Changes on Federal and State Levels Add Up
In 2025, some very good things happened for Texas seniors. Here are a few.
You may have noticed that many states are piling new taxes on their unwitting residents. Not so in Texas. Thanks to Texans voting favorably on several proposed propositions, multiple constitutional amendments were adopted that directly benefit seniors and families.
Major Texas Constitutional Amendments Passed in 2025
New Protections Against Additional Taxes
Texas voters approved constitutional amendments that now prohibit:
- Imposing a tax on the realized or unrealized capital gains of an individual, family, estate, or trust
- The legislature from imposing death taxes applicable to a decedent’s property or the transfer of an estate, inheritance, legacy, succession, or gift
These measures reinforce Texas’s long-standing reputation as a tax-friendly state, particularly for retirees and those engaged in estate planning.
Expanded Homestead Exemptions for Texas Seniors
Several amendments and legislative actions significantly increased homestead exemptions:
- Increasing the residence homestead exemption from ad valorem taxation by a school district from $100,000 to $140,000, and $150,000 for seniors
- Authorizing the legislature to further increase the exemption for individuals who are elderly or disabled
- A separate bill passed by the Texas Legislature increased the total homestead exemption for Texans aged 65 or older to $200,000
Because over-65 homeowners already have their school property taxes frozen, this increase effectively eliminates school property taxes for the average over-65 homeowner. Importantly, the $200,000 exemption is retroactive to 2025.
Landmark Investment in Dementia and Alzheimer’s Research
Texas also approved the establishment of the Dementia Prevention and Research Institute of Texas and the Dementia Prevention and Research Fund.
Key Details of the New Dementia Research Initiative
- $3 billion transferred from state general revenue
- Funding dedicated to research, prevention, and treatment of:
- Dementia
- Alzheimer’s disease
- Parkinson’s disease
- Related neurological disorders
This represents one of the most significant state-level investments in neurological research in the country.
Greater Certainty for Federal Estate and Gift Tax Planning
For the past decade, families have fretted over the scheduled reduction of the combined federal estate and gift tax exemption. That uncertainty has now been resolved.
Permanent Federal Estate Tax Exemption Changes
- Effective January 1, 2026, the exemption increases to $15 million per person
- The exemption is portable, allowing married couples to shield $30 million
- The new amount is considered a permanent baseline, no longer subject to a sunset provision
- The exemption will be adjusted annually for inflation
This provides long-term clarity and stability for estate and legacy planning.
New Federal Tax Deductions for Seniors in 2025
For the 2025 tax year, seniors may qualify for two separate federal deductions:
- A temporary $6,000 “bonus” deduction per person
- An inflation-adjusted additional standard deduction
These deductions are subject to income restrictions, but they provide meaningful relief for many retirees.
Improved Safety Standards in Texas Senior Living Facilities
Residents of senior retirement facilities in Texas are now better protected under new state requirements.
Enhanced Background Checks and Safety Policies
Retirement communities must now:
- Conduct a criminal history record check for each employee
- Disclose whether third-party service providers conduct criminal background checks on their employees
- Maintain a resident safety and communications policy addressing criminal activity that could pose a risk to residents
Mandatory Dementia Training for Family-Member Guardians
Texas now requires family-member guardians to complete a one-hour training course on Alzheimer’s and dementia care.
What the Training Covers
According to the bill sponsor’s Statement of Intent, the course includes:
- Early signs of dementia
- Best practices for communication
- Strategies to support affected individuals while preserving their rights and dignity
Elimination of the “Widow’s Penalty”
A new Texas law eliminated the so-called “widow’s penalty,” which previously allowed insurance companies to charge widows higher insurance rates solely based on marital status.
Voting Accessibility Improvements for Seniors
Texas also passed a law requiring:
- Larger print size
- Bolded instructions on early voting ballots
This change improves accessibility and reduces confusion for older voters.
Looking Ahead: Onward to 2026
Not a bad haul in just one year. Onward to 2026.
Conclusion: Building Security, Independence, and Legacy
2025 brought meaningful progress for Texas seniors, strengthening financial security, personal safety, and long-term planning opportunities. As families look ahead, these changes reinforce the importance of preparing not only assets, but also future generations for the responsibilities that come with them.
Thoughtful estate planning helps protect what you’ve built while encouraging independence, accountability, and long-term stability for heirs. With the right structure and safeguards in place, families can pass on both wealth and values with intention.
At Hammerle Morris Law Firm, we help Texas families design estate plans that reflect their goals, protect their legacy, and prepare loved ones for the future. Schedule a consultation to discuss how today’s planning decisions can support tomorrow’s independence.
Virginia Hammerle is an accredited estate planner and represents clients in estate planning, probate, guardianship, and contested litigation. She may be reached at legaltalktexas@hammerle.com. This blog contains general information only and does not constitute legal advice.
