The Importance of Estate Planning

Do I really need a will?

The simple answer is “Yes, you really need a will”. And here’s why. The purpose of a will is to direct the way your assets will be distributed and dictate who will manage your estate. If you don’t have a will, you’re going to fall under the intestacy statutes for the state of Texas and that may or may not align with your wishes.

What happens if I die without a will?

In that case, the state of Texas has made a will for you in the form of the intestacy statutes, and that outcome often doesn’t reflect what most people would have chosen. Depending upon your marital and family history, your assets could end up being jointly owned by your surviving spouse and your children, which is an undesirable way to own property. A determination of heirship and dependent administration could be necessary, making the process court-supervised, slow, and expensive. Sadly, a misguided attempt to save money by not having a proper will could cost the estate much more in probate costs and, ultimately, result in less money passing on to the estate beneficiaries.

What documents will I need for a complete estate plan?

That will look different for each person, but at a minimum, each adult should have a will and durable and medical powers of attorney. Depending on the particular facts and circumstances, an advance directive to physicians and family members, declaration of guardian, and appointment of agent to control disposition of remains could be appropriate. Marital property agreements or ladybird deeds could be appropriate in certain situations. And, consideration should be given to planning for supplemental needs, asset protection and eligibility for government assistance.

Can you explain elder law?

Elder law is a specialized area of law focused on the needs of older adults and their families. It looks at more than just writing a will but includes helping a client plan for the longer term, including finances and healthcare challenges that can come with aging. It may include things like qualifying for Medicaid to pay for nursing facilities and appointing people you trust to make medical and financial decisions, having those aforementioned powers of attorney in place, and making sure your estate plan is in line with what you want to happen.

It’s basically a holistic view from now until the end of your life outlining how your family will take care of you and make sure you have what you need.

The cost of long-term care can be devastating. You can work your whole life and, if you don’t plan ahead, it can wipe out your life savings. There are many estate-planning options available to conserve resources when planning proactively. In crisis situations, an elder law attorney can develop a plan for the most efficient way to manage assets so that the client is eligible for Medicaid assistance as soon as possible.

How often should I evaluate and update my estate plan?

We recommend reviewing it every three years or sooner if you have a major life event such as a marriage or divorce, a new birth, death in the family, a significant change in your health or finances, or a significant change in the tax laws. Also, if you move to another state, you should have your estate plan reviewed by an attorney licensed in that state to be sure it meets with the law of that state.

Why should I think about Medicaid if I’m not in a crisis?

Because planning ahead gives you more control and peace of mind. Long-term care in Texas can cost over $6,000 per month, and Medicaid helps cover those expenses — but only if you meet strict financial requirements. With advanced planning, including legal tools like trusts or annuities, you may qualify without losing your life savings.

Medicaid doesn’t exist only for people with very little money. Although it is a needs-based program, many middle-class families qualify with the help of proper planning. It’s about understanding and using the rules wisely. We help families protect assets and still qualify — so you can care for a loved one without losing everything.

Will my spouse end up losing everything if I need care?

No — and that’s one of the most important reasons to plan. Texas Medicaid has built-in protections for the spouse who remains at home. There are rules that allow them to keep the house, a vehicle, and a sizable portion of assets — but without guidance, families often give up more than they have to. We help you maximize those protections.

Even if you’re already paying for care, it’s not too late. This is known as “crisis planning,” and while the options are fewer, options still exist. Tools like Medicaid-compliant annuities, promissory notes, and strategic spend-downs can help you qualify faster and preserve assets. Every case is unique, and timing is critical — so don’t wait to ask for help.

Can you explain the five-year lookback period? How does that work?

When you apply for Medicaid, the state reviews your financial history from the past five years to see if you gave away or transferred any assets. This is the lookback period, and it’s designed to prevent people from giving things away just to qualify. If you’ve made gifts or transfers, it could impact your benefits. We’ll help you understand what’s permitted and how to move forward with confidence.

What should my first steps be?

Start with a conversation. At O’Connor Gordon Law, we work with families in both crisis and advance planning situations. We explain the rules in plain language, develop strategies to protect what you’ve built, and guide you through each step with care. Aging is a natural process that can bring with it various worries and concerns. Losing your savings to Medicaid shouldn’t be one of them. We want to help you take steps to ensure your hard-earned savings stay in your hands — not in the hands of Medicaid — so you can enjoy your twilight years worry free.