With the current tax exemption amount set to expire after 2025, those with taxable estates could find themselves in a “use it or lose it” scenario. In 2017, The Tax Cuts and Jobs Act significantly increased the lifetime estate and gift tax exemption amounts to $13.61 million for individuals and $27.22 million for couples. Set to expire after 2025, without new legislation, exemption amounts will revert to approximately $7 million for individuals and $14 million for couples, subject to inflation rates. 

Failing to capitalize on the current exemption could cause a substantial financial impact. With a 40% federal tax rate and an expected exemption reduction of $7 million, this reversion would result in a tax liability of as much as $2.8 million per individual or $5.6 million for a couple when transferring their estate to heirs.

But regardless of estate value, there are numerous techniques and account structures available to help minimize estate tax consequences. From annual giving to various types of trusts, our article from wealth management expert Daniel Rahill outlines what you can do to prepare for 2026. 

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