“In America, there are two tax systems: one for the informed and one for the uninformed. Both are legal.”

How to Avoid Estate Tax Law
The 2026 Changes, Who is Affected, and How to Completely Avoid Them
Ryan Stone, The Prosperity Professor

Buckle up because we're about to navigate the twists and turns of the impending estate tax changes coming our way on 1/1/26.

Congress might seem to be on snooze mode, but your estate plan should be wide awake and ready to dodge those tax bullets.

Let's dive into the world of estate tax laws, find out if you're on the IRS's radar, and unveil strategies to ensure your property smoothly passes into the hands of your heirs with minimal tax scars.

Introduction: The Countdown to Estate Tax Changes:

As the clock ticks towards 2026, it's not just this years resolutions that should be on your mind. Estate tax laws are gearing up for a makeover. If Congress stays mum, your estate could be in the crosshairs. Let's explore whether you're at risk, how to sidestep the tax traps, and ensure your property dances into the hands of heirs with a minimal tax cha-cha.

Here is what YOU NEED TO KNOW to protect your legacy from the greedy paws of the Internal Revenue Service! 👊

1. Understanding the Federal Estate Tax Landscape

The federal estate tax is like the gatekeeper to the afterlife of your assets.

As of now, estates for singles over $11.7 million are subject to a 40% tax rate. Double the number for couples.

However, on 1/1/26, this exemption is slated to drop to $5.9 million, ushering in a potential tax storm. Let's unravel strategies to fortify your estate against this impending change and maintain your assets' tax-free status.

2. Dodging State Estate Tax Bullets

It's not just the feds looking for a slice of your pie.

Some states are known for their hefty estate taxes. If you reside in places like Massachusetts, Oregon, or Washington, or California, the state estate tax could be a substantial addition to the federal hit. We can provide insights into navigating these state-specific tax terrains, ensuring your estate remains resilient against double taxation.

"The use of permanent life insurance after retirement is an instrumental tool..."

The use of permanent life insurance after retirement is an instrumental tool to have to add longevity to investments, and create a windfall of cash to offset estate taxes at a fraction of the true cost.

3. Strategic Gifting: The Tax-Efficient Power Move

One way to lighten the estate tax load is strategic gifting. Specific vehicles like Charitable Remainder Trusts, Charitable Annuity Trusts can be used to gift assets during your lifetime, leveraging the annual gift tax exclusion and lifetime gift tax exemption. This proactive approach not only reduces your taxable estate but also gifts joy to your heirs while you're around to witness it.

4. Trusts: Your Shield Against Estate Tax Onslaught

Trusts aren't just for the wealthy – they're your secret weapon against estate taxes.

Dive into the world of irrevocable trusts, dynasty trusts, and other tax-friendly trust structures. Linked below is an excellent guide that can show you how these legal shields can protect your assets and minimize the tax impact on your estate.

Craft Your Tax-Efficient Legacy

As the estate tax law curtain readies to rise, it's time to step into the limelight with a tax-efficient legacy plan. Whether it's navigating federal changes, dodging state tax bullets, embracing strategic gifting, or utilizing trusts, your estate plan should be a choreographed masterpiece.

Let's face the tax challenges head-on and ensure your legacy dances into the future unburdened by unnecessary tax baggage.

Other resources to help you get started with Estate Planning

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America's #1 Financial Planner for Entrepreneurs, Dreamers, and Do'ers