin with the guardianship and your will, and the rest will fall into place. Call SimpleLawTX today at 281-643-0389 for all your estate planning needs for new parents in Texas!
You’re doing a great job, Mom and Dad - now go get some sleep!
