Texas estate planning attorneys always think about how the Federal ESTATE TAX (“death tax”) affects clients’ estate plans, especially those Texas trusts.
If you have an older trust document and haven’t met with your estate planning attorney lately to review your trust, the ever-changing estate tax gives you a good reason for a checkup.
Here’s how the federal ESTATE TAX impacts your Texas Trust:
When you pass away, the value of your estate that exceeds the estate tax exemption amount is subject to estate tax. Currently the estate tax exemption amount is $12.06 million per person. This exemption is “portable” between spouses, which means you can currently give away the first $24.12 million without imposition of the estate tax.
Also, you should know that the rate of tax starts at 18% and goes all the way up to 40% (depending on the amount your estate exceeds the exemption amount).
The value of the estate tax exemption is ever-changing. It has been as low as $600,000 in recent years. It is expected to be over $13 million for 2023, and reduced in half in 2025. So, again, the exemption amount is always changing.
In Shutt Law Firm’s estate planning cases involving potentially taxable estates, we work with a qualified CPA or tax attorney. I am glad to recommend one if you’d like. Having been in the Texas estate planning field for many years, our law office has discovered many great financial advisors, CPAs and tax attorneys. We like to lay out potential options for your tax advisor, and then consider the tax advisor’s input in honing the estate planning tools for the particular client.
In addition to the estate tax concerns, there are important non-tax factors, including:
- Irrevocability vs. flexibility
- Tailoring distributions for a particular beneficiary’s needs
- Charitable objectives
- Asset protection
- Privacy
- Simplicity
As with so many things in life, there are trade-offs when selecting estate planning tools. For example, estate tax savings often requires irrevocability. For many clients, that a “deal-breaker.”
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To ask a legal question or get legal help from Texas trust and estate planning attorneys at Shutt Law Firm, use the online contact form to the right or call (214) 302-8197. If you prefer to meet at the office in person, the attorneys will gladly offer a free consultation.
Visit www.ShuttLawFirm.com for more information on Texas estate planning documents, Texas revocable trusts, irrevocable trusts, a power of attorney or other estate planning document, contact the Richardson Estate Planning Attorneys at office@shuttlawfirm.com.
Shutt Law Firm’s office is conveniently located just north of Dallas, Texas and just South of Plano. The law office is near the intersection of highway 75 and Arapaho Road in Richardson, TX.
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You can also call Shutt Law Firm at (214) 302-8197 for more information on the topic discussed in this article or to discuss a different legal matter.
Please consider the Shutt Law Firm if you want to know about how to get a trust in Texas, more about a Texas revocable trust, or you need Dallas Estate Planning Attorneys serving Richardson, Plano, Allen, McKinney, Garland, Addison, Rockwall, TX, Collin County, Dallas County, or surrounding North Texas area.
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DISCLAIMER: Nothing in this brief article constitutes legal advice. The information provided herein is merely provided in the spirit of education and is believed to be accurate as of the time it was originally prepared, and laws change. If you have a legal question, you should consult a lawyer for your specific legal situation. Further, nothing in this article shall be construed to have started an attorney-client relationship. No such relationship exists until both you and and an attorney at Shutt Law Firm sign an engagement letter.
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