There are many reasons why someone might want to revise their estate plan. An important reason to review your will and trust periodically is that relevant laws can change, significantly affecting an existing asset distribution strategy. Many individuals and families faced a potential problem at the end of this year had Congress not acted, but approximately six months before it was set to expire, the increased estate and gift exemption was made permanent.
Enacted as part of what was named “One Big Beautiful Bill,” the legislation maintains the higher exemption framework structure originally introduced in 2017. At that time, the exemption was doubled. With annual increases for inflation, the 2025 exemption amounts reached $13.99 million for single filers and $27.98 million for married couples. Had the law been allowed to sunset, these levels would have been roughly cut in half, making some people’s estates subject to taxation when they would not have been during the previous eight years.
Now, exemptions have been boosted. The estates of individuals who die in 2026 will only be subject to federal taxation on the value of assets exceeding $15 million. With careful estate planning, married couples can effectively double this exemption to $30 million. Beginning in 2027, exemption amounts will be annually indexed for inflation so that they can provide the same protection even as overall living costs rise.
The permanence of these new limits introduces a sense of stability that did not exist for people making their estate plans in the previous eight years. Knowing that these thresholds aren’t slated to expire allows Americans to draft wills and implement gifting strategies with greater confidence. Whether you’ve been waiting to see whether the exemption structure would change or not, it is a good time to evaluate your estate plan to ensure that it aligns with your financial goals and personal values.
Discussing your situation with an experienced estate planning attorney can be valuable. You can learn about various strategies that fit your needs, as well as whether New Jersey’s inheritance tax might be imposed against your intended beneficiaries.
Frieri Law Group in Cranford advises residents of Union, Morris and Somerset counties, as well as other New Jersey locations, on a full range of issues relating to wills, trusts and other estate planning instruments. To make an appointment, please call 908-883-3390 or contact us online.