Sizing a Transfer-Tax Strategy for SuccessSizing a Transfer-Tax Strategy for Success

With a substantial drop in the basic exclusion from federal gift and estate tax (the federal exclusion amount) set for 2026,¹ high-net-worth individuals may feel intense pressure to move sizable amounts into trust in the next two years. Indeed, this pressure has led some individuals to fund trusts with assets they still wish to access. Many estate-planning attorneys have risen to this challenge by drafting trust agreements allowing for distributions to the creator of the trust (its grantor) and/or the grantor’s spouse, while attempting to avoid estate inclusion under the agreement’s terms. However, the success of any such strategy depends not only on the trust agreement but also on the facts and circumstances surrounding the trust’s crea...