The IRS recently announced some important updates that will affect estate planning going into 2026. On October 9, 2025, the IRS released Revenue Procedure 2025-32, which outlines new inflation-adjusted tax numbers for the coming year. While these tax announcements don’t usually make headlines, they matter when it comes to protecting what you’ve worked so hard to build.

Starting January 1, 2026, the estate, gift, and generation-skipping transfer tax exemption will increase to $15 million per person. That’s up from $13,990,000 for 2025, meaning each individual can transfer an additional $1,010,000 tax-free. For married couples, that could mean sheltering up to $30 million from federal estate and gift tax. These high thresholds won't change how most estates are structured but still good information to know!

The annual exclusion amount for gifts - the amount you can give to as many people as you’d like each year without using any of your lifetime exemption - will stay at $19,000 per recipient for 2026. While this exclusion has steadily increased over the last few years, this is the first time since 2021 that it’s holding steady. Even so, it remains a useful and simple way to gradually transfer assets to loved ones.

There’s also a small change for couples where one spouse is not a U.S. citizen. In 2026, gifts to a non-citizen spouse of up to $194,000 will not count toward the taxable gift total for the year. This modest increase adds a little more flexibility for families in that situation.

So what does all of this mean in plain English? In short: 2026 provides a great window to act. You have the ability to move more of your assets to the next generation without triggering federal gift or estate taxes. And because tax laws can change (and often do), many people are choosing to take advantage of the current higher exemptions now rather than waiting and hoping Congress keeps them in place for the long run.

If it’s been a while since your estate plan was reviewed, or if your financial situation has grown or changed significantly, this may be the perfect time to take another look. Estate planning isn’t just about taxes, it’s about peace of mind, family communication, and making sure your wishes are clearly carried out.

If you’d like to talk through how these updated exemption amounts might apply to you, I’d be happy to help. Just reach out anytime or book directly online and we’ll make sure your plan continues to reflect your goals and protects the people who matter most to you.

Call today to get started! (714) 619-4145