Estate Tax Law Is Changing in 2026: Here’s How to Prepare With Confidence

When the One Big Beautiful Bill Act (OBBBA) became law earlier this month, we broke down what changed and who should be paying attention in the first two posts in this series. If you’ve already read our overview of the new federal exemption and the four types of families most impacted, you may be wondering: what should I be doing right now?

The good news? You don’t need to panic. But you do need a plan now.

At Family Estate Planning Law Group, we’re here to help you take smart steps now to position your family to benefit before these new opportunities shift again—because they often do.

Secure Your Family’s Advantage Before the Rules Change Again

This window of opportunity won’t stay open forever.

While the new law brings clarity today, estate planning legislation can change quickly with shifts in Congress. Families who act now have a chance to take advantage of the expanded federal exemption and favorable planning tools—but only if they move before the end of 2025.

If your estate is even close to the current exemption, or you live in a state like Massachusetts with its own estate tax system, waiting could mean missing out on substantial tax savings.

Here’s why it makes sense to start planning now:

• Your estate is currently near or over the existing federal exemption and you want to lock in use of today’s limits before they change again
• You’ve made gifts or are considering using your lifetime exemption strategically
• You live in Massachusetts and want to take advantage of the federal gift exemption to reduce your state estate tax burden
• You and your spouse have not yet coordinated your plan to fully utilize the $2 million Massachusetts exemption each, allowing $4 million to pass tax-free to your beneficiaries
• You have existing trusts or formulas that may no longer reflect your goals under the new rules

Legislation like this doesn’t come along often—but when it does, it pays to act quickly. With proper planning, you can maximize benefits while they’re available and avoid future uncertainty.

What “Taking Action” Could Look Like

We are not recommending sweeping changes for everyone. Instead, we encourage families to begin reviewing and preparing. Some of the actions that may make sense include:

Review your current estate plan to ensure it still aligns with your long-term goals

• Have there been any major life changes such as marriage, divorce, the birth of a child, or the sale of a business?
• Are the people I’ve named in key roles (like trustee, guardian, or power of attorney) still the right choices?
• Does my plan reflect my current wishes for how I want assets to be distributed?
• Is my estate plan designed to grow with me and adapt over time?

Discuss potential gifting strategies with your advisors

• Should I consider making gifts before the new exemption takes effect in 2026?
• Are there assets I could gift now without losing control or creating tax issues?
• Would gifting to a trust rather than directly to individuals make more sense for my family?
• Have I used any of my lifetime gift tax exemption already?

Explore whether a Massachusetts Standby Gifting Trust could reduce your state estate tax burden

• Is my estate above the $2 million Massachusetts exemption?
• Would a Standby Gifting Trust allow my family to act quickly if I were incapacitated or near the end of life?
• Are there low-basis assets I should avoid gifting due to potential capital gains exposure?
• Would this trust offer added protection for my beneficiaries beyond tax savings?

Confirm that your assets are properly aligned with your estate planning documents

• Are all my accounts, properties, and policies correctly titled to work with my plan?
• Do my beneficiary designations match the intentions in my trust or will?
• Has my financial advisor or institution made changes that might have created conflicts?

Make sure your existing trusts or tax strategies reflect the latest exemption and income tax rules

• Do my existing trusts still take advantage of the most current exemption amounts?
• Should I adjust distribution provisions based on new income tax brackets for trusts?
• Are there old formulas or credit shelter trusts that no longer serve my goals?
• Have I coordinated with my CPA or financial planner to ensure everything is working together?

As always, we recommend coordination with your financial and tax professionals to determine what works best for your specific circumstances.

The Generations Program: Built for Times Like This

Our Generations Program was created to help families navigate change with clarity and confidence. It’s designed for exactly these kinds of moments—when new laws go into effect and thoughtful adjustments can make a lasting impact.

If you’re wondering how the new rules might affect your estate plan, now is the time to reach out. As part of the program, we can help you evaluate your options and make informed decisions that align with your goals, your assets, and your family’s future.

This is the kind of planning moment the Generations Program was built for—and we’re here to guide you through it.

Don’t Wait Until It’s Too Late to Plan

The new estate tax law creates powerful, but temporary, opportunities. If you wait until the end of 2025 to start planning, you may find yourself out of time to make meaningful changes.

Estate tax laws can shift with every new Congress—and when they do, the window to act often closes quickly. If you’re unsure how these changes impact your estate plan, now is the time to find out. The sooner we review your plan, the better positioned you’ll be to take advantage of the current opportunities before they’re gone.

Let’s make sure your plan isn’t just a document—it’s a plan built to keep working as life and the law evolve.