Serving Denton County Since 1992 | 6021 Morriss Rd., Suite 101, Flower Mound, TX, 75028
972-724-3338
Tax Considerations to Keep in Mind for Your Texas Estate Plan
When you live in Texas and are granted an inheritance, you benefit from the fact that the state does not have an inheritance tax. There are also some federal estate tax exemptions you might be entitled to. All that can make you think you have nothing to worry about when you inherit something. However, Texas residents might still need to pay federal estate taxes depending on the circumstances of the inheritance. If you are trying to plan for your financial future, speak with a skilled Denton County, TX estate planning lawyer who can explain your options for protecting assets.
How do Estate Taxes Work in Texas?
There is currently no state-imposed inheritance tax in Texas. As for federal taxes, if an individual inherits up to $13.61 million or a couple inherits up to $27.22 million, they are exempt from taxes. Since these amounts are so high, many people will not be liable to pay taxes, but it is best to be aware that laws can change.
What Can I Do Now to Protect My Estate in the Future?
Anyone interested in protecting their assets and providing for their loved ones should consider estate planning, even if they are not wealthy. While current laws about taxation in Texas offer exemptions to many people, it is still a good idea to prepare for the possibility that that could change. There are strategies you could implement now that could protect the assets you want to leave behind no matter how the laws might change in the future.
Some examples include:
- Annual gift tax exemptions: You could begin slowly transferring money to your beneficiaries without any of it being taxed if you gift amounts that fall under the exemption every year.
- Unlimited marital dedication: This lets spouses transfer money to each other tax-free.
- Trusts: Different types of trusts might suit your circumstances. Whether you establish a living trust, irrevocable life insurance trust, charitable remainder trust, or spousal lifetime access trust, you can likely find an arrangement that offers you flexibility and protects your assets even after you are gone.
Contact a Flower Mound, TX Estate Planning Attorney
If you are thinking about the legacy you will leave behind, speak with a seasoned Denton County, TX estate planning lawyer. At Colbert Law Group PLLC, we are passionate about using strategic planning to protect our clients’ assets in the future. Call us at 972-724-3338 so we can create a plan tailored to your needs.
Whether you need legal assistance with estate planning, have questions about elder law, or are involved in a business litigation case you can trust Colbert Law Group PLLC to handle your case with the personal attention and commitment to a positive outcome that you deserve. From our office in Flower Mound, we serve clients throughout Denton County and Southern Oklahoma.
6021 Morriss Rd., Suite 101, Flower Mound, TX, 75028
972-724-3338
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