A new federal proposal was recently passed by the House and is under consideration by the Senate Finance Committee. It may significantly reshape the estate planning landscape for high-net-worth families. If enacted, this legislation would permanently raise the federal estate tax exemption to $15 million per individual or $30 million per married couple starting in 2026.
This proposed increase would not be a temporary measure. Unlike past tax laws with sunset provisions (the Tax Cuts and Jobs Act of 2017, which is set to expire in 2026) this exemption would be permanent and adjusted annually for inflation. That means families could count on increasing exemption thresholds over time, providing ongoing protection from federal estate taxes.
For individuals and families with significant wealth, this development represents a major planning opportunity. It removes the uncertainty around the estate tax threshold that has made long-term planning more complex in recent years. Now, lifetime gifting strategies, trust structures, and multigenerational planning can be approached with greater clarity and confidence.
Estate attorneys and wealth advisors agree that the permanence and predictability of this exemption would be a “game changer.” For families focused on legacy, philanthropy, and business succession, knowing that larger transfers can occur without triggering estate taxes enables more thoughtful and intentional planning.
At Gryphon Financial Partners, we are closely monitoring this legislation and its potential implications. If passed, it could create a unique opportunity to review and enhance your estate plan especially if your current plan was built around a lower exemption threshold. Now may be the right time to engage in a deeper conversation about how these changes could benefit your family, protect your legacy, and support your long-term goals.
Disclosure
This material is provided by Gryphon Financial Partners, LLC (“Gryphon”) for informational purposes only. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Facts presented have been obtained from sources believed to be reliable. Gryphon, however, cannot guarantee the accuracy or completeness of such information. Gryphon does not provide tax, accounting or legal advice, and nothing contained in these materials should be taken as tax, accounting or legal advice. Individuals should seek such advice based on their own particular circumstances from a qualified tax, accounting or legal advisor.