Will my beneficiaries have to pay taxes on their inheritance?
Typically, beneficiaries are not taxed on their inheritance in Texas. If an estate is valued at more than the federal exemption amount, the estate will likely have to pay taxes before giving money to beneficiaries. The federal estate tax exemption amount for 2020 is $11,580,000 for a single person. That means that if your estate – the value of everything you own – is less than the exemption amount in the year that you die, your estate should not owe any estate tax.