Texas Estate & Gift Tax Planning
Planning for your family and the next generation
Estate and gift taxes put a lifetime limit on how much individuals and couples can give away without triggering a 40% estate tax. However, with thoughtful planning, legal solutions can help maintain the full value and strength of your generosity.
At the law firm of Shann M. Chaudhry Esq., Attorney at Law PLLC, our Texas estate and gift tax planning attorneys have extensive experience in working with individuals and families to preserve and pass on their legacies.
We enjoy building lifelong relationships with our clients and will work closely with you to create personalized estate tax strategies that address a range of goals, concerns, and family situations.
If you’re interested in creating an estate and gift tax plan, contact us. Our knowledgeable Texas law firm can guide you through the process.
The Importance of Estate and Gift Tax Planning
Planning for estate and gift taxes can protect what you’ve built and let you choose how you’ll pass on that legacy. However, in many places across the country, estate planning requires individuals to consider the impact of state gift and estate taxes.
Not in Texas, though—Texas imposes neither estate nor gift taxes.
Federal estate tax essentially functions as a transfer tax. Each person has a lifetime gift limit that they can give to others, and this limit is currently set at $12.06 million. This includes gifts from your estate after you pass on. Once the $12.06 million threshold is reached, the tax rate is 40%.
With comprehensive estate planning, it’s possible to make strategic gifts that don’t count toward the lifetime limit. Additionally, a good estate plan can streamline the transfer of wealth through trusts, which maintain a family’s privacy and help reduce the estate tax burden.
Not in Texas, though—Texas imposes neither estate nor gift taxes.
Federal estate tax essentially functions as a transfer tax. Each person has a lifetime gift limit that they can give to others, and this limit is currently set at $12.06 million. This includes gifts from your estate after you pass on. Once the $12.06 million threshold is reached, the tax rate is 40%.
With comprehensive estate planning, it’s possible to make strategic gifts that don’t count toward the lifetime limit. Additionally, a good estate plan can streamline the transfer of wealth through trusts, which maintain a family’s privacy and help reduce the estate tax burden.
Our approach
At SMC ESQ PLLC, our Texas estate and gift tax planning attorneys take a holistic approach to estate tax planning.
We recognize that your needs and preferences will evolve. Our goal is to address the process in manageable steps so that you’re fully informed, but never overwhelmed.
Because we focus on building lifelong relationships with the individuals and families we work with, you’ll benefit from ongoing counsel and support as you make important decisions. Together, we can create and implement an approach that fits your needs and goals.
How a San Antonio Attorney Can Help with Estate and Gift Tax Planning
The Texas estate and gift tax planning team at the law firm of Shann M. Chaudhry Esq., Attorney at Law PLLC offers individualized, comprehensive, and lifelong support in planning for your and your loved ones’ future.
Our process is grounded in many years of experience and based on service the whole way through. Our team prioritizes listening to our clients’ needs and providing tailored legal solutions for their concerns.
If you’re interested in creating a personalized estate and gift tax plan, contact us. Our experienced Texas attorneys can guide you through the process.
The Texas estate and gift tax planning team at the law firm of Shann M. Chaudhry Esq., Attorney at Law PLLC offers individualized, comprehensive, and lifelong support in planning for your and your loved ones’ future.
Our process is grounded in many years of experience and based on service the whole way through. Our team prioritizes listening to our clients’ needs and providing tailored legal solutions for their concerns.
If you’re interested in creating a personalized estate and gift tax plan, contact us. Our experienced Texas attorneys can guide you through the process.
TX Estate Tax & Gift Planning FAQs
How do gifts affect estate tax?
Each individual has a lifetime estate and gift tax limit. Once gifts pass the threshold of the lifetime limit, they trigger a tax of 40%. This limit includes gifts from your estate after you pass on. As of 2022, the limit is $12.06 million, but it can be changed by an act of Congress and is presently set to decrease to $5 million (adjusted per the statute) on January 1, 2026.
Each individual also has an annual gift exclusion limit. Gifts below the exclusion limit don’t count toward your lifetime limit. In 2022, the annual exclusion limit is $16,000.
Additionally, by taking strategic steps, married couples can combine their lifetime gift limits, including by transferring the full limit of a couple to a single surviving spouse.
Are there ways to avoid federal estate taxes?
Legal remedies such as trusts and strategic gift planning allow individuals and families to lower their federal estate tax burdens.
At SMC ESQ PLLC, our experienced Texas estate and gift tax planning attorneys work with you to create and implement an individualized plan based on your family situation, goals, and needs.
Because your preferences and objectives may evolve, we review your plan with you at intervals to make sure it’s still serving your goals.
We also coordinate with your other financial professionals to ensure everyone is on the same page. Our goal is to deliver holistic, service-based estate planning solutions.
What is the generation-skipping transfer tax?
Federal estate, gift, and generation-skipping taxes function in unison. The same limits apply whether you’re seeking to give money or assets to an adult child, grandchild, or close friend.
The current limit is $12.06 million per person or twice that for a married couple. Once you go over that limit, whether through gifts while you’re alive or inheritance from your estate after you pass on, an inheritance tax is triggered at a rate of 40%.
Our San Antonio and Austin, Texas-based law firm has extensive experience working with benefactors to reduce the transfer, estate, and/or gift tax burdens on their loved ones. We can work with you to use legal solutions such as trusts to help maintain the full value and strength of your generosity.