For high-net-worth families and business owners, estate planning can easily fall into the category of something that feels important—but not necessarily urgent. With the federal estate tax exemption at historically high levels, some families may assume estate taxes are simply no longer a concern.
That assumption can be costly.
For 2026, the federal estate and gift tax basic exclusion amount is $15 million per individual. While this means many families will not face federal estate tax, an effective estate plan should consider far more than the federal exemption alone.
Don’t Overlook Your State Estate Tax
One of the most commonly overlooked considerations is state estate tax.
State rules vary considerably, and your state’s exemption may be dramatically lower than the federal exemption. Massachusetts, for example, has a $2 million estate-tax threshold. As a result, an estate can fall well below the $15 million federal exemption and still face a Massachusetts estate-tax liability.
This can become particularly relevant for families whose wealth has accumulated gradually across retirement accounts, investment portfolios, real estate, life insurance and business interests. You may not think of yourself as having a “$5 million estate” or “$10 million estate,” but once all assets are considered together, the value can add up quickly.
For families who own property or spend significant time in multiple states, residency and the location of certain assets can add another layer of complexity.
Business Owners Face Additional Planning Considerations
For business owners, estate planning and business planning are often closely connected.
A closely held business may represent a significant portion of a family’s net worth, but unlike a brokerage account, its value may not be readily available to divide among heirs or use to meet taxes and other expenses.
That makes several questions especially important: What is the business worth today? Who will own or operate it if something happens to you? If one child works in the business and another does not, how will you approach that fairly? And will your family have sufficient liquidity to meet taxes, expenses and other obligations without being forced to sell business interests or other assets at an unfavorable time?
These conversations are often easier—and the range of available planning strategies broader—when they happen well before they become necessary.
Your Estate Plan Should Evolve With Your Wealth
An estate plan created five or ten years ago may no longer reflect your financial life today. Investment growth, business success, real estate appreciation, changes in family circumstances and evolving tax laws can all affect whether an existing plan still accomplishes what you intended.
Depending on your circumstances, planning strategies might include lifetime gifting, trusts, life insurance, charitable planning, business-succession strategies or changes to how assets are owned and titled. There is no single strategy that works for every family.
Just as importantly, estate planning should not be viewed strictly as a tax exercise. A thoughtful plan can address who controls your assets, how and when children receive wealth, how a family business transitions to the next generation, and how efficiently assets ultimately pass to the people and organizations that matter most to you.
The Bottom Line
The higher federal estate-tax exemption has changed the planning landscape, but it has not eliminated the need for thoughtful estate planning—particularly for high-net-worth families and business owners.
Know the value of what you own. Be mindful of your state’s estate-tax rules. Understand how your business fits into your overall estate. And revisit your plan periodically as your wealth, family circumstances and tax laws change.
Coordinating your wealth advisor, estate-planning attorney and tax professional can help ensure that the different pieces of your financial life are aligned with the same long-term objectives.
