Estate Tax Planning: Rules, Roles, and Trade-Offs

What is estate tax planning?

Estate tax planning is the process of reviewing what you own, how it is titled, and who receives it, so you understand whether federal or state estate or gift taxes could apply. Many simple estates do not need a federal estate tax return, and each strategy has trade-offs. An estate attorney drafts the legal documents.

This article is general education, not legal, tax, or investment advice. Rules change and individual circumstances matter. Rules and figures below are as of November 9, 2026 and cite IRS and Georgia Department of Revenue material. Consult a licensed estate attorney and a tax professional before acting.

Talk through how estate tax planning fits your situation

Where this guide fits

Many people searching for estate tax planning are really asking three questions. Could my estate owe tax? What can I do about it while I am alive? And who does which part of the work?

This guide covers the tax side: the federal exclusion, gifts, portability, state rules, and how accounts and beneficiaries line up. Our companion article on advisor and attorney roles in estate planning covers who drafts documents and who coordinates the financial picture. It is written with two groups in mind: households in the decade before retirement (see our nearing retirement page) and families with young children (see our new families page).

Nothing below is a recommendation to take any action. Each section describes a general topic people commonly raise with an attorney and a tax professional, and each one has costs.

1. How does the federal estate tax work?

The IRS describes the estate tax as a tax on your right to transfer property at your death. It starts with your gross estate, which is an accounting of everything you own or have certain interests in at death, valued at fair market value. That can include cash and securities, real estate, insurance, trusts, annuities, and business interests, and it may include non-probate property as well as probate property. Certain deductions, such as debts, administration expenses, property passing to a surviving spouse, and property passing to qualified charities, are then allowed (IRS, Estate tax and Frequently asked questions on estate taxes, accessed November 9, 2026).

An estate tax return (Form 706) must be filed if the gross estate, increased by adjusted taxable gifts and specific gift tax exemption, is valued at more than the filing threshold for the year of death. The IRS lists that threshold as $15,000,000 for 2026, and notes that the basic exclusion amount for 2026 was set by Public Law 119-21, signed July 4, 2025 (IRS, What's new: Estate and gift tax, accessed November 9, 2026). The IRS table lists a figure for each year, so the amount that applies depends on the year of death, and later years may differ.

Potential benefit: knowing where your total assets sit relative to the threshold may help you decide how much attention this topic deserves. Trade-offs: the figure can change with legislation, your assets and the law may both look different by the time an estate is settled, and a threshold alone does not capture state rules or your own circumstances.

2. What role do lifetime gifts play?

The IRS describes a gift as any transfer to an individual where full value is not received in return. Gifts up to the annual exclusion are generally not taxable gifts, and the IRS lists the annual exclusion as $19,000 per recipient for 2026. When spouses give property they own together, each is entitled to the annual exclusion, for a combined $38,000 per recipient in 2026. The IRS also lists tuition or medical expenses paid for someone, and gifts to a spouse, among gifts that are generally not taxable (IRS, Frequently asked questions on gift taxes, accessed November 9, 2026).

Larger gifts are generally taxable gifts, which may require a gift tax return (Form 709). The IRS says lifetime taxable gifts are added back when the estate tax is computed, so giving more than the annual exclusion uses part of the same exclusion amount that applies at death (IRS, Estate tax, accessed November 9, 2026). The IRS also notes that the donor is generally responsible for any gift tax.

Potential benefit: gifts within the annual exclusion may move assets to family members over time without using any of the lifetime amount. Trade-offs: a completed gift generally cannot be taken back, giving assets away reduces what you hold for your own needs, the person receiving a gift generally takes over your cost basis for income tax purposes (the IRS notes different rules apply to property received from an estate), and gifts above the annual exclusion add reporting requirements. A tax professional can compare the options for your assets.

3. What is portability for married couples?

Portability lets the estate of a spouse who has died pass any unused exclusion, called the deceased spousal unused exclusion (DSUE) amount, to the surviving spouse. The IRS says the estate's representative must file an estate tax return, and file it on time, to make the election. The return is due nine months after death, an automatic six-month extension is available by filing Form 4768, and the election requires a filed return even when no estate tax is owed (IRS, Frequently asked questions on estate taxes, accessed November 9, 2026).

The IRS also describes a simplified late-election method under Revenue Procedure 2022-32 for certain estates below the filing threshold, available until the fifth anniversary of death. It does not apply to estates that were required to file a return.

Potential benefit: a timely election may preserve an unused exclusion for the surviving spouse. Trade-offs: it requires preparing and filing a full estate tax return, which has professional fees and a deadline, and it is a federal election, so it does not by itself address state rules. Whether it fits a given couple is a question for an estate attorney or tax professional.

4. Does Georgia have an estate or inheritance tax?

Georgia does not currently levy an estate tax. The Georgia Department of Revenue cites O.C.G.A. § 48-12-1, which provides that on and after July 1, 2014, no estate taxes are levied by the state and no state estate tax returns are required. The department also states that Georgia has no inheritance tax (Georgia Department of Revenue, Estate Tax FAQ, accessed November 9, 2026).

That does not remove the federal rules above. The department also points heirs to the IRS to check whether anything inherited needs to be included in income. Other states may have their own estate or inheritance taxes with different rules, so if you have lived in or own property in another state, ask your attorney which state's rules could apply.

Potential benefit: for a Georgia resident, state-level estate tax is one less layer to model. Trade-offs: state law can change, a move or property in another state may change the answer, and an absence of state tax does not mean the federal estate tax, gift reporting, or income tax on inherited accounts is irrelevant.

5. How do beneficiaries, titling, and trusts fit in?

Estate tax planning is not only about thresholds. Many assets pass by form or by how they are owned, not by will, so a plan can drift away from your intentions if forms and titles are out of date. The IRS notes that the gross estate includes non-probate property, which is one reason a full inventory matters.

• Beneficiary designations. Retirement accounts and life insurance generally pass to the person named on the form. Reviewing each one against your documents is a common first step.
• Account titling. Individual, joint, trust, and transfer-on-death registrations pass differently and may be treated differently for tax purposes.
• Trusts. Whether a trust makes sense, which kind, and how it is written are legal questions for your attorney. If a trust is created, it generally has to be funded, which means accounts are retitled into it or it is named as a beneficiary.
• Charitable giving. Property left to a qualified charity may be deductible from the gross estate, according to the IRS. Giving during life has its own rules. Our articles on the donor-advised fund tax deduction and donating appreciated shares cover the mechanics and limits.

Potential benefit: aligning forms, titles, and documents may reduce the chance that assets pass differently than you intended. Trade-offs: retitling assets can have tax or legal consequences, trusts add cost and administration, and changes should follow your attorney's guidance.

6. Who does what: planner, attorney, and tax professional?

The IRS notes that people who make gifts or settle estates often engage both attorneys and CPAs or enrolled agents. It describes the attorney as usually handling wills, trusts, and transfer documents, and the CPA or enrolled agent as often handling the actual return preparation (IRS, Frequently asked questions on gift taxes and on estate taxes, accessed November 9, 2026). A financial planner fits alongside them.

• Estate attorney. Drafts wills, trusts, powers of attorney, and health care directives, explains how state law applies, and advises on legal structure. Only an attorney gives legal advice.
• Tax professional (CPA or enrolled agent). Prepares returns such as Form 709 or Form 706 and advises on how rules apply to your situation.
• Financial planner. Maps what you own and how it is titled, reviews beneficiary designations, models how different assets may be taxed, coordinates insurance and charitable goals, and keeps the plan current. A planner does not draft legal documents or give legal advice.

Income tax matters too. Estate and gift planning can interact with the levers we describe in our guide to tax planning for high income earners, such as charitable giving and the timing of investment sales.

Pros and cons of estate tax planning

Potential benefits

• It may show whether federal or state estate tax is a realistic concern for your household, so you spend time where it matters.
• It may catch outdated beneficiary forms and titles before they cause a mismatch with your documents.
• It may give your attorney and tax professional the same information, which can reduce rework.
• It may help you decide whether gifting, giving to charity, or a trust is worth discussing with counsel.

Potential drawbacks and limits

• Exclusion amounts and other rules change, and a plan built on one year's figures may need review.
• Gifts and trusts can be hard or impossible to reverse, and they reduce what you control.
• Strategies can carry legal fees, tax preparation costs, and ongoing administration.
• Reducing estate tax exposure can increase income tax for the people who receive assets, so the overall result is not always better.
• Outcomes depend on your state, your family, and your assets, and no strategy is guaranteed to reduce taxes.

What to bring to a planning conversation

• Existing wills, trusts, powers of attorney, and health care directives
• A list of accounts and property, with current beneficiaries and how each is titled
• Recent statements for retirement, brokerage, and bank accounts
• Life, disability, umbrella, and long-term care insurance policies
• Real estate deeds and mortgage information
• Business ownership documents, if any
• Equity compensation details, such as stock options or restricted stock units
• Records of past significant gifts and any gift tax returns filed
• If you are widowed, any estate tax return filed for your spouse
• The names and contact information of your attorney, CPA, and any other advisors
• Your questions about guardianship, inheritance, or charitable goals

How we approach it at LKL Advisors

Estate planning is one of the services we offer in Atlanta, Georgia, alongside financial planning, tax strategy, and insurance review. We look at how your accounts, beneficiaries, and goals fit together, and we coordinate with your estate attorney and tax professional rather than replace them. We do not draft legal documents or give legal advice. You can see what our planning includes on our services page, review our published fee structure, which has no account minimums, or reach out here to ask a question.

Talk through how estate tax planning fits your situation

Frequently asked questions

What is estate tax planning?

It is the process of reviewing your assets, how they are owned, and who receives them, so you know whether estate or gift taxes could apply and what choices exist. It does not promise a lower tax bill, and each approach has costs and limits. An estate attorney and a tax professional can confirm how the rules apply to you.

Is estate tax the same as inheritance tax?

No. The Georgia Department of Revenue explains that an estate tax is paid by the estate before assets go to heirs, not by the person inheriting them, and notes that some people use the term inheritance tax for the same thing. It states that Georgia has no inheritance tax, and no state estate tax is levied on or after July 1, 2014. Inherited assets can still carry federal or income tax questions.

Does Georgia have an estate tax?

Not currently. The Georgia Department of Revenue cites a state law providing that, on and after July 1, 2014, no state estate taxes are levied and no state estate tax returns are required. Federal estate and gift tax rules may still apply, as of November 9, 2026.

How much can I give away each year without a gift tax return?

For 2026, the IRS lists an annual exclusion of $19,000 per recipient, or $38,000 per recipient for spouses giving jointly owned property. Gifts above that amount are generally taxable gifts that may require a Form 709, which does not necessarily mean tax is due. A tax professional can confirm what applies to you.

What is portability?

Portability is an election that lets a surviving spouse use the deceased spouse's unused exclusion, called the DSUE amount. The IRS says it requires a timely filed estate tax return, even when no estate tax is owed. It involves filing costs, so couples often review it with an attorney or tax professional.

Do I need an estate attorney, a financial planner, or both?

Many people use several professionals. An attorney drafts documents and gives legal advice, a tax professional prepares returns, and a planner coordinates accounts, beneficiaries, and the financial picture around them. Which of them you need depends on your assets and your family.

Sources

• IRS, Estate tax, accessed November 9, 2026
• IRS, What's new: Estate and gift tax, accessed November 9, 2026
• IRS, Frequently asked questions on estate taxes, updated December 22, 2025, accessed November 9, 2026
• IRS, Frequently asked questions on gift taxes, accessed November 9, 2026
• Georgia Department of Revenue, Estate Tax FAQ, accessed November 9, 2026

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LKL Advisors is based in Atlanta, Georgia, and works with clients across the country, wherever we are registered or otherwise permitted to serve them. Planning is done remotely through secure virtual platforms, so you do not need to be in Atlanta to work with us.