For years, estate planners warned about a "sunset": the high federal estate tax exemption was scheduled to be cut roughly in half at the start of 2026. That didn't happen. Instead, the exemption was set at $15 million per person for 2026, with inflation adjustments in later years.
The key numbers for 2026
- Federal estate and lifetime gift exemption: $15 million per individual
- Married couples: effectively $30 million with portability
- Annual gift exclusion: $19,000 per recipient ($38,000 for a married couple splitting gifts)
- Top federal estate tax rate above the exemption: 40%
"So I don't need estate planning?"
Not so fast. Federal estate tax is only one reason to plan, and for most families it isn't the main one. You still need a plan if you want to:
- Name guardians for minor children
- Avoid probate, which can be slow, costly and public
- Plan for incapacity with powers of attorney and healthcare directives
- Control how heirs receive money, for example in stages or protected from divorce and creditors
- Handle state estate taxes. Several states tax estates at thresholds far below the federal level.
- Make sure digital assets, including crypto, are actually accessible to your heirs
What high-net-worth families should review
If your estate is approaching or above the exemption, or could grow there, the tools haven't changed: lifetime gifting, irrevocable trusts, spousal lifetime access trusts (SLATs), grantor retained annuity trusts (GRATs), and charitable strategies. The difference is that you can now plan without a looming deadline.
A quick checklist
- Confirm your will and trust reflect your current family and assets.
- Audit beneficiary designations on retirement accounts and life insurance. They override your will.
- Re-title assets into your trust if you have one, because an unfunded trust doesn't avoid probate.
- Check your state's estate or inheritance tax rules.
- Make sure someone you trust knows where everything is.
Need help? Get matched with an estate planning professional.