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The 2026 estate tax exemption sunset was replaced by a $15 million exclusion. Here's what changed and what to review with your advisor.
If you've been bracing for the estate tax exemption sunset 2026 was supposed to bring, the rules changed. You may still be reading older advice built on a drop that no longer applies. Here's where things stand, what a $15 million exclusion means in practice, and what is still worth planning.
No, a law signed July 4, 2025 raised the basic exclusion amount to $15,000,000 for 2026, up from $13,990,000 in 2025. An older IRS FAQ still says the exclusion was due to revert to about $5 million, as adjusted for inflation, but that language predates the new law.
| Item | 2025 | 2026 |
|---|---|---|
| Basic exclusion amount | $13,990,000 | $15,000,000 |
| Annual gift exclusion | $19,000 | $19,000 |
The annual gift exclusion stays at $19,000 for 2026.
No, the exemption is one piece of an estate plan, and the rest depends on how your assets are titled, what basis your heirs will receive, and how well the plan protects against creditors. A higher exemption can also make old documents out of date, so they deserve a fresh look.
Here is an illustration with made-up numbers, not a client result. Suppose a single person's estate is worth $17,000,000 in 2026. That is $2,000,000 above the $15,000,000 exclusion, so the part above it is the part exposed to federal estate tax. An estate of $9,000,000 is well under the line today, but the same estate with a growing business or real estate could get closer over time, and Congress can change the figure again.
Portability lets a surviving spouse use the deceased spouse's unused exclusion. The IRS says that beginning in 2011, estates of decedents survived by a spouse may elect to pass any of the decedent's unused exclusion to the surviving spouse.
In a made-up example, if the first spouse dies in 2026 and uses $6,000,000 of the exclusion, $9,000,000 is unused and could pass to the survivor if the election is made. The election is a filing decision with its own deadline and rules, so it should not be left to chance.
Review your wills and trusts against the new figures, check how your largest assets are held, and confirm your plan still says what you want.
If your estate is near or above the exclusion, ask how gifting and trust planning would work for your family.
We build plans that work under more than one set of rules. For how a family estate fits together, see advanced tax planning for family estates.
Your heirs' tax basis matters as much as the exemption. See step-up in basis planning for how that works, including the Nevada community property rules.
If you'd like to see how this applies to your situation, book your tax strategy call or call 702-852-2577. For how we approach the bigger picture, see our advanced tax strategies page.
About the author: D. Lenny Whiting, Esq., CPA, MS is the Managing Partner of CPA Attorney, LLC in Las Vegas. He is a licensed attorney in Nevada and Utah and a Nevada CPA. More about Lenny.
This article is general information, not legal or tax advice for your situation. Tax rules change, and results depend on your facts.
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