Understanding the Upcoming Gift and Estate Exemption Reduction
With estate and gift tax policies continuously changing, we can help you understand the impact and implement strategies to preserve your wealth for future generations.
In 2026, the inflation-adjusted exemption is expected to return to its pre-2017 number, effectively reducing the limit by half.
As part of the 2017 Tax Cuts and Jobs Act, the lifetime estate and gift tax exemption was nearly doubled from $5.6 million to $11.18 million. Further indexed for inflation in 2023, the exemption rose to an all-time high of $12.92 million for individuals.
Starting January 1, 2026, the total exemption will reset to $7 million, forcing high net worth families and individuals to revisit estate planning. If you do nothing, your estate tax liability may be much higher than you expect if you pass away after this change.
The good news is, you still have time to utilize the current exemption amounts and opportunities—if you act quickly.
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Trust & Estate Insights