As we head into 2026, there are some important figures you and your estate planning attorney should be aware of. Each year, the IRS updates certain tax figures to account for economic changes such as inflation. Certain tax exemptions for 2026 appear much more generous than we anticipated heading into 2025. Below is a list of the three major tax laws estate planners usually consider when advising clients.
Federal Gift and Estate Tax Exemption
Prior to the passage of the One Big Beautiful Bill Act, the Federal Gift and Estate Tax Exemption was going to sunset in 2026. The exemption would have been reduced by 50% of its then-current figure of $13.99 million, adjusted for inflation. Many estate planners estimated the new exemption would fall between $7.2 million and $7.6 million per person, depending on how much the $13.99 million figure would be adjusted.
The One Big Beautiful Bill Act changed this dramatically by stating that the new exemption, as of January 1, 2026, will be $15 million per individual, with no sunset date. In other words, this is the new figure estate planners and individuals can rely on “permanently” (until the next law changes it). The $15 million figure will not be adjusted for inflation until 2027.
The 40% tax on any estate in excess of $15 million—or $30 million for married couples—remains in effect.
Generation-Skipping Transfer (GST) Tax Exemption
The GST Tax Exemption typically follows the Federal Estate Tax Exemption. Accordingly, the new GST Tax Exemption will be $15 million per individual, an increase from $13.99 million in 2025.
Annual Gift Exclusion
An individual may make gifts of $19,000 per recipient in 2026. Married couples may gift up to $38,000 per recipient. This figure is unchanged from 2025.
For personalized and strategic planning advice on reducing your taxable estate, reach out to your estate planning attorney to review your financial portfolio and discuss tailored recommendations.