Beneficiaries often overlook the fact that when tax law changes, trustee performance matters. With important exemption and threshold changes slated for 2026, you have reason to review how your trust is being administered.

What’s Changing in 2026

The federal estate and gift-tax exemption is scheduled to rise to about $15 million per person beginning January 1, 2026, with indexing for inflation in subsequent years.
At the same time, many trusts and plans drafted under older assumptions may now be out of sync.

Why It Matters to Beneficiaries

• Trusts set up under older assumptions may generate tax surprises.
  
  
• Your trustee’s failure to monitor or act on these changes can leave you exposed (e.g., missed opportunities, higher costs).
  
  
• Even if you personally are not subject to estate tax, the administration, costs, and oversight burden can trickle down.
  
  

Questions to Consider

• Ask if your trust’s structuring reflects the 2026 change in exemptions.
  
  
• Confirm that your trustee is reviewing distributions, records, and tax filings with these changes in mind.
  
  
• Ensure that the trust is being administered efficiently and that any tax-driven strategies align with your interests.
  
  

Red Flags

• Your trustee hasn’t contacted you or your advisor to discuss 2026 changes.
  
  
• Trust distributions or decisions are being made without oversight of evolving tax rules.
  
  
• You’re unaware of how changes affect your trust or your role as a beneficiary.
  
  

If you have doubts, now might be the time to talk about your options. Contact us today.