Estate Tax vs. Inheritance Tax: What Texas Residents Need to Know



Estate planning is a crucial aspect of securing your legacy and ensuring your loved ones are taken care of after you’re gone. For residents of Texas, understanding the nuances of estate and inheritance taxes is paramount in crafting a comprehensive estate plan. In this article, we’ll explore the differences between estate tax and inheritance tax, shedding light on their implications for Texas residents. As an experienced estate planning attorney dedicated to serving individuals and families in Texas, Janelle Cremé, Esq. is here to provide clarity and guidance on these intricate matters.


Estate Tax:


Estate tax is a tax imposed on the transfer of a deceased person’s estate before it is distributed to the beneficiaries. In Texas, there is no state-level estate tax, which means estates are not subject to taxation based on their total value. However, it’s essential to note that estates exceeding the federal estate tax exemption threshold may still be subject to federal estate tax.


For the year 2024, the federal estate tax exemption threshold is $12.06 million per individual, meaning an estate valued below this threshold is not subject to federal estate tax. Married couples can effectively double this exemption by utilizing proper estate planning strategies, such as the use of trusts and gifting.


Inheritance Tax:


Unlike estate tax, inheritance tax is imposed on the beneficiaries who receive assets from a deceased person’s estate. Fortunately for Texas residents, there is no state-level inheritance tax. This means beneficiaries in Texas are not required to pay taxes on the assets they inherit from a deceased loved one.


However, it’s essential to consider the impact of inheritance tax in other states if you have beneficiaries residing outside of Texas. Some states impose inheritance tax based on the relationship between the deceased and the beneficiary, with closer relatives often enjoying lower tax rates or exemptions.


Navigating the complexities of estate and inheritance taxes requires the expertise of a knowledgeable attorney. Janelle Cremé, Esq. specializes in estate planning and is dedicated to helping Texas residents protect their assets and secure their legacy for future generations.


With a deep understanding of Texas estate laws and tax regulations, Janelle Cremé, Esq. can assist you in developing a tailored estate plan that minimizes tax liabilities and ensures your wishes are carried out effectively. Whether you’re concerned about federal estate tax implications or inheritance tax considerations for out-of-state beneficiaries, Janelle Cremé, Esq. is here to provide comprehensive guidance and support.


Ready to take the next step in your estate planning journey? Contact Janelle Cremé, Esq. today to discuss how we can assist with estate tax planning, inheritance tax considerations, and more, ensuring peace of mind for you and your family. Visit our website or call us at [Insert Contact Information] to schedule your consultation.




Understanding the distinctions between estate tax and inheritance tax is vital for Texas residents looking to create a solid estate plan. With Janelle Cremé, Esq. by your side, you can navigate these complexities with confidence, knowing you have a dedicated advocate working to protect your assets and preserve your legacy. Don’t wait until it’s too late—reach out to Janelle Cremé, Esq. today and take control of your estate planning journey.



Janelle Creme, PLLC

900 S. Preston Rd, Ste 50 #101

Prosper, TX 75078


(469) 714-2280

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