As 2026 approaches, significant changes are expected in the federal estate tax laws, which could impact many families in Florida. With the scheduled expiration of provisions from the Tax Cuts and Jobs Act (TCJA) of 2017, it’s essential to understand how these changes may affect your estate planning.
What’s Changing?
Under the TCJA, the federal estate tax exemption was raised significantly, allowing individuals to pass up to $12.92 million (in 2023) without triggering federal estate taxes. For married couples, that amount doubles to roughly $25.84 million. This exemption has allowed many families to avoid estate taxes altogether.
However, on January 1, 2026, unless Congress takes action, the estate tax exemption will revert to pre-2018 levels. The exemption is expected to fall to approximately $5.49 million per individual, adjusted for inflation. This reduction means that more estates will be subject to the federal estate tax, which has a top rate of 40%.
Who Will Be Affected?
Many families who previously believed their estates would be exempt from federal estate taxes may now find themselves facing significant tax burdens. If your estate, including real estate, investments, and other assets, exceeds the anticipated exemption, it’s critical to review your estate plan now to avoid unnecessary tax liabilities.
What Should You Do Now?
The good news is that you have time to prepare before these changes take effect. A well-structured estate plan can help minimize estate taxes and preserve your legacy for future generations. Some strategies to consider include:
- Gifting: Take advantage of the current higher exemption by making significant gifts before 2026.
- Trusts: Establish trusts to help reduce the taxable value of your estate.
- Reviewing your current plan: Update your estate plan to reflect potential changes in exemption levels.
Plan for the Future with Richard A. Heller, P.A.
At Richard A. Heller, P.A., we understand that estate planning is a deeply personal and essential part of protecting your family’s future. With the potential reduction in the federal estate tax exemption, it’s crucial to ensure your estate plan is both current and tax-efficient.
We are here to guide you through the complexities of estate tax laws and help you develop a plan tailored to your unique needs. Serving families in Winter Park, Orlando, and the surrounding areas, our experienced attorneys can provide personalized advice on how best to navigate these upcoming changes.
Take Action Today
Don’t wait until 2026 to review your estate plan. Contact Richard A. Heller, P.A. today to schedule a consultation. Our team is here to help you understand how these changes may affect your estate and to ensure that your wealth is preserved for future generations.
Call us at (407) 501-4052 or visit our website to learn more. Protect your legacy now!