Blog

High‑value estates and trusts have always been a target of attention. New laws, including recent changes to federal tax law and court decisions in Texas, increase this attention and risk for trustees and beneficiaries.

If these changes are not reflected in your estate plan and the administration of your trust, you may face unnecessary challenges, costs, and public disclosures. Our experienced attorneys at Ford + Bergner, LLP, can help you minimize your risk and preserve family wealth.

Contact Ford +  Bergner, LLP today at 713‑322‑4923 to learn how these shifts could impact your high‑value estate or trust.

Federal Updates

One significant change is due to the federal estate and gift tax exemption expansion in 2025. The exemption increased to $13.99 million per person and almost $27.98 million per married couple. While this provides relief for high-value estates, it comes with a sunset clause at the end of 2025.

If Congress takes no action, exemptions will revert to roughly $6 million per individual. For clients in Texas, the federal change isn’t the entire picture. State tax laws could still come into play. The current planning strategies for estates must incorporate the expanded exemption amounts alongside the upcoming sunset provision.

Complex Trust Structures 

A variety of asset types, including international assets, dynasty trusts, generation-skipping trusts, and charitable lead trusts, can be part of today’s high-value trusts. As trusts become more complex, disputes between beneficiaries and trustees over the value of assets to be distributed, the decision to distribute, or who will serve as trustee are common.

Ambiguous or confusing terms in a trust can lead to litigation to interpret the trust terms and enforce their performance. Texas courts show reduced leniency toward informal fiduciary claims that depend solely on personal relationship history for their authority.

State Level Updates

Texas courts offer ongoing instructions regarding fiduciary and procedural rights in trust litigation. The Texas Supreme Court has ruled that trust modification cases fall under equity action, which lacks jury trial rights according to the Texas Property Code, but must be sent back to address constitutional concerns.

The procedural options accessible to trustees become limited during contested trust modification proceedings. Texas courts currently regulate informal fiduciary relationship claims to establish stricter standards for these cases. People who act as fiduciaries without a formal appointment have fewer procedural defenses against disputes.

Texas Changes in Legislation

Texas legislators have been active in modernizing trust structures and litigation forums. The recently proposed House Bill 4058 would allow self-settled asset protection trusts through Chapter 112 of the Property Code.

The bill’s introduction, along with other similar developments, shows that sophisticated trust planning and protection elements will likely persist.

In contrast, House Bill 40 is now law. It modernizes the state’s Business Courts, effective September 1, 2025. The new law modifies the powers and framework of the specified courts. These courts have jurisdiction over trust cases that involve large assets or corporate trustees.

Trust litigants and practitioners should be familiar with these forums and the new law as they develop trust litigation plans.

High-Value Estate and Trust Planning

Ford + Bergner, LLP represents clients in Austin, Dallas, and Houston to review trust documents, initiate protective litigation, and otherwise require that trustees perform their legal duties. Each of these measures can alter the results in high-value trust contests.

• Audit and reform trust language: Vague trust terms are often subject to legal attack. If trust documents clarify terms earlier, they can prevent disputes from becoming costly legal disputes.
• Track the federal sunset provisions: The available exemptions are at a maximum right now, but could be cut in half after 2025. Lifetime gifting or transfer into a trust may lock in wealth for multiple generations.
  
• Understanding litigation: Probate, Equity, or Business Court may have jurisdiction over your case. Know the forum and the effect of a trustee’s automatic insulation from certain claims.
  
• Perfect your trustee structure: It’s risky to depend on an implied fiduciary relationship. Formal appointments and recording duties can shield trustees from liability.

Contact Ford + Bergner, LLP Today

Protecting high-value estates and trusts in Texas requires much more than strategic planning. Navigating the changing legal environment calls for experienced representation that will guide you through. At Ford + Bergner, LLP, we represent clients throughout Austin, Dallas, and Houston and can work to help you protect assets, preserve your legacy, and resolve disputes.

This includes estate litigation, as well as reviewing your plan or trust in light of recent legal developments. Call Ford + Bergner, LLP today at 713‑322‑4923 to schedule a consultation tailored to your unique needs.