During the 89th Texas legislative session in November 2025, voters were presented with a total of 17 constitutional amendments, including two important wealth transfer protections. Based on favorable public opinion, these propositions were signed into law by Governor Abbott soon after.
Texas voters passed these ballot measures despite the claim from critics that these measures were unnecessary and may hinder future legislation. Whether you supported these initiatives or not, keep reading to discover what these propositions could mean for you and your legacy. Our attorneys at J. Lopez Law stay up to date on the important wealth transfer protections passed in the November 2025 election and other legislation that could affect you. Contact us today to learn more during an initial consultation.
Texas Proposition 2 (SJR 18) amends the state constitution to permanently prohibit the legislature from imposing a tax on the capital gains of individuals, families, estates, or trusts. This measure prevents future state income taxes on profits from selling assets, while banning tax on both realized and unrealized gains. We are one of only eight states that do not impose a capital gains tax, but 65 percent of voters wanted to guarantee that future lawmakers were not able to impose the tax.
This 2025 amendment ensures that selling stocks or real estate during or after probate will safeguard tax-efficient asset transfers by directly impacting how those assets are taxed when passed to beneficiaries. It also prevents a scenario where executors or trustees might face a state capital gains tax when selling off assets to pay an estate’s debts. This measure creates a stable tax environment that attracts businesses and financial institutions to Texas, while encouraging long-term holding of investments by removing potential tax burdens, thereby supporting Texas’s reputation as a tax-friendly state for our high-net-worth clients.
Proposition 8, the second Texas State Constitutional amendment passed to protect your wealth during the 2025 election, prohibits the legislature from imposing an inheritance or death tax. Also referred to as the House Joint Resolution 2, it ensures that there is a permanent ban on taxing a decedent’s property, the transfer of estate, inheritance, legacy, succession, or gifts.
Although Texas did not have an existing estate tax, this amendment strengthens the State’s ability to protect business owners and families by ensuring that no future tax may be imposed by the legislature. The bill delivers some good news for local families with significant assets by providing constitutional protection against uncertainty about future tax changes for retirees and the generations that follow.
The State of Texas has taken leaps to guarantee wealth transfer to its citizens and long‑term certainty for estate planning. But if you need one-on-one advice about how they would affect your estate plan, set a time now to discuss your concerns with attorney Jennifer A. Lopez and her team.
As a prominent estate planning attorney in Houston, we specialize in wills, trusts, and probate services, while providing a personalized plan to protect your family’s assets. So when you want the guidance of a professional, attentive, and knowledgeable legal advocate regarding important wealth transfer protections passed in the November 2025 election, you have come to the right place.
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