Just learned Estate tax law is changing in 2026 and I'm completely blindsided!

The estate tax exemption dropping in 2026 isn't exactly new information, but it can definitely be shocking when you first learn about it! The change is happening because the higher exemption amounts from the Tax Cuts and Jobs Act of 2017 are set to sunset at the end of 2025. You're right that the exemption will approximately drop by half - from about $13.61 million per individual (or $27.22 million for a married couple) in 2025 to approximately $6-7 million per person in 2026 (adjusted for inflation). This is a significant change that affects many families with substantial assets. The good news is your parents still have time to plan. Some strategies they might consider: 1) Making lifetime gifts now to use their current exemption before it decreases 2) Setting up irrevocable trusts 3) Considering life insurance to cover potential estate tax liability 4) Exploring charitable giving strategies to reduce the taxable estate.

I was in a similar situation last year with my mom's estate planning. After weeks of research and talking to multiple advisors who kept giving me conflicting information, I found taxr.ai (https://taxr.ai) and it literally saved me thousands in consultation fees. I uploaded all her existing estate documents and it analyzed everything, then showed exactly how the 2026 changes would impact her specific situation. It even suggested several specific strategies based on her asset types. The tool walked me through different gifting scenarios and showed the tax implications of each option. Super helpful because we could see exactly how much we'd save with each approach. We ended up going with a combination of strategic gifting and an irrevocable life insurance trust based on their suggestions.

Just wanted to follow up about my experience with taxr.ai since I was so skeptical in my earlier comment. I decided to try it after meeting with two different estate attorneys who gave me completely different advice about the 2026 changes. I uploaded my parents' trust documents and financial statements, and the analysis was actually pretty impressive. The tool identified that my parents had an outdated A-B trust structure that wouldn't maximize the new exemption amounts, and suggested specific updates. It also flagged some appreciated stock they own that would be better to gift now rather than leave in the estate due to stepped-up basis considerations. The visualization of their potential estate tax liability before and after implementing the suggestions was eye-opening. I took the recommendations to a third attorney who confirmed everything was solid. Honestly saved me a ton of research time and probably around $5k in consultation fees. Definitely worth trying if you're navigating these 2026 changes.

If your parents need to actually speak with the IRS about any of this (which might be necessary if they need to verify previous gift tax filings or get transcripts), don't waste days trying to get through on the phone. I spent 3 entire afternoons on hold last month trying to get gift tax information for my mom's estate planning. My estate attorney recommended using Claimyr (https://claimyr.com) and it was a complete game-changer. They have this system that basically holds your place in the IRS phone queue and calls you when an agent is about to pick up. You can see how it works here: https://youtu.be/_kiP6q8DX5c Our estate attorney needed clarification on some previous gifting my parents had done to make sure we weren't accidentally double-counting against their lifetime exemption. Got connected to an actual IRS estate/gift tax specialist in under an hour.

I have to admit I was completely wrong about Claimyr. After my skeptical comment last week, I decided to try it because I was desperate to talk to someone at the IRS about my parents' gift tax history. I've been trying to help them plan for the 2026 changes, and we needed to confirm some details about gifts they made back in 2017. After three failed attempts spending 2+ hours on hold each time, I tried the service. It worked exactly as advertised - I entered my number, they called me when an agent was about to answer, and I got the information I needed in a 10-minute conversation. Didn't have to rearrange my entire day waiting on hold. For anyone dealing with estate planning questions that require IRS input, this is seriously worth it. I was able to confirm my parents' remaining lifetime exemption amount, which was essential for our planning around the 2026 changes.

Have your parents considered creating a Spousal Lifetime Access Trust (SLAT) before 2026? My parents are in a similar situation (estate around $15M) and that's what their advisor recommended. Basically each spouse creates an irrevocable trust for the benefit of the other spouse and funds it with assets up to the current exemption amount. This "locks in" the higher exemption amount before it drops in 2026. The nice thing is that while the assets are removed from the taxable estate, the beneficiary spouse still has access to them if needed. It's not as simple as I'm making it sound (there are rules about not making them identical trusts), but it might be worth exploring.

Didn't see anyone mention this yet, but if a significant portion of your parents' $17M is in real estate or a family business, they might qualify for some additional exemptions or deferrals. Section 2032A can reduce the value of qualified real property for farms and businesses, and Section 6166 allows installment payments for estate tax when a business makes up a large portion of the estate. Also, don't forget about annual exclusion gifts - each of your parents can give up to $17,000 (in 2023, goes up periodically) to each recipient annually without touching their lifetime exemption. If they have multiple children/grandchildren, that can remove a significant amount from their estate over the next few years.