Estate Tax Planning

Estate tax planning remains essential for securing your family’s financial future. For 2026, the federal estate and gift tax exemption is $15 million per individual, and the One Big Beautiful Bill Act made the higher exemption permanent while indexing it for inflation. By planning thoughtfully, you can minimize tax burdens and coordinate wealth transfers to future generations. Lawvex's California guidance on estate-tax planning is now clear and current.

For 2026, the federal estate and gift tax exemption is $15 million per individual ($30 million for married couples using portability). The Generation-Skipping Transfer (GST) tax exemption is also $15 million per individual, but it is not portable between spouses. The One Big Beautiful Bill Act (OBBBA) made the estate and gift tax exemption permanent and indexed it for inflation, so there is no scheduled sunset or automatic reduction after 2025. Review our 2026 estate tax exemption rules for the latest exemption context.

Additionally, the maximum federal estate tax rate is currently 40% on taxable amounts above the applicable exemption. Historical rates have been as high as 77%. Although OBBBA removed the scheduled sunset, future legislation can still change tax rules, and early planning gives your family time to evaluate appropriate strategies.

1. Dynasty Trusts

• • Permanently shelter assets from gift, estate, and GST taxes.
  • Protect family wealth from creditors and unforeseen events like divorces.
  • Support multiple generations without additional taxes.

2. Charitable Remainder Trusts (CRATs, CRUTs)

• • Receive the joy of giving to your favorite charities during your lifetime
  • Avoid capital gains on donated assets with thoughtful capital gains tax planning
  • Receive a fair market value charitable donation
  • Receive income for your lifetime
  • Others can receive income for a period of time as well

3. Spousal Lifetime Access Trusts (SLATs)

• • Provide financial security for your spouse during their lifetime.
  • Preserve wealth for heirs while reducing taxable estates.

4. Intentionally Defective Grantor Trusts (IDGTs)

• • Transfer substantial wealth through discounted sales of assets.
  • Allow your family to retain significant savings even as assets grow.

Waiting to address your estate plan can lead to higher tax liabilities, avoidable complications, and reduced financial security for your heirs. Planning today gives your family time to preserve assets and avoid unnecessary costs.

At Lawvex, our experienced estate planning attorneys work closely with you to create customized strategies that align with your family’s unique goals. Don’t let this opportunity slip away—schedule your consultation today and secure your legacy for generations to come.