Estate Tax Exemption Doubled—Permanently: What This Means for You and Your Family
Back in 2018, I began telling folks the doubled estate tax exemption under the 2017 Tax Cuts and Jobs Act (TCJA) wasn’t going anywhere. Despite all the hand-wringing over the scheduled 2026 sunset, I remained confident that Congress would find a way to preserve the higher threshold.
Now it’s official.
Starting January 1, 2026, the federal estate, gift, and generation-skipping transfer (GST) tax exemptions will be permanently set at $15 million per individual. That’s double the previous baseline and a complete reversal of the sunset provision that threatened to slash exemptions back to around $6 million. For married couples, that means up to $30 million in wealth can be transferred without triggering federal estate taxes.
Estate Tax: History Backed the Trend
In my original post about this issue, I pointed out a historical truth. The federal estate tax exemption has only gone one direction since 1916; and that’s up. From $50,000 back then (about $1.4 million in today’s dollars), to $600,000 in the 1980s, $1 million in 2001, and onward through the 2010 and 2017 tax reforms. Congress has shown little appetite for shrinking the exemption.
Why? Simple. The people who would vote to reduce it often come from the very demographic that benefits most from keeping it high.
And with fewer than 0.2% of estates currently subject to federal estate tax, this is not a politically risky position. Two out of every thousand estates trigger federal estate tax liability today. That number will drop even further under the new exemption levels.
Estate Tax for Colorado Residents: Even Better News
Colorado doesn’t impose a state estate tax, which puts local families in an even more favorable position. This isn’t just a tax win for billionaires, this is about giving business owners, real estate investors, and families who’ve built wealth over generations more breathing room and greater flexibility.
If You’ve Been Waiting—Don’t
The road ahead is clearer than it’s been in decades. There’s no reason to wait for future legislative clarity; it’s here. Whether your plan calls for a simple will, a revocable living trust, or more advanced strategies for asset protection or legacy planning, this new exemption structure simplifies the path forward.
Even if you’re nowhere near the exemption limits, there’s real value in getting your plan in place. You can now approach estate planning with less emphasis on tax-avoidance gymnastics. And more focus on clarity, efficiency, and your family’s values.
Let’s Get to Work
I’ve been building estate plans under the assumption that the TCJA-era exemptions would hold—and that bet has paid off. This is your opportunity to take advantage of the most favorable estate planning environment in modern history.
Reach out, and let’s put a plan together that meets your needs today and adapts for tomorrow. Peace of mind for your family’s future is just a conversation away.