Preparing for 2026 – Four ways to build flexibility into your estate plan

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Abstract: On January 1, 2026, the federal gift and estate tax exemption amount set by the Tax Cuts and Jobs Act will sunset. If an estate exceeds, or is expected to exceed, 2026 exemption levels, one should consider implementing planning techniques today that can help reduce or avoid gift and estate tax down the road. However, what if a person isn’t ready to give significant amounts of wealth to the next generation? Perhaps he or she wants to hold on to assets in case circumstances change. Fortunately, there are strategies available to take advantage of the current exemption amount while retaining some flexibility to access wealth should the need arise. This article details four such strategies. A sidebar explains why a person must be careful of running afoul of the reciprocal trust doctrine.