En esta noticia
The New Succession Law in Texas prevents the creation of state inheritance taxes. With this change, certain family members will never again have to pay taxes on inheritances at the state level and will be able to receive the full estate, with no additional transfer charges after death.
The measure, known as Proposition 8 or House Joint Resolution 2, amends the state constitution to prohibit the Legislature from imposing a “death tax” or inheritance tax in the future.
What does the New Succession Law establish regarding inheritance taxes?
The constitutional amendment prohibits the state from imposing a tax on the estate of a deceased person, as well as on the transfer of an inheritance, legacy, succession, or gift. This includes assets transferred to family members, heirs, trusts, or estates.
Which taxes are prohibited?
- State inheritance tax.
- State estate tax upon death.
- Taxes on the transfer of property, legacies, or gifts.
With this wording, the state legislature cannot create a tax in the future that affects the transfer of assets after the owner’s death.
Who benefits, and what should families keep in mind?
The main beneficiaries are family members and heirs who receive assets within the state, since they will not face a state tax on the transfer of the estate. The reform also protects trusts and estates against possible future tax burdens.
However, the measure only applies at the state level in Texas. Residents should consider that federal taxes may still apply to large estates, according to the regulations of the Internal Revenue Service (IRS), so it is recommended to review each case with specialized advice.