2026 Estate and Gift Tax Changes You Need to Know

Estate planning laws continue to evolve, and the latest federal updates bring important news for individuals and families planning their financial future. The estate tax changes of 2026 include a major increase in the federal lifetime exemption amount, creating new opportunities for wealth protection and long-term planning.

Recent federal legislative updates, including the proposed One Big Beautiful Bill Act introduced in July 2025, suggest that the federal estate and gift tax exemption may increase to approximately $15 million per person in 2026. If finalized as expected, married couples could potentially protect up to $30 million from federal estate and gift taxes. These proposed changes would replace earlier expectations that the exemption amount could decrease after 2025.

For Florida residents, these changes are especially important because Florida remains one of the most tax-friendly states in the country. The state does not impose a state estate tax, inheritance tax, or gift tax, making it an attractive place for individuals and families focused on preserving wealth across generations.

In this guide, we explain how the new inheritance laws and federal gift tax updates may affect Florida residents and what estate planning strategies may help protect your legacy.

Understanding the 2026 Estate and Gift Tax Changes

The federal estate and gift tax system controls how wealth transfers during life and after death are taxed by the federal government.

If finalized as proposed, the lifetime exemption amount for 2026 could increase to:

• $15 million for individuals
• $30 million for married couples

This exemption applies to:

• Federal estate tax
• Federal gift tax
• Generation-skipping transfer tax

The updated law provides families with greater flexibility when transferring wealth to children, grandchildren, or other beneficiaries.

The maximum federal estate, gift, and generation-skipping transfer tax rate remains 40%.

What Is the Federal Estate Tax?

The federal estate tax applies to certain estates after a person passes away.

An estate may include:

• Homes and real estate
• Investment accounts
• Retirement accounts
• Business ownership interests
• Life insurance proceeds
• Personal property

The federal exemption determines how much value can transfer to heirs before federal estate taxes apply.

For example, if an individual’s estate remains below $15 million in 2026, federal estate taxes generally would not apply.

For married couples, careful estate planning may allow protection of up to $30 million under federal law.

Florida Remains a Tax-Friendly State

Florida continues to offer significant tax advantages for estate planning.

Florida does not impose:

• State estate tax
• State inheritance tax
• State gift tax

This means Florida residents need only consider federal estate and gift tax rules, rather than additional state taxes in some other states.

Florida also offers a homestead exemption of up to $50,000 for a primary residence, which may provide additional property tax benefits for homeowners.

Because of these advantages, Florida remains a popular state for retirees, business owners, and high-net-worth families.

Understanding the Federal Gift Tax

The federal gift tax applies when someone transfers money or property to another person without receiving equal value in return.

Examples may include:

• Cash gifts
• Real estate transfers
• Stock transfers
• Business interest transfers

The gift tax works together with the federal estate tax under one combined lifetime exemption.

This means taxable gifts made during life may reduce the remaining exemption amount for estate tax protection later.

Annual Gift Tax Exclusion for 2026

In addition to the lifetime exemption, federal law allows individuals to make tax-free gifts each year under the annual exclusion.

For 2026:

• Individuals may give up to $19,000 per recipient annually
• Married couples may give up to $38,000 per recipient annually through gift splitting

These gifts generally:

• Do not reduce the lifetime exemption
• Do not trigger the federal gift tax
• May not require federal gift tax reporting in many situations when structured properly

This remains one of the simplest ways to transfer wealth over time while reducing the future size of a taxable estate.

Gift Exclusion for Non-Citizen Spouses

Federal law includes separate rules for gifts to non-citizen spouses.

Federal law also provides a higher annual gift exclusion for non-citizen spouses.

This allows married couples with international family considerations to transfer larger amounts without triggering taxable gift treatment.

What Are Generation-Skipping Transfer Taxes?

The generation-skipping transfer tax, commonly called the GST tax, applies to certain transfers made to beneficiaries who are at least two generations younger than the transferor.

Examples may include:

• Grandchildren
• Great-grandchildren
• Younger family members

The GST tax exists to prevent families from avoiding estate taxes across multiple generations.

The same $15 million exemption generally applies to generation skipping transfers in 2026.

Why These Changes Matter for Florida Families

The increased exemption levels create new planning opportunities for Florida residents with growing estates.

Families may hold substantial wealth through:

• Real estate appreciation
• Retirement savings
• Family businesses
• Investment portfolios
• Vacation homes

Even though the exemption has increased, estate planning still matters because asset values can continue to grow over time.

The new inheritance laws may particularly affect:

• Business owners
• Retirees
• Real estate investors
• Multi-generational families
• High net worth individuals

Advanced planning today may help families preserve more wealth and avoid unnecessary legal complications later.

Estate Planning Strategies to Consider in 2026

The updated exemption levels create several opportunities for strategic estate planning.

Lifetime Gifting Strategies

Many families continue to use gifting strategies to transfer wealth while reducing their future taxable estates.

Examples may include:

• Gifts to children
• Gifts to grandchildren
• Real estate transfers
• Investment transfers
• Trust funding

Because the annual gift tax exclusion remains available each year, families may gradually transfer wealth without reducing their lifetime exemption.

Trust Planning

Trusts remain one of the most effective estate planning tools available.

Depending on family goals, trusts may help:

• Protect assets
• Maintain privacy
• Simplify inheritance transfers
• Reduce probate complications
• Preserve family wealth

Common trust strategies may include:

• Revocable trusts
• Irrevocable trusts
• Dynasty trusts
• Spousal trusts
• Life insurance trusts

An estate planning attorney can help determine which structure best fits a family’s needs.

Business Succession Planning

Business owners should review succession plans regularly.

Without proper planning:

• Ownership transfers may become complicated
• Family disputes may arise
• Tax and operational problems may occur

A strong succession plan can help preserve business continuity while protecting future generations.

Review Beneficiary Designations

Retirement accounts and life insurance policies usually transfer according to beneficiary forms rather than wills.

Regular reviews help ensure:

• Assets transfer correctly
• Estate plans remain coordinated
• Family intentions stay current

Simple updates can prevent major issues in the future.

How an Estate Planning Attorney Can Help

Federal tax laws and estate planning strategies can quickly become complex. An experienced estate planning attorney may help families:

• Review current estate plans
• Create gifting strategies
• Structure trusts properly
• Protect business interests
• Prepare for future tax changes

Every family has unique financial goals and personal circumstances. Personalized legal guidance can help create a plan tailored to your long-term needs.

Conclusion

The estate tax changes of 2026 bring positive news for many Florida families. With the federal estate and gift tax exemption increasing to $15 million per person and $30 million for married couples, individuals now have greater opportunities to preserve and transfer wealth efficiently.

Florida remains one of the most favorable states for estate planning because it does not impose state estate, inheritance, or gift taxes. Even with these advantages, proper planning remains important for protecting assets, supporting future generations, and maintaining long-term financial security.

At Doane & Doane, we help Florida families navigate estate planning, gifting strategies, trust planning, and wealth preservation with personalized legal guidance designed around their goals. Schedule a consultation today to review your estate plan and prepare for the latest federal tax law changes.

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