This article originally considered estate planning before the 2020 presidential election. It is preserved as a historical discussion, with corrected figures and a current perspective. The central lesson remains useful: major financial decisions deserve careful planning, whether or not an election is approaching.
The historical tax context
For deaths in 2020, the federal basic estate-and-gift-tax exclusion was $11.58 million per individual. Two spouses could potentially make use of a combined $23.16 million, depending on ownership, prior taxable gifts and appropriate planning or a portability election. The combined figure was not an automatic exemption for every married couple.
Campaign proposals at the time prompted discussion about possible changes to transfer taxes and the treatment of inherited property. A proposal, however, is not enacted law. Predicting an election result or a future Congress is not a dependable substitute for understanding a family’s actual circumstances.
For 2026, the federal basic exclusion is $15 million per individual. The amount available in a particular estate depends on prior taxable gifts and other applicable rules. Planning should use the law in effect when the decision is made, with attention to possible future changes.
Begin with the family and the assets
Before considering a large gift, review what you own, how it is titled, what you may need for your own support and whom you wish to benefit. Business interests, real estate and other assets that cannot readily be sold may require additional valuation and liquidity planning.
Tax savings are only one consideration. Income-tax basis, the beneficiary’s circumstances, family relationships and the practical management of the property also matter. A transfer that reduces one potential tax cost may create another cost or restrict flexibility.
Understand the tradeoffs of irrevocable planning
An irrevocable trust may support a transfer-tax or family-management goal, but it is not a universal way to give property away while retaining unrestricted ownership. The trust terms, retained powers and actual administration affect the result.
For example, a trust that permits distributions to a spouse may provide that spouse with access under the trust’s terms. The donor should not assume that access will continue after a divorce or the spouse’s death, or that the donor can demand distributions personally. Similarly, retained borrowing or other powers require careful legal and tax analysis.
Creditor protection is also limited by applicable law. Under Florida law, a settlor’s creditors generally can reach revocable trust property and, for an irrevocable trust, the maximum amount that can be distributed to or for that settlor’s benefit. Other exceptions and rules may apply.
Review thoughtfully rather than react hurriedly
A useful review can identify decisions worth making now, decisions that need more information and provisions that should remain flexible. We can coordinate your estate plan with your tax and financial advisers so that any proposed transfer fits your family’s needs as well as the law.
Sources: IRS historical 2020 inflation adjustments; Current federal estate-tax guidance; Florida creditor claims against a settlor.
Updated October 26, 2026.