The 2026 Estate Tax
Sunset Calculator

The 2017 Tax Cuts and Jobs Act (TCJA) doubled the federal estate-tax exemption through 2025. On January 1, 2026, the exemption automatically reverts to its pre-TCJA level — projected at approximately $7 million per person ($14 million per married couple), down from $13.99 million per person in 2025. The reversion can be modified by Congress, but families planning today should assume the sunset will occur as scheduled and act before December 31, 2025.

Yes. IRS Treasury Decision 9884 confirms that gifts made during 2018-2025 using the higher TCJA exemption will not be 'clawed back' into the estate at death even if the exemption has reverted. Families who lock in the 2025 exemption through an irrevocable trust (SLAT, dynasty trust, GRAT, IDGT) preserve the higher amount permanently for their heirs. This is the single highest-leverage HNW planning move available before 12/31/2025.

A Spousal Lifetime Access Trust (SLAT) is an irrevocable trust funded by one spouse for the benefit of the other (and descendants). The funding spouse uses their lifetime exemption now, locking it in before the 2026 sunset, while the beneficiary spouse retains indirect access to distributions. Properly drafted SLATs (avoiding reciprocal-trust doctrine when both spouses fund mirroring SLATs) are the most-deployed HNW exemption-capture vehicle in 2025.

Federal estate tax is not your concern below the projected 2026 $7M threshold per person — but state estate tax, asset protection, business succession, dynasty planning, and trust-based probate avoidance still are. Texas has no state estate tax, but families with property in other jurisdictions or with complex business structures still need a comprehensive plan. The calculator focuses on federal exposure; we help you assess the full picture in a confidential strategy session.

This is a directional estimate, not a substitute for tax advice. The 2026 projected exemption ($7M) is based on widely cited Treasury and Joint Committee on Taxation projections; the actual figure will be confirmed by the IRS in late 2025 with inflation adjustments. The 40% top rate is the current statutory maximum. Real-world calculation includes deductions (marital, charitable), state tax, prior taxable gifts, and gift-tax credits. We offer a no-cost confidential review with a Texas Attorney + CPA for any family above $5M projected exposure.

If your net worth is at or above the projected 2026 sunset threshold, three concrete steps: (1) get a professional valuation of business interests, real estate, and concentrated holdings — undervalued assets cost more later; (2) decide whether a SLAT, dynasty trust, GRAT, or IDGT structure fits your family and execute the funding before 12/31/2025; (3) coordinate with your CPA, wealth advisor, and trustee so the funded structure operates correctly post-execution. Engagements typically run 6-12 weeks end-to-end.