Is Your Trust Ready for 2026? Now Is the Time to Review Your Estate

While trusts are designed to be permanent, they should not be set in stone. Regular reviews — bringing together beneficiaries and trustee(s) — help ensure that the trust continues to align with its intended goals, including minimizing taxes and internal friction. But it’s an especially important time to do so right now at the start of 2026.

Major rule changes surrounding estate taxes take effect this year, meaning that your trust may quickly become outdated. What’s more is that you might be missing out on opportunities to leverage these new rules in your legacy planning. 

Big changes to estate tax provisions

When the One Big Beautiful Bill Act (OBBBA) was signed into law last year, it vastly expanded Americans’ ability to pass down wealth and assets tax-free. Most significantly, OBBBA created a new Lifetime Estate Exclusion, which is the total amount of money that an individual can transfer (in lifetime and/or in death) before incurring taxes on the rest of their estate’s transfers and gifts.

Heading into 2025, the historically high cap on the estate exclusion (individuals could give away up to $13,990,000 in pre-tax assets) was supposed to sunset at the end of the year. The OBBBA not only averted that outcome, but it also increased the cap. In 2026, the Lifetime Estate Exclusion will be $15 million per individual under the legislation — a new permanent level that will receive an annual inflation-adjusted increase.

Most trusts and legacy plans were designed to anticipate the now-averted sunset in mind, along with other estate-tax considerations that have since shifted with the OBBBA, requiring a current review. 

What to review with your trust right now

You should always ensure that your trust remains in accordance with your family’s wishes. Importantly, you also want to make sure your trust and legacy plan reflect the latest tax and legal considerations.

Here are a few of the important considerations when reviewing your trust in 2026:

• Are you locking in value? While the $15 million lifetime exemption is now “permanent,” that doesn’t guarantee that future legislation won’t diminish it. Families should consider taking advantage of the high threshold by making large gifts or other asset transfers while it is in effect. Further, if you foresee significant appreciation of assets in the future, you can save money on taxes by transferring them sooner, rather than later.
• Does your trust structure still make sense? Just like a family’s financial needs, lifestyle expectations, and trust beneficiaries often shift over time, so, too, can the design of a trust. It’s worth talking to an advisor or trustee about the benefits of specific kinds of trusts — such as Spousal Lifetime Access Trusts (SLATs), Dynasty Trusts, and Grantor Retained Annuity Trusts (GRATs) — to see if they fit your needs better than your current trust’s structure.
• Is your charitable giving strategy up to date? Your IMA Private Wealth financial advisor can walk you through strategies to maximize your tax savings while retaining assets within your trust. In 2026, it may be time to consider “bunching” charitable gifts or making a qualified charitable distribution (QCD). 
• Does your giving strategy reflect new laws? The OBBBA has meaningfully impacted charitable deductions and giving strategies. Starting this year, individuals who itemize may only deduct charitable contributions that exceed 0.5% of their adjusted gross income (AGI). For example, a taxpayer with $500,000 in AGI would need to give more than $2,500 in 2026 to claim a deduction. With these thresholds in place, techniques like bunching donations will play a larger role in effective tax planning. The law also introduces tighter limits on the tax advantages of certain gifts, particularly those made by high-net-worth individuals.

Don’t wait to review your trust

IMA Private Wealth helps simplify your long-term planning needs by serving as a partner who sees the big picture and provides a suite of comprehensive financial services. Through ongoing reviews and disciplined adjustments, we can help you plan for your future with clarity and confidence.

This is an ideal planning window. With 2026 underway, review your trust to ensure it continues to look after your loved ones. The right structure can retain flexibility, leverage new tax provisions, and align with your current family goals.

Schedule an estate review conversation by reaching out to us today.