As wealth grows, financial planning starts to involve more than retirement income and investment returns. The ownership of assets, their future growth, and how they will eventually pass to others can become equally important.
Crossing $15 million does not itself create an immediate federal tax bill. But it is a meaningful point to reassess the plan because the federal estate and gift tax exemption is $15 million per person in 2026.
The implications depend on marital status, previous gifts, asset ownership, and where the family lives.
Understand What the Exemption Actually Means
The federal exemption is shared between taxable lifetime gifts and transfers at death. It is not a separate $15 million allowance for each. Prior taxable gifts can reduce what remains available for the estate.
For married U.S.-citizen couples, using or preserving both spouses’ exemptions can potentially shelter $30 million under 2026 rules. That requires attention to the estate plan and applicable elections; it should not be assumed simply because the couple is married.
Consider a simplified example: An unmarried U.S. citizen dies in 2026 with a $20 million taxable estate, no prior taxable gifts, and no other applicable credits. Federal estate tax could be approximately $2 million—40% of the $5 million above the exemption, rather than 40% of the entire estate.
Current law provides inflation adjustments after 2026. Nevertheless, planning should consider both future exemption amounts and future estate growth—not treat today’s threshold as a permanent answer.
Look Beyond the Investment Account
Estate exposure is not determined solely by the balance in a brokerage account.
The review should encompass real estate, retirement assets, business interests, and other property. Certain life insurance proceeds and trust assets may also be included, depending on ownership and retained rights. Assets that avoid probate are not automatically excluded from estate tax.
Similarly, placing assets in a revocable trust generally does not remove them from the taxable estate. Retaining the ability to revoke or change a transfer can cause the property to remain included.
Start with an updated balance sheet, ownership information, and a record of prior taxable gifts. That gives the attorney and CPA a more useful foundation than a rough net-worth estimate.
Future Growth Becomes Part of the Planning Decision
A family below the federal threshold today may not remain below it.
Rather than ask only whether estate tax would apply now, consider several future scenarios: continued investment growth, a business sale, spending, inheritances, and planned gifts.
Completed lifetime transfers can move assets—and potentially subsequent appreciation—outside the donor’s estate when properly structured. But taxable gifts generally use the same lifetime exemption, and retained rights can change the result.
The decision should begin with how much wealth the family can comfortably transfer without undermining its own spending needs or flexibility.
Do not start with a trust structure and work backward to justify it. Start with the family’s objectives, financial capacity, and likely exposure.
Estate Taxes and Capital Gains Need to Be Evaluated Together
Gifting an appreciated investment is not automatically the best tax decision.
A recipient of appreciated property generally receives the donor’s adjusted cost basis, subject to applicable adjustments. Qualifying inherited property generally receives a basis adjustment to its value at death. That difference can materially affect the capital gains tax paid after a later sale.
Consequently, a strategy that reduces future estate exposure may also give up a potential basis adjustment.
The relevant questions include the asset’s current gain, expected appreciation, likelihood of an eventual sale, the donor’s remaining exemption, and the family’s projected estate-tax exposure.
The best asset to give away is not necessarily the one with the largest embedded gain.
Tax considerations also should not become a reason to retain an investment concentration that no longer fits the family’s risk tolerance.
Married Couples Should Review the First Death, Not Just the Second
An estate plan should explain what happens when either spouse dies—not merely how assets eventually reach the children.
Preserving a deceased spouse’s unused federal exemption through portability generally requires a timely filed federal estate tax return, even when no estate tax is otherwise due.
Ask the estate attorney and CPA whether the existing ownership arrangements, trust provisions, and filing plan appropriately address both spouses’ exemptions.
“No tax is due now” and “nothing needs to be filed or reviewed” are different conclusions.
Liquidity and Location Still Matter
Federal estate tax is generally due within nine months of death, although extensions or installment provisions may apply in qualifying circumstances. An estate concentrated in a business or real estate therefore needs a plan for meeting obligations—not simply enough assets on paper.
State rules also deserve attention. Florida currently has no estate tax, but other states can impose taxes at lower thresholds. Out-of-state property can create exposure even for a Florida resident; New York, for example, has estate-tax filing rules for nonresidents owning certain property there.
Make the Plan About the Family
Beyond the tax calculations, decide what the wealth is intended to accomplish.
How much should remain available for your own life? What support should children receive, and when? Who should make decisions if you cannot? Which assets would be difficult for heirs to manage?
Exceeding $15 million does not automatically require a complicated structure. It does call for closer coordination between investment decisions, tax planning, and the estate plan.
The objective is not complexity. It is making deliberate choices while there is still time to implement them.
Disclosure: This article reflects federal tax provisions for 2026 as reviewed October 4, 2026, and focuses on U.S.-citizen planning. Laws may change; international and noncitizen situations require separate analysis. The example is hypothetical and simplified. This is educational information, not individualized investment, tax, or legal advice. Bishop Capital Advisors LLC does not provide tax or legal advice. Consult your CPA and estate-planning attorney before implementing a strategy.