If you have been putting off estate planning, here is something that might grab your attention: the current generous estate tax exemption is set to “sunset” on December 31, 2025. With just months remaining, this could impact how much of your hard-earned wealth passes to your loved ones.
Understanding the numbers
Right now, individuals can pass on up to $13.99 million (2025 figure) to their heirs without facing federal estate taxes. Married couples can transfer double that amount – an impressive $27.98 million. This historically high exemption is about to undergo a dramatic change.
What is changing in 2026?
Come January 1, 2026, unless Congress takes action, the exemption will automatically drop by roughly half to approximately $7 million per person (adjusted for inflation). This substantial reduction could leave many Florida families facing unexpected tax implications they had not anticipated.
Think this does not affect you? You might be surprised. When you factor in life insurance policies, retirement accounts, real estate appreciation and other assets, your estate might be worth more than you realize.
Steps to take before year-end
With the deadline approaching, here are critical actions to consider:
- Get an immediate professional assessment of your estate’s value
- Consider making strategic gifts before 2026
- Explore urgent trust options that could help protect your assets
- Review and update your existing estate plan
Estate planning is not just for the wealthy. It is about ensuring your hard-earned assets go to your loved ones. With only months remaining before this big change, waiting could end up costing your family a lot of money. An estate planning attorney can simplify these complex changes and help secure your family’s future.
The window of opportunity is closing rapidly. Taking action in these final months of 2025 could mean the difference between preserving your family’s legacy and facing large tax burdens in 2026 and beyond.