Your Money In Focus

Why $15M Estate Exemption Changes Everything for You

Written by David DeWitt, CFP® | 1/12/26 3:30 PM

Have you been putting off estate planning because the rules keep changing and you're not sure what actually matters?

Maybe you've told yourself you'll deal with it "when things settle down" or "after the next election," but deep down you know that day never seems to come.

You're not alone. Most successful professionals feel overwhelmed by estate planning, especially when the goalposts keep moving.

💡 Key Takeaway:

The federal estate tax exemption now stands at $15 million per person ($30 million for couples) as of January 1, 2026, under the One Big Beautiful Bill Act.

While this gives high earners more breathing room, it doesn't solve the bigger problem: most successful professionals still haven't done their estate planning.


What This Means for Your Planning

The federal estate tax exemption now stands at $15 million per person ($30 million for married couples) as of January 1st. This represents a significant increase from the previous $13.99 million threshold and removes the previously scheduled reduction that was expected after 2025, though future legislation could still change the rules again.

For context, estates above this threshold face a 40% federal tax rate on the excess amount. The difference between a roughly $6-7 million exemption (what was feared) and $15 million could save families millions in taxes.

But here's what catches many successful professionals off guard: you might be closer to these numbers than you realize.

Your net worth includes more than just your bank account. It's your home equity in today's expensive markets, maxed-out 401(k)s and IRAs, business ownership stakes, investment properties, and life insurance death benefits.

Why the Breathing Room Matters

This exemption increase gives you something valuable: time to plan thoughtfully instead of reactively. Estate planning isn't just about avoiding taxes. It's about protecting your family from unnecessary complications during an already difficult time.

Without proper planning, your loved ones could face lengthy probate processes, asset protection gaps, and decision-making burdens when they're grieving. The higher exemption doesn't eliminate these concerns.

Plus, compound growth means today's $8-10 million estate could easily exceed future thresholds by the time you retire. And estate tax laws? They can change again with future legislation.

Example:

For professionals with ADHD, estate planning hits every executive function challenge: it's not urgent until it is, emotionally heavy, complex, and requires sustained focus.

The shame spiral of "I should have done this already" only makes avoidance worse.


Your Next Steps (Finally Manageable)

Use this reprieve to approach estate planning systematically rather than frantically:

  • Calculate your actual net worth.
    Add up everything: home equity, retirement accounts, business interests, investment accounts, and life insurance death benefits. The total might surprise you.

  • Organize what you have.
    Gather existing wills, trusts, beneficiary designations, and insurance policies. Even outdated documents give your attorney a starting point.

  • Update your beneficiaries.
    Check that retirement accounts, life insurance, and investment accounts have current beneficiary designations. This simple step can save your family months of probate headaches.

  • Think beyond taxes.
    Consider asset protection, privacy, charitable goals, and how you want assets distributed. A good estate plan addresses your whole financial picture.

  • Find the right attorney.
    Look for someone experienced with clients in your situation who understands your state's specific laws. They'll guide you through the process step by step.

The Real Opportunity

The estate tax exemption increase to $15 million provides genuine breathing room for high-earning families. But exemptions can change, and estate planning serves purposes far beyond tax minimization.

If you've been putting this off, use this legislative stability as your motivation to finally get it done.

Start with small steps, focus on progress over perfection, and remember that an imperfect plan beats no plan every time.

For those who struggle with executive function challenges around financial planning, our free ADHD & Money eBook offers practical strategies that work with your brain, not against it. 

 

Estate planning doesn't have to be perfect to be protective. Your future self and your family will thank you for taking that first step.