2026 Estate Planning Updates: What Families Should Review Now

Estate-planning headlines often focus on tax thresholds. In 2026, the federal estate and gift-tax basic exclusion amount increased to $15 million per individual. For married couples, careful planning may allow two exclusions to be used, although the result depends on how the plan is structured and the required elections are handled.

Federal estate tax is unlikely to be the central concern for most families. Their plans still need to establish who can make decisions during incapacity, how assets will transfer, when beneficiaries receive control and how dependants or other family members will be supported.

Those instructions also need to agree with retirement-account beneficiaries, insurance policies, property ownership, business interests and the financial plan followed during the owner's lifetime.

1. The federal estate and gift-tax exclusion is $15 million in 2026

The increased exclusion provides greater certainty for high-net-worth families that had been preparing for a possible reduction. Existing trusts, gifting programmes, insurance arrangements or other strategies designed around a lower threshold may now warrant review.

The lifetime exclusion and the annual gift-tax exclusion serve different purposes. In 2026, an individual may generally give up to $19,000 to each recipient under the annual exclusion. A gift above that amount may require a gift-tax return and use part of the donor's lifetime exclusion, even when no immediate gift tax is due.

State estate or inheritance taxes may apply at lower levels, and residency, property location and family circumstances can materially change the outcome. Families with substantial assets, complex ownership or an existing tax-driven strategy should review the position with an estate-planning attorney and tax professional.

2. Inherited IRA rules require early planning

The SECURE Act changed how many non-spouse beneficiaries must withdraw inherited retirement assets. A designated beneficiary who is outside the eligible designated beneficiary categories will generally need to empty the inherited account by the end of the tenth year following the owner's death.

The annual requirements during that period depend partly on whether the original owner died before or after the required beginning date for distributions. When the owner had already been required to take distributions, many beneficiaries must take annual required minimum distributions during years one through nine and fully distribute the account by the end of year ten.

Surviving spouses, minor children of the account owner, people who are disabled or chronically ill, and certain beneficiaries close in age to the owner may have different options under the rules.

Beneficiary designations belong in the estate-planning review because the form on an IRA or employer plan generally controls who receives the account. The terms of a will will not usually override that designation.

• Confirm the primary and contingent beneficiaries on every retirement account.
• Check whether a trust named as beneficiary still works as intended under the current distribution rules.
• Model the income-tax effect of withdrawals across the ten-year window instead of defaulting to equal annual distributions or waiting until year ten.
• Coordinate inherited-account withdrawals with the beneficiary's earnings, retirement timing, charitable plans and expected tax brackets.
• Keep records of the original owner's date of death and required-distribution status.

Early review gives the beneficiary more opportunity to plan withdrawals across the ten-year period and manage their interaction with other taxable income.

3. Beneficial ownership reporting changed for US companies

FinCEN's final rule issued in August 2026 exempts entities created in the United States, and US persons, from federal beneficial ownership information reporting under the Corporate Transparency Act regime. Certain foreign entities registered to do business in the United States may still have reporting obligations.

Business succession planning continues to require separate attention. Ownership documents, buy-sell agreements, insurance, key-person responsibilities and the intended transfer or sale of the company need to operate together.

For many entrepreneurs, the business provides both family wealth and current income. A will that leaves the owner's assets to a spouse or children may still fail to address who can run the company immediately, how business partners will be treated or where the estate will obtain liquidity.

4. Electronic wills and simplified probate remain state-specific

More states are permitting electronic wills, while some have increased thresholds or introduced simplified procedures for smaller estates. The availability and effect of these options depend on the law of the relevant state.

Execution, witnessing, notarisation and probate requirements vary by jurisdiction. An online document may be ineffective if the required formalities were not followed, and ownership of property in more than one state can add further complexity.

An attorney licensed in the relevant jurisdiction should prepare or review the legal documents and confirm that the method of execution is enforceable.

5. Coordination remains important below the federal threshold

An estate can fall well below the federal estate-tax threshold and still be difficult to administer. Delays or family conflict often arise when documents, account designations and ownership arrangements provide inconsistent instructions.

Examples include a former spouse who remains named on a retirement account, a life-insurance policy with no living contingent beneficiary, a revocable trust that was never funded, property titled inconsistently with the plan, or adult children who do not know where the documents are stored.

Planning for incapacity requires separate attention because a will takes effect at death. Durable financial powers of attorney, healthcare directives and appropriate access arrangements allow trusted people to manage financial or healthcare decisions during the owner's lifetime.

This material is provided for educational purposes only and should not be considered individualized investment, tax or legal advice. Estate-planning laws and tax rules vary by jurisdiction and may change. Consult qualified legal and tax professionals regarding your circumstances.