November 05, 2025
Top 10 Estate Planning Topics in Texas in 2025: A Scholarly Perspective
By Brad Wiewel, JD, and Zach Wiewel, JD, LL.M. (Tax)
Estate planning remains a critical component of financial and legal well-being, particularly in a dynamic jurisdiction such as Texas. Recent legislative changes, economic shifts and evolving family structures have significantly impacted the landscape of estate planning. This article explores 10 essential topics in Texas estate planning, providing a scholarly perspective that integrates both statutory frameworks and current best practices.
1. The Changing Federal Estate Tax Exemption
One of the most pressing concerns for Texas CPAs in 2025 is the anticipated change in the federal estate tax exemption. The current exemption of $13.61 million per individual is slated to sunset after December 31, 2025. Starting in 2026, under the One Big Beautiful Bill Act (OBBBA), the exemption will increase to $15,000,000 and be indexed for inflation in future years. This modest increase is somewhat disappointing because early reports showed a desire by Republicans to abolish this tax altogether.
The gift and generation-skipping taxes will also have these exemption amounts. It bears remembering, however, that President Trump will not be the president in a little over three years. Whoever takes over the Oval Office after Mr. Trump may be inclined to lower these exemptions dramatically. By waiting to see what happens then, wealthy clients may lose some of their ability to move appreciation out of their estates. And three years of appreciation on many asset classes can be significant.
CPAs should consider prioritizing strategies such as lifetime gifting, irrevocable trusts and valuation discounts to mitigate this potential tax problem. Such proactive planning is wise and prudent.
2. Revocable Living Trusts and Probate Avoidance
Although Texas probate is often considered more streamlined than in other states, it can still be expensive, time consuming and public, so public in fact that some counties, like Travis and Hayes post the probated wills on their open websites.
As a result, revocable living trusts have gained popularity as a means of preserving privacy, avoiding probate and ensuring the seamless management of assets during incapacity. These trusts are particularly useful in cases involving multiple properties across state lines, a common scenario in Texas due to oil and mineral interests.
They are also superior planning tools during a client's mental incapacity. The continued relevance of revocable trusts underscores the importance of individualized and customized estate planning strategies.
3. Digital Assets and Fiduciary Access
The rapid growth of digital assets - including cryptocurrencies, online investment accounts and social media profiles - has introduced new complexities into estate planning. Texas has adopted our own version of the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which governs fiduciary access to a decedent's digital property. However, challenges remain regarding password management, two-factor or three-factor authentication, and platform-specific policies.
CPAs should advise clients to inventory their digital assets and include explicit authorizations in estate documents to prevent the unintentional loss of sentimental or valuable digital property, including cryptocurrency.
4. Blended Families and Inheritance Disputes
The increasing prevalence of blended families presents unique challenges in estate planning. Texas' community property system complicates matters when spouses bring separate property into the marriage and when couples move here from states that do not normally provide for community property. Well-drafted estate planning documents - such as wills and trusts - are critical to ensure the equitable distribution of assets among biological children, stepchildren and surviving spouses.
Without clear instructions, disputes under the Texas Estates Code can lead to costly and protracted litigation. Open communication and clear, comprehensive documentation are vital to helping to preserve family harmony.
5. Special Needs Planning
Planning for beneficiaries with disabilities requires specialized instruments to maintain eligibility for means-tested government benefits while providing supplemental financial support. Special Needs Trusts (SNTs) are essential tools that allow beneficiaries to receive additional resources without jeopardizing their Medicaid or Supplemental Security Income (SSI) eligibility.
Texas CPAs must be adept at directing their clients who have children or grandchildren with special needs to expert attorneys who can navigate federal and state regulations to ensure that these special needs trusts comply with all applicable requirements. The careful selection of trustees is also crucial to the effective administration of these complex trusts.
6. Non-Married Couples
Non-married couples present a new spin on estate planning. While the focus formerly was on same sex couples, the Supreme Court has affirmed those marriages. Now, more and more couples are forgoing marriage and live with their significant others for years.
The challenges this creates are too many to list here. Common law marriage in Texas should be addressed, however. It can inadvertently arise from an unwritten agreement to be married, which is accompanied by holding each other out as spouses and cohabitating. Unfortunately, Texas does not define how long someone must cohabitate and theoretically, that could be as short as one night. And once someone is common law married, they are married in all respects and must get divorced to sever that relationship.
One tax pitfall to not marrying is the lack of unlimited marital deduction for gift and estate tax purposes. Another is the inability of nonmarried people to combine both of their respective estate and gift tax exemptions; married couples can. A further one is that a non-married beneficiary cannot do a post-death rollover of a retirement account and, therefore, minimum distributions increase; the new Secure Act will also push the distributions out in 10 years, rather than over the lifetime of the surviving spouse. Thus, the minimum distributions for a spouse are lower and can be taken over a potentially much longer period of time.
7. Management of Oil, Gas and Mineral Interests
Texas's wealth of oil, gas and mineral interests presents distinct estate planning challenges. These assets often involve complex ownership structures - such as royalties, working interests and surface rights - that require specialized knowledge of title law, lease agreements and environmental liabilities.
Estate plans must address succession, valuation and potential partition disputes among heirs. Given the volatility of the energy sector, planners should review these plans regularly to ensure that they continue to align with the client's financial goals and market realities.
Good asset protection planning can also entail separating the mineral interest from the surface, which can protect the minerals from a lawsuit created by an accident that occurs on the surface.
8. The Corporate Transparency Act and Business Entities
The Corporate Transparency Act (CTA) became effective on January 1, 2024, and requires disclosure of beneficial ownership information for many closely held entities. Texas estate planners often utilize limited liability companies (LLCs), family limited partnerships and closely held corporations in their strategies. According to the Treasury Department, compliance with the CTA is now on hold, but no one knows for how long. This law has not been repealed and again, a new administration could restart the compliance and penalty process at its discretion.
Integrating CTA reporting into entity planning to ensure future legal compliance is a gut decision that CPAs should advise their clients of and then make sure that whatever the client decides to do regarding registration is confirmed by the CPA to the client so it is clearly the client's decision, not the CPA's.
9. Pet Trusts and Animal Welfare
Increasingly, Texans view pets as integral family members whose care should be included in estate plans. Texas law recognizes pet trusts, allowing individuals to set aside funds and designate caregivers for their animals. These trusts can specify veterinary care, food preferences and other welfare considerations. Incorporating pet trusts into estate documents reflects a holistic approach to planning, consistent with modern understandings of animal welfare.
10. Incapacity Planning and Elder Law Considerations
With an aging population, planning for incapacity has become a central focus of estate planning. Documents such as Revocable Living Trusts, Durable Powers of Attorney, Medical Powers of Attorney, Living Wills and HIPAA Releases are essential for designating decision-makers and expressing health care preferences. Without these instruments, families may face burdensome guardianship proceedings under the Texas Estates Code, which, frankly, is the absolute worst result for the family.
Additionally, elder law considerations, including Medicaid eligibility and long-term care planning, demand careful coordination to protect both personal autonomy and financial security.
Navigating Modern Estate Planning: The CPA's Critical Role
Estate planning in Texas has become increasingly complex, reflecting changes in federal law, state statutes, the courts, regulators, technology, and family dynamics. The 10 topics examined in this article highlight the multifaceted nature of modern estate planning and the need for individualized, comprehensive strategies.
For Texas CPAs, mastery of these topics is essential to helping clients address the critical issues they are concerned about and preserve their legacies. These are, of course, concepts that neither artificial intelligence nor TurboTax are going to recommend. Only an experienced and compassionate CPA is uniquely positioned to assist clients in achieving their desired estate planning dreams and visions.
About the Authors:
Brad Wiewel, JD, is a Texas attorney who is Board Certified in Estate Planning and Probate Law. He is a Principal at Texas Trust Law in Austin. He may be contacted at Brad@TexasTrustLaw.com.
Zach Wiewel, JD, LL.M. (Tax), is a Texas attorney and a law graduate at Georgetown Law Center, Magna Cum Laude. He is a Principal at Texas Trust Law in Austin. He can be contacted at Zach@TexasTrustLaw.com.
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