With 30+ years in estate planning, I’ll show you how to prepare for 2026 changes!

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2026 Estate Tax Changes: How to Protect Your Wealth Before It’s Too Late

Imagine this: You’ve spent years building a successful business, investing wisely, and planning to leave a meaningful legacy for your children. Now, because of one upcoming tax change, almost half of that hard-earned wealth could be gone. This is the reality facing many high-net-worth families as the 2026 estate tax exemption changes approach.

In a recent video, I broke down this issue and shared real stories of clients who’ve successfully navigated similar challenges—and others who ran into pitfalls by rushing or delaying their plans. If you’re concerned about protecting your wealth, here’s what you need to know about the 2026 deadline and what steps to take right now.

What’s Changing in 2026?

The Tax Cuts and Jobs Act of 2017 raised the federal estate tax exemption to over $13 million per person (more than $27 million for couples). This means that up to now, a substantial amount of wealth could pass to heirs without incurring estate tax. However, in 2026, this exemption is set to be halved, dropping to about $6-$7 million per person.

What does this mean for your estate? If your assets exceed the new exemption, the IRS will tax 40% of anything above it. Think about that: 40% of the wealth you’ve accumulated for future generations could be lost to taxes unless you act ahead of time.

The High Cost of Rushed Planning

In the video, I shared a story of a client who rushed her planning during a previous tax change, transferring a large sum of cash to a trust for her children without waiting for a business stock appraisal. A few years later, she found herself in need of that liquidity to support her own lifestyle. Had she taken a more balanced approach, she could have achieved her estate planning goals without sacrificing her financial security.

This underscores an important lesson: taking time to craft a thoughtful, strategic plan is essential. An early start allows you to consider all options, from asset allocation to trust structures, and avoid the costly mistakes of rushed decision-making.

Who Should Be Concerned?

If your estate falls under the projected $7 million exemption, you may not feel the impact of these changes directly. However, families with estates between $7 million and $50 million could be significantly affected. Planning ahead can reduce the potential tax hit.

For estates valued at over $50 million, the time to act is now. As I mentioned in the video, large estates face a particularly high risk of losing a substantial portion of their wealth to taxes in 2026. Early and proactive planning is the best way to avoid this.

The Cost of Waiting Too Long

In the video, I also shared the story of a couple who successfully transferred their business growth to a trust for their children, which is often a savvy move. But their business grew faster than anticipated, leaving them with less liquidity than they’d planned. In hindsight, they wished they’d structured their estate differently, perhaps using a spousal lifetime access trust, allowing them more flexibility.

The takeaway? Estate planning isn’t just about setting things up—it’s about thinking long-term. Working with an advisor to anticipate different scenarios can keep you from encountering this kind of issue.

What Steps Can You Take Before 2026?

Here are three steps to consider before the estate tax exemption changes:

1. Review Your Estate Plan: Ensure it aligns with the new tax laws. This is especially important if it’s been a while since you last updated your plan.

2. Consider Strategic Gifting: Gifting assets now could help you lock in today’s higher exemption, potentially saving your estate from a large tax burden down the line.

3. Collaborate with Your Advisor: An advisor can guide you through different strategies that fit your unique situation. From family trusts to charitable giving, an experienced professional can help you craft a tax-efficient plan.

The IRS has clarified that if you take advantage of today’s higher exemption, you won’t face penalties when the limit decreases in 2026—meaning it’s worth acting sooner rather than later.

Protecting Your Legacy for Future Generations

Estate planning may seem complex, but with the right approach, you can secure your family’s future. If you have questions or would like guidance on how these changes might impact your estate, reach out. I’m here to help you navigate these challenges and find the solutions that best protect your legacy.

Feel free to watch the full video https://youtu.be/J_edWC-eJd8 for a deeper dive into each step and more client success stories.