USA – TEXAS Law and Practice Contributed by: Perrin Clark, Ytterberg Deery Knull LLP
2. Succession 2.1 Cultural Considerations in Succession Planning The United States is in the midst of the largest inter - generational wealth transfer in the country’s history. With the retirement and eventual death of the “baby boomer” generation, more wealth is transferring from parents to children and from parents to grandchildren, outright or in trust, than has ever been transferred in the country’s history. This is creating unprecedented opportunities for wealth and estate planning for indi - viduals and families. In Texas, this same trend is occurring, and it is occur - ring against the backdrop of a successful state econ - omy, cultural diversity, and a growing population. For many years, Texas has benefited from a strong energy sector. In addition, the medical services and financial services industries have shown significant strength in Texas. These industries have brought numerous persons to Texas from across the country and from across the world, adding to the diversity in the major metropolitan areas and across the state. Many of these new arrivals have remained in Texas, helping to fuel population growth. 2.2 International Planning Individuals have become increasingly mobile in recent decades, and this trend has been even more pro - nounced with respect to wealthy individuals and fami - lies. As a result, there has been a dramatic increase in the frequency with which multinational individuals and families have sought advice and estate plans. This requires particular attention to the interplay of laws and regulations between various jurisdictions in which persons and assets are located and, when appropri - ate, the inclusion of counsel with jurisdiction-specific knowledge. Texas has been at the forefront of this trend due to the international reach of the energy sector, as well as the international reach of the medical services and financial services industries. These bring clients to Texas from all over the world. Texas has also been, and continues to be, a gateway to Central America and South America, with many Latin American clients coming to Texas and developing deep ties to the state
No state or local taxes are assessed specifically against non-residents and non-citizens in Texas. 1.5 Stability of Tax Laws US federal income tax law and policy can vary sub - stantially over relatively short periods due to changes in the political landscape of the United States. With the re-election of President Trump, such a change is currently occurring and new legislation and adminis - trative initiatives will bring substantial changes to tax law and policy in the United States over the near term. State and local tax on individual income is prohibited by the Texas Constitution, and Texas has no capi - tal gains, gift, estate, or generation-skipping transfer taxes. Further, legislation proposing constitutional amendments that prohibit capital gains tax and that prohibit gift, estate and generation-skipping transfer taxes passed both chambers of the Texas legislature in 2025 and will be voted on in an election for consti - tutional amendments later this year. In light of this, tax laws in Texas appear relatively stable. 1.6 Transparency and Increased Global Reporting Following recent US federal court decisions and the election of the new administration in the United States, the effect of the Corporate Transparency Act has been dramatically curtailed. US companies and US per - sons are now exempt from filing beneficial ownership information (BOI) reports; however, foreign companies must still generally file BOI reports with the Financial Crimes Enforcement Network (“FinCEN”). In Texas, certain information becomes publicly avail - able in connection with the formation of an entity, including the identity of the governing person(s) of the entity. In addition, each taxable entity formed as a corpora - tion, limited liability company (LLC), limited partner - ship, professional association, and financial institution that is organised in Texas or has a nexus in Texas must file a Texas Franchise Tax Public Information Report (PIR) annually. Certain information from the PIR may be disclosed on the Texas Comptroller and the Texas Secretary of State websites.
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