Estate Tax Planning Basics
Understanding federal estate taxes and strategies to minimize your family's tax burden.
Good News for Texans
Texas does not have a state estate tax or inheritance tax. Only federal estate taxes apply, and most estates fall below the exemption amount.
Federal Estate Tax
The federal estate tax applies to estates exceeding the exemption amount (approximately $13.61 million per person in 2024). Married couples can effectively shelter over $27 million combined using portability. The tax rate on amounts over the exemption is 40%.
Exemption May Decrease
The current high exemption is set to decrease significantly in 2026 unless Congress acts. Planning now can lock in benefits under current law.
Common Tax Reduction Strategies
Annual Gift Exclusion
Give up to $18,000 per person per year (2024) without using any of your lifetime exemption.
Irrevocable Life Insurance Trust (ILIT)
Removes life insurance proceeds from your taxable estate while providing liquidity for heirs.
Family Limited Partnerships
Transfer business and investment assets at discounted values for gift tax purposes.
Plan for Tax Efficiency
Our attorneys can evaluate your estate and recommend tax-efficient strategies tailored to your situation.
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