The core documents
- Will: names who inherits and who serves as guardian for minor children.
- Revocable living trust: holds assets so they can pass without probate.
- Durable power of attorney: lets someone manage your finances if you're incapacitated.
- Healthcare directive: records your medical wishes and who can speak for you.
- Beneficiary designations: often override your will, so they must match the plan.
Estate and gift tax in 2026
The federal estate and lifetime gift tax exemption is $15 million per person for 2026 (indexed for inflation in later years). Married couples can effectively shelter double that with portability. The annual gift exclusion for 2026 is $19,000 per recipient. Some states levy their own estate or inheritance taxes at much lower thresholds.
When to review
Revisit your plan after a marriage, divorce, birth, death, move, business sale or a significant change in net worth, or at least every three to five years.
Frequently asked questions
Do I need a trust or just a will?
A will is the minimum. A revocable trust can avoid probate, keep things private and simplify management, which is especially useful with real estate in several states or complex family situations.
What is the federal estate tax exemption for 2026?
$15 million per individual for 2026, adjusted for inflation in future years. Married couples can use portability to combine exemptions.
How often should I update my estate plan?
After major life events, or every three to five years at minimum.