House Bill Could Lock in $15M Estate Tax Exemption: What It Means for Your Legacy
Estate planning can feel overwhelming even in the best of times. For years, families have been eyeing 2026, when the current generous estate tax exemption was set to drop dramatically, potentially exposing more wealth to taxation. That looming deadline had many rushing to make large gifts or set up trusts before the window closed.
Now, there’s news that could change the landscape: the U.S. House of Representatives has passed a bill to permanently set the estate and gift tax exemption at $15 million per person (or $30 million for couples). If enacted, this change would ease the pressure many families have felt to act quickly. But higher exemptions don’t mean planning is optional—they simply shift the focus from last-minute moves to thoughtful, long-term strategies.
Stable Exemptions Bring Strategy, Not Complacency
The proposed legislation locks in a $15 million per-person exemption (indexed for inflation starting in 2026), averting a return to roughly $7 million after 2025. That stability helps families move from panic gifting ahead of sunset deadlines to thoughtful wealth transfer tools. But it doesn’t eliminate planning responsibilities: estate plans still need to address family dynamics, business succession, and multi-state tax risks.
A bipartisan Congressional move reflects growing acceptance — nearly 0.08% of estates were taxed in 2019, compared to 0.9% in the mid-20th century. That means while the exemption protects more families, planning still matters for the affluent, especially as IRA, trust, and business values appreciate over time.
From Hasty Gifts to Value-Based Structures
In recent years, many families have felt pressured to make large gifts quickly, rushing to transfer wealth before the higher estate tax exemption expired in 2026. The idea was simple: use the exemption while it lasted to avoid future taxes. But with the House moving to make the $15 million exemption permanent, that sense of urgency is shifting.
Now, instead of feeling forced into fast decisions, families have the opportunity to focus on thoughtful, long-term strategies that align with their values and goals. Here’s what that can look like:
- GRATs (Grantor Retained Annuity Trusts): These trusts let you transfer appreciating assets, like stocks or business interests, to heirs with minimal tax impact. You keep an income stream for a set period, and any growth beyond what the IRS assumes gets passed on tax-efficiently. They work especially well when interest rates are low, as they are today.
- SLATs and dynasty trusts: These are longer-term tools that help protect wealth across generations. SLATs (Spousal Lifetime Access Trusts) let you gift assets to a trust that benefits your spouse (and often your children), helping secure family wealth while keeping some indirect access. Dynasty trusts extend that protection across multiple generations, shielding assets from things like divorce settlements or creditor claims.
- State considerations: While a permanent federal exemption is good news, it doesn’t erase state-level estate taxes. States like Washington and Oregon still have their own estate tax systems, and those taxes can kick in at much lower thresholds. That’s why it’s important to work with an advisor who understands how to navigate both federal and state rules.
- Coordinate tax, trust, and investment strategies: The Wall Street Journal and Forbes both highlight the value of integrated planning, where tax professionals, estate attorneys, and financial advisors work together to design structures that balance tax efficiency, control, and family priorities. This coordination is especially important in complex cases, such as those involving business assets or multi-state properties.
- Build or update succession plans: For business owners, aligning estate plans with succession strategies ensures continuity and protects company value. The Journal of Financial Planning emphasizes that succession plans should work hand-in-hand with estate and trust structures to minimize disruption and tax exposure in transitions (Journal of Financial Planning).
The bottom line? With more time and flexibility, you can build a plan that’s not just about avoiding taxes, but about supporting your family, protecting your assets, and honoring your legacy.
Conclusion
The House bill’s move to lock in a $15 million estate tax exemption offers a welcome reprieve from rushed gifting, but it’s no substitute for proactive planning. This moment provides a valuable opportunity to create a plan that not only minimizes tax exposure but also supports your family’s future, protects your business, and reflects the legacy you want to leave behind.
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