The state of Texas does not have an estate tax, however residents may still be subject to federal estate tax laws. When Should I File an Estate Tax Return?Any other executor needs to include Form 56 with the federal income taxes to indicate their right to file income tax returns for the deceased. There is no inheritance tax or estate tax in Texas. An inheritance tax is one that a beneficiary of an estate must pay on their inheritance. The following explains how to fill out Form 706, United States Estate (and GenerationSkipping Transfer) Tax Return and the various attachments. Our Estate Tax Planning Attorneys can help you minimizes taxes for your heirs. If you are concerned about the Texas Estate Tax, we can help!