Estate tax rules can feel like moving targets, and they shape how much of your wealth reaches the people you love. With big changes coming in 2026, the numbers matter more than ever for families with growing assets, businesses, and property in Lee County. Barbara M. Pizzolato, P.A. has served Fort Myers families for over 35 years, so we have seen how planning early can save stress later.
Our goal is simple: to explain the 2026 estate tax sunset, who in Fort Myers may be affected, and what steps may help. This overview is a good place to start.
What Is the 2026 Estate Tax Sunset?
The Tax Cuts and Jobs Act of 2017 originally raised the federal estate and gift tax exemption to record levels but included a “sunset” provision that would have cut the exemption in half by 2026. However, under the One Big Beautiful Bill Act, that sunset was repealed, and the higher exemption amounts have been made permanent and adjusted for inflation.
For 2025, the exemption is $13.99 million per person. Starting January 1, 2026, the IRS has confirmed that the exemption will increase to $15 million per individual, or $30 million for a married couple using portability.
| Period | Individual Exemption | Married Couple | Notes |
| 2024 | $13.61 million | $27.22 million | Previous TCJA-era level |
| 2025 | $13.99 million | $27.98 million | Current inflation-adjusted level |
| Beginning 2026 | $15.00 million | $30.00 million | Permanent level under OBBBA |
The top federal estate tax rate remains at 40 percent for any amounts exceeding these thresholds. While the “cliff” many families feared in 2026 has been removed, proactive estate planning remains essential to manage state-level taxes and protect family assets for the long term.
Who in Fort Myers May Be Affected by Estate Tax Changes?
Florida does not impose a state estate tax or an inheritance tax. Even so, federal rules apply to all of us. With the federal exemption now permanently set at higher levels, climbing to $15 million per person in 2026, fewer households will face federal estate taxes. However, because property values in Southwest Florida continue to rise, more families may eventually find their total estate value approaching these higher thresholds.
These changes primarily affect individuals and married couples with significant assets. It is important to remember that your taxable estate includes far more than just the cash in your bank account.
Items that may be included in your taxable estate:
- Real Estate: Home equity, vacation homes, and rental properties.
- Financial Accounts: Retirement accounts (IRAs, 401(k)s) and brokerage accounts.
- Insurance: Life insurance death benefits, if you own the policy.
- Business Interests: Professional practices and closely-held business interests.
- Personal Property: Valuable items like boats, jewelry, art, or collectibles.
Families with growing businesses or rising property values should consider future growth, not just current values. Over time, the natural increase in Southwest Florida real estate prices can significantly change the size of your estate, making proactive planning essential.
Key Estate Planning Strategies for Fort Myers Families
If your estate could land near or above the $15 million threshold, there are tools that can soften the impact. Some call for action while the higher exemption still stands. Others fit long-term goals like income, control, and family care.
Lifetime Gifting
Giving during life can shrink the size of your taxable estate and, in some cases, move future growth out of that estate as well. Gifts can be made outright or through trusts, depending on control and protection needs.
The annual gift tax exclusion lets you give up to $19,000 per recipient in 2026 without using any of your lifetime exemption. Larger gifts are possible, and anything above the annual exclusion just chips away at your lifetime exemption instead of triggering tax right now.
The IRS has also confirmed an anti-clawback rule. If you make large gifts while the higher exemption is in place, those gifts will not be taxed later regardless of future legislative changes.
This approach pairs well with business interests and assets with strong growth potential, and it can be paced over several years.
Irrevocable Trusts
Placing assets into an irrevocable trust may remove them from your taxable estate. It also allows you to set rules for who receives those assets and when. The design depends on your family, your finances, and your goals.
Spousal Lifetime Access Trusts, or SLATs, allow one spouse to create a trust for the other. These trusts may help move assets outside of the taxable estate while still providing indirect access through the beneficiary spouse.
Grantor Retained Annuity Trusts, or GRATs, may allow future growth on certain assets to pass to the next generation with reduced gift tax impact. If the assets perform above a set IRS rate, some of that growth may transfer to beneficiaries.
Irrevocable Life Insurance Trusts, or ILITs, hold life insurance outside of your taxable estate. The death benefit may be paid without income tax and can provide funds to help cover estate taxes or support beneficiaries.
Dynasty trusts are designed to hold and transfer wealth over multiple generations. They may help reduce estate and generation-skipping taxes over time. Florida law allows long-term trusts, which can support multigenerational planning.
These trusts can be structured in different ways to reflect your family’s needs and goals.
Family Limited Partnerships (FLPs)
Moving assets into an FLP can qualify for valuation discounts for lack of control and lack of marketability. Those discounts reduce the taxable value of gifted or inherited interests, which can stretch exemption dollars.
Parents can keep control through the general partner role, while passing limited partnership interests to children over time. That blend of control and transfer can work well for investment real estate and marketable securities.
FLPs do take careful recordkeeping, yet the long-term benefits often stack up nicely.
Charitable Giving
Gifts to charity can lower both income taxes and estate taxes, while supporting causes you care about in Southwest Florida and beyond. You can give during life or at death.
Donor-advised funds offer an upfront income tax deduction, with grantmaking spread over future years. Charitable remainder trusts can pay you an income stream for life, then pass the remainder to charity with a charitable deduction at setup.
Gifting appreciated securities avoids capital gains tax on the built-in gain, and also trims your taxable estate. The math often looks strong for long-held stock positions.
We often blend philanthropy with family trusts to meet both goals at once.
Business Succession Planning
Business owners can shift larger portions of a company to the next generation while the higher exemption still stands. That move can lock in today’s numbers before the window closes.
Valuation discounts for minority interests and non-voting shares can add flexibility to a step-by-step transfer plan. A written succession map also protects the business if something happens to you suddenly.
The sooner we map roles, voting rights, and buyout terms, the smoother the handoff tends to be.
Reviewing and Updating Existing Estate Plans
Documents written with smaller exemptions in mind might not fit well after 2026. Some plans would benefit from fresh math, updated tax clauses, and better protection for heirs.
Credit shelter trusts can end up overfunded or underfunded if formula language keys off an exemption that later changes. Formula clauses in wills and trusts should be checked to confirm that the right assets land in the right places for both spouses.
Here is a simple review list to get started:
- Will and revocable trust terms, including tax formulas and distribution ages.
- Powers of attorney and healthcare directives for current decision makers.
- Beneficiary designations on IRAs, 401(k)s, and life insurance.
- Trust funding, titles, and deeds for any new real estate.
- Business agreements, buy-sell terms, and valuation methods.
A short checkup now can prevent surprises later, and it keeps your plan aligned with what you want.
Additional Florida Estate Planning Advantages
Florida does not impose a state estate tax or an inheritance tax. This may benefit residents who plan at the federal level.
Florida’s homestead laws may provide strong creditor protection for a primary residence, subject to certain limits. The homestead tax exemption and Save Our Homes cap may also help reduce property taxes over time.
Florida law also supports long-term trust planning and allows extended trust durations, which may be useful for multigenerational planning.
Is Action Needed if Your Estate is Under the Exemption Amount?
Yes, planning still matters for everyone, not just large estates. Taxes are only one piece of the picture.
Here are non-tax reasons families in Fort Myers set up or refresh their plans:
- Asset protection for children, including safeguards for divorce or creditor issues.
- Incapacity planning so someone you trust can step in without court fights.
- Probate avoidance to speed up transfers and keep things private.
- Income tax planning for retirement accounts and capital gains timing.
- Business succession to protect jobs, vendors, and family income.
- Legacy design that reflects values, education goals, and charitable wishes.
A clear plan reduces stress for your loved ones, and it keeps decisions in your hands.
Take the Next Step: Secure Your Family’s Future Today
Discover how you may protect your assets and provide for your loved ones by viewing our educational estate planning webinar. Attorney Barbara M. Pizzolato explains key estate planning topics, including Wills, Living Trusts, Long Term Care planning, Probate, planning for children’s inheritances, special needs planning, and more.
After viewing the webinar, you can schedule a free 2-hour consultation with Ms. Pizzolato through our website to discuss your estate planning options and your next steps to update your current estate plan or put your estate plan in place.
