Estate Taxes in Focus: How to Protect More of Your Wealth Before 2026
If you’ve built meaningful assets—through real estate, a business, or steady investing—your estate could lose up to 40% to federal estate taxes without a plan. At FMD Wealth Advisors, we help high-net-worth families use forward-looking strategies to reduce exposure and preserve more for heirs.
Why planning matters right now
As of 2024, the federal estate tax exemption is $13.61 million per person ($27.22 million for married couples). In 2026, that figure is expected to fall roughly in half—back to about $6–7 million per person—unless Congress acts. That shift could push many previously unaffected estates into taxable territory.
Bottom line: Preparing now can prevent an unexpected, avoidable tax bill for your family.
What “estate tax planning” actually means
Estate tax planning goes beyond having a will or living trust. It focuses on:
Reducing your taxable estate’s size
Moving future appreciation out of your name
Using current exemptions and exclusions wisely
Positioning for potential law changes
Thoughtful planning can save millions for your beneficiaries and simplify the process when assets transfer.
Proven strategies to consider
1) Use lifetime gifts with intent
Leverage the annual gift tax exclusion of $18,000 per person in 2024 to move wealth gradually without touching your lifetime exemption. For larger transfers, consider using a portion of your lifetime exemption now—before the 2026 reduction.
2) Employ irrevocable trusts
Irrevocable structures can remove assets from your taxable estate and define how and when heirs receive them. Common options include:
Spousal Lifetime Access Trusts (SLATs)
Grantor Retained Annuity Trusts (GRATs)
Irrevocable Life Insurance Trusts (ILITs)
Each has distinct tax features and use cases.
3) Plan for business succession—early
If a closely held company is part of your estate, decide how it will be valued, transferred, or sold—and how the tax will be funded. Tools may include:
Valuation discounts via Family Limited Partnerships (FLPs)
Gifting shares or using GRATs
Buy-sell agreements funded with life insurance
Waiting until a transition is imminent is often the costliest mistake.
4) Align giving with tax goals
Charitable vehicles can reduce your estate while supporting causes you care about. Consider Donor-Advised Funds (DAFs) and Charitable Remainder Trusts (CRTs). In many cases, these strategies can also lower current-year income taxes.
Frequently asked questions
What is the current estate tax rate?
The federal rate is up to 40% on the portion of an estate that exceeds the exemption. Some states also have separate estate or inheritance taxes.
What happens if I don’t plan?
Heirs may face a large tax bill, potentially forcing the sale of property, investments, or a business—often at unfavorable times.
Can estate tax be avoided entirely?
With the right approach, exposure can be significantly reduced—or eliminated—especially if you act before exemption levels drop in 2026.
Final thoughts
Estate tax planning isn’t only for the ultra-wealthy. It’s about protecting what you’ve built, honoring your wishes, and preparing your family for the long term. With the exemption poised to fall in 2026, now is an important window to act.
Schedule a Free Assessment
Not sure how the upcoming changes could affect you? Schedule a Free Financial Assessment with FMD Wealth Advisors. We’ll evaluate your exposure and design a plan to minimize taxes and maximize your legacy.
Disclosures: FMD Wealth Advisors LLC (“FMD Wealth Advisors”) is a Registered Investment Adviser.
This material is for general information only and is not individualized legal or tax advice. Consult your attorney and CPA regarding legal and tax matters specific to your circumstances. This content is intended to provide general information about FMD Wealth Advisors. It is not intended to offer or deliver investment advice in any way. Information regarding investment services is provided solely to gain an understanding of our investment philosophy, our strategies and to be able to contact us for further information.
All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such. The views expressed in this commentary are subject to change based on market and other conditions. These documents may contain certain statements that may be deemed forward‐looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur.
Past performance is no guarantee of future returns.
Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy will be profitable. Additional Important Disclosures may be found in the FMD Wealth Advisors Form ADV Part 2A. For a copy, please Click here.