As we head into 2026 (already!), the Holiday Season is officially here. I hope you are able to slow down and enjoy time with family, friends, and the people who matter most.
On the estate planning front, I am pleased to share that 2026 brings very few significant changes to general estate laws. Still, there are important updates to be aware of as you plan for the year ahead.
Updated Estate Tax Thresholds for 2026
For 2026, the federal estate tax exemption is set at:
- $15 million for an individual
- $30 million for a married couple
These limits apply not only to your estate at death but also to reportable lifetime gifts.
The annual gift exclusion remains $19,000 per recipient for 2026. Any gift over this amount must be reported on your taxes. This does not mean you owe gift tax. Instead, the excess amount simply reduces your lifetime estate tax exemption.
Example:
If you give a child $200,000 to help them buy a home, the first $19,000 falls under the annual exclusion. The remaining $181,000 must be reported and reduces your individual exemption from $15 million to $14.819 million. No tax is owed at the time of the gift.
For most Californians, the current exemption levels provide plenty of room to plan without facing federal estate tax. Still, proactive planning remains key.
Probate Threshold Increases in California
California has made one noteworthy change in the probate arena.
Beginning in 2026:
- The small estate limit to avoid Probate is $208,850 for non-real estate assets.
- You can now also avoid Probate if the estate contains real property valued under $750,000 (as of the date of death) and cash accounts under $208,850.
While this may sound like a great shortcut, there are concerns to consider. Title companies have already expressed hesitation with these transfers because the process skips important steps, including:
- Public notice
- The creditor claims period
Skipping these steps raises the risk of fraud or improper transfers, and it may lead to complications when selling or refinancing property.
Because we encourage all clients to have a complete and updated Living Trust, we do not expect to rely heavily on these probate alternatives. Even so, I continue to see new probate cases despite best efforts to help families plan ahead. We opened four new probate matters just last month alone.
Make Estate Planning a Priority in 2026
If you have been putting off updating your trust, creating your estate plan, or reviewing older documents, now is an excellent time to take action. Proper planning helps your family avoid unnecessary court processes, protects your assets, and provides peace of mind for the year ahead.
If you have questions about these updates or would like to schedule an estate planning review, our team at Feldman Law Group in Walnut Creek is here to help.