New Federal Tax Laws: Time for Georgia Families to Review Estate Plans

Are you aware of how recent changes to federal tax laws might impact your estate planning? With the new legislation, known as the One Big Beautiful Bill Act, signed into law on January 1, 2026, the federal estate and gift tax exemption has increased to a whopping $15 million per individual. This significant change means that families can now transfer wealth without incurring federal estate taxes for considerably larger estates than before.

Previously, many Georgia families were preparing for a scheduled reduction in the exemption to around $7 million per person. Now, with the exemption effectively doubled, estate plans crafted with the expectation of this reduction may need a fresh look. According to estate planning attorneys at Slowik Estate Planning, it’s crucial for families to revisit their documents to ensure they still align with their financial goals and family dynamics.

One of the most critical aspects of the new law is that the top marginal tax rate for amounts exceeding the exemption remains steady at 40 percent. Additionally, the step-up in basis at death will remain in place, allowing heirs to inherit assets at their fair market value at the time of the decedent’s death. This can significantly minimize capital gains taxes when those assets are eventually sold, making it an essential consideration for future wealth transfers.

Georgia residents benefit from the fact that their state does not impose a state-level estate tax or inheritance tax. This means that with the increased federal exemption, fewer families in Georgia will face federal estate tax liability. However, estate planning experts warn that families who had implemented aggressive gifting strategies need to reassess them, as these may no longer fit the new thresholds. For instance, estate plans that direct assets to trusts based on outdated exemption amounts could lead to unintended consequences, including directing more assets than intended to credit shelter trusts.

In light of these changes, it’s advisable for families—regardless of whether their estate falls below the federal threshold—to review their estate plans. This includes ensuring that all documents reflect current wishes and consider the potential for future changes in family circumstances. By taking proactive steps now, families can avoid costly probate delays and ensure their assets are distributed according to their wishes.

In summary, the recent changes in federal tax law present an excellent opportunity for Georgia families to evaluate their estate planning strategies. As these laws evolve, staying informed and making necessary adjustments can provide peace of mind and financial security for the future.

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