Estate Tax in Texas – “Texas Inheritance Tax”
The good news is that there currently is no Estate Tax in Texas
There is no estate tax in Texas currently, and there is also no Texas inheritance tax for estates with the date of death on or after January 1, 2005. Texas used to collect an inheritance tax, but it has been phased out. However, laws constantly change, so it’s a good idea to keep tabs on current estate tax and inheritance tax laws.
The other good news is that the Federal Estate Tax has been made permanent
Why is that good news? Two reasons. First, it is very difficult for estate planning attorneys to create estate plans when estate tax laws change constantly. It’s like aiming at a moving target. Estate attorneys want to provide clients that will be appropriate this year, next year, and years down the line. This is nearly impossible when the estate attorney can’t even predict the estate tax law for next year, much less years down the line.
Second, the current federal estate tax law is less onerous than in the past. The new federal estate tax will impact very few of my clients. With an estate tax exemption exceeding $5 million per person, it’s estimated that less than 1 in 700 estates will pay any federal estate tax. Plus, the estate tax exemption is “portable,” meaning that any unused portion of one spouse’s exemption may be preserved for the second spouse’s estate.
To read more on the new federal estate tax law, I suggest reading a great write-up on Forbes.com.
Remember, estate planning is about more than estate tax planning. Even though very few of my clients’ estates would face estate tax under the new law, nearly all of them agree estate planning is a good idea. Estate planning involves questions such as:
What happens if I get so sick that I’ll need help paying the bills?
With increasing costs for long-term care, what steps can I take to preserve inheritance for my children?
Who will make medical decisions for me if I’m unable?
To ask a legal question or get legal help in the Dallas area, use the online contact form to the right or call (214) 302-8197. If you prefer to meet at the office in person in Richardson, TX–great, the attorney will gladly offer a free consultation.
Visit www.ShuttLawFirm.com for more information on Dallas Estate Planning Lawyer Isaac Shutt, how to get help with Estate Planning Texas, Inheritance Tax vs Estate Tax in TX, what happens if you die without a will in Texas, or any other Texas probate or estates question, contact Dallas, Texas Wills & Probate Attorney Isaac Shutt at ishutt@shuttlawfirm.com.
Shutt Law Firm’s office is conveniently located just north of Dallas, TX, near the intersection of highway 75 and Campbell Road in Richardson, TX.
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You can also call Mr. Shutt at (214) 302-8197 for more information on the topic discussed in this article or to discuss a different legal matter. For existing clients, quick phone-calls and brief e-mails are always free at Shutt Law Firm PLLC. Please consider the Shutt Law Firm if you need letters testamentary, how to serve as executor in Texas, how to probate in Dallas or Probate in Collin County, Last Will and Testament, or you need a probate attorney in Dallas, Richardson, Plano, Allen, McKinney, Garland, Addison, TX, Collin County, or surrounding North Texas area.
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