Texas Estate Tax Compliance Attorneys
Helping you pass what you’ve built to the next generation
When creating an estate plan, people look for ways to best pass on their hard-earned assets to loved ones as a meaningful part of their legacy. However, estate taxes can seriously decrease the value of those gifts.
At the law firm of Shann M. Chaudhry Esq., Attorney at Law PLLC, our Texas estate tax compliance attorneys can help protect what you want to give the next generation. We offer empathetic and communicative legal support for all types of estate planning.
Our team enjoys the process of building lifelong relationships with our clients and their families. We take pride in creating smart, tailored estate planning solutions—and streamlining the estate tax compliance and asset distribution in the process.
If you need assistance with estate tax planning and compliance, contact us. Our experienced Texas law firm can guide you through the process.
What Is an Estate Tax?
When a person passes on, an estate tax is imposed on their assets
Although the estate itself technically pays the tax, estate tax matters because once it’s been paid, the size of the inheritance to be passed on has been reduced.
For estates over $12.06 million, the estate tax rate is 40%. That said, assets going to surviving spouses are generally exempt from estate tax, as there is an unlimited lifetime exemption for gifts to spouses who are U.S. citizens.
Our approach
At SMC ESQ PLLC, we understand your wish to provide for your loved ones no matter what.
Our Texas estate tax compliance attorneys offer communicative legal support for your estate planning and tax needs—and we stay committed to service the whole way from start to finish. We’ll break the process down into manageable steps so that you’re comfortable with the process.
We don’t just draw up legal documents for clients. We help you implement your estate plan and make sure it continues to serve your long-term goals. We regularly with clients and make sure their estate plan stays current with tax laws and regulations.
When the time comes, we can also serve as executors of the estate—ensuring that tax obligations are met so that the estate can be transferred to heirs as smoothly as possible.
Our approach
At SMC ESQ PLLC, we understand your wish to provide for your loved ones no matter what.
Our Texas estate tax compliance attorneys offer communicative legal support for your estate planning and tax needs—and we stay committed to service the whole way from start to finish. We’ll break the process down into manageable steps so that you’re comfortable with the process.
We don’t just draw up legal documents for clients. We help you implement your estate plan and make sure it continues to serve your long-term goals. We regularly with clients and make sure their estate plan stays current with tax laws and regulations.
When the time comes, we can also serve as executors of the estate—ensuring that tax obligations are met so that the estate can be transferred to heirs as smoothly as possible.
What Is an Inheritance Tax?
Although people often confuse estate tax and inheritance tax, they’re two different things. Estate tax is determined by the value of the estate and the tax payment comes out of the estate’s assets—usually under the guidance of a tax attorney.
Inheritance tax is paid by the beneficiary who inherits the assets. The rate of inheritance tax varies according to the beneficiary’s relationship with the decedent.
For instance, a child of the decedent may pay inheritance tax at a lower rate than the same decedent’s sibling or cousin.
Although people often confuse estate tax and inheritance tax, they’re two different things. Estate tax is determined by the value of the estate and the tax payment comes out of the estate’s assets—usually under the guidance of a tax attorney.
Inheritance tax is paid by the beneficiary who inherits the assets. The rate of inheritance tax varies according to the beneficiary’s relationship with the decedent.
For instance, a child of the decedent may pay inheritance tax at a lower rate than the same decedent’s sibling or cousin.
Inheritance tax in Texas
Because there’s no federal inheritance tax, inheritance tax only comes in the form of a state tax. Six states have this tax, but Texas isn’t one of them.
Therefore, if you’re a Texan who’s inheriting from another Texan, you’re in the clear for inheritance tax (though not necessarily estate tax). But if you’re a beneficiary of a decedent who lives in a state with inheritance tax, you’ll be subject to that state’s tax.
Federal Estate Tax Laws
Texas doesn’t have an estate tax, so the only estate tax Texans need to worry about is the federal estate tax—or inheritance from a decedent in one of the twelve states that require an estate tax.
As of 2022, the federal tax rate is 40% for estates over $12.06 million—meaning that only assets in excess of that amount are taxed at 40%. An estate’s value is determined at the current market rate and can include assets such as:
- Cash
- Real estate
- Stocks
- Business interests
- Annuities
- Personal property
- Certain types of trusts
In general, the transfer of an estate to a surviving spouse is a tax-exempt process.
Texas doesn’t have an estate tax, so the only estate tax Texans need to worry about is the federal estate tax—or inheritance from a decedent in one of the twelve states that require an estate tax.
As of 2022, the federal tax rate is 40% for estates over $12.06 million—meaning that only assets in excess of that amount are taxed at 40%. An estate’s value is determined at the current market rate and can include assets such as:
- Cash
- Real estate
- Stocks
- Business interests
- Annuities
- Personal property
- Certain types of trusts
In general, the transfer of an estate to a surviving spouse is a tax-exempt process.
How an Estate Tax Compliance Attorney Can Help You
Managing estate tax can be a complicated process, especially for individuals who own successful businesses or are seeking to pass down land in a family.
Fortunately, an estate tax attorney can help you plan now to avoid a situation where, for instance, your children must sell the family business because they can’t afford the tax on it.
There are numerous legal strategies that individuals can use to account for estate tax. But these strategies need to be put into place before an individual passes on—and in general, the earlier they’re implemented, the better.
Estate tax planning needs to be specific. It’s essential that you understand the implications of your individual plan before you decide if it’s the right fit for your situation and family.
We always recommend working with an experienced estate tax attorney for these reasons. An estate tax attorney can help you by ensuring the proper amount of estate taxes is paid when the time comes and that assets are distributed to heirs without extra stress and problems.
Fortunately, an estate tax attorney can help you plan now to avoid a situation where, for instance, your children must sell the family business because they can’t afford the tax on it.
There are numerous legal strategies that individuals can use to account for estate tax. But these strategies need to be put into place before an individual passes on—and in general, the earlier they’re implemented, the better.
Estate tax planning needs to be specific. It’s essential that you understand the implications of your individual plan before you decide if it’s the right fit for your situation and family.
We always recommend working with an experienced estate tax attorney for these reasons. An estate tax attorney can help you by ensuring the proper amount of estate taxes is paid when the time comes and that assets are distributed to heirs without extra stress and problems.
Speak With Our Experienced San Antonio Estate Tax Attorneys
At the law firm of Shann M. Chaudhry Esq., Attorney at Law PLLC, our Texas estate tax compliance attorneys have extensive experience in working with families and individuals to create effective and personalized estate tax plans.
We’ll listen carefully to your goals, family situation, and concerns to create a plan that meets your needs, and we take pride in our empathetic and communicative approach.
If you need support with estate tax planning, contact us. Our knowledgeable attorneys can answer your questions and guide you through the process.
TX Estate Tax Compliance FAQs
Who is responsible for paying estate taxes?
Estate taxes come out of the estate’s overall value. An estate tax attorney can help you make plans to minimize tax impact, and later, they can make sure the proper amount of taxes are paid.
At SMC ESQ PLLC, our Texas estate tax compliance attorneys have extensive experience working with individuals and families in San Antonio and Austin to plan for, minimize, and pay estate taxes.
What is the difference between estate tax and inheritance tax?
The federal government charges a 40% tax on estates in excess of $12.06 million. This tax is paid out of the estate’s overall value. There are also twelve states that charge estate tax, although Texas isn’t one of them.
There’s no federal inheritance tax—only state inheritance tax. It’s paid by the beneficiaries based on how much they inherit. The inheritance tax rates are often determined by how the beneficiary is related to the decedent.
However, it’s important to note that the state of Texas no longer has an inheritance tax.
How much does an executor get paid in Texas?
The amount an executor of an estate gets paid in Texas varies according to the estate. The cost isn’t just dependent on the estate’s size. It also depends on the complexity of the estate and the amount of work involved.
If you’re interested in learning more about bringing on an executor for your estate, contact us. Our Texas estate tax compliance attorneys have many years of experience working with individuals and families, including families with businesses they wish to pass down, to minimize estate tax.
When the time comes, we can also serve as executors and make sure the correct estate tax is paid and that heirs receive their inheritance in a timely manner.