Estate & Legacy Planning: 2026 Foundations
Updated: Aug 23
Last updated: July 2026. This is a foundational, evergreen post we revisit as exemptions and tax law change — check back for updates, or subscribe to our newsletter.
Estate planning often gets treated as a one-time event a will signed, a trust established, then set aside. But the rules underneath that plan shift more than most people realize, and a plan built on outdated assumptions can undercut the very intent it was meant to protect.
Where Things Stand in 2026
Lifetime Exemption - The federal gift and estate tax exemption is currently $15 million per individual, or $30 million for married couples.
Annual Gift Exclusion - Individuals can currently give up to $19,000 per recipient per year ($38,000 for married couples electing gift-splitting) without touching the lifetime exemption at all a simple, underused tool for gradual wealth transfer.
Portability & Trust Planning - With exemption levels this high, the right structure (and whether a trust is even necessary for a given estate size) depends heavily on family circumstances, asset types, and state-level estate tax rules, which don't always mirror federal exemption levels.
Why This Matters Now
The current $15 million exemption isn't just a routine inflation adjustment, it's the result of the One Big Beautiful Bill Act (OBBBA), signed into law in July 2025, which permanently raised the exemption rather than letting it revert to roughly half that amount as previously scheduled under prior law.
That's a meaningful shift: for the first time in years, there's no scheduled expiration date hanging over estate planning decisions. That said, "permanent" is a legislative label, not a guarantee a future Congress could still revisit these provisions, which is exactly why a resilient plan matters more than chasing today's exact numbers.
The Bigger Picture
Estate and legacy planning works best as a strategy revisited regularly alongside your attorney, and coordinated with your broader tax and wealth plan rather than a document filed away and forgotten.
This material is for informational purposes only and does not constitute legal, tax, or investment advice. SKP Wealth does not provide legal services; please consult a qualified estate attorney for document drafting and execution. See our full Disclaimer.
Wondering how current exemption levels affect your family's plan?
