Since 1979, Section 33.06 of the Texas Property Tax Code has allowed homeowners age 65 and older to legally defer all property taxes on their homestead for as long as they own and occupy their home. The deferral applies to all taxes, and defers the taxes - but does not cancel them. Simple interest is added at the rate of 8% per year.
Since 1994, homeowners across Texas have elected to defer their property taxes and use the money they were previously spending on property taxes to create a guaranteed larger sum for the benefit of their loved ones, their church, or favorite charity.
A 25-year illustration details the year-by-year benefit of establishing such a plan - showing accumulated deferred taxes with interest, and payout from life insurance may help you decide if this would be advantageous in your situation.