2026 Federal Gift and Estate Tax Exemptions: What Individuals and Landowners Should Know
This article provides an overview of 2026 federal gift and estate tax updates and annual gifting limits. These updates may affect individuals, families, and landowners who are reviewing their estate plans, tax strategies, and long-term savings goals.
Estate planning doesn’t always change overnight, and for 2026, that’s good news. The federal estate and gift tax exemptions remain largely unchanged, providing welcomed continuity for individuals and families planning ahead.
Lifetime Estate Tax Exemption:
For 2026, the lifetime unified federal estate and gift tax exemption is $15 million per person. For married partners with proper planning, this can mean a combined exemption of $30 million per couple.
This lifetime exemption is the total amount you can gift to another person during your life or leave at your death without your estate being taxed. If the value of your lifetime gifts and estate distributions at your death exceeds the exemption, that amount over the limit is subject to an estate tax, currently at a top rate of 40%.
Landowners often have to pay more attention to these numbers because land values can push an estate over the exemption quickly, potentially forcing heirs to sell property to pay estate taxes instead of keeping the land in their family.
What Happened to the Estate Tax Exemption Sunset We Were Expecting?
For years, we were preparing clients for a scheduled “sunset” of the high lifetime unified estate and gift tax exemption. This sunset was set for the end of 2025 and would have caused the estate tax exemption amount to revert to about $7 million per person. In July 2025, new laws increased the exemption.
The estate and gift tax exemption will be adjusted annually for inflation, and you should continue to monitor changes to these values.
Annual Gift Tax Exclusion:
For 2026, the annual gift tax exclusion is set at $19,000 per recipient. If you are making gifts together as a couple, you can give $38,000 per recipient.
The annual gift tax exclusion is the amount you can give to any one person each year without tapping into your lifetime estate and gift tax exemption. If you give more than the annual exclusion to someone in a single year, the excess must be reported to the IRS and will reduce the remaining portion of your lifetime estate and gift tax exemption (the $15 million discussed above). Note that gifts to spouses who are U.S. Citizens are not subject to any gift and estate tax and do not use up the exemption.
Annual exclusion gifting is commonly used as a long-term wealth transfer strategy. When implemented consistently, these gifts can reduce the size of a taxable estate over time while providing meaningful financial support to children, grandchildren, or other beneficiaries.
With These High Exemptions, Do I Still Need to Do an Estate Plan?
Absolutely. An estate plan allows you to manage exactly how your assets will be distributed at your death. Without a will, default state laws will dictate which family members receive your assets and in what proportions; this is called “intestate succession.”
Secondly, an estate plan is more than just a will or trust, it also includes disability documents like powers of attorney and directions to physicians that are critical to have in case of a serious emergency. These documents allow someone to legally assist you with your affairs and medical decisions if you are incapacitated and unable to do so for yourself.
When Should I Create or Update My Estate Plan?
The rule is simple, every adult, young or old, should have an estate plan. If you have an estate plan already, you should revisit it at least once every 10 years, upon a major life event or death in the family, or if you have just changed your mind about your distributions or the people you have appointed to assist you (like executors and agents).
Estate plans should always be drafted by an experienced attorney to avoid The Unintended Costs of a Do-it-Yourself Will.
At Braun & Gresham, we take the time to understand your unique assets, especially rural land, and tailor an estate plan that ensures your wishes are honored, your legacy is preserved, and your family is protected. Contact us today to schedule a consultation and take the first step toward peace of mind for the future.