Why Every Family Needs an Estate Plan

Estate planning is an essential step for every family, regardless of income, assets, or size. By addressing key issues like asset distribution, guardianship, and healthcare decisions, an estate plan provides clarity and protection during life's unpredictable moments.

At Baker & Baker, located in Corpus Christi, Texas, our attorneys strive to help families secure their futures and help them understand the importance of having an up-to-date estate plan.

What Is Estate Planning?

Estate planning is the process of preparing for the management and distribution of one's assets in the event of death or incapacity. This plan can include wills, trusts, powers of attorney, and health care directives. 

By establishing an estate plan, you make sure your wishes are clearly communicated, which can prevent confusion and reduce potential conflicts among family members. Understanding what goes into an estate plan is the first step toward securing your family’s future. 

It's not just about who gets what; it's about creating clear instructions for how your assets and responsibilities are handled. A comprehensive estate plan also outlines your medical care preferences and who can make decisions on your behalf if you become unable to do so.

Avoiding Legal Disputes

Without a proper estate plan, your loved ones may face unnecessary legal disputes. Texas law provides a legal structure for how assets are divided if there’s no will or trust in place. However, this default plan might not reflect your wishes. 

Families often end up in court over the distribution of assets, which can cause stress, tension, and prolonged legal battles. An estate plan eliminates this uncertainty by specifying your wishes clearly, verifying that your family members don’t have to guess what you would have wanted. 

It also provides a method for handling disagreements over your estate in a way that’s consistent with your wishes. This often takes the form of naming an executor, who will be responsible for managing your estate and making sure your wishes are followed.

Having a will or trust in place can prevent the emotional and financial strain that often arises when there’s no clear direction. It can also help reduce the time spent in probate court and provide protection for your loved ones, including children.

Protecting Your Children

If you have young children, estate planning is essential to protect their legacy and future. Some key considerations for how estate planning can help your children include:

• Naming a guardian: A well-drafted estate plan allows you to designate a guardian to care for your children in the event of your death. Without this, the court may appoint someone you wouldn’t have chosen.
  

• Providing financial security: You can establish trusts or financial accounts to manage assets for your children, seeing that they have resources for education and living expenses. This approach may offer long-term protection and control over how funds are used.
  

• Aligning with your values: Naming a guardian in your will makes sure your children are raised by someone who shares your values and can meet their needs. Having these elements in place provides peace of mind and clarity during challenging times.
  

• Planning for special needs: If your child has special needs, estate planning allows you to create provisions, such as a special needs trust, to see to their care without jeopardizing eligibility for government benefits.

Taking these steps helps ensure that your children are cared for both personally and financially, providing stability during what could otherwise be a difficult transition.

Maintaining Financial Stability

Estate planning doesn’t just protect your children—it also provides financial stability for your surviving family members. If you’re the primary breadwinner, having a plan in place can provide your family with resources to carry on after your passing. 

Through life insurance policies, trusts, and other financial tools, you can make sure that your family isn't left in financial distress. For those who have significant assets, creating a trust can help minimize the tax burden on your heirs. 

Texas doesn’t have a state estate tax, but federal estate taxes may still apply if your estate is valued above the federal exemption limit. As of 2025, this exemption threshold is $13,990,000. A trust can help your beneficiaries avoid these taxes or reduce the impact. Another important consideration is making sure that your assets are easily accessible. 

A well-organized estate plan assures that your loved ones don’t have to spend time sorting through paperwork and figuring out where your assets are located.

Making Your Medical Wishes Known

Estate planning allows you to state your medical preferences. By setting up an advance directive or living will, you can specify how you want to be treated in case you become unable to communicate your wishes. This can be crucial in situations where you’re incapacitated or suffering from a terminal illness.

In Texas, a medical power of attorney allows you to designate someone to make medical decisions on your behalf. If you don’t have this in place, your family might face confusion and disagreement about what to do. 

An estate plan allows you to see that someone you trust will make decisions that align with your values and wishes. Similarly, you can appoint someone to make financial decisions on your behalf if you're unable to do so yourself. 

This is done through a durable power of attorney, which can be a critical document in securing payment of your bills and proper management of your finances in your absence. Let’s move on to a few frequently asked questions we often get regarding estate planning.

Frequently Asked Questions

In our many years of experience, we hear a few questions fairly often:

Do I Need an Estate Plan if I Don’t Have Many Assets?

Yes, even if your estate isn’t large, an estate plan is essential for protecting your loved ones and seeing your wishes carried out. It’s about seeing that your children are cared for and your healthcare decisions are honored.

What’s the Difference Between a Will and a Trust?

A will dictates how your assets will be distributed after you pass away, while a trust allows you to transfer ownership of your assets while you’re still alive. Trusts also help your estate avoid probate and may offer tax benefits.

Can I Update My Estate Plan Later?

Yes, estate plans can and should be updated as your life changes. If you experience major life events, like a marriage, divorce, or the birth of a child, it’s a good idea to revisit your plan and make necessary changes.

Do I Need a Lawyer to Create an Estate Plan?

While you can create an estate plan without legal help, working with a professional can help make sure that all the necessary documents are in place and legally sound. It also helps avoid mistakes that could cause confusion or disputes down the line.

How Does Probate Affect my Estate?

Probate is the legal process of distributing your assets after your death. Without a trust, your estate may go through probate, which can be time-consuming and costly for your beneficiaries. An estate plan can help minimize or avoid probate.

Contact Baker & Baker Today

At Baker & Baker, we strive to offer comprehensive estate planning services to help families make thoughtful decisions that will impact their future. If you haven’t yet developed an estate plan, now is the time to start. Make sure that your family is taken care of when the time comes.

Located in Corpus Christi, Texas, we serve clients throughout the surrounding areas. Reach out today to schedule a consultation.