Houston Estate Planning and Elder Law Attorney Blog
While there are many intricacies to estate planning, married couples may utilize some different strategies when crafting their estate plan. This may include assessing the couple’s tax liability and deciding who to gift their assets and property to if they were both to pass away. And there are many tax benefits that spouses can take advantage of—both federally and in Texas—during their lives and after one spouse has passed away. Below are common questions about spousal trusts and estate plans and explanations to these potential queries.
What Tax Differences Are There for Married Couples?
One tax advantage for married couples in Texas is they are given a higher estate tax exemption limit. This means the total value of their estate may be higher before they are required to pay an estate tax—as compared to a single individual. In 2022, a single individual must pay an estate tax if their estate is valued at over $12,060,000. However, a married couple must pay the estate tax if their estate is more than $24,120,000. It is important to note that this exemption limit is set to decrease in 2026 to $10,000,000 per married couple.