For decades, one of the threshold questions in estate planning was: “Will my estate be taxable?” Today, that answer is “no” for many more of us. With the currently high federal estate tax exemption set to remain permanent, an increased number of U.S. households will avoid federal estate taxes entirely. As of 2026, the federal gift, estate and generation-skipping transfer tax exemption is $15 million. Married couples may also benefit from “portability,” which allows a surviving spouse to use any unused exemption of the deceased spouse.
While the shrinking of estate tax liability is good news for executors and beneficiaries, for many families capital gains will replace the estate tax as the primary concern.
The step-up in cost basis at death, always an important consideration, becomes a critical element when non-taxable estates are involved. U.S. tax law provides for an increase in the cost basis of most assets included in a person’s estate to the date of d
