As we near the end of 2025 and look toward 2026, it is important to be aware of the increase to both the lifetime estate exemption and generation-skipping exemption as these increases could have a direct impact on your estate planning strategy.
Below, we break down these changes and their implications. Please be aware that this content is purely informational and is not intended to constitute tax or financial advice.
Lifetime Estate Exemption
Prior to the passing of The One Big Beautiful Bill Act, or OBBBA, it was anticipated that the lifetime estate exemption would drop from the current $13,990,000 per person to around $7,000,000 per person. In early 2025, this meant many families were considering making gifts to move assets out of their estates while they still had the higher exemption. However, the OBBBA made a permanent increase to the lifetime estate exemption, while also assuring that it will be continually adjusted for inflation going forward.
That increase, beginning in 2026, now brings the lifetime estate exemption up to $15 million per person.
The lifetime estate exemption is a key aspect of estate planning because it allows people to transfer substantial wealth tax-free, strategically reducing their taxable estate and preserving more assets for future generations.
Generation-Skipping Tax Exemption
Similarly, the generation-skipping tax, or GST, exemption also will increase to the same number — $15 million per person — starting in 2026.
The GST tax exemption is a federal provision that allows an individual to transfer a significant amount of wealth to beneficiaries who are two or more generations younger without incurring an additional tax. Rather than pay tax on the gift from grandparent to parent and again from parent to child, for example, the GST exemption enables individuals to give a certain amount directly to the second-generation tax free.
In addition to avoiding double taxation, this is advantageous for families because it better positions them for long-term, multigenerational wealth transfer.
Strategic Implications
Have questions?
Lastly, we will continue to grow with intention.
In an industry in which the term multi-family office has been diluted, we’re committed to restoring and evolving its promise. We are small enough to know each family well, resourced enough to deliver at the highest level, and experienced enough to anticipate needs before they arise.
Our mission hasn’t changed since the day we began: to help families build, enjoy, and protect a legacy worthy of their names. That’s what “different by design” means to us — and why we believe we’re creating a new generation of multi-family office.
