Estate Planning in Texas

Texas operates under community property law, one of only nine states to do so. Most assets acquired during marriage belong equally to both spouses regardless of whose name is on the title or who earned the income. This fundamental difference from common law states shapes every aspect of estate planning here, from how property passes at death to what a surviving spouse automatically inherits.

Like all states, Texas recognizes formally executed wills and living trusts as valid estate planning tools. A standard will here requires 2Tex. Est. Code § 251.051Verified Sep 16, 2026View source adult witnesses, and adding a notarized self-proving affidavit can streamline the probate process later. The state also recognizes holographic (handwritten) wills, though these have stricter proof requirements and are more vulnerable to legal challenges.

A Texas healthcare power of attorney is signed before either 2Health & Safety Code § 166.164Verified Jul 15, 2026View source witnesses or a notary publicHealth & Safety Code § 166.164Verified Jul 15, 2026View source. Witnesses must be at least 18 yearsHealth & Safety Code § 166.164Verified Jul 15, 2026View source old. The agent must be at least 18 yearsHealth & Safety Code § 166.164Verified Jul 15, 2026View source old, and Texas bars the principal’s healthcare providers and employees of the treating facility from serving, subject to the statute’s exceptions. Giving the agent authority over burial or cremation requires the document to be notarized.

A Texas financial power of attorney must be notarizedTex. Est. Code § 751.0021Verified Sep 20, 2026View source; witnesses are not required. It is not durable unless it says soTex. Est. Code § 751.0021Verified Sep 20, 2026View source, in words such as “This power of attorney is not affected by subsequent disability or incapacity of the principal”; without that language it ends when the principal becomes incapacitated. A springing power of attorney, one that takes effect only when the principal becomes incapacitated, is permittedTex. Est. Code § 751.0021Verified Sep 20, 2026View source. The state adopted the Uniform Power of Attorney Act in 2017, modernizing its rules around financial powers of attorney. Documents created before 2017 may not reflect the current law’s protections.

Texas does not impose a state estate tax or inheritance tax, which means estates are only subject to the federal estate tax (currently exempting the first $15,000,00026 USC 2001(c), 2010; P.L. 119-21 §70106Verified Sep 15, 2026View source per person, or $30,000,00026 USC 2001(c), 2010; P.L. 119-21 §70106Verified Sep 15, 2026View source for married couples using portability). This is a meaningful advantage over the states that layer their own death taxes on top of the federal system.

Texas does not require a revocable living trust to be notarizedTex. Prop. Code § 111.001 et seq.Verified Jul 15, 2026View source. Texas allows transfer-on-death deeds for real estate, enabling property to pass directly to named beneficiaries without probate. This is a significant probate avoidance tool that doesn't require creating a trust. Transferring a home into a revocable trust does not forfeit Texas's homestead exemption—the protection carries through to trust-held property. Transferring property into a revocable trust does not trigger a property tax reassessment in Texas, so property taxes remain at their current level.

Texas automatically revokes an ex-spouse as beneficiary on life insurance, retirement accounts, and similar designations upon divorce. However, these automatic revocations can be overridden by a divorce decree or by re-designating the ex-spouse after the divorce. Texas provides full creditor protection for inherited IRAs, meaning creditors cannot reach these funds—a protection not available in every state.

Texas authorizes remote online notarization (RON), allowing trusts, healthcare directives, powers of attorney to be notarized via video call from anywhere. However, wills are excluded from RON and still require in-person notarization.