Tax Change In Texas In The Next 12 Months

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Last Updated: Nov 4, 2024

Read Time: 3 mins

In 2017, the Tax Cuts and Jobs Act (TCJA) brought about significant shifts in the U.S. tax landscape. One of the most impactful changes was the alteration of the federal estate tax exemption. As we approach 2026, understanding the implications of the TCJA’s expiration is crucial, especially for residents of Texas as our Houston, TX estate tax lawyer can share. Let’s delve into what this means and why it is so important in the coming year.

The Sunset Of The TCJA And What To Expect In 2026

The increased exemption provided by the TCJA is set to expire on January 1, 2026, unless Congress acts to extend it. The exemption is expected to revert to around $6 million per individual, adjusted for inflation, which means approximately $12 million for married couples.

This reversion could bring many Texas estates back into the taxable category. Families who previously didn’t need to consider estate taxes may now find their estates subject to federal taxes, making it essential to reassess estate plans soon as Stuart A. Green can share since he has worked with changes like these since 2021 when he founded his own practice.

Why This Change Is Crucial Now

The next 12 months are vital for estate planning in Texas. Here are key reasons why:

• Review Estate Plans: Texans should review their estate plans to prepare for the lower exemption. Trusts, wills, and other documents may need updates to maintain tax efficiency.

• Strategic Gifting Opportunities: The current higher exemption offers a chance for strategic gifting. By transferring assets now, Texans can reduce their taxable estates and take advantage of the higher exemption before it decreases.

• Utilize Trusts: Trusts remain a powerful tool for managing estate tax liability. Irrevocable trusts like Grantor Retained Annuity Trusts (GRATs) and Charitable Remainder Trusts (CRTs) can help reduce taxable estates while providing financial benefits.

• Maximize Lifetime Exemptions: The current high exemption allows significant lifetime transfers without gift taxes. This can be a valuable strategy for reducing estate tax liability upon death.

• Seek Professional Advice: Given the complexity of estate tax laws, consulting with an experienced estate planning attorney like Stuart A. Green in Houston, Texas, is essential. He serves clients throughout Texas, providing tailored advice to navigate these changes effectively.

Overview Of The 2017 TCJA

The TCJA, enacted in December 2017, aimed to boost economic growth by reducing tax burdens. A key component was the substantial increase in the federal estate tax exemption. Prior to the TCJA, the exemption was about $5.49 million per individual. The TCJA nearly doubled this, raising the exemption to $11.18 million per individual, now adjusted to $13.61 million for 2024.

Effects Of The Higher Exemption

The higher exemption meant that many estates in Texas were no longer subject to federal estate tax. A married couple could now potentially exclude up to $27.22 million from estate taxes, allowing more wealth to be transferred to heirs without federal taxes.

For many Texas families, this change reduced the necessity for complex estate planning strategies. Trusts, gifting tactics, and other methods to minimize estate taxes became less critical for estates under the new threshold.

The expiration of the TCJA provisions in 2026 signifies a major shift in the estate tax environment. For Texas residents, the next 12 months are a crucial period for reviewing and adjusting estate plans. Taking proactive steps now ensures your estate plan remains effective and aligned with your financial goals. Stuart A. Green, an esteemed attorney in Houston, emphasizes that careful planning today can secure your legacy for the future, despite the uncertainties ahead. Contact Stuart Green Law, PLLC for help today; he is licensed in Texas, Kentucky, Pennsylvania, and South Dakota.

The Stuart Green Law Approach

A Modern Approach to Family Wealth

Stuart Green Law combines modern South Dakota trust law with integrated estate planning, wealth management, and fiduciary services for families throughout the United States and internationally. The firm’s approach is built around selecting the strongest legal framework available, maintaining continuity of planning judgment, and bringing every part of the family’s wealth strategy into alignment with its long-term objectives.

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Wherever You Live

Families are not limited to the trust laws of their home state. Stuart Green Law integrates South Dakota’s sophisticated legal framework into estate plans for clients across the United States and around the world, allowing families to benefit from its privacy, flexibility, asset protection, and long-term trust advantages regardless of where they live.

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Stuart Green Law is intentionally structured as a boutique practice. Clients work directly with the attorney responsible for their planning, creating continuity of judgment and a deeper understanding of the family’s objectives as the plan evolves over time.

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Estate planning, tax strategy, wealth management, and fiduciary services are most effective when they operate together. Stuart Green Law integrates these disciplines into a cohesive framework that keeps the family’s wealth aligned with the grantor’s vision, goals, and long-term planning intent.

Client Testimonials

    
 
 
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   Thomas Gibson 
 77 days ago
 
 
 Trustindex verifies that the original source of the review is Google. I am so GRATEFUL for Stuart Green Law!
Stuart is the kind of attorney you want protecting your family and your wealth. He opened my eyes to why South Dakota is the best  trust jurisdiction, something I never understood before speaking with him. What stands out most is that Stuart genuinely cares about family, long-term protection, and doing things the right way. His dedication to his clients is what makes him different. I would trust him with my family’s future without hesitation. Wish everyone knew about him and his law firm.
  
 
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   Charles Graham 
 108 days ago
 
 
 Trustindex verifies that the original source of the review is Google. Working with Stuart Green Law was an outstanding experience. Stuart is knowledgeable, professional, and genuinely takes the time to understand your family’s unique goals. He explained every step of the estate planning process clearly and designed a thoughtful strategy tailored to our needs. If you’re looking for an attorney who truly cares about protecting your family’s legacy with modern, sophisticated planning, I highly recommend Stuart Green Law.
  
 
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   Mark Valentino 
 141 days ago
 
 
 Trustindex verifies that the original source of the review is Google. I spent a lot of time researching estate planning attorneys before finding Stuart Green Law, and I couldn’t be more impressed. Stuart has an incredible ability to explain complex topics like South Dakota Trusts in a way that actually makes sense. He takes the time to answer questions, never makes you feel rushed, and genuinely cares about helping clients make informed decisions. If you’re looking for an experienced estate planning attorney, I highly recommend Stuart Green Law.
  
 
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   Angélique Green 
 167 days ago
 
 
 Trustindex verifies that the original source of the review is Google. Stuart Green is incredibly knowledgeable and clearly operates at a very high level. His approach to estate planning and wealth strategy is thoughtful, modern, and well beyond the traditional. You can tell he genuinely cares about helping people protect what they’ve built. Truly impressive work and reputation.
  
 
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   Maria Cardenas Anderson 
 608 days ago
 
 
 Trustindex verifies that the original source of the review is Google. I had an excellent experience working with Stuart Green on my trust and will documents. From start to finish, he was incredibly responsive, patient, and thorough. He took the time to explain everything clearly, ensuring I fully understood each step of the process. Even after the trust was complete, he guided me on what still needed to be done — something I really appreciated.

Stuart’s professionalism and kind demeanor made what could have been an overwhelming experience so much easier. I felt informed and supported every step of the way. I would highly recommend him to anyone looking for a knowledgeable and attentive probate lawyer. Thank you, Stuart!
  
 
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   Chris Stinson 
 616 days ago
 
 
 Trustindex verifies that the original source of the review is Google. Stuart Green is an exceptional estate attorney. He handled my father's living will and then his estate after his passing, as well as helping my mother finalize and complete her estate in conjunction with my father's death. Currently, he is handling the living will and estate planning for me and my wife and our family. I highly recommend him and his integrity of work.
  
 
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   Alejandra 
 617 days ago
 
 
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   Joseph Marchetti 
 785 days ago
 
 
 Trustindex verifies that the original source of the review is Google. Great guy - honest businessman.  Has been very helpful for me in providing feedback and input from a law perspective on employment and legal agreements in my personal and professional life.  Would heartily recommend Stuart to others!
  
 
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   Will Desrochers 
 798 days ago
 
 
 Trustindex verifies that the original source of the review is Google. I have worked with Mr. Green for awhile now and can't recommend him highly enough. He is professional and and timely with his responses to my questions. I really appreciate how he helps me understand the plan for my estate. I look forward to continuing to work with him.
  
 
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   Chuma 
 912 days ago
 
 
 Trustindex verifies that the original source of the review is Google. I’ve learned a great deal from Stuart on the foundational aspects of estate planning, legacy planning and asset protection. Having had the privilege  to work alongside Stuart, I can also say that he is a top tier counselor and focused on aligning his client’s personal goals with their long term objectives and wishes.