Welcome to 2026

This year brought a change that some expected, but not in the way they thought. There was talk of the Tax Cuts and Jobs Act expiring and the federal estate and gift tax exemptions being cut in half. That didn’t happen. Instead, Congress raised the exemptions and kept the current framework in place.

The federal estate, gift, and generation-skipping transfer tax exemptions are now $15 million per individual and $30 million for married couples. These amounts will adjust for inflation beginning in 2027.

So the numbers changed. But the work hasn’t.

Start With the Basics

Before thinking about exemptions, make sure the foundation is in place. If you don’t have an estate plan, that’s where to begin. This means a will, a power of attorney, a health care directive, and in many cases, a trust.

Without these, the law decides what happens. No one has clear authority. Decisions take longer, cost more, and create more conflict.

The plan doesn’t need to be complex. It needs to be usable.

What Still Matters, No Matter the Tax

Even with higher exemptions, the common problems haven’t changed.

Plans fail when asset ownership doesn’t match the documents. That includes beneficiary designations that bypass the plan or accounts titled in a way that unintentionally overrides it. For example, a parent might add one child as joint owner on a checking account for convenience. But legally, that account passes to that child alone, even if the will or trust says the assets should be divided equally.

The same applies to retirement accounts, life insurance, and transfer-on-death accounts. The title or beneficiary form controls. The legal documents don’t matter if they aren’t aligned.

These are the details that cause plans to fall apart. Not because the plan was wrong, but because it wasn’t connected to how the assets were held.

For Estates Under $5 Million

Estate tax isn’t an issue at this level. Missouri doesn’t have one, and the federal limit is far above.

But planning still matters. Without clear documents and proper funding, families are left without authority or direction when something happens.

If your plan exists, make sure it still fits. If you don’t have one, that’s the first step.

For Estates Between $5 Million and $10 Million

In this range, complexity increases. You may have business assets, investment property, retirement accounts, or more than one beneficiary.

Even without estate tax exposure, the plan needs to hold up. Documents should be coordinated. Beneficiaries should be clear. Powers should be usable.

Flexibility also matters. Estates in this range often continue to grow. The structure should allow for that without needing constant revisions.

The risk here isn’t tax. It’s unclear or incomplete execution.

For Estates Above $10 Million

Estate tax is back in the picture at this level. But tax isn’t the only issue.

The plan needs to account for liquidity, timing, and long-term control. That includes how gifts are structured, how trusts are used, and who is responsible for carrying out the work.

Good planning here is not about complexity. It is about clarity and alignment.

The Point

The law changed in 2026. The exemptions are higher. That gives you more room, not a reason to delay.

Your life will change. Your family will change. A plan that worked five years ago may not work now.

If you don’t have a plan, make one. If you do, check the documents, the funding, and the people involved.

Make sure it fits. Make sure it works. This is what matters.

If you’re a Missouri resident and want to talk through your estate plan, you can schedule a consultation below.