There are several important federal tax law changes effective in 2026 that may impact your current estate plan. The “One Big Beautiful Bill Act” has significantly altered the landscape, and we recommend reviewing your estate plan to ensure it continues to meet your goals.
Key 2026 Tax Law Changes
• Federal Estate & Gift Tax Exemption: The lifetime federal estate and gift tax exclusion amount has been increased to $15 million per individual or a combined $30 million for a married couple in 2026. This increase, indexed for inflation, permanently replaces the scheduled 2025 sunset provision of the Tax Cuts and Jobs Act of 2017.
• Annual Gift Tax Exclusion: The annual gift tax exclusion remains $19,000 per recipient for 2026. For married couples, this means a combined $38,000 per recipient annually.
• Generation-Skipping Transfer (GST) Tax Exemption: The GST tax exemption amount is now aligned with the increased estate and gift tax exemption at $15 million per individual and is also indexed for inflation.
• Portability: The ability for a surviving spouse to use their deceased spouse’s unused federal estate tax exemption remains in effect.
• Income Tax Changes: Starting in 2026: individuals who itemize deductions can only deduct charitable contributions exceeding 0.5% of their Adjusted Gross Income (AGI). Additionally, high-income earners making catch-up contributions to their qualified retirement accounts must now make them as Roth contributions.
• Planning Considerations: The increased exemptions offer new opportunities for wealth transfer planning.
• Lifetime Gifting: The higher exemption allows for larger lifetime gifts.
• Trust Planning: Existing trusts, especially those with retirement asset beneficiaries, should be reviewed for alignment with current laws and your goals.
• State-Level Taxes: Federal changes do not impact state-level estate or inheritance taxes. Ohio has no estate or inheritance tax but clients residing in other states may be impacted.
With these changes in 2026, it is essential that ensure your estate plan continues to reflect your current wishes and provides the protection your family deserves. An outdated plan can lead to unintended tax consequences, legal complications, and assets falling into the wrong hands.
We also recommend reviewing your plan if any of the following apply:
• Family Milestones: Births, deaths, marriages, or divorces within your family often necessitate changes to beneficiaries, fiduciaries, and guardians.
• Asset Changes: Significant increases or decreases in your net worth, or the acquisition of property in another state, should be reflected in your documents.
• Fiduciary Updates: The individuals you named as executors, trustees, or healthcare agents years ago may no longer be the best fit for those roles today.
• Health and Aging: Changes in your health or the health of a spouse may require new long-term care provisions or updated powers of attorney.
Now is the time to review your estate planning documents. To ensure your legacy is protected, we suggest scheduling a brief review. A list of our estate planning attorneys, with their contact information, is listed below. You can also contact Coolidge Wall at 937.223.8177 or at .
Estate Planning Attorneys
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R. Scott Blackburn |
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Michael J. Ruffolo |
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We look forward to talking with you soon.
