For most Americans, federal estate taxes will never be a concern. Under current law, the federal estate tax exemption is $15 million per person in 2026. For married couples, that means up to $30 million can pass to heirs without any federal estate tax. Less than one-tenth of one percent of estates owe any federal estate tax at all.
So does that mean estate planning is unnecessary? Not even close.
Estate planning has never been just about taxes. It’s about making decisions that protect your family and ensure your wishes are followed. Those decisions matter whether your estate is worth $50,000 or $50 million. This article explains why.
What Estate Planning Really Accomplishes
Beyond minimizing tax liability, estate planning allows you to make important decisions that you are in the best position to make.
Deciding who will receive your assets when you die. Without a Will, your assets will be distributed according to Texas intestacy law, which may not match your wishes at all. You might want a close friend or charity to share in your estate. You might want to leave a larger portion to a child with special needs. None of that is possible without a Will.
Choosing who should raise your minor children. You know your children better than anyone. You’re the right person to decide who should care for them if something happens to you and your spouse. Without a Will naming a guardian, that decision falls to a judge who doesn’t know your family or your values.
Naming a guardian in case you’re incapacitated but still living. If you become unable to care for your children due to illness or injury, a court may need to appoint someone to step in. You can make that decision yourself by signing a Declaration of Guardian.
Controlling how and when your children receive their inheritance. If you leave assets directly to a minor child, a court may need to appoint a guardian of the estate to manage the money until the child turns 18. That process is expensive and cumbersome. A trust avoids it entirely by letting you name a trustee to manage the assets according to your instructions.
Choosing who will manage the assets you leave behind. If you haven’t named a trustee or executor, a judge will appoint someone. That person may have no understanding of your financial values or how you’d want things handled.
Deciding when your children will have full access to their inheritance. Under a guardianship, children typically receive full control of their inheritance when they turn 18. Think about what you would have done with a large sum of money at that age. With a trust, you can delay distributions or stagger them over time, giving your children a chance to mature before they have full access.
Naming someone to handle your financial affairs if you can’t. A Durable Power of Attorney allows a person you trust to pay bills, manage accounts, and handle legal and financial matters on your behalf if you become incapacitated.
Naming someone to make medical decisions for you. A Medical Power of Attorney designates someone to make healthcare decisions if you’re unable to make them yourself. Without one, your family may face confusion or conflict at a difficult time.
Ensuring your healthcare agent can access your medical records. Federal privacy laws under HIPAA can prevent even close family members from receiving information about your condition. A HIPAA Authorization ensures your agent can get the information they need to make informed decisions on your behalf.
Expressing your wishes about end-of-life care. A Directive to Physicians allows you to state whether you want life-sustaining treatment if you’re diagnosed with a terminal or irreversible condition. This gives your family clarity and relieves them of having to guess what you would have wanted.
Estate Planning is About More Than Taxes
Minimizing estate taxes matters for those who owe them. But estate planning is about much more than taxes. It’s about protecting the people you love and making sure your wishes are followed when you’re no longer able to speak for yourself.
If that matters to you, then you need an estate plan.
