The 2026 Federal Estate Tax Exemption: What Changed for Florida Families
The federal estate tax exemption for 2026 is $15 million per person, which means a married couple can generally shield up to $30 million. That is up from $13.99 million in 2025, and it is no longer scheduled to drop. If you have read older articles about a coming “sunset” or planned around the $13.61 million figure from 2024, those numbers are out of date.
This post explains what changed, why it matters for Florida families, and who should still pay attention even though most estates fall well below the limit.
What Changed in 2026?
For years, the higher exemption set by the 2017 tax law was scheduled to expire at the end of 2025. Without new legislation, the exemption would have been cut roughly in half, to about $7 million per person, starting in 2026. Many families rushed to plan for that deadline.
Congress changed course. The 2025 tax law, signed on July 4, 2025 as Public Law 119-21, raised the basic exclusion amount to $15 million for 2026, according to the IRS. The law has no expiration date, and the amount is adjusted for inflation after 2026. Congress can still change it in the future, but nothing in current law takes it away.
Here is how the numbers compare:
| Item | 2025 | 2026 |
|---|---|---|
| Federal estate tax exemption per person | $13,990,000 | $15,000,000 |
| Married couple, using portability | About $27.98 million | About $30 million |
| Annual gift tax exclusion per recipient | $19,000 | $19,000 |
The estate tax applies only to the portion of an estate above the exemption, at a top rate of 40 percent (26 U.S.C. 2001). The same exemption amount also applies to lifetime taxable gifts and, in general, to the generation-skipping transfer tax.
What Does It Mean for Florida Families?
Florida does not have a state estate tax or inheritance tax, so the federal exemption is the only estate tax threshold that applies to most Florida residents. We cover that in our post on whether Florida has an estate tax. Because the federal threshold is so high, most Florida families will not owe any estate tax.
That does not mean the number is irrelevant. The exemption counts everything you own at death, not just cash: your home, investment and retirement accounts, life insurance you own, and business interests. Florida real estate has risen in value for many families, and families who move here with large accounts or a business can approach the limit sooner than they expect. Estates near or above $15 million per person, or $30 million for a couple, still need an active plan.
Portability for Married Couples
Portability lets a surviving spouse use the unused part of a deceased spouse’s exemption. The election is made on a federal estate tax return, Form 706, which is generally due nine months after the first spouse’s death, even when no tax is owed. Skipping it can waste exemption that could have protected the surviving spouse’s estate later. If the deadline has passed, there may still be time: estates that were not otherwise required to file can generally make a late portability election up to five years after the death. Our post on estate tax exemption portability explains the benefits and the pitfalls.
Couples who moved here from a community property state have one more question to ask about their assets. See Is Florida a community property state? Couples also often ask whether one trust or two works better.
Gifting and the Annual Exclusion
You can give up to $19,000 per recipient in 2026 without using any of your lifetime exemption, and without filing a gift tax return in most cases. Larger gifts reduce your exemption and generally require a return, though they do not create a tax bill until the lifetime amount is used up. For families with large estates, gifting assets that are likely to grow can remove that growth from the taxable estate. See our post on strategic gifting to reduce estate taxes.
How the Generation-Skipping Transfer Tax Fits In
Gifts and inheritances that skip a generation, such as transfers to grandchildren or to trusts for them, can face a separate generation-skipping transfer (GST) tax on top of estate or gift tax. Each person has a GST exemption that generally matches the estate tax exemption, $15 million in 2026. Families who plan to leave significant wealth to grandchildren, or to long-term trusts, should make sure that exemption is allocated where it is needed. Learn more in our post on what the generation-skipping tax is and how to avoid it.
Check Plans Written for the Old Deadline
If you signed documents before 2026 to take advantage of the expected drop in the exemption, it is worth a review. Some estate plans use a formula tied to the exemption amount to split assets between a trust and a surviving spouse. With a higher exemption, that formula can send far more to a trust than you intended. Trusts created to use the higher exemption before it was scheduled to expire, such as spousal lifetime access trusts, may still make sense, but you no longer have to keep gifting to avoid a deadline.
For many families, the bigger tax issue is income tax, not estate tax. When assets are held until death, heirs often receive a new tax basis, which can reduce the capital gains tax they owe when they sell. A plan built only to avoid estate tax can accidentally give that benefit up. The right balance depends on the size of your estate, the type of assets, and your family.
How This Plays Out in Practice
The following is an illustrative example, not a real client.
A Weston couple with about $9 million in assets updated their trust in 2024. Their plan used a common formula: at the first death, the largest amount that could pass free of federal estate tax would go into a family trust for their children, and the rest would go to the surviving spouse.
When the exemption was expected to fall, that formula looked reasonable. With the exemption at $15 million, the formula now sends their entire estate into the family trust at the first death. The surviving spouse would have limited access to the money, and assets in that trust would generally not get a second new tax basis at the survivor’s death.
At their review, their attorney walked them through other options, such as leaving assets to the surviving spouse with the choice to place some in a trust later, and relying on portability to preserve the first spouse’s exemption. The documents were updated to match what they actually wanted.
When to Speak with an Estate Planning Attorney
A review is worth scheduling if any of these apply:
- Your combined assets are approaching $15 million, or $30 million for a married couple.
- You signed a will, trust, or gifting plan in 2024 or 2025 in response to the expected drop in the exemption.
- Your plan uses a formula tied to the estate tax exemption.
- You are married and want to be sure portability is part of your plan.
- You own a business, real estate, or other assets that could grow substantially.
- You have life insurance that could push your estate higher than you expect.
- ou moved to Florida and your old plan was built around a state estate tax. See what to update in your estate plan when you move to Florida.
For families with larger estates, our high net worth estate planning team helps coordinate tax, trust, and business planning. If you are a current client, your complimentary annual plan review is a good time to talk through the 2026 changes. If you are not yet a client, we offer a complimentary consultation to talk through your goals, your situation, and your options. Call (954) 580-3690, email Info@EstateandProbateLawyer.com, or fill out our contact form, and our team will schedule you.
Frequently Asked Questions
What is the federal estate tax exemption in 2026? It is $15 million per person, or about $30 million for a married couple using portability.
Will the exemption drop? Under current law it does not expire, and it is adjusted for inflation after 2026. Congress can change tax law, so periodic reviews are still wise.
Does Florida have its own estate tax? No. Florida has no state estate tax or inheritance tax, so only the federal tax applies, and only above the exemption.
If my estate is under the exemption, do I still need a plan? Yes. An estate plan covers who receives your property, who makes decisions if you cannot, and how to avoid probate. Those needs exist at any estate size.
Do gifts count against my exemption? Gifts above the annual exclusion of $19,000 per recipient reduce your lifetime exemption and generally need a gift tax return. Gifts within the annual exclusion do not.
What if we missed the portability deadline? Estates that were not otherwise required to file a return can generally make a late portability election up to five years after the death. Talk with an attorney soon if this applies to you.
About This Article
Author: Samantha Fitzgerald, Esq., Founder & Managing Attorney, SJF Law Group
Related reading:
- Does Florida have an estate tax?
- Benefits and pitfalls of estate tax exemption portability
- What is the generation-skipping tax and how do I avoid it?
- What is a SLAT and when does it make sense?
Video: Estate Tax Reduction Strategies for the High-Net-Worth (webinar recording)
This post is general information, not legal or tax advice. Tax law changes, and every situation is different. Reading it does not create an attorney-client relationship.
