Now that 2026 has arrived, it is an ideal time to take another look at your estate plan. Federal estate, gift, and generation-skipping transfer tax rules have changed, and those adjustments may affect how much of your wealth can ultimately pass tax-free to your family.
Even if you do not expect to be directly impacted by federal estate taxes, reviewing your plan is still a smart step. Confirming that your documents, beneficiary designations, and planning strategies reflect your current goals can help avoid surprises and ensure your plan works the way you intend.
This overview highlights the key 2026 estate tax changes and explains why they matter. Think of it as a quick check-in that can help you decide whether your estate plan is still on track.
Federal Estate, Gift, and GST Tax Exemption in 2026
Under prior law, the higher estate and gift tax exemption created by the Tax Cuts and Jobs Act was scheduled to be cut roughly in half on January 1, 2026.
That sunset did not occur.
Recent legislation eliminated the scheduled reduction and instead set the federal exemption at:
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$15 million per individual
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$30 million per married couple with portability
Beginning in 2027, the exemption will continue to adjust annually for inflation.
Why This Matters
The higher exemption creates a more favorable federal estate tax environment for families at many wealth levels. However, thoughtful planning is still essential to take full advantage of the opportunity.
Federal Estate, Gift, and GST Tax Rates
While the exemption amount has increased, the federal tax rate has not changed.
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The top federal estate, gift, and GST tax rate remains 40 percent
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Transfers above the exemption amount, whether made during life or at death, remain subject to this rate
This means that estates exceeding the exemption can still face significant tax exposure without proactive planning.
Impact Across Wealth Levels
The 2026 changes affect families differently depending on the size and structure of their estates.
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Middle-wealth and emerging-wealth families now have more cushion under the higher exemption
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Higher-wealth families may still face meaningful estate tax exposure and should consider advanced planning strategies
For many Dallas Fort Worth families, this is an opportunity to reassess whether their current plan is appropriately scaled to their assets and long-term goals.
Lifetime Gifting Opportunities in 2026
Because the exemption increased to $15 million, individuals who previously used most or all of their available exemption may now have additional gifting capacity.
Strategic lifetime gifting can be powerful because it:
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Removes the current value of gifted assets from the taxable estate
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Removes all future appreciation from the estate as well
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Can be structured through irrevocable trusts to support asset protection and income tax planning goals
Lifetime gifting is not one-size-fits-all, but 2026 opens new opportunities worth evaluating.
Annual Gift Exclusion Remains in Place
In addition to the lifetime exemption, the annual gift tax exclusion remains available.
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$19,000 per recipient for 2025 and 2026
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Amounts above this level count against the lifetime exemption
Annual exclusion gifts remain a simple and effective way to transfer wealth gradually without using lifetime exemption.
Planning Environment in 2026
Estate planning is about more than tax numbers. Regardless of wealth level, clients should continue to maintain strong foundational documents, including:
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Wills
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Powers of attorney
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Healthcare directives
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Revocable trusts, when appropriate
With the exemption stabilized, the planning focus has shifted away from racing against a sunset and toward making intentional, well-structured decisions that align with personal and family goals.
Legislative Uncertainty and Strategic Timing
Although current law makes the higher exemption permanent, Congress can change estate tax rules in the future.
For that reason, many advisors view 2026 and 2027 as a strategic planning window. This period may be an opportunity to:
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Lock in flexibility
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Remove appreciating assets from the taxable estate
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Strengthen estate planning structures before future legislative changes
Planning proactively, rather than reactively, can provide greater control and peace of mind.
Key Takeaway for Dallas Fort Worth Families
The 2026 estate tax changes create a more favorable federal landscape, but effective estate planning still matters. Families at all wealth levels can benefit from reviewing their estate plans, updating documents, evaluating tax exposure, and considering strategic lifetime gifts.
A thoughtful review now can help ensure your estate plan reflects both current law and your long-term goals.
