Tax law changes have shaped countless estate plans in recent years, and the 2026 review season is showing that few families remain untouched. Many individuals geared their strategies for a major shift in estate tax exemption at the end of 2025, expecting the lifetime gift and estate tax exemption to snap back by half. Instead, lawmakers made the higher $15 million estate tax exemption permanent, indexed for inflation from 2026. This move caught many by surprise and triggered a new wave of questions about which parts of hurried estate planning still fit, and which now miss the mark. Here’s what you need to know about your estate plan review 2026, what changed, what to review, and how to bring your trusted advisors into the conversation.
How the 2026 Estate Tax Exemption Became “Permanent”
Instead of the so-called estate tax sunset slicing exemptions in two, Congress passed the “One Big Beautiful Bill” that set the estate tax exemption at $15 million per person, effective 2026 and indexed for inflation. This means a married couple can shield $30 million, using lifetime gift tax exemption as well. The gift and generation-skipping transfer (GST) exemption also match this figure. For families who scrambled between 2023 and 2025 to move assets or create new trusts, the permanence of this larger limit brings relief and complications. ‘Permanent’ in tax law terms always carries the caveat that a new Congress can rewrite the rules, so flexibility remains a core principle.
What Changed, and What Stayed the Same
Exemption Level and Indexing
The headline shift is the elevated lifetime gift tax exemption and estate tax exemption 2026. This higher $15 million threshold, with annual inflation indexing, extends to GST purposes. Unlike prior rules that would have reset the exemption to pre-2018 levels (about $7 million per person), most high-net-worth families now find themselves well below the federal threshold. This change leaves more room for planning based on other tax priorities, including income taxes.
Top Tax Rate and Step-Up
The top estate tax rate remains at 40 percent. Critically, the step-up in basis for appreciated assets at death remains law, which affects capital gains calculations for heirs. With fewer estates falling into federal tax territory, many individuals shift focus to basis management for income tax efficiency.
The Rushed-Planning Era: Gifts, Trusts and What Needs a Second Look
Many families responded to the impending estate tax sunset by making significant lifetime gifts or establishing trusts aiming to exploit the full gift tax exemption before it fell. These actions helped some by moving appreciating assets out of their estate but created complexity, especially if the transfer exceeded the wealth ultimately needed to beat the now-invalidated deadline. Reviewing trusts, family office strategies and accounting services with your advisors ensures that structures built for a different tax regime still meet current needs.
Where Formula Clause Estate Planning May Backfire
Formula clauses often determine how much passes tax-free to a bypass or credit shelter trust. Previously, these clauses assumed a lower exemption would apply. Now, with the $15 million estate tax exemption locked in, these formulas could shift much more of the estate into bypass trusts than intended. This can unintentionally leave a surviving spouse with less immediate access. Reviewing trusts and wills for formula clause language has become essential, especially for families with trusts set up in the past three years.
The Ongoing Need for Flexibility: Disclaimers, Trust Protectors and Changing Strategies
While many assumed that a permanent exemption would mean ‘set it and forget it,’ true peace of mind requires flexibility. Trust protectors, decanting provisions and disclaimers still have roles. Congress can and sometimes does change the rules. Planning ahead for possible legislative changes ensures estate plans remain relevant regardless of future adjustments. Personal CFO services can oversee this flexibility, coordinating actions among legal and financial professionals.
Income Tax Takes Center Stage
Because of the elevated lifetime gift tax exemption and the fewer estates affected by the federal transfer tax, focus has shifted. Managing basis becomes more valuable than minimizing estate taxes. Step-up in basis at death can eliminate significant capital gain liability for heirs. Family offices and trust and estates professionals should review the basis of key assets, assess timing of gifts versus inheritances and factor income tax priorities into current and future planning.
Portability Election: Still Vital in 2026
Portability lets a surviving spouse use any unused estate tax exemption left by the first spouse. Despite the higher $15 million estate tax exemption, elections still require a timely filed tax return, even if no estate tax is due. Failing to make this portability election could ultimately waste several million dollars of shelter for the next generation. Coordinating with household management and accounting services keeps these administrative details from falling through the cracks.
Reviewing State-Level Estate Tax Exposure
While the federal exemption sits at $15 million, several states still impose estate or inheritance taxes at much lower thresholds. Georgia itself does not levy these taxes, but families with property or ties to other states still risk exposure. Business structuring across multiple states or asset relocation can shield more wealth. Personal CFO and accounting services can model potential liabilities and recommend steps to reduce risk.
Your Estate Planning Checklist for 2026
Amid all the statutory changes and strategic adjustments, a comprehensive estate planning checklist remains essential. Reviewing documents for outdated formula clauses, updating beneficiary designations, reassessing choice of trustees and successors, confirming asset titling, and revisiting insurance needs should top the list. Working with family office professionals means you are equipped with a consolidated financial picture. Coordination with your estate attorney and tax advisors will ensure your 2026 estate plan review leads to a fast and accurate update.
Coordinating Your Advisors for Seamless Implementation
Efficient estate plan review 2026 relies on experienced professionals who understand your unique situation and goals. By bringing together your personal CFO, family office team, trust and estate experts, and business structuring advisors, you create certainty and flexibility. Accurate record-keeping, transparent reporting, and prompt communication allow for wise decisions no matter how tax laws change. A tailored approach makes sure every part of your plan, from trusts and wills to insurance and payroll, supports your family or business both now and in the future.
