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What Changed in 2026 and Why Does Estate Planning Still Matter?

If you have been following tax news, you may have heard about a significant change. The One Big Beautiful Bill Act, signed in July 2025, permanently raised the federal estate and gift tax exemption to $15 million per person, or $30 million for married couples. This eliminated the scheduled reduction that many families had been racing to plan around.

For most families, the federal estate tax is not the primary concern at current exemption levels. But estate planning has never been only about taxes. A family with a meaningful home, a business interest, retirement accounts, and life insurance can have a complex estate that benefits significantly from clear planning, appropriate asset titling, and structures that protect beneficiaries rather than simply transfer assets. The tools changed. The need did not.

When Should You Update Your Estate Plan?

An estate plan is not a document you create once and file away. Life changes, and your plan should reflect who you are now, not who you were when you last sat down with an attorney. Any of the following events should trigger an immediate review:

• Marriage, divorce, the birth of a child, the birth of a grandchild.
• The death of a named beneficiary, executor, or trustee.
• The sale of a business or a significant financial windfall.
• The sale or acquisition of real property, especially property in another state.
• A significant change in the value of your estate.
• The diagnosis of a serious illness in yourself or a dependent.
• More than three years without a formal review.

I have sat across from clients who handed me a will last updated in 2001. Twenty-five years of life between that document and the conversation we were having. Marriages, children, grandchildren, businesses built and sold, property acquired, retirement accounts accumulated. None of it reflected in the plan they thought would guide their family.

A plan that does not reflect your life is not a plan. It is a snapshot of a moment that no longer exists.

What If You Do Not Have Children?

Estate planning conversations often assume that children will eventually step in as decision-makers, caregivers, executors, or beneficiaries. But many adults do not have children, whether by choice or circumstance. For them, planning is not less important. In many ways, it requires even greater intentionality.

The first question is not simply, “Who receives my assets?” It is, “Who will advocate for me if I cannot advocate for myself?” A trusted sibling, niece or nephew, close friend, or other member of your chosen family may be willing to serve as medical agent, financial agent, executor, or trustee. But those responsibilities should be discussed in advance, documented clearly, and supported by named backups.

The plan should also address the possibility of future care. Who will recognize when help is needed? Who will coordinate housing, medical care, transportation, or professional caregiving? Without children nearby, or without children at all, those decisions cannot be left to assumption.

For some people, the legacy conversation also becomes broader. Assets may pass to extended family, friends, charitable organizations, educational institutions, or causes that reflect a lifetime of values. Estate planning offers the opportunity to define family and legacy on your own terms.

What Happens to Property You Own Outside of Texas?

If you own real estate outside of Texas, you own property subject to the laws of the state where it sits. A vacation home in Colorado, a rental property in Florida, land inherited in Tennessee. If it remains titled in your individual name at death, each of these may require an ancillary probate proceeding in that state, with separate legal fees, separate timelines, and rules that may differ significantly from Texas.

This is one of the most commonly overlooked items in estate planning for families with meaningful assets. Placing out-of-state property in a trust, structuring it with a transfer-on-death deed where the state allows it, or titling it carefully may avoid the need for ancillary probate entirely. Leaving it unaddressed is a gift of complication to the people handling your estate.

A vacation home that brought decades of family memories should not become a source of legal complexity, expense, and delay for the family after you are gone. A single planning conversation can prevent that outcome.

Frequently Asked Questions

Does the 2026 estate tax change mean I no longer need to plan?

No. The One Big Beautiful Bill Act raised the federal estate tax exemption to $15 million per person, which reduces estate tax exposure for most families. But estate planning covers far more than taxes. Who inherits your assets, who makes decisions if you are incapacitated, how out-of-state property is handled, and how a special needs dependent is provided for are questions the tax exemption does not address.

How do I know when my estate plan needs to be updated?

Any major life event should trigger a review: marriage, divorce, a new child or grandchild, a death among named parties, a business sale, a significant change in assets, or the acquisition of property outside Texas. Beyond specific events, a general review every three to five years keeps the plan current even when life appears stable.

I do not have children. Do I still need an estate plan?

Yes, and in many ways the planning is more critical without children in the picture. Without a named medical agent, financial agent, and executor, there is no clear default person with authority to step in during a crisis. Adults without children should be especially intentional about naming decision-makers, named backups, and long-term care arrangements.

What is an ancillary probate and why does it matter?

Ancillary probate is a probate proceeding required in a state other than your state of residence for property you own there. If you own a vacation home in another state and it is titled in your individual name at death, that state may require its own probate process, separate from Texas. This means separate legal fees, separate timelines, and potentially different rules. Proper titling or a trust can often eliminate this entirely.

Can a transfer-on-death deed help with out-of-state property?

Possibly, but only if the state where the property is located recognizes transfer-on-death deeds. Texas does. Many other states do as well. But the rules and requirements vary by state. A transfer-on-death deed is often the simplest and least expensive tool for a single property in a state that allows it, provided the named beneficiary is not a minor or a person with special needs. Coordination with the rest of the estate plan is essential.

Who should serve as my executor or trustee if I do not have family nearby?

A trusted friend, a professional fiduciary, a bank trust department, or an attorney who handles estate administration. The key is choosing someone who is willing, capable, organized, and likely to outlive you. Name at least one successor in case your primary choice is unable or unwilling to serve. A financial planner can help you think through the right fit and ensure the person you name understands what is expected of them.

What Comes Next

Part 3 of this series covers two of the most nuanced conversations in estate planning: planning for a dependent who requires lifetime care, and knowing when it makes more financial sense to gift assets during your lifetime versus allowing them to pass at death.

Both topics deserve careful attention, especially for families navigating complex asset structures, appreciated property, or a dependent with a disability. If either situation applies to you, Part 3 is worth reading before your next planning conversation.

For deeper planning insights on estate planning, retirement income, tax strategy, and more, visit theerskinegroup.net.

Sources

• One Big Beautiful Bill Act, Public Law No. 119-21, signed July 4, 2025
• Internal Revenue Code Section 2010, Unified Credit Against Estate Tax
• Texas Estates Code, Chapter 114, Transfer on Death Deeds
• Texas Health and Safety Code, Chapter 166, Advance Directives Act
• IRS Publication 559, Survivors, Executors, and Administrators

LPL Financial representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial. Limited partnerships are subject to special risks, such as potential illiquidity, and may not be suitable for all investors. Securities and advisory services offered through LPL Financial, a registered investment advisor, member FINRA/SIPC. This material is for general information only and is not intended to provide specific advice or recommendations for any individual. This information is not intended to be a substitute for individualized legal or tax advice. Please consult your estate planning attorney and tax advisor regarding your specific situation. The Erskine Group, LLC is a separate entity from LPL Financial.