Plan for estate tax before it becomes your family's problem

The federal estate tax can apply when a taxable estate is larger than the federal basic exclusion amount. The IRS guidance for calendar year 2026 explains that recent legislation amends § 2010(c)(3) by increasing the basic exclusion amount to $15,000,000 for calendar year 2026. An estate tax planning attorney reviews what a person owns, how it passes at death, and which documents and transfers can change that result.

This page explains the federal rules, the planning tools, and the mistakes families often make. It also explains how Trust Counsel, PL works with Florida families, business owners and families with U.S. assets. Leslie V. Marenco is the lawyer responsible for this page. The only office is in Coral Gables, Florida.

Does Florida have an estate tax?

This page focuses on the federal estate tax, which is the tax the Internal Revenue Code sets out. Under IRC § 2001, a tax is imposed on the transfer of the taxable estate of every decedent who is a citizen or resident of the United States. Questions about Florida’s own rules are covered on our Florida estate tax page. Read that page alongside this one, because state rules and federal rules can both affect the same family.

When can the federal estate tax apply?

The federal estate tax can apply when the estate is larger than the credit allowed against the tax. The basic exclusion amount is set in IRC § 2010, and the amount is adjusted for inflation for decedents dying in calendar years after 2026. The adjusted amount is rounded to the nearest multiple of $10,000 under the same section.

A surviving spouse may also use a deceased spousal unused exclusion amount. Once made, that election is irrevocable (IRC § 2010). Many couples miss this step because no one files the return.

Lifetime gifts can affect the estate tax calculation: the credit is reduced for certain gifts made after September 8, 1976, by 20 percent of the specific exemption allowed under section 2521 (as in effect before its repeal) (IRC § 2010). Annual gift tax exclusion amounts: 2025 $19,000; 2026 $19,000 (IRS gift tax FAQ).

What does an estate tax planning attorney do?

An estate tax planning attorney reviews the whole picture before suggesting changes. The work usually starts with gathering facts about the family, the assets and the goals. According to the American College of Trust and Estate Counsel, an estate planning attorney helps clients gather and assess family and financial information during an initial meeting.

From there, the attorney looks for exposure. That means checking which assets are in the taxable estate, how they are titled, and whether recent gifts or transfers still count. The attorney then designs documents and transfers that fit the family’s goals.

Leslie V. Marenco focuses on estate tax planning, trusts and estates, and related business and asset planning matters. The firm advises and represents trustees, personal representatives and beneficiaries. Trust Counsel’s attorneys can serve individually as trustee or personal representative. People often ask whether an estate lawyer and an estate planner do the same job. Our separate page on that question explains the difference.

Which planning tools are used in estate tax planning?

The main tools are trusts, lifetime gifts, ownership structures and beneficiary designations. Each one does something different. Trusts are not all the same. The LTCFEDS Care Navigator explains that trusts differ by type, including revocable and irrevocable trusts.

A trust can also control timing. According to the American College of Trust and Estate Counsel, a trust can control when and how beneficiaries receive assets, and the settlor’s instructions should be stated clearly in the trust document.

A common mistake is to assume a revocable trust removes property from the taxable estate. Under IRC § 2038, property can be included in the gross estate when the decedent transferred it and the enjoyment of it is subject at death to a power to alter, amend, revoke or terminate, held by the decedent alone or together with another person, or when such a power was relinquished during the 3-year period ending on the date of death. IRC § 2038 reads: “To the extent of any interest therein of which the decedent has at any time made a transfer (except in case of a bona fide sale for an adequate and full consideration in money or money’s worth), by trust or otherwise, where the enjoyment thereof was subject at the date of his death to any change through the exercise of a power (in whatever capacity exercisable) by the decedent alone or by the decedent in conjunction with any other person (without regard to when or from what source the decedent acquired such power), to alter, amend, revoke, or terminate, or where any such power is relinquished during the 3 year period ending on the date of the decedent’s death.” Trust assets can still count for tax purposes.

Gifts made during life have their own limits. Under IRC § 2035, a transfer made within the 3-year period before death can still be pulled into the gross estate in some cases. The gross estate also grows by any gift tax paid on those gifts. Which tool fits best depends on the facts. For the full range of this work, see our estate planning attorney service page.

Business owners and business succession planning

A business interest can make up a large share of an estate, and that can make the tax harder to plan. The gross estate includes the value of all property, real or personal, tangible or intangible, wherever situated (IRC § 2031). A company stake counts toward that value.

Federal law offers one relief option for some closely held businesses. If the decedent was a U.S. citizen or resident at death and the closely held business interest included in the gross estate is more than 35 percent of the adjusted gross estate, the estate’s personal representative may elect to pay part or all of the tax in 2 or more, but no more than 10, equal installments (IRC § 6166). This election is not automatic. It requires planning and records.

Succession planning answers a simple question: who will own and run the business after the owner dies or steps back? The answer affects the tax, the value and the family’s cash needs. Trust Counsel focuses on business succession planning for business owners in Florida. For that work, see our business succession planning attorney page.

Foreign families with U.S. assets

Families with U.S. property face rules that differ from those for U.S. citizens and residents. The estate tax starts with citizens and residents of the United States (IRC § 2001). Gift tax rules reach nonresidents too (IRC § 2501).

For some nonresidents, the rules are narrower. Under IRC § 2501(a)(2), the transfer of intangible property by a nonresident who is not a U.S. citizen is generally not subject to gift tax. There is an exception for certain individuals under § 2501(a)(3). Gifts to a spouse who is not a U.S. citizen have their own figure. For the annual exclusion on gifts to a noncitizen spouse, the IRS guidance listing 2026 inflation-adjusted amounts refers to “For calendar year 2026, the first $194,000 (instead of the amount provided in paragraph (1) of this section 4.42) of gifts to a spouse who is not a citizen of the United States.”

These rules depend on residency, citizenship and where the assets sit. A family with a Florida condo, a U.S. brokerage account and a foreign holding company needs each piece reviewed on its own terms.

Asset protection and estate tax planning

Asset protection and estate tax planning are related but separate goals. Estate tax planning asks what the tax will be and how to reduce exposure. Asset protection asks how property stays safe from claims during life and after death. A single plan can address both.

Care is needed with some trust products. According to the American College of Trust and Estate Counsel, promotional trust structures may create tax and creditor-protection risks. The same source describes several distinct trust types, including non-grantor, irrevocable, complex, discretionary and spendthrift trusts. For broader planning, see our asset protection attorney page.

Common mistakes in estate tax planning

The most common mistake is an outdated plan. A will or trust written years ago may not reflect current law, current assets or a changed family. Another mistake is assets held in the wrong names. A trust that owns a home does not help if the account or deed still sits in the owner’s name alone.

Business interests and foreign assets are often left out. A plan that ignores a company stake or a property abroad leaves the family without a clear answer. Gifts and transfers made close to death also need review, because the 3-year rule under IRC § 2035 can change the result.

Planning for incapacity is part of the same review. A plan that covers death but not illness can leave a family unable to act. Our pages on the 8 common mistakes in estate planning and power of attorney mistakes cover these points in more detail.

How to prepare for a meeting with an estate tax planning attorney

Start by gathering your current documents. Bring existing wills and trusts, deeds, account statements, business agreements and beneficiary designations. If you hold any asset outside the United States, bring those records too. Complete records let the attorney spot exposure early.

Bring a list of questions. Ask which assets are included in your estate, who will receive them and who will manage them. Ask how a business interest would transfer. Ask whether a gift you are considering could affect the estate later.

Note the filing dates, too. Estate tax returns are due within 9 months after the date of death (IRC § 6075). Gift tax returns are due on or before April 15 following the close of the calendar year, but for gifts made in the calendar year the donor dies, the return is due no later than the estate tax return deadline, including extensions (IRC § 6075). Missing either date creates avoidable pressure.

Estate tax planning across South Florida

We serve clients in Fort Lauderdale, Boca Raton, West Palm Beach, Doral, Kendall, Pinecrest, Key Biscayne and Aventura. The only office is in Coral Gables. Clients in those areas meet with the firm at that office.

The firm’s support staff helps with scheduling and document organization. The lawyer gives the legal advice. Our city pages cover local planning questions for each community.

Estate tax planning with Trust Counsel in Coral Gables

Trust Counsel, PL is located in Coral Gables, Florida. Leslie V. Marenco is the lawyer responsible for this page. The firm handles estate tax planning, trust matters and related business and asset planning for families and business owners.

The firm can help you review exposure, consider planning options and understand how trusts, gifts and business interests interact. Each plan depends on the facts of the family and the assets involved. The page does not describe any past matters or outcomes.

Take the next step toward an estate tax review

Maybe you own a family home, hold brokerage accounts and have a stake in a family company. Together, those assets may raise a question about federal estate tax exposure. A review can show where the questions are.

To talk with Trust Counsel, call (305) 707-7126 or schedule online. The firm offers a free first consultation. It is confidential and carries no obligation to continue.

Is there a federal estate tax exemption? Yes.

What does an estate tax planning attorney do? An estate tax planning attorney reviews what a family owns and designs documents and transfers to fit the family’s goals.

Can a Trust Counsel attorney serve as personal representative? Trust Counsel’s attorneys can serve individually as trustee or personal representative. The firm advises and represents trustees, personal representatives and beneficiaries.