For the last several years, estate planning conversations in this country have carried a bit of background anxiety: the federal estate and gift tax exemption, raised temporarily under 2017 tax law, was scheduled to roughly cut in half at the end of 2025. Clients asked about it constantly. Advisors built entire strategies around beating the deadline.

That deadline no longer applies the way most people expected.

**What changed.** Federal legislation in 2026 made a higher exemption amount — approximately $15 million per person — permanent, rather than allowing it to sunset back to roughly half that level. For the significant majority of families, this removes federal estate tax from the list of things to actively plan around.

**Why this still matters even if you’re not worried about estate tax.** A few reasons:

*You may still believe the old deadline is coming.* If you built a plan — or delayed one — specifically around the expected 2026 sunset, it’s worth revisiting those assumptions now that the underlying premise has changed.

*State-level rules are separate.* Some states have their own estate or inheritance taxes with much lower thresholds than the federal exemption. Federal law changing doesn’t automatically change what applies at the state level.

*Exemption size was never the only reason to have an estate plan.* Guardianship for minor children, avoiding probate, controlling how and when heirs receive assets, and planning for incapacity all matter regardless of estate size — and none of that changed with this law.

**What to actually do.** If your plan was built years ago around minimizing federal estate tax exposure that’s no longer a concern at your estate’s size, it may be simpler than it needs to be — or built around strategies that no longer serve their original purpose. This is a good moment for a plan review, not because anything is urgent, but because the assumptions behind your plan may be outdated.

A tax law headline is rarely a reason to panic. It’s often, though, a good reason to check in.

—
Attorney Advertising. This post is for general informational purposes only and is not legal advice. No representation is made that the quality of legal services performed is greater than that of other lawyers. Laws vary by state and change over time — consult an attorney about your specific situation before acting on anything here.