What happens to the estate tax exemption in 2026?

Under the 2017 TCJA sunset, the individual basic exclusion amount drops from ~$13.99M in 2025 back to approximately ~$7.0M on January 1, 2026, adjusted for inflation.

Updated: August 2026 • Verified v1.2

Federal Estate Tax Portability (DSUE) & 2026 Sunset Calculator

Finance & MathNew

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DSUE = max(0, First_BEA - First_Taxable_Estate); Total_Surviving_Exclusion = Surviving_BEA + DSUE

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Understanding Your Results

Calculates DSUE transferred from the first deceased spouse, models surviving spouse exclusion before and after the 2026 TCJA sunset, estimates 40% federal estate tax liability, and quantifies tax savings secured by filing Form 706.

Practical Guidance & Next Steps

Even if the first deceased spouse's estate owes $0 in estate tax, an affirmative Form 706 portability return should be filed to permanently lock in the unused multi-million dollar exclusion for the surviving spouse.

What is this?

A wealth preservation utility that calculates federal estate tax DSUE portability and models surviving spouse tax liabilities around the 2026 TCJA sunset.

How does it work?

1. Enter first deceased spouse's death year and taxable estate value. 2. Enter surviving spouse's projected estate at death and toggle Form 706 election status. 3. View portable DSUE exemption, total surviving tax shield, and federal tax savings.

Why use it?

Helps high-net-worth families protect millions of dollars from unnecessary 40% federal estate tax liabilities through timely portability elections.

Technical Scope & Calculation Limitations

Federal estate tax statutory rules under IRC Section 2010(c).

Frequently Asked Questions

DSUE allows a surviving spouse to inherit and apply whatever portion of the first deceased spouse's federal basic exclusion amount was not utilized at their death.

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