The $15 Million Estate Tax Exemption Is Here to Stay: Is Your Dallas Estate Plan Up to Date?

The federal estate tax exemption rose to $15 million per person in 2026. That may make tax planning seem less urgent, but taxes are only one part of a sound plan. A Dallas estate planning lawyer can help check whether your documents still fit your assets and wishes.

The new amount has no scheduled expiration. Still, Congress can change federal tax law in the future. Your family situation can change too, so even a smaller estate may need attention.

What changed for the federal estate tax exemption?

The federal exemption was $13.99 million per person in 2025. A federal law raised it to $15 million for 2026. The amount is scheduled to rise with inflation after 2026 instead of dropping under an automatic sunset.

The exemption generally allows a person to transfer that amount during life or at death without federal gift or estate tax. It is a combined limit, so taxable gifts can reduce what remains at death. A later Congress can still change the law.

Does the higher exemption make an estate plan unnecessary?

No. An estate plan does much more than reduce federal estate tax. It can name the people who receive your property and choose who will handle your affairs if you become unable to act.

A plan can also provide for young children and set rules for an inheritance. It can reduce confusion during probate. Texas doesn’t currently impose its own estate or inheritance tax, but federal tax is only one concern.

How does the exemption work for married couples?

A married couple may be able to protect up to $30 million from federal estate tax in 2026. That result isn’t always automatic. Each spouse has a separate exemption, and the surviving spouse may need to preserve the unused portion of the first spouse’s exemption.

This process is called portability. The representative usually must file a timely federal estate tax return after the first spouse dies to elect it, even when no tax is due. The usual deadline is nine months after death, though an extension may be available.

Could an older trust produce an unexpected result?

Yes. Some older plans use formulas tied to the federal exemption. As the exemption rises, a formula may place a larger share of the estate into a trust than the person expected.

That result may limit what a surviving spouse receives directly or may not match the family’s goals. A Dallas estate planning lawyer can review the formula and explain how it would operate under the new exemption. Family changes may also support an update.

Should lifetime gifts still be considered?

Lifetime gifts can still serve useful goals, but they need careful review. In 2026, a person may generally give up to $19,000 to each recipient without using part of the lifetime exemption. Gifts above that annual amount don’t always produce an immediate tax bill, though a gift tax return may be required.

Income tax should also be considered. Property received as a gift generally keeps the donor’s tax basis. Property inherited at death generally receives a basis based on its fair market value at that time, which may reduce later capital gains tax.

What should Dallas families review now?

Start with the people named in your will or trust and those chosen to serve in trusted roles. Review beneficiary forms because they can control who receives certain funds. Asset titles should also match the plan.

Business owners should review succession plans and ownership agreements. Families should consider how much property values have grown. Life insurance may also make an estate larger than expected.

How can Coleman Jackson, P.C. help?

Coleman Jackson, P.C. can review your existing documents and explain how the $15 million exemption may affect your plan. The firm can also help update wills or trusts so they reflect your current wishes and financial picture.

A Dallas estate planning lawyer at Coleman Jackson, P.C. can help you decide whether changes are appropriate for your family. Call (214) 599-0431 or reach out online to schedule a consultation and discuss your estate plan.

This law blog is written by attorneys at Coleman Jackson, P.C., which is located at 6060 North Central Expressway, Suite 620, Dallas, Texas 75206 for educational purposes; it does not create an attorney-client relationship between this law firm and its reader. You should consult with legal counsel in your geographical area with respect to any legal issues impacting you, your family or business.

Coleman Jackson, P.C. | Tax Law, Business Law, Estate Law | English (214) 599-0431 | Spanish (214) 599-0432 |