Texas Gift Tax And Exemption Attorneys

Last updated on May 5, 2026

Under federal IRS regulations, certain gifts you give during your lifetime may be subject to the gift tax, which can later impact your inheritance, estate and loved ones. While Texas has no state gift tax, federal thresholds still apply.

Morgan Williamson LLP works with individuals, families and business owners across Amarillo, northwest Texas and the Texas panhandle to help ensure gift-giving stays smart, legal and aligned with long-term goals. With a 17-member team and over 35 years of experience, we help simplify complex tax matters as part of a bigger estate planning picture.

What Counts As A Taxable Gift?

If you give someone money or assets without receiving equal value in return, it may be a taxable gift under federal law. Common examples include:

• Cash gifts exceeding the annual exclusion
• Transferring real estate or business interests
• Paying off someone’s debt

Even well-meaning gifts can unintentionally trigger IRS reporting or reduce your future estate tax exemption.

Understanding Gift Tax Annual And Lifetime Limits

Every year, you can give up to $18,000 per recipient without owing gift tax. This is called the annual gift tax exclusion. Married couples can double that to $36,000 per recipient.

There is also the lifetime gift tax exemption, currently set at $13.61 million per person. However, each dollar above the annual limit reduces your lifetime exemption, impacting future estate planning, probate and tax outcomes.

What Gifts Are Fully Exempt?

Some gifts are not taxable at all, even if they exceed annual limits, including:

• Tuition paid directly to an educational institution
• Medical bills paid directly to a provider
• Gifts to your spouse
• Donations to political organizations

These exemptions can provide real asset protection when handled and recorded correctly. 

Why Legal Strategy Matters

Gift planning should never be rushed. Without a clear paper trail or tax-conscious approach, you risk future audits or estate tax penalties. Our lawyers take the time to align your gifting with a broader estate planning strategy.