By Danielle Brown MSF, CFP Buttonwood Financial Group (Kansas City) Last updated: September 28, 2026
The short version: for 2026, the federal basic estate tax exclusion is $15 million per individual. That determines whether an estate may face federal estate tax; it does not determine who raises your children, who makes decisions if you become incapacitated, who inherits the account with an outdated beneficiary form, or whether your business survives a transition. Most of what an estate plan does has nothing to do with taxes.
At a glance: What the $15 million exemption does — and does not — mean
- 2026 federal estate tax exemption: $15 million per individual.
- What it addresses: Potential federal estate-tax exposure.
- What it does not address: Incapacity, beneficiary designations, guardianship, account titling, business succession, blended families, digital assets, and probate planning.
- Missouri and Kansas: Neither currently imposes a state estate or inheritance tax.
- Bottom line: Being under the $15 million federal exemption does not mean you no longer need an estate plan.
The conversation we keep having
It usually starts the same way. Someone reads a headline about the estate tax exemption, does rough math in their head, and concludes that estate planning is a problem for other people. Wealthier people. Later.
The arithmetic may well be right. The conclusion usually is not.
For 2026, the federal basic estate tax exclusion is $15 million per individual, up from $13.99 million in 2025. That threshold primarily addresses whether the size of an estate may create federal estate-tax exposure. It is a real question and it matters. It is also, for most families, only one small part of estate planning.
Do I need an estate plan if my estate is under $15 million?
Generally, yes. The $15 million federal exclusion is a tax threshold, not an estate-planning threshold. Incapacity planning, beneficiary designations, account titling, guardianship, business succession, probate considerations, and family dynamics can matter regardless of whether an estate is anywhere near $15 million.
What the exemption does not touch
- State-level taxes. Missouri currently does not impose an estate tax for deaths occurring on or after January 1, 2005, and Kansas estate tax does not apply to estates of decedents dying after December 31, 2009. Other states may impose estate or inheritance taxes, so where you live, move, or own property can still matter.
- Incapacity. Estate documents are usually thought of as death documents. In practice, powers of attorney and health care directives are the ones families reach for first — often during a hospital stay, often urgently. Without them, families can find themselves in court to get authority they assumed they already had.
- Beneficiary designations. Retirement accounts, life insurance, and transfer-on-death registrations generally pass by beneficiary designation, and those designations typically override what your will says. A form filled out at a job you left in 2011 can quietly outrank a will you signed last year.
- Titling. How an account or a property is titled can determine where it goes regardless of the plan you documented. This is one of the most common gaps we see, and one of the least expensive to fix.
- Guardianship for minor children. There is no tax threshold on this one. It is simply either documented or it is not.
- Business succession. If you own a company, the value of the business may be the smallest part of the problem. Who has authority on Monday morning is the bigger one.
- Blended families and second marriages. Where "everything to my spouse, then to my children" quietly stops meaning what everyone assumed it meant.
- Digital access. Accounts, passwords, domains, and photo archives that no one else can reach.
A better question than "do I owe estate tax?"
Try this one instead: if something happened to me tomorrow, would the people I love know what to do, and would they have the legal authority to do it?
That question has nothing to do with a threshold, and it is the one that determines whether the months after a loss are merely painful or painful and chaotic
When a review is usually worth scheduling
Documents age quietly. Most plans are worth revisiting after a marriage or divorce, a birth or adoption, a death in the family, a move to another state, the sale or purchase of a business, a significant change in assets, or a change in the law. If none of those has happened and it has still been more than three to five years, that alone is usually reason enough to look.
As Family CFO, we coordinate this with your attorney rather than replacing them — making sure the documents, the beneficiary forms, the account titling, and the actual plan all say the same thing. They are supposed to agree. They often do not.
Frequently asked questions
Q: Do I still need an estate plan if my estate is under $15 million?
A: Generally yes. The $15 million 2026 federal exclusion addresses federal estate-tax exposure; it does not eliminate the need to plan for incapacity, guardianship, beneficiary designations, account titling, business succession, probate considerations, or other family and legal issues.
Q: How often should I review my estate plan?
A: Many families review after any major life event — marriage, divorce, birth, death, a move to another state, a business sale, or a significant change in assets — and otherwise every three to five years.
Q: What overrides a will?
A: Beneficiary designations on retirement accounts and life insurance, along with how assets are titled, generally control regardless of what a will says. This is why reviewing forms and titling matters as much as reviewing the documents themselves.
Let us take a look with you. Buttonwood Financial Group coordinates estate strategy alongside your attorney as part of the Family CFO role. Schedule a conversation at buttonwoodfg.com.
Important disclosures
For educational purposes only. This content is not personalized investment, tax, or legal advice, and is not a recommendation to buy, sell, or hold any security or to adopt any strategy. Tax and estate laws are complex and subject to change; consult your advisor, CPA, or attorney about your specific situation. Buttonwood Financial Group is a registered investment adviser; registration does not imply a certain level of skill or training, nor approval by the SEC. Investing involves risk, including the possible loss of principal.
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