Estate planning is not just for the wealthy; it’s a vital process to ensure your loved ones inherit a secure future rather than a tangle of legal and financial challenges. As 2026 brings sweeping federal tax law changes, now is the time to act.

Why Plan for 2026 Now?

The enactment of the OBBBA and related legislation has permanently raised key exemptions and removed prior sunsets on gift and estate thresholds. With a Lifetime Estate/Gift Tax Exemption of $15 million per individual and indexed inflation adjustments beginning in 2027, families have unprecedented opportunities to transfer wealth.

However, the 40% tax rate on amounts exceeding exemptions remains, and state-level inheritance or estate taxes still apply. Without proactive planning, potential liabilities such as probate delays, family disputes, and unexpected tax bills can erode your legacy.

Core Estate Planning Documents

Every adult should have the following foundational tools in place. More than 70% of Americans lack a comprehensive plan, leaving state law to dictate the distribution of assets through intestacy.

• Last Will and Testament: Designates an executor, outlines guardianship for minors, and specifies asset distribution. Review executor willingness, guardian selections, and tax clauses regularly.
• Revocable Living Trust: Enables you to avoid probate costs and public proceedings, maintains privacy, and provides for incapacity. Fund with real estate deeds, investment accounts, and other property.
• Durable Financial Power of Attorney: Authorizes an agent to manage finances if you become incapacitated. Include powers for gifting, trust funding, and beneficiary changes to prevent conservatorship.
• Health Care Directive & Living Will: Names a health care agent, details end-of-life care preferences, and authorizes medical decisions consistent with your values.
• Beneficiary Designations: For IRAs, 401(k)s, life insurance, and payable-on-death accounts. These override wills and trusts, so update after marriage, divorce, births, and deaths.
• HIPAA Authorization: Grants designated individuals access to medical records, crucial for anyone over age 18.

2026 Federal Tax Law Updates

Understanding the new thresholds and rules empowers you to implement aggressive gifting strategies and make informed decisions about irrevocable trusts, which no longer receive a stepped-up basis.

Portability allows a surviving spouse to claim unused exemption from a deceased partner via timely estate tax return filing. State estate or inheritance taxes remain unchanged, so consult local rules in Florida, California, South Carolina, and beyond.

Key Actionable Checklists for 2026 Reviews

Regular reviews—every two to three years or after major life events—ensure your plan remains current and effective.

• Document Review: Update wills, trusts, powers of attorney, and health directives to reflect new tax laws, changed executors, trustees, and guardians.
• Asset Inventory & Funding: Verify your trust is fully funded—real estate deeds, investment accounts, and insurance policies are titled correctly. Maintain a secure inventory of digital assets and account credentials.
• Beneficiary Updates: Confirm primary and contingent beneficiaries on retirement accounts and insurance policies. Address non-spouse IRA beneficiaries under the SECURE Act’s 10-year payout rule.
• Incapacity & Medicaid Planning: Ensure gifting authority exists in your POA. Consider Miller trusts or asset protection structures and caregiver agreements to preserve Medicaid eligibility.
• Digital Asset Planning: Incorporate access authorizations for online accounts, social media, and cryptocurrencies. Document passwords and designate legacy contacts.
• Family & Trustee Preparation: Communicate roles and responsibilities, store documents in an accessible yet secure location, and hold an annual briefing.

Advanced Strategies and Common Pitfalls

Leveraging advanced tools can protect wealth, minimize disputes, and support philanthropic goals. Consider:

• Asset Protection Trusts (like SLATs and Dynasty Trusts) to shield assets from creditors, divorce proceedings, and future tax liabilities.
• Donor-Advised Funds with successor advisors and default charitable distributions for long-term giving flexibility.
• Medicaid-Compliant Trusts and legal spend-down strategies to preserve eligibility without sacrificing assets unnecessarily.

Beware of outdated documents naming ex-spouse beneficiaries or failing to address digital holdings. Probate can be costly and public, causing delays and family friction. Lost digital credentials or unclear instructions often spark disputes and legal battles.

Why 2026 Urgency Matters: With higher exemptions, you can transfer more wealth now. Inflation and post-pandemic asset appreciation make timely reviews critical. SECURE Act changes to IRAs and increased gifting opportunities add complexity, but also open doors to strategic planning.

By combining these essentials—core documents, tax insights, actionable checklists, and advanced strategies—you can transform potential liabilities into a secure, lasting legacy. Proactivity today prevents stress, expense, and conflict tomorrow. Begin your 2026 review now to protect what matters most.