For years, the financial world warned retirees about the “2026 Sunset,” fearing that estate tax exemptions would be cut in half. However, the landscape has completely shifted. With the passage of the One Big Beautiful Bill Act, the federal gift and estate tax exemption has actually increased to $15 million per individual ($30 million for married couples) as of January 1, 2026.
What this means for you: While the “panic” of a falling exemption is gone, the need for strategic planning is higher than ever. These new permanent levels allow for massive wealth transfers, but they also come with stricter reporting requirements and new rules regarding charitable deductions for non-itemizers.
Our Strategy: We are helping our clients move beyond simple “tax avoidance” and into Active Legacy Management. This involves utilizing the higher exemption to move appreciating assets out of your taxable estate now, ensuring that future growth benefits your heirs rather than being taxed later. If you haven’t reviewed your trust since 2024, your current documents may be outdated for this new legal era.