The federal estate and gift tax exemption changed in 2026. A Florida estate planning attorney can assist families in understanding what the new $15 million amount covers and if their current plans are still sufficient to meet their goals.
The increase provides more flexibility to transfer wealth without federal estate or gift taxes, but income taxes and family needs can influence when and how to pass assets.
What changed for federal estate taxes in 2026?
For people who die in 2026, the federal basic exclusion amount is $15 million. That is an increase from $13.99 million in 2025. In simple terms, federal estate tax generally applies only after a person’s taxable transfers exceed the available exclusion.
The $15 million amount applies to each individual, but prior taxable gifts can reduce what remains available at death. The exclusion isn’t a separate $15 million allowance for lifetime gifts plus another $15 million allowance for the estate.
Can married couples protect $30 million?
Each spouse has an individual $15 million exclusion in 2026. That means a married couple may be able to protect up to $30 million, but the result isn’t automatic.
Federal portability rules may allow a surviving spouse to use the deceased spouse’s unused exclusion. The deceased spouse’s estate generally must make the election on a timely filed federal estate tax return. Filing may be valuable even when no estate tax is due.
How does the annual gift tax exclusion work?
The annual gift tax exclusion remains $19,000 per recipient in 2026. A person can make qualifying gifts up to that amount to any number of recipients without using part of the lifetime exclusion. Two spouses may give a combined $38,000 per recipient if each spouse makes or is treated as making half of the gift.
A gift above $19,000 doesn’t necessarily create an immediate tax bill. The donor may need to file a federal gift tax return. The taxable portion generally reduces the donor’s remaining lifetime exclusion.
Does Florida impose a separate estate tax?
Florida doesn’t currently impose an estate tax on people who died after December 31, 2004. The Florida Department of Revenue also states that personal representatives haven’t had to file the former Florida no-tax affidavits since July 1, 2023.
Florida residents can still owe federal estate tax. They may also own property in another state that has its own estate or inheritance tax. Location and ownership should be reviewed before assuming that no state tax can apply.
Is making large lifetime gifts always the best choice?
The higher exclusion can make large lifetime gifts possible without an immediate federal gift tax. A gift may also remove future growth from the donor’s taxable estate. However, giving property away means giving up control of it.
Income-tax treatment also deserves attention. A recipient generally takes the donor’s tax basis in gifted property, while inherited property often receives a new basis based on its value at death. A Florida estate planning attorney can help compare the possible estate tax savings with the capital gains consequences.
Should trusts still be part of the plan?
A larger exemption doesn’t make trusts unnecessary. A trust may help manage property during incapacity or set rules for how beneficiaries receive an inheritance. It may also protect assets from poor spending decisions or provide long-term management for a loved one.
The right trust depends on the family’s goals. Some transfers to trusts require a gift tax return or an appraisal, so documents and tax reporting should be coordinated before property is moved.
What should Florida families review now?
Families should review existing wills and trusts along with beneficiary designations. They should also confirm how real estate and financial accounts are titled. Documents created under an older exemption may still work, but their tax provisions may no longer produce the intended result.
Tax laws can change again and family circumstances rarely stay the same forever. Regular reviews can help ensure that a plan reflects current assets and wishes.
How can Estate Plan First, PLLC help?
The new exemption offers more flexibility, but it doesn’t make wealth transfers simple. Each gift or inheritance can affect taxes and a family’s control over property differently.
Revisit your plan under the 2026 rules with the help of a Florida estate planning attorney at Estate Plan First, PLLC. Reach out online or call us on (904) 685-9828 to set up a consultation to discuss how the $15 million exemption may impact your family.
