2026 Federal Estate Tax Exemption Limits

It started with a frantic call from Emily. She’d meticulously updated her estate plan last year, feeling secure that her family was protected. But her husband, David, passed away unexpectedly, and the original Will she thought was safely locked away…wasn’t. Turns out, a hastily scribbled codicil, attempting to redirect assets, was unsigned. A single, missing signature. The cost? A protracted probate battle, legal fees exceeding $35,000, and a deeply fractured family – all stemming from a technicality. This isn’t uncommon. As an Estate Planning Attorney and CPA with over 35 years of experience here in Moreno Valley, I’ve seen countless plans derailed by seemingly minor errors, and the consequences can be devastating.

What Happens if a Will Isn’t Properly Executed?

A Will, no matter how well-intentioned, is only legally binding if it adheres to strict California rules. Probate Code § 6110(c)(2) allows a court to validate a Will with signature defects if it finds “clear and convincing evidence” of the testator’s intent, but this is far from a guaranteed fix. It requires a petition, expert witness testimony, and adds significant expense and delay to an already emotional process. In Emily and David’s case, that codicil, lacking a signature, was deemed invalid. The previous Will controlled, meaning assets weren’t distributed as David intended. If a Will is invalidated, assets fall under intestacy; however, for deaths on or after April 1, 2025, estates with personal property under $208,850 (per CPC § 13100) may still bypass full probate via affidavit.

What’s the Difference Between a Will and a Trust?

While a Will directs the distribution of your assets after death, a Trust allows you to control those assets during your lifetime and provides a seamless transfer upon your passing. A Revocable Living Trust avoids probate, which, in Riverside County, can be a lengthy and costly process. Importantly, it also offers greater protection against challenges. A poorly drafted or improperly executed Will is a beacon for potential litigation. A Trust, structured correctly, significantly reduces that risk. I often explain to clients that a Trust isn’t just about avoiding probate; it’s about ensuring their wishes are honored with minimal family conflict.

What About Beneficiary Concerns and Witness Requirements?

A crucial, yet often overlooked, aspect of Will validity concerns witnesses. California Probate Code § 6112 states that an ‘interested witness’ (a beneficiary) triggers a legal presumption of duress or fraud. Unless there are two other disinterested witnesses, that beneficiary may lose their inheritance, receiving only what they’d inherit under intestate succession. This is why, in my practice, I always insist on at least two witnesses who have no financial stake in the outcome. It’s not just about fulfilling the legal requirement; it’s about creating an unassailable document. Moreover, including a self-proving affidavit allows the Will to be admitted to probate without the testimony of the subscribing witnesses, significantly accelerating the court’s approval process (Probate Code § 8220).

How Do Digital Assets Factor into Estate Planning?

In today’s digital world, your online accounts – bank accounts, social media, cryptocurrency – represent significant assets. RUFADAA 2.0 (SB 1458), effective 2025, California law (CPC § 871) was expanded to grant fiduciaries power over digital accounts; however, you must still grant explicit RUFADAA powers in your Will or Trust to bypass federal privacy blocks. Without proper authorization, accessing these accounts can be a nightmare for your executor, potentially leading to lost funds and protracted legal battles.

What are the 2026 Federal Estate Tax Exemption Limits?

This is a question I’m getting a lot lately. The estate tax landscape is shifting. For many years, the federal estate tax exemption has been adjusted annually for inflation. However, the Tax Cuts and Jobs Act of 2017 (TCJA) temporarily doubled the exemption. That temporary increase is set to expire on December 31, 2025. As of January 1, 2026, the federal estate tax exemption will revert to approximately $12.92 million per individual (subject to final IRS adjustment). However, it’s crucial to remember that this is a federal exemption. California does not have a state estate tax, but the federal limits still apply. And for couples with combined estates exceeding that threshold, careful planning is essential to minimize potential tax liability. As a CPA, I specialize in maximizing the “step-up in basis” for inherited assets, mitigating capital gains taxes and preserving wealth for future generations. Understanding valuation is also key – accurately valuing business interests or real estate can significantly impact the overall estate tax calculation.

Resources for Legal Standards & Probate Procedure

• Riverside Local Rules: Riverside Superior Court – Probate Division
  Access the essential “Local Rules” effective January 1, 2026. This includes mandatory e-filing procedures, current Probate Examiner notes, and Local Rule 7010 regarding remote appearance requirements for non-evidentiary hearings.
• Attorney Verification: State Bar of California
  The official regulatory body for California attorneys. Use this to verify a lawyer’s “Certified Specialist” status in Estate Planning or to access 2026 guidelines on the ethical handling of Client Trust Accounts (IOLTA).
• Self-Help & Forms: California Courts – Wills, Estates, and Probate
  The Judicial Council’s official portal. It includes the updated 2026 forms for the $208,850 personal property threshold and the $750,000 “Primary Residence” simplified transfer procedure (AB 2016).
• Federal Estate Tax: IRS Estate Tax Guidelines
  The authoritative federal resource for estate and gift tax filing. It reflects the 2026 “OBBBA” permanent exemption of $15 million per individual, replacing the previously scheduled Tax Cuts and Jobs Act (TCJA) sunset.

What makes a California will legally enforceable when it matters most?

In California, a last will and testament operates within a probate system that emphasizes intent, clarity, and procedural compliance. When properly drafted, a will does more than distribute property—it creates legally enforceable instructions that guide courts, fiduciaries, and beneficiaries through administration with fewer disputes and less uncertainty.

To ensure the will functions as intended, the executor must understand their executor duties, while the family should be prepared for the probate process required to enforce the document.

For California residents, understanding how intent, authority, and compliance interact is one of the most effective ways to protect family harmony and estate integrity. A will that anticipates probate scrutiny is far more likely to be honored as written and far less likely to become the source of unnecessary conflict.

Resources for Legal Standards & Probate Procedure

• San Diego Local Rules: San Diego Superior Court – Probate Division
  Access the essential “Local Rules” (Division IV) effective January 1, 2026. This includes mandatory e-filing procedures, current Probate Examiner notes, and Local Rule 4.4.5 regarding remote appearance requirements (via MS Teams) for non-evidentiary hearings.
• Attorney Verification: State Bar of California
  The official regulatory body for California attorneys. Use this to verify a lawyer’s “Certified Specialist” status in Estate Planning or to access 2026 guidelines on the ethical handling of Client Trust Accounts (IOLTA).
• Self-Help & Forms: California Courts – Wills, Estates, and Probate
  The Judicial Council’s official portal. It includes the updated 2026 forms for the $208,850 personal property threshold and the $750,000 “Primary Residence” simplified transfer procedure (AB 2016).
• Federal Estate Tax: IRS Estate Tax Guidelines
  The authoritative federal resource for estate and gift tax filing. It reflects the 2026 “OBBBA” permanent exemption of $15 million per individual, replacing the previously scheduled Tax Cuts and Jobs Act (TCJA) sunset.