Texas saw some important legal and tax updates in 2024. Changes that could shake up how you approach your estate plan this year. Whether you’re passing on property, managing a trust, or running a family business, new rules around taxation, court procedures, and digital assets might affect what’s in your documents — and what’s missing.
Some of these changes streamline compliance. Others introduce new reporting requirements, especially for business owners and those managing digital accounts or entity-owned assets. If you haven’t reviewed your estate plan recently, now is the time to understand what’s changed and what it means for you.
Texas Business Courts Now Handle More Than Just Corporate Disputes
As of September 1, 2024, Texas launched a new statewide Business Court system to manage complex commercial disputes. While these courts don’t directly handle wills or probate, they may affect estate plans involving LLCs, partnerships, or private business interests.
The courts hear cases involving internal business governance, breaches of fiduciary duty, derivative actions, and commercial contracts exceeding $5 million in value. Estates with business holdings could see disputes over those interests shift to this forum—potentially changing how future litigation unfolds.
Only cases filed on or after the September 1 effective date can be assigned to the new courts. Existing matters will remain in the courts where they were originally filed.
Higher Tax Exemption Means Less Reporting for Small Business Owners
Texas raised its franchise tax exemption in 2024, doubling the no-tax-due threshold from $1.23 million to $2.47 million. If your estate involves a small business or family-owned entity, that change means less paperwork and fewer headaches.
You no longer need to file the No Tax Due Report — but you still have to file ownership info forms to stay compliant. This is especially relevant if you’re using entities to hold estate assets.
You Can Transfer More Wealth — But the Clock’s Ticking
The federal gift and estate tax exemption jumped again in 2024, hitting $13.61 million per person. That number goes up slightly in 2025, but unless Congress acts, the current limit drops in 2026, possibly to around $7 million per person.
If you’re thinking about gifting large assets or funding trusts, now’s a smart time to make moves while the exemption is still high.
New Rules Mean You’ll Need to Report Who Owns What
Starting in 2024, most companies and some trusts must report who really owns and controls them. This comes from the new Corporate Transparency Act and applies to many estate planning entities like LLCs or corporations.
Reports go to the Financial Crimes Enforcement Network (FinCEN) and include names, addresses, and IDs for key stakeholders. Non-compliance can trigger stiff fines — up to $500 per day. Some courts have paused enforcement for now, but the rule still stands for most entities.
Don’t Forget Your Digital Assets
If your estate plan doesn’t include digital assets, it’s time for an update. More Texans are adding instructions for crypto wallets, online subscriptions, cloud files, and even social media accounts.
Texas law now gives executors more authority to manage digital assets, but only if you’ve spelled that out clearly in your documents. Otherwise, your heirs could hit roadblocks trying to access accounts or transfer digital property.
What to Watch for in Your 2025 Estate Plan
Several changes from last year could impact how you manage or update your estate plan this year. Here’s what to keep on your radar:
- New courts for business-related estate disputes, available only for post-September 1, 2024 filings.
- Franchise tax relief for business assets under $2.47 million in annual revenue.
- Expiring federal tax exemptions—act before 2026 if you’re transferring significant wealth.
- Required ownership reporting for LLCs and other estate-related entities under the Corporate Transparency Act.
- Digital asset planning is no longer optional—make sure you’ve covered online accounts and crypto.
If any of these touch your situation, don’t wait to update your estate plan. Legal and tax landscapes are moving fast, and staying current now can save your family a lot of trouble later.
