As we approach 2026, it's crucial to be aware of significant changes to the estate tax exemption, which will impact many due to the sunsetting provisions of the Tax Cuts and Jobs Act (TCJA). Although this change is a few years away, preparation should start now to ensure optimal management of your estate.

The Current Estate Tax Exemption

In 2024, the estate tax exemption is quite generous. Individuals are allowed a lifetime estate and gift tax exemption of approximately $13.61 million. This substantial amount enables individuals to make significant tax-free gifts during their lifetime or after passing. This exemption offers a powerful way to manage your wealth transfer in a tax-efficient manner.

Upcoming Changes in 2026

Starting in 2026, the exemption will revert to its previous amount of $5 million, adjusted for inflation to an estimated $7 million. This significant reduction means that the opportunity to transfer wealth tax-free will decrease considerably, affecting many individuals with substantial assets.

Potential Repercussions

The decrease in the exemption limit could lead to substantial tax liabilities for those whose estates exceed the new threshold. If your estate falls into this category, your heirs may face a considerable tax burden, significantly impacting the value of your legacy.

How Standard Equity Can Help

At Standard Equity, we understand that these changes may seem daunting. However, they present an opportunity to take proactive steps now to minimize future tax implications. By utilizing the current high exemption levels, we can help you redistribute your wealth using strategies like gifting, leveraging educational or medical exclusions, and establishing trusts.

Moreover, the upcoming 2024 presidential election could result in further tax law changes, which makes it even more crucial to have a flexible and forward-thinking estate plan.

Let's Plan Your Estate Together

Estate planning is more than just numbers; it’s about your goals and the legacy you want to leave for your loved ones. We are here to guide you through these changes and help you make the best decisions for your family's future.



Please feel free to reach out to us at your convenience to discuss how we can tailor your estate planning to best prepare for these upcoming changes. At Standard Equity, we're committed to providing you with guidance every step of the way and look forward to assisting you in navigating this complex landscape.