The Estate Tax Is Changing in 2026— Here’s What That Means for You

There’s a major change coming in estate planning, and it’s welcome news for many American families.

For years, we’ve been planning for a significant decrease in the federal estate tax exemption. The amount you can pass on without paying federal estate tax ($13.99 million per person in 2025) was scheduled to be cut in half on January 1, 2026.

However, recent legislation has completely changed the landscape. Under the newly enacted “One Big Beautiful Bill Act,” the federal estate tax exemption will not decrease as anticipated. Instead, it is set to increase to $15 million for individuals (or $30 million for a married couple). This new, higher exemption is permanent and will be adjusted for inflation in the years to follow.

What Does This Mean For Your Family?

This is a significant reversal of the previous law. Many families who were concerned about facing a substantial estate tax bill due to the old "sunset" provision can now breathe a sigh of relief.

For example, a family with a gross estate of $9 million—perhaps including a home, investments, retirement accounts, and life insurance—was previously facing the possibility of exceeding the lower 2026 threshold. Now, with the exemption rising , their federal estate tax concerns may be eliminated entirely.

Why Planning Is Still Crucial

While this is welcome news for many, it is not a reason to abandon your estate planning. This new legislation creates a critical window of opportunity to secure your legacy and protect your assets for the future. Smart, legal strategies are available to help you maximize the benefits of this higher exemption.

Now is the perfect time to:

• Review Your Current Plan: Your existing plan may have been designed around the old, lower exemption. It’s essential to update your documents to reflect the new reality.

• Explore Gifting Strategies: With the exemption increasing, you have more room to make strategic lifetime gifts to family members or trusts, removing future appreciation from your taxable estate.

• Address State Estate Taxes: Remember, this is a change to the federal estate tax. Many states have their own, much lower, estate tax thresholds that may still affect your family.

We Can Help

Navigating these changes can be complex. We can help you understand what this new law means for your specific situation and ensure your plan is optimized to protect what matters most.

Start by booking your Peace of Mind Planning Session today. We’ll meet in person or on Zoom, answer your questions, and walk you through our simple, flat-fee process to create a plan that provides security and clarity for you and your loved ones.

Mention this blog and we’ll waive the $450 session fee!

Click here to Schedule Your Peace of Mind Planning Session!