The Good Stuff Just Keeps Coming
Is it finally time?
Thanks to the Texas legislature, state capital gains tax, estate tax, gift tax, and GST tax are well on their way to being permanently banned in Texas.
Capital Gains Tax May Be Permanently Banned
Senate Bill 18 proposes a constitutional amendment prohibiting the imposition of a capital gains tax.
This bill was inspired by Washington State, which, despite not having an income tax, successfully imposed a capital gains tax on its residents. To avoid a similar situation in Texas, the legislature proposed making it unconstitutional to enact a capital gains tax on realized or unrealized capital gains of an individual, family, estate, or trust.
Estate, Gift, and GST Taxes Could Also Be Banned
House Bill 2 proposes a constitutional amendment prohibiting estate, gift, or GST taxes.
Background
- Texas used to collect a Death Tax but then repealed it.
- Currently, nothing prevents a future legislature from imposing a death tax or its related taxes – including estate, inheritance, legacy, succession, gift, and generation-skipping transfer taxes.
- This amendment would make all of those unconstitutional.
Both constitutional amendments will appear on November’s ballot, so for goodness’ sake, vote!
No More Gift Tax on Vehicle Inheritance
Thanks to SB 2064, you will no longer have to pay a gift tax when you inherit a vehicle. The tax was only $10, but it’s the principle of the thing.
Beneficiary Designation Now Available for Mobile Homes
Texas has long allowed vehicle owners to name a beneficiary who inherits their car, but the same wasn’t possible for mobile homes.
What’s Changing
Under SB 1940, if you own a manufactured home classified as personal property, you can now complete a revocable beneficiary designation form. After your death, your beneficiary simply applies to the Texas Department of Housing & Community Affairs to transfer title.
- Important: The beneficiary has one year to act.
Increased Penalties for Forged Deeds and Wills
SB 1379 addresses the ongoing problem of forged deeds and wills:
- Forging a will, codicil, or deed is now a third-degree felony.
- Forging a deed carries 2–10 years in prison.
Serving Probate Notices When a Beneficiary Has Died
Sometimes during probate, an executor needs to serve papers but discovers a beneficiary has passed away.
SB 1448 solves this problem by allowing notice to be served on:
- The beneficiary’s executor
Distributees of the beneficiary’s estate - Unknown distributees (via publication)
How to Obtain Copies of Texas Bills
To read any of these bills:
- Visit www.legis.state.tx.us
- Select Search Legislation
- Choose the legislative session (89(R) – 2025)
- Enter the Bill Number
- Click the Text tab and select the Enrolled version
Tip: The Analysis section often contains the bill sponsor’s description, which can be helpful.
When Do These Laws Take Effect?
Except for the proposed constitutional amendments, the new laws will take effect on September 1, 2025.
How Mediation Can Protect You — and How Hammerle Morris Can Help
At Hammerle Morris Law Firm, we know that keeping up with changes in Texas laws—especially those affecting seniors, estates, and inheritance—can feel overwhelming. Staying informed helps you protect your assets, plan for the future, and avoid unnecessary complications.
Whether you’re reviewing estate plans, updating beneficiary designations, or navigating probate, our team can guide you through the process and help ensure your decisions are strategic and legally sound.
Schedule a consultation today to make sure your planning is up to date and your interests are fully protected.
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.
