Best Estate Planning Guide for Couples Who Moved to Texas From Another State

If you've recently moved to Texas from a common-law property state, the best estate planning resource is one built specifically for Texas community property rules — not a generic 50-state template. Your out-of-state will was designed around the assumption that whoever holds title owns the asset. Texas rewrites that assumption on the day you establish domicile, and your existing documents don't know it happened.

The Texas Basic Estate Planning Kit was built for exactly this scenario — relocators who need to reclassify assets, coordinate documents with community property rules, and secure the double step-up in tax basis that Texas uniquely offers married couples.

Why Moving to Texas Breaks Your Existing Estate Plan

Forty-one states follow common-law property rules: the person whose name appears on the deed, title, or account owns the asset. Texas is one of nine community property states, and it works fundamentally differently.

What changes immediately:

• Any income earned after you establish Texas domicile is community property — owned 50/50 by both spouses regardless of whose paycheck it comes from
• Retirement contributions made after the move are community property
• Assets purchased with post-move income are community property
• Property you brought from your previous state remains separate property — but commingling it (depositing separate funds into a joint account, for example) can convert it

What your old will gets wrong:

• It may leave "all my property" to specific heirs without distinguishing community vs. separate property
• It was drafted without Texas Independent Administration language — meaning your executor may face court-supervised probate
• It doesn't account for Texas homestead protections, which give your surviving spouse an automatic life estate even if the home is left to someone else
• It lacks coordination with Texas-specific transfer mechanisms like Transfer on Death Deeds (TODDs) and Lady Bird Deeds

What to Look for in a Texas Relocator Guide

Not every estate planning product handles the relocator scenario. Here's what matters:

The community property conversion agreement is the single most overlooked item. Under Texas Family Code § 4.203, married couples can sign a written agreement converting separate property to community property. This secures the double step-up in tax basis at the first spouse's death — potentially saving heirs tens of thousands of dollars in capital gains taxes on appreciated assets like a home or investment portfolio.

The Double Step-Up: Why This Matters Financially

In a common-law state, when the first spouse dies, only their half of jointly owned assets gets a stepped-up basis. In Texas, if assets are properly classified as community property, both halves receive a step-up to fair market value at the first death.

Example: You and your spouse own a home purchased for $300,000 that's now worth $600,000. In a common-law state, only the deceased spouse's $150,000 half gets stepped up. Your half keeps its original $150,000 basis. If you sell, you owe capital gains on $150,000.

In Texas with proper community property classification, both halves step up to $300,000 each ($600,000 total). Sell immediately and you owe $0 in capital gains. At a 15% federal rate, that's a $22,500 difference on a single asset.

Without a written conversion agreement, assets you brought from your common-law state may be treated as separate property — forfeiting this benefit entirely.

Who This Is For

• Married couples who moved to Texas within the last five years and haven't updated their estate plan
• Relocators who own real estate, have retirement accounts, or hold appreciated investments brought from another state
• Couples who want to secure the community property double step-up in tax basis
• Anyone whose existing will was drafted in a common-law property state and references "title-based" ownership

Who This Is NOT For

• Texas natives whose estate plan was already drafted under community property rules
• Unmarried individuals (community property rules apply only to married couples)
• Couples with estates above the federal exemption ($13.61 million) who need active tax planning beyond basis step-up strategies
• Anyone with multi-state real estate holdings requiring ancillary probate in other jurisdictions

Common Mistakes Relocators Make

Using their old attorney remotely. Your out-of-state attorney isn't licensed in Texas and may not understand community property nuances. They can draft a will that's technically valid but misses Independent Administration language, homestead protections, and non-probate transfer coordination.

Assuming a trust solves everything. National platforms push $399–$549 trust packages. But Texas Independent Administration gives your executor the same court-free authority as a trust — without the $2,000–$5,000 setup cost and the hassle of retitling every asset into the trust.

Ignoring beneficiary designations. Your bank POD designations, retirement account beneficiaries, and life insurance beneficiaries may still name people or percentages based on your old state's rules. These designations override your will — if they're wrong, your will is irrelevant for those assets.

Frequently Asked Questions

Do I need a new will after moving to Texas?

You need to update it, at minimum. An out-of-state will is technically valid in Texas, but it almost certainly lacks Independent Administration language, doesn't address community property characterization, and wasn't coordinated with Texas-specific transfer mechanisms. A Texas-specific kit or attorney review is essential.

What is a community property conversion agreement?

A written agreement under Texas Family Code § 4.203 that converts separate property (assets brought from another state) to community property. The primary benefit is securing the double step-up in tax basis, which can save heirs tens of thousands in capital gains taxes.

How soon after moving should I update my estate plan?

Immediately after establishing Texas domicile — which happens when you register to vote, get a Texas driver's license, or file Texas taxes. From that moment, Texas community property rules apply to all newly acquired assets, and your old plan may not account for them.

Does my common-law state power of attorney still work in Texas?

Texas law generally honors out-of-state powers of attorney, but institutions (banks, title companies) sometimes refuse to accept them. A Texas Statutory Durable Power of Attorney under Estates Code Chapter 752 eliminates this friction.

What if my spouse and I disagree about converting property?

A conversion agreement requires both spouses' written consent — it cannot be forced. If you disagree, a Texas estate planning attorney can help structure alternatives that preserve each spouse's property characterization while still optimizing the tax position.

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