No, Texas does not have an estate tax, for the time being, anyway. Does Texas have an inheritance tax? No, there is currently also no inheritance tax in Texas for individuals who died on or after January 1, 2005. For individuals who passed away between September 1, 1983 and January 1, 2005, a Texas Inheritance Tax Return must be filed.
In December, 2010, President Obama signed the Taxpayer Relief Act of 2010 (“TRA 2010”). Though there is no guarantee, this new tax law makes it unlikely that Texas will have an estate/inheritance tax in 2011 or 2012. Texas used to collect an estate tax equal to a credit on an individual’s federal estate tax. This was called a “pick up tax.” The pick up tax has been phased out, and no estate tax is likely for the next two years because TRA 2010 did not reinstate the pick up tax.
I realize this is a short post, but there’s not much information to report. Of course, estate and tax laws are constantly in flux, so it’s best to consult an attorney if you’re the executor of an estate. If you’re not an executor, but are curious about tax and tax rates, visit the Texas Comptroller’s website – http://window.state.tx.us/ – for more up-to-date information on Texas tax laws.
Isaac Shutt is the Attorney/Owner at Shutt Law Firm PLLC. Visit http://www.shuttlawfirm.com or email firstname.lastname@example.org. You can also call Mr. Shutt at (214) 302-8197 for more information on the topic discussed in this blog or to discuss a different legal matter. Phone-calls and quick e-mails are always free at Shutt Law Firm PLLC. Please consider the Shutt Law Firm if you’re looking for a Richardson probate lawyer, Richardson wills lawyer, Richardson estate planning attorney, or Richardson guardianship lawyer.
DISCLAIMER: Nothing in this blog post constitutes legal advice. If you have a legal question, you should consult an attorney. Further, nothing in this blog shall be construed to have started an attorney-client relationship. No such relationship exists until you sign an engagement letter with the Firm.