Estate tax isn’t just a concern for billionaires anymore. And by 2026, it may impact far more families than you think.
If you’ve built significant wealth—whether through real estate, a business, or disciplined saving—your estate could be at risk of losing up to 40% to federal estate taxes without proper planning.
At Falcon Wealth Planning, we help high-net-worth families protect their legacy with forward-thinking estate tax strategies. Our approach is comprehensive, tax-smart, and always in your best interest—because as a fee-only fiduciary, your goals are our only incentive.
Why Estate Tax Planning Matters Now More Than Ever
As of 2024, the federal estate tax exemption is $13.61 million per individual ($27.22 million for married couples). But that number is expected to drop in half in 2026, reverting to roughly $6–7 million per person unless Congress acts.
This means more families than ever may find themselves facing a major estate tax bill.
“Without estate tax planning, you’re leaving your family with a tax problem disguised as an inheritance. The IRS shouldn’t be your biggest beneficiary.”
— Gabriel Shahin, CFP®, Falcon Wealth Planning
What Is Estate Tax Planning?
Estate tax planning involves using legal strategies to reduce or eliminate the taxes your estate may owe when transferring wealth to heirs.
It goes beyond having a will or trust. It’s about:
- Minimizing the size of your taxable estate
- Shifting appreciation out of your name
- Taking advantage of exemptions and exclusions
- Preparing for legislative changes
Smart estate planning can preserve millions for your family—and reduce unnecessary stress and cost after you’re gone
Common Estate Tax Planning Strategies
1. Strategic Lifetime Gifting
Use the annual gift tax exclusion ($18,000 per person in 2024) to gradually transfer wealth without tapping into your lifetime exemption. For larger transfers, consider using part of your lifetime exemption now before it’s reduced in 2026.
2. Irrevocable Trusts
Irrevocable trusts move assets out of your taxable estate and can provide structure around how and when your wealth is distributed.
Popular options include:
- Spousal Lifetime Access Trusts (SLATs)
- Grantor Retained Annuity Trusts (GRATs)
- Irrevocable Life Insurance Trusts (ILITs)
Each comes with unique tax benefits and use cases.
3. Business Succession Planning
If your business is part of your estate, you’ll need a strategy for how it will be valued, transferred, or liquidated—and how taxes will be paid. Options include:
- Pre-transfer discounts through Family Limited Partnerships (FLPs)
- Transferring shares using gifting or GRATs
- Creating buy-sell agreements tied to life insurance
Waiting too long to plan for a business transition is one of the most expensive estate mistakes.
4. Charitable Giving
Charitable strategies like Donor-Advised Funds (DAFs) and Charitable Remainder Trusts (CRTs) can reduce the size of your estate while aligning with your values.
Bonus: charitable gifts may also reduce income taxes today while supporting causes you care about long-term.
Frequently Asked Questions
What is the estate tax rate in the U.S.?
Federal estate tax is up to 40% on the portion of your estate that exceeds the exemption limit. Some states also impose their own estate or inheritance taxes.
What happens if I don’t do estate tax planning?
Your estate may owe substantial taxes, forcing heirs to liquidate property, businesses, or investments—often at unfavorable times.
Can I avoid estate tax completely?
With the right planning, it’s possible to dramatically reduce or eliminate estate tax exposure, especially by taking action before exemption levels drop.
Final Thoughts
Estate tax planning isn’t just for the ultra-wealthy—it’s for anyone who wants to pass on more than just a balance sheet. It’s about protecting your life’s work, honoring your intentions, and preparing your heirs for long-term success.
And with the estate tax exemption set to fall in 2026, the time to act is now.
Schedule a Free Assessment
Not sure how upcoming tax changes could impact your estate? Schedule a Free Financial Assessment with Falcon Wealth Planning. We’ll help you understand your exposure and create a tailored plan to minimize taxes and maximize your legacy.
