We know—2026 sounds like it’s forever away. But when it comes to your estate plan, the calendar is not your friend. Right now, the federal estate and gift tax exemptions are sky-high. But unless Congress steps in (and when was the last time they did anything quickly?), those exemptions are set to drop like a rock on January 1, 2026.
Translation? More of your estate could go to the IRS instead of your family.
At Voorhees Law Group, we believe that estate planning isn’t just about reacting to change—it’s about getting ahead of it, with clarity, confidence, and yes, a little sass when needed.
Big Changes Ahead—But You Still Have Time (For Now)
Here’s the deal:
- Current lifetime gift and estate tax exemption: $13.99 million per person
- For married couples: nearly $28 million
- Starting in 2026? That drops to roughly $7 million per person
If your estate is hovering anywhere near those new limits (or will be soon), it’s time to plan. Your nest egg could be growing faster than you think—and so could your tax bill.
Credit Shelter Trusts: Still Worth It?
Remember these? Credit Shelter Trusts (a.k.a. bypass trusts or family trusts) used to be the power tool in every estate planner’s toolbox. Then the 2017 tax law made them less necessary… temporarily.
If exemptions drop, these strategies might be back on the menu. But like all things estate-planning, there’s nuance. Credit Shelter Trusts don’t get a second step-up in basis—so while they help with estate taxes, they may mean higher capital gains for your heirs.
Enter: Disclaimer Trusts. These let a surviving spouse decide whether to fund the trust after a death—offering flexibility. But there’s a deadline and a tradeoff: the spouse has to give up control of those assets. Spoiler alert: not everyone’s into that.
Plan for Growth, Not Just Today
Think your estate won’t grow much? Let’s math that out.
A couple with $12 million today, growing at just 6% annually, could cross $14.5 million by 2026. That’s bumping right up against the new exemption threshold.
Here’s how to plan smart:
- Annual gift exclusions: $19,000 per recipient in 2025
- Lifetime gifts: Use your exemption now—before it shrinks
- Irrevocable trusts: Move appreciating assets out of your estate
- Charitable gifts: Do good and lower your taxable estate
The sooner you act, the more flexibility and options you’ll have. And the less your family will have to deal with IRS drama later.
Even If You Think You’re Safe—Check Again
Maybe you’re thinking, “This doesn’t apply to us—we’re not in that tax bracket.” Maybe not. But planning isn’t just about the numbers—it’s about your goals.
- Has your family changed?
- Did you buy or sell a business?
- Has your old executor moved away, or aged out of the role?
- Do your kids need more—or less—structure in their inheritance?
Your plan should reflect where you are now, not where you were five years ago.
Talk Now—Relax Later
Waiting until 2026 to update your plan is like waiting until the rain starts to fix the roof. You can do it, but it’s a lot messier.
At Voorhees Law Group, we help you plan with purpose, keep up with the tax code chaos, and make decisions that protect your legacy—not just your assets.
Request a free consultation and let’s get ahead of the changes together—so your family stays in control, not the IRS.