Texas Estate Tax & Basis Planning Worksheet

What's Inside

A structured worksheet for evaluating federal estate-tax exposure, step-up-in-basis opportunities, community-property characterization, and trust income-tax design. Authored by an attorney with a Master of Laws in Taxation from NYU.

1. Step 1. Total your gross estate — real estate, investments, retirement accounts, life insurance face value, business interests

2. Step 2. Identify assets with significant unrealized capital gain (appreciated stock, real estate, crypto) and flag them as step-up candidates

3. Step 3. Confirm community-property characterization of marital assets in Texas — both halves step up at first death

4. Step 4. Compare your estate against the 2025 federal exemption ($13.99M/person) and the projected 2026 exemption (~$7M/person)

5. Step 5. Evaluate lifetime gifting in 2025 to lock in the higher exemption before the sunset (use-it-or-lose-it)

6. Step 6. Evaluate SLAT (Spousal Lifetime Access Trust) for married couples wanting to use both spouses' exemptions

7. Step 7. Identify assets that should be gifted now (low-basis appreciating assets held for long horizon) vs. held for step-up

8. Step 8. Review existing trusts for compressed-bracket income-tax exposure ($15,200 top-bracket threshold for trusts)

9. Step 9. Evaluate intentionally-defective grantor trust (IDGT) structures for additional tax-free gifting via grantor-paid income tax

10. Step 10. Confirm beneficiary designations on IRAs and 401(k)s align with SECURE Act 10-year rule planning

11. Step 11. Document charitable giving plans — CRTs, CLTs, donor-advised funds — and integrate with estate plan

12. Step 12. Schedule a tax-integrated estate plan review with an attorney and CPA before any 2025 exemption-use deadline