With the new year comes new rules. Here are some numbers to remember in 2026 courtesy of Family Security Law.
The estate tax exemption has increased some and the gift tax exemption remains the same, which allows you to transfer substantial assets by gift during your lifetime or at death through inheritance.
Federal Estate Tax Exemption – $15 million (electing portability at the passing of the first spouse could double this amount).
This means that most people do not have a federal estate tax problem because their gross estate value does not exceed $15 million. Years ago, when the exemption was much less, special trust provisions were placed into the trust language to create two sub-trusts at the death of the first spouse (called an A-B Trust). They were generally prepared to try to eliminate or reduce an estate tax. If you look at your trust and find that you have such an arrangement (or are not sure how to interpret your trust language), call your estate planning attorney to analyze whether such an arrangement is still appropriate.
Annual Gift Tax Exemption – $19,000 per person
If you want to gift more than this amount, you can do so. A federal gift tax return will need to be filed, but there likely will be no gift tax to pay due to the $15 million lifetime and death exemption. Before making gifts in excess of the annual $19,000 exemption, we suggest you call an estate planning attorney to discuss the details so you are fully informed before making the gift.
Probate Threshold – $208,850
The threshold for requiring a probate proceeding is at $208,850 of gross value. This means that if a decedent owned assets in individual name (not in a trust, not in an account with a beneficiary designated, and not in joint tenancy) with a gross value of more than $208,850, then those assets would be subject to a court probate proceeding. If the value is less, no probate is necessary and the assets can be transferred via a Small Estate Affidavit.
Changes to a Trust
Keep in mind that any amendment to a trust must conform to the method of amendment described in the trust document. If it fails to comply, the amendment will not be honored. If you want to make a change to any estate planning document, please contact our office so it can be drafted properly to ensure your intentions and directions will be followed and enforced.
Article shared by Robert Triplett, an attorney with Family Security Law and a member of Moving Seniors Forward. The firm provides legal family security resulting in peace of mind through trusts, wills, durable powers of attorney, deeds and other essential documents. It also handle probates, trust administration, conservatorships, Medi-Cal planning, IRA Trusts and real estate transactions. Call 805-496-4681.