The documents that make up an estate plan include:

• Advance directives: Your advanced directives explain how you would like to be cared for when you cannot take care of yourself. This could be when you’re incapacitated after an accident or if you undergo mental deterioration due to dementia.
• Last will and testament: This is a major guide for the estate and dictates the deceased’s wishes as well as a list of assets and where they should go.
• Power of attorney: These are documents that empower an individual to make financial and medical decisions for you in case you are incapacitated in some way. This differs from advanced directives, as your power of attorney has broad authority over complex issues that aren’t as simple as a do not resuscitate order.
• Trusts: Trusts are legal entities that can house assets and keep them outside of your estate, allowing those assets to avoid probate and estate taxes.

Largely, estate and gift planning will fall into two categories charitable planning and family gifting. Charitable planning is where you will create a trust to provide funds to a charity of your choice. Alternatively, you could assign a percentage of your estate to a charity, as part of your will.

Family gifting, such as gifting to grandchildren, must happen while you are alive. The law in Texas allows a certain amount of tax-free gifting. How much and how often you can give in this manner is a discussion you can have with us.