Congress raised the federal estate tax exemption to $15 million per person — $30 million for married couples — starting January 1, 2026. It’s permanent, indexed for inflation, and it’s the most generous transfer-tax environment we’ve seen in decades. If your estate plan hasn’t been updated since the One Big Beautiful Bill Act passed last summer, there’s a good chance it no longer reflects reality.
Many families built their plans around the old exemption levels and the assumption that the TCJA numbers would sunset. That didn’t happen — Congress went bigger. Trusts funded based on prior thresholds may now be over-allocated or structured in ways that no longer make sense. Funding formulas, powers of appointment, and beneficiary designations all deserve a fresh look.
For families well above the exemption, this is a window to move aggressively on lifetime gifting. You can transfer significant wealth into irrevocable trusts — spousal lifetime access trusts, dynasty trusts, grantor retained annuity trusts — and lock in today’s values while removing future appreciation from your taxable estate. Combine that with the $19,000 annual exclusion per recipient, and the math gets compelling fast.
One thing we’d flag: state estate taxes haven’t kept pace. New York, Illinois, Washington state, and several others still tax estates well below the federal threshold. A couple worth $25 million may owe zero federally but face a seven-figure state bill. That’s a planning gap worth closing.
If your estate documents haven’t been reviewed since last summer, let’s get that on the calendar. Give us a call.
For informational and educational purposes only. Not investment, tax, or legal advice. Lake Hills Wealth Management is a Registered Investment Advisor registered with the Securities and Exchange Commission. Registration as an investment adviser does not imply a certain level of skill or training. Our current Form ADV, Part 2A is available at adviserinfo.sec.gov.