Table of Contents
- The Plot Twist Nobody Saw Coming
- What the 2026 Sunset Was Supposed to Be
- What Actually Happened: The OBBBA Changes Everything
- Why Martin County Estates Over $7 Million Still Need a Strategy
- Planning Strategies That Still Make Sense
- The Florida Advantage: What It Means for Your Estate
- Your Next Steps: Don't Let Relief Turn Into Complacency
The Plot Twist Nobody Saw Coming
If you've been following estate tax news over the past few years, you probably remember the anxiety. The countdown clocks. The urgent calls from attorneys. The scramble to make large gifts before the December 31, 2025 deadline.
And then? Congress changed the game entirely.
For families in Stuart, Jupiter Island, Palm City, and throughout Martin County with estates valued over $7 million, this shift matters enormously. But here's the thing, just because the immediate crisis has passed doesn't mean you can put your estate plan on autopilot. Let's break down what happened, what it means for you, and why proactive planning remains your best wealth protection strategy.
What the 2026 Sunset Was Supposed to Be
Under the Tax Cuts and Jobs Act of 2017 (TCJA), the federal estate tax exemption was temporarily doubled. For 2025, that exemption sat at approximately $13.99 million per individual, or roughly $28 million for married couples.
The catch? This generous exemption was scheduled to sunset on December 31, 2025.
Without congressional action, the exemption would have dropped to around $7 million per person (adjusted for inflation from the pre-TCJA baseline). For a Martin County family with a $15 million estate, that would have meant suddenly facing potential estate taxes on $8 million, at the federal rate of 40%.
That's a potential tax bill of $3.2 million that didn't exist the day before.
You can imagine why estate planning attorneys and wealth management advisors were working overtime throughout 2024 and early 2025.
What Actually Happened: The OBBBA Changes Everything
Here's where the story takes a turn.
The One Big Beautiful Bill Act (OBBBA), passed before the sunset could take effect, didn't just extend the higher exemption, it permanently increased it and eliminated the sunset entirely.
Effective January 1, 2026, the new numbers look like this:
| Category | New Exemption Amount |
|---|---|
| Individual | $15 million |
| Married Couple | $30 million |
| Annual Inflation Adjustment | Yes, indexed annually |
For context, that's an increase from the 2025 exemption of $13.99 million. And perhaps more importantly, there's no new sunset date looming on the horizon.
The generation-skipping transfer (GST) tax exemption also rose to $15 million, aligning with the estate and gift tax exemption. This simplifies multigenerational wealth transfer planning considerably.
Why Martin County Estates Over $7 Million Still Need a Strategy
If you're breathing a sigh of relief right now, you're not alone. But before you file your estate plan away and forget about it, consider this:
The 40% federal estate tax rate hasn't changed.
For Martin County families with estates significantly exceeding the $15 million threshold, the math still gets uncomfortable quickly. An estate worth $25 million would still face potential federal estate tax on $10 million: a $4 million liability.
And here's what many people forget: your estate value isn't static. That waterfront property in Stuart? It's likely appreciated considerably. Your business interests, retirement accounts, and investment portfolios continue to grow. What's comfortably under the exemption today might not be in ten years.
Additionally, if you created irrevocable trusts or made large gifts specifically to beat the 2025 deadline, those decisions were made under different assumptions. Your estate plan may now be structured around a problem that no longer exists: which could create new complications or missed opportunities.
Planning Strategies That Still Make Sense
Even with the higher exemption, sophisticated estate planning remains valuable for Martin County's high-net-worth families. Here's why these strategies still deserve your attention:
Lifetime Gifting
Removing assets from your taxable estate means removing future appreciation as well. If you gift $1 million in stock today and it grows to $5 million over the next 20 years, that $4 million in growth never enters your estate.
Irrevocable Life Insurance Trusts (ILITs)
Life insurance death benefits can push estates over the exemption threshold. An ILIT keeps that coverage outside your taxable estate while ensuring your family receives the full benefit.
Family Limited Partnerships (FLPs)
For families with significant business interests: common among Martin County entrepreneurs and executives: FLPs allow you to transfer ownership interests at discounted valuations while maintaining operational control.
Spousal Lifetime Access Trusts (SLATs)
These trusts let you gift assets to benefit your spouse while removing them from both spouses' taxable estates. With the higher exemption, SLATs remain particularly attractive for couples looking to maximize their combined $30 million exemption.
Charitable Planning
Charitable remainder trusts, donor-advised funds, and private foundations continue to offer both tax benefits and the opportunity to create meaningful legacy impact in your community.
We discuss many of these strategies in depth on The Closing Few podcast: worth a listen if you want to hear real conversations about how these tools work in practice.
The Florida Advantage: What It Means for Your Estate
Here's some genuinely good news for Martin County residents: Florida has no state estate tax or inheritance tax.
Unlike residents of states like Massachusetts (with a $2 million exemption) or New York (with its notorious "cliff" that can pull your entire estate into taxation), Florida families only need to concern themselves with federal estate tax exposure.
This is one of the many reasons executives and high-net-worth families continue relocating to Florida. If you've recently established Florida domicile or are considering the move, ensuring your residency is properly documented is crucial: a topic we cover in our related post on audit-proofing your Florida domicile status.
However, don't overlook this caveat: if you own property or business interests in states with their own estate taxes, those assets may still be subject to taxation in those jurisdictions.
Your Next Steps: Don't Let Relief Turn Into Complacency
The elimination of the 2026 sunset removed the urgency, but not the importance of thoughtful estate planning. Here's what we recommend for Martin County families with estates over $7 million:
1. Review existing plans created for the sunset
If you made significant gifts or established trusts specifically to beat the December 2025 deadline, schedule a review. Your plan may need adjustments to reflect the new reality.
2. Update your estate inventory
When did you last calculate your total estate value? Include real estate, business interests, retirement accounts, life insurance death benefits, and investment portfolios. You might be closer to (or further from) the exemption than you think.
3. Revisit your beneficiary designations
These documents often get overlooked but can override your will and trust provisions. Make sure they align with your current intentions.
4. Consider your legacy goals
With less pressure around tax minimization, many families are taking a fresh look at what they actually want their wealth to accomplish: for their children, grandchildren, and communities.
5. Work with coordinated professionals
Estate planning touches tax law, investment management, insurance, and family dynamics. At Davies Wealth Management, we coordinate with your estate attorney and CPA to ensure every piece of your plan works together.
Ready to see where you stand? Our estate planning tool can help you get organized and identify potential gaps in your current plan.
The 2026 estate tax sunset may have passed without the feared disruption, but wealth transfer planning remains one of the most impactful decisions you'll make for your family. The rules have changed: now it's time to make sure your strategy has too.
If you're a Martin County family looking for guidance on navigating these changes, reach out to Davies Wealth Management. We're here to help you protect what you've built and ensure it reaches the people and causes you care about most.
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