Estate Planning: Why Every Word Matters

Estate planning in Texas is not a place for shortcuts or vague language. The Texas Estates Code, particularly Chapters 251 (Fundamental Requirements and Provisions Relating to Wills) and 255 (Construction and Interpretation of Wills), makes clear that the words you choose in your will or trust are not just suggestions—they are legally binding instructions that courts will interpret strictly. A single ambiguous phrase or an undefined term can have far-reaching consequences.

For example, if your will generically leaves "all my property" to a beneficiary without specifying whether that includes digital assets or mineral interests, Texas law may not interpret your intent as you hoped. Similarly, if you fail to mention specific assets like firearms (which may be subject to federal and state transfer restrictions), oil and gas royalties, or even cryptocurrency, those assets could be excluded from your estate plan or pass under a residuary clause or pass under Texas’ intestacy statutes (see, e.g., Texas Estates Code § 201.001), potentially leading to disputes among heirs, unintended beneficiaries, or even court intervention to clarify your wishes.

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The Danger of Leaving Assets Unnamed

Let’s say you own an interest in a limited liability company (“LLC”). If your will does not specifically mention that LLC interest, you are leaving the door open for confusion, delay, and even litigation. Texas courts look to the plain language of your documents. If your will says “all my property,” but does not spell out business interests, your heirs may face an uphill battle. The result? The asset could pass outside your intended plan, or worse, fall into intestacy—meaning the state, not you, decides who receives it. This issue is not limited to LLCs. For example, if you own a classic car collection or valuable artwork and your will only references “household goods,” those prized items may not be distributed as you intended. Likewise, if you have a safe deposit box containing family heirlooms and your will does not specifically address its contents, those items could be overlooked or become the subject of family disputes.

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What Does “Personal Property” Really Mean?

In Texas, “personal property” is a term of art. It generally refers to everything you own that is not real estate—think cars, jewelry, bank accounts, and furniture. But here is the catch: business interests, like interests in an LLC, are also personal property under Texas law (see, e.g., Texas Business Organizations Code § 101.106(a)). If your will leaves “all my personal property” to one beneficiary, you might unintentionally include (or exclude) assets you never meant to. For example, if you intend for your spouse to receive your jewelry and household items, but not your business interests or investment accounts, a broad reference to "personal property" could create unintended consequences. Similarly, digital assets—such as cryptocurrency wallets, online accounts, or digital photo libraries—may or may not be included, depending on how your will is worded.

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Capitalized Terms: Not Just for Looks

Ever notice how some words in legal documents are capitalized? That is not just a stylistic choice—it is a signal. Capitalized terms are usually defined elsewhere in the document. “Property,” “Residue,” “Heir”—each has a specific meaning, and if you change the definition or use the term inconsistently, you risk ambiguity. For example, if your trust defines “Descendants” to include only biological children but you later refer to “children” in a way that could include stepchildren or adopted children, you may inadvertently create grounds for a legal challenge. Or, if you define “Residence” as your primary home in Dallas but later refer to “my home” without clarification, it could be unclear whether you mean your Dallas property or a vacation home in Galveston. Ambiguity leads to disputes, and disputes lead to courtrooms.

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Consequences of Careless Drafting

A misplaced word or undefined term can change everything. If your will says “I leave my property to my children,” does that include stepchildren? Adopted children? Children born after the will was signed? Texas law will fill in the blanks, but not always in the way you would expect—or want. The same goes for trusts, powers of attorney, and beneficiary designations. For instance, if your power of attorney document authorizes your agent to manage “bank accounts” but you later open a brokerage account, your agent may not have authority over that asset unless the document is updated or drafted broadly enough. Or, if your beneficiary designation on a life insurance policy simply says “my spouse” and you later divorce and remarry without updating the form, Texas law (see Texas Family Code § 9.301) may override your intent.

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Conclusion

Estate planning is about more than just filling in the blanks. It is about being intentional, precise, and leaving no room for doubt. Work with a professional who sweats the details, who knows that every word counts, and who will help you craft documents that stand up to potential challenges—and the scrutiny of Texas law.

Contact Montgomery Legal today to discuss your estate planning needs. Schedule a Consultation or call (214) 432-6100.