Planning Priorities: Wealth transfers, beneficiary distributions, estate tax exposure, and fiduciary income tax planning.
2026 Legislative Emphasis: The increased federal estate, gift, and generation-skipping transfer tax exemption beginning in 2026, with subsequent inflation adjustments.
- Review estate values and projected federal and state estate tax exposure.
- Evaluate annual exclusion gifts before December 31.
- Review lifetime gift and estate tax exemption utilization.
- Consider gifts of appreciating assets and interests in closely held businesses.
- Review existing trusts for potential income distributions to beneficiaries.
- Evaluate the 65-day election for qualifying trust and estate distributions.
- Review trust capital gains, investment income, and compressed income tax brackets.
- Evaluate charitable distributions from trusts and estates.
- Review grantor trust arrangements and related income tax considerations.
- Confirm required fiduciary tax filings, estimated tax payments, and beneficiary reporting.
- Review estate planning documents, beneficiary designations, powers of attorney, and succession plans.
- Evaluate state estate and inheritance tax considerations, including domicile and situs issues.