The Texas Property TaxBack™ Program

Most Texas homeowners, 65 or older are aware that they qualify for some additional homestead property tax exemptions and that they get a tax ceiling for their homestead for the school taxes. The school taxes on their homestead will never increase as long as they own and occupy their homestead and do not add any major improvements to their home.

Although many 65 or older homeowners know about these additional exemptions, few are aware that in 1979, the Texas Legislature passed a law allowing them to defer or postpone their homestead property taxes as long as they own and occupy their homestead. The tax deferral only postpones the payment of taxes owed, it does not cancel them. Setting aside these taxes is done free of penalties and only simple interest of 8% is added each year.

On the surface, it may seem that deferring payment of your taxes may not be a good idea. However, if you could use those tax dollars to benefit your family and others, then it would seem to be something worth considering. A program has been developed which allows the 65 or older homeowner to shift their property tax dollars into an Estate Planning Tool, referred to as “The Texas TaxBack™ Program”. In the program, instead of paying property taxes annually, the money goes to purchase an Increasing Death Benefit Life Insurance Policy. The lump sum benefit is paid immediately upon the death of the surviving spouse. The funds in excess of the deferred property taxes and the 8% simple interest are there for whomever they chose such as heirs, family, their church or other charity.

The Texas TaxBack™ Program offers a wonderful way to create endowments for your church and your diocese, your heirs and family. These gifts can amount to tens of thousands of dollars or more, depending on the property tax amount, your age and health status. One of the more unique features of the program is that no additional out-of-pocket funds are necessary to create this legacy!

If you are interested in learning more about The Texas TaxBack™ Program, please contact Tommy Hitzfeld, Licensed Agent, at (800) 541-9849.

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