Texas residents may want to keep in mind some basic rules about the retirement accounts, annuities or life insurance policies of deceased loved ones or friends. If the policy or applicable papers contain a specific beneficiary designation, that asset will in most cases be paid directly to the listed beneficiary. The asset does not go through the decedent's estate and is not subject to estate administration. Thus, the asset is exempted from payment of estate liabilities, including from having to pay any state or death taxes owed by the estate.
It seems that a Texas resident, or someone else for that matter, who is interested in the most solid protection to cover the eventuality of total disability or mental incompetency would want to look into long-term care insurance. Such insurance would provide coverage for in-home care services and for outside placement if necessary. By engaging in long-term care planning leading to the purchase of insurance, the elder person and his or her family members would be relieved of the stress and worry of what may possibly happen many years down the line.