Estate Planning for Retirees and People Nearing Retirement

Reviewed by Turner Henington, attorney, Texas Bar No. 24148206 · Updated October 2026

The people we meet in their 60s and 70s usually have a will from decades ago, a house that’s paid off, retirement accounts that make up much of what they own, and children who are adults now. They want two things: not to burden their kids, and not to end up in a court guardianship. Henington Lewis Law Firm PLLC helps people nearing or in retirement in Austin and Travis, Williamson and Hays Counties build a plan around those goals.

Planning for Incapacity: The Part Most People Skip

Most retirees are more likely to spend some time unable to manage their affairs than to die suddenly. Without documents in place, your family may need a court guardianship to pay your bills or sell your house, which is public, slow and expensive and continues for as long as you live.

See our guide to incapacity planning in Texas for more.

Retirement Accounts: Your Beneficiary Form Is Your Plan

For many retirees, IRAs and 401(k)s are the largest assets. They don’t pass by your will or trust. They pass by the beneficiary form on file, and the wrong form can cost your family taxes or send money to the wrong person.

• A surviving spouse can usually roll an inherited IRA into their own and stretch distributions.
• Most other beneficiaries, including adult children, must generally empty an inherited IRA within 10 years under the SECURE Act, which can push them into higher tax brackets in their peak earning years. Spreading withdrawals, Roth conversions while you’re alive, or leaving more of the IRA to charity and other assets to children can help.
• Required minimum distributions generally start at age 73 for people born from 1951 through 1959 and at 75 for those born in 1960 or later.
• Naming your trust as beneficiary can protect an inheritance or a vulnerable beneficiary, but the trust must be drafted for it. We review every retirement account form as part of your plan.
• Creditor protection: Texas exempts most qualified retirement plans and IRAs from creditors’ claims (Property Code § 42.0021).

More: Do 401(k)s and Retirement Accounts Go Through Probate in Texas? and 4 Ways to Protect Your Retirement Accounts From Lawsuits.

Long-Term Care, Medicaid and Your Home

Nursing home and memory care costs can consume a lifetime of savings. If Medicaid pays for long-term care, Texas may later file a claim against the estate under the Medicaid Estate Recovery Program. Texas limits that claim to the probate estate, so a home that passes outside probate, by a lady bird deed or another non-probate transfer, generally isn’t reachable. Medicaid eligibility has its own detailed rules about income, assets and gifts, so if long-term care is a real possibility, plan early and get advice before moving assets.

Is It Time to Update an Old Plan?

If your will or trust was written when your children were young, it may still name guardians you no longer need, trustees who have since moved away or aged, or ages for distribution that make no sense now. It may also have been written for estate tax rules that have changed, since the 2026 federal exemption is $15 million per person. Common updates for retirees:

• New agents, executors and trustees, often adult children, with backups.
• Protective trusts for children who are married or in risky professions, or for grandchildren. See protecting your children’s inheritance and planning for grandparents.
• Funding the trust with your home and accounts that were never moved into it.
• Simplifying: closing old accounts, consolidating, and leaving an organized list for your family.
• Charitable gifts, including giving directly from an IRA after age 70½.

A Retirement Planning Checklist

1. Sign current Texas powers of attorney, a medical power of attorney and a directive.
2. Confirm your home and accounts are in your trust, or have non-probate transfers.
3. Review every IRA, 401(k), annuity and life insurance beneficiary form.
4. Think through long-term care: insurance, savings, and how your home would be handled.
5. Write down where everything is, including online accounts and passwords.
6. Tell your agents and executor where your documents are.

Who Will Prepare Your Plan

Turner Henington and Samantha Lewis founded Henington Lewis Law Firm, and one of them works on every plan we write. Turner is a former KPMG tax accountant and a graduate of The University of Texas School of Law. Samantha has nearly a decade of experience in Texas and federal courts and handles estate disputes, so she drafts with an eye to how plans get challenged. Our office is at 1101 S. Capital of Texas Hwy, Bldg G, Suite 150-C, near West Lake Hills, and we also meet by phone and Zoom.

What Our Clients Say

Estate Planning for Retirees FAQ

What happens if I become incapacitated without a power of attorney in Texas?

Your family may need to ask a court to appoint a guardian before anyone can manage your money or make some decisions for you. Guardianship is public, can be expensive, and usually continues with court oversight for the rest of your life. A statutory durable power of attorney and a medical power of attorney avoid that in most cases.

Do retirement accounts go through probate in Texas?

Usually not, if a living beneficiary is named. IRAs and 401(k)s pass by the beneficiary designation on file, not by your will. If no beneficiary is named, or the named beneficiary has died, the account may end up in your probate estate.

How long do my children have to empty an inherited IRA?

Under the SECURE Act, most non-spouse beneficiaries, including adult children, must generally withdraw the entire inherited account within 10 years of your death. A surviving spouse and certain other eligible beneficiaries have more options.

Are retirement accounts protected from lawsuits in Texas?

Most are. Texas Property Code § 42.0021 exempts qualified retirement plans, IRAs and similar accounts from most creditors’ claims. Federal law adds protection in bankruptcy.

Can Medicaid take my house in Texas?

Medicaid generally doesn’t count your homestead when deciding eligibility, but after your death Texas can file a recovery claim against your probate estate. Because Texas limits recovery to the probate estate, a home that passes by a lady bird deed or other non-probate transfer is generally not reachable.

Should I name my trust as the beneficiary of my IRA?

Sometimes. It can protect an inheritance for a child with creditor or divorce risk, a minor or a beneficiary with special needs, but the trust must be drafted for retirement accounts. For many married couples, naming the spouse first is better.

Who should I choose as my agent under a power of attorney?

Someone trustworthy and organized who lives reasonably close, often an adult child, with a backup. You can name different people for financial and medical decisions.

How often should retirees update their estate plan?

Every three to five years, and after a death, divorce, move, major change in assets or change in your health. Also check whenever the people you named are no longer the right choices.

How much does an estate plan cost for retirees?

Every plan is a flat fee, quoted in writing after a free consultation, so you know the cost before any work starts.

Sources and Texas Law Cited

The legal and tax statements on this page are based on the primary sources below. Laws and figures change, and this page was last reviewed in October 2026. This page is general information, not legal advice for your situation.

• Texas Estates Code § 752.051 – Statutory durable power of attorney
• Texas Health & Safety Code § 166.164 – Medical power of attorney
• Texas Health & Safety Code § 166.033 – Directive to physicians
• Texas Estates Code ch. 1104 – Selection of guardians
• Texas Health & Safety Code § 711.002 – Disposition of remains
• Texas Property Code § 42.0021 – Exemption for retirement accounts
• Texas Health and Human Services – Medicaid Estate Recovery Program
• 1 Texas Administrative Code ch. 373 – Medicaid Estate Recovery Program rules
• IRS Publication 590-B – Distributions from IRAs (inherited IRAs and the 10-year rule)
• IRS – Retirement plan and IRA required minimum distributions FAQs
• 26 U.S.C. § 408 – IRAs, including qualified charitable distributions
• IRS Rev. Proc. 2025-32 – 2026 estate, gift and GST exemption ($15 million) and annual exclusion ($19,000)

Keep Reading

• Estate Planning for Married Couples
• Estate Planning for Grandparents
• Estate Planning After Divorce or the Death of a Spouse
• Incapacity Planning in Texas
• Do 401(k)s Go Through Probate in Texas?
• What Is a Lady Bird Deed in Texas?
• When Should You Update Your Estate Plan?
• Austin Estate Planning Attorney
• Estate Planning for Every Stage of Life