Spring, TX estate planning & probate attorney Christine Butts explains how she can help clients protect their assets through a well-crafted estate plan. She notes that she would first inform the client that Texas law already provides a significant level of asset protection. Exempt assets in the state include the homestead, retirement plans such as 401(k)s, 403(b)s, and IRAs, as well as life insurance and annuities. These assets are generally protected from creditors, offering a solid foundation for financial security.

For clients with high net worth or real estate that is not a homestead, she would discuss additional strategies, such as creating a business entity—like an LLC or a limited partnership—to hold those assets. This can make it considerably more difficult for creditors to access or seize them. She also emphasizes the opportunity to protect wealth as it passes from one generation to the next, often recommending irrevocable trusts. By placing assets in an irrevocable trust, the inheritance is effectively “bubble-wrapped,” allowing children to use the trust for health, education, maintenance, and support while keeping the assets shielded from creditors, bankruptcy, lawsuits, or marital disputes.

To summarize, she encourages clients to invest in exempt assets, consider the use of business entities for non-homestead or other invested assets, and incorporate trusts into their estate plans for the benefit of their children. These steps help ensure that wealth is both protected and responsibly transferred to the next generation.