Houston Estate Planning and Elder Law Attorney Blog
Your equity can be life-changing. Founder shares, incentive stock options, and RSUs often outrun the value of your home. If you do not plan for those assets, probate delays and tax traps can chew through gains. A clear Austin-focused plan keeps voting control steady, captures tax breaks, and gets money to your family on time.
Get a Clean Snapshot of What You Own
You cannot protect what you cannot list. Pull grant agreements, cap tables, vesting schedules, and any 83(b) elections. Note exercise windows, acceleration on death or disability, and transfer restrictions. Record broker platforms, equity portals, and contact info for company counsel. That one packet lets your executor or trustee act quickly if a tender offer opens or a secondary closes while your estate is in transition.
Use Trusts to Keep Momentum If You Are Incapacitated or Die
A revocable living trust lets a successor trustee vote shares, receive distributions, and sign consents without waiting for court papers. If your company qualifies for Qualified Small Business Stock (QSBS), trusts for family members can multiply the potential exclusion if you structure transfers early and within company rules. Coordinate with right-of-first-refusal and board-consent provisions so you do not trigger a blocked transfer.
Plan for Options and RSUs Before the Clock Runs
Options often expire within months after death. Spell out in your will or trust who may exercise, where funds come from, and whether to sell shares immediately or hold. RSUs typically settle in cash or stock to your estate; if your children are minors, direct those units to a trustee so a court does not have to supervise every use of funds. Clear written instructions stop value from evaporating because someone missed a platform deadline.
Address Community-Property Issues Up Front
In Texas, most earnings and equity earned after marriage are community property. If you want voting control or specific shares treated as your separate property, consider a partition or postnuptial agreement that documents intent. A community-property survivorship agreement can pass certain assets to a spouse outside probate, while a trust can protect the rest for children from a prior relationship. Getting this wrong invites slowdowns and hurt feelings when decisions matter most.
Protect the IP and Side Projects Tied to Your Name
List code repositories, private packages, domains, and trademarks in an entity or your trust rather than a personal email account. Provide credentials or a secure vault location so your fiduciary can maintain licenses, renew domains, and preserve revenue. If a side project brings sponsorships or subscription fees, treat that stream like a business with instructions for billing, support, and transfer.
Build Liquidity So Your Family Is Not Forced to Sell Low
Consider key-person and buy-sell funding so your spouse or trust receives cash if you die. A cross-purchase or entity-purchase agreement gives co-founders a path to buy your interest at a formula price, preventing a distressed sale. If your company is pre-liquidity, a modest life policy can cover taxes and living costs so the trustee is not pressured to dump private stock.
Create a Practical Access Kit
Your fiduciary needs two things on day one: lawful authority and working access. Grant explicit digital-asset permissions in your estate documents. Store 2FA backup codes and hardware keys in a secure location with retrieval instructions. Include a short memo stating your goals: hold through IPO, accept board-approved tender offers, or diversify on a schedule. That guidance helps your team act with confidence.
Review After Every Funding Round or Job Move
New rounds change transfer limits, voting rights, and valuation. Add “estate-plan check” to your closing checklist so your documents match the new reality. If you change employers, update equity portals, beneficiary forms, and vesting calendars. Small updates now prevent large delays later.
Protect the equity you worked hard to build. For an Austin estate plan that turns complex grants into lasting wealth, call McCulloch & Miller, PLLC at (713) 903-7879 and schedule a focused strategy session today.