Becoming a parent transforms your world overnight! Suddenly, your priorities shift, and the future takes on a whole new meaning.

While you're busy adjusting to diaper changes, sleepless nights, and other new routines, it’s easy to overlook one of the most important ways to protect your growing family: estate planning.

For new parents, having an estate plan isn’t just about finances -- it’s about making sure your children are cared for and your wishes are honored, no matter what life brings.

Here’s what every Texas parent should know about safeguarding their children’s future through smart estate planning.

Why Estate Planning Matters for New Parents

Estate planning isn’t just for the wealthy or elderly.

“Often, there’s a perception that estate planning is only for affluent individuals or those who are older,” says US Bank Wealth Management. “It’s a comprehensive process that ensures you’ll leave the legacy you want and make things easier for the loved ones you’ll leave behind.”

For new parents, it’s about making sure your children are cared for by people you trust, that your assets are managed wisely for their benefit, and that your wishes are honored if you’re no longer able to express them.

In Texas, failing to plan can leave critical decisions -- like who will raise your child -- in the hands of the courts, which may not align with your values or wishes.

Key Steps for Estate Planning in Texas

New parents can follow these steps for estate planning in Texas:

Appoint a Guardian for Your Child

• In Texas, you can name a guardian for your minor children in your will or through a separate legal document called a “Declaration of Guardian.” This person will care for your child if you and the other parent are unable to do so.
• Consider the guardian’s parenting style, values, location, and financial stability.
• In addition to the chosen guardian, you also name a first alternative and second alternative.
• Without a named guardian, Texas courts will decide who raises your child, which can lead to family disputes and outcomes you may not want.

Create or Update Your Will

• A will is the foundation of your estate plan, specifying how your assets are distributed and who will care for your children.
• In Texas, if you die without a will (intestate), state law dictates how your assets are distributed, which may not reflect your wishes, especially in blended families or if you have specific plans for your children’s inheritance.
• Your will should also name an executor: someone trustworthy and organized to manage your estate and ensure your wishes are carried out.

Set Up a Texas Revocable Living Trust

• A revocable living trust allows you to transfer assets to a trust during your lifetime, maintain control over them, and dictate how and when your children receive their inheritance.
• Trusts can help your family avoid the lengthy and public probate process, providing quicker access to funds for your children’s needs.
• You can set specific terms, such as distributing funds for education.

Review and Update Beneficiary Designations

• Many assets -- like life insurance and retirement accounts -- pass directly to named beneficiaries, bypassing your will.
• Regularly review and update these designations after major life events (like the birth of a child) to ensure your children are included and protected.
• If your children are minors, consider naming a trust as the beneficiary rather than the child directly, to avoid complications and ensure responsible management of the funds.

Secure Life Insurance

• Life insurance is a critical tool for providing financial security for your family if you pass away unexpectedly.
• In Texas, life insurance proceeds usually go directly to the named beneficiary, not through your will or probate.
• For minor children, it’s often best to have the policy pay into a trust, so a responsible adult can manage the funds until your child is old enough.

Establish Powers of Attorney and Healthcare Directives

• A Texas Statutory Durable Power of attorney lets you appoint someone to manage your finances if you become incapacitated.
• A Texas Medical Power of Attorney and advanced directive gives a trusted person the authority to make healthcare decisions for you if you’re unable to do so -- crucial for parents with young children.

Take Inventory and Organize Important Documents

• List all your assets, accounts, insurance policies, and digital accounts (including passwords).
• Use digital vaults or secure storage to keep these documents accessible to your executor or trusted family members.

Communicate Your Wishes

• Let your chosen guardians, executors, and trustees know about their roles and your wishes.
• Open communication helps prevent confusion or disputes and ensures everyone is prepared if the need arises.

Special Considerations for Texas Parents

• Declaration of Guardian: Texas law allows you to create a separate “Declaration of Guardian” for your children, which courts will generally honor unless there’s a compelling reason not to.
• Community Property State: Texas is a community property state, meaning most assets acquired during marriage are jointly owned. This can affect how assets are distributed if you don’t have a will.
• Probate Process: Texas probate can be streamlined with proper planning, but assets in a trust or with direct beneficiary designations avoid probate altogether.
• Blended Families: If you have children from previous relationships, Texas intestacy laws may distribute your assets in ways you don’t intend. A clear estate plan avoids these pitfalls.

Frequently Asked Questions

What happens if I don’t have a will in Texas?

Texas intestacy laws will determine who inherits your assets and who cares for your children. This process can be lengthy, expensive, and may not reflect your wishes.

Can I change my estate plan as my family grows?

Absolutely. You should review and update your estate plan after major life events-such as the birth of another child, marriage, divorce, or significant changes in assets.

Do I need an attorney for estate planning in Texas?

Working with a Texas estate planning attorney ensures your documents are legally sound and tailored to your family’s needs.

Final Thoughts from B Sloan Law

Estate planning is an act of love and responsibility.

“With each new estate planning client, we realize that every single family is unique, and thus, the planning process for each family’s estate is special and specific to their needs,” says Brittany Sloan of B Sloan Law.

By taking the steps above, parents can ensure their children are cared for, their assets are protected, and their wishes are honored.

Consult with B Sloan Law today to create or update your plan and secure your children’s future.