With major estate tax changes looming for 2026, there’s never been a better time to revisit your estate plan. Strategies that made sense a few years ago may no longer serve your goals under the new tax landscape.
What’s Changing in 2026?
The Tax Cuts and Jobs Act (TCJA) temporarily raised the federal estate and gift tax exemption to over $13 million per individual (or $26 million per married couple). Those elevated thresholds are set to sunset at the end of 2025, effectively cutting the exemption in half (adjusted for inflation). Unless new legislation is passed, significantly more estates could face federal taxation starting in 2026.
Why Your Plan May Need a Refresh
Even if you’ve already done estate planning, here’s why 2025 is worth revisiting:
- Exemption levels may no longer match your strategy — a plan built under higher thresholds could be far less tax-efficient in 2026
- Gifting opportunities are time-sensitive — you can currently gift more without triggering gift tax, potentially moving significant wealth out of your estate before the exemption shrinks
- Trusts may need updating — both irrevocable and revocable trusts should be reviewed to ensure they still align with current laws and your goals
- Life changes matter too — marriage, divorce, a new child, or a major financial event may mean your estate documents no longer reflect your wishes
Don’t Wait Until It’s Too Late
Estate planning is about more than taxes — it’s about protecting your legacy, your loved ones, and your peace of mind. With 2026 approaching, this year is your chance to act proactively rather than reactively. Whether you need a full review, help evaluating gifting strategies, or a referral to a trusted estate planning attorney, 4Wealth Advisors can guide you. Contact us at 708-665-6663 or marketing@4wealthfg.com. Or, visit 4wealthadvisors.com/get-in-touch to request your estate plan review.