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Estate Tax Planning Guide (2026) - Federal & State Exemptions

Estate tax planning guide: federal exemption $13.99M, state exemptions, gifting strategies, and wealth transfer optimization.

Summary

Federal estate tax exemption: $13.99M (2026), 40% rate above exemption. State estate tax: 12 states with separate exemptions ($1M-$13.99M). Strategies: annual gift exclusion $18K, lifetime gifting, trusts, charitable giving.

Key Steps

  1. 1Federal exemption: $13.99M per person (2026), doubles for married couples.
  2. 2Tax rate: 40% on estate value above exemption threshold.
  3. 3State estate tax: 12 states have separate exemptions (CT $13.99M, NY $6.94M).
  4. 4Annual gift exclusion: $18K per recipient (2026), reduces estate.
  5. 5Trust strategies: irrevocable trusts remove assets from estate.

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