Do I Still Need Estate Planning If My Estate Is Under $15 Million?
Short answer: yes. The estate tax exemption tells you whether the federal government will tax your estate. It says nothing about whether your wishes get followed, whether your family avoids a mess, or whether the right people are in charge when you can't be. Those are the things estate planning actually solves, and they have almost nothing to do with the size of your estate.
I bring this up because it's one of the most common misunderstandings I hear, and it got louder after the tax law changed.
What changed with the exemption?
For years, there was real worry that the federal estate tax exemption would drop sharply at the end of 2025. Then the law passed in July 2025 went the other direction and locked the exemption in at $15 million per individual, or $30 million for a married couple. It's being described as "permanent," though it's worth remembering that tax law can always change again with a future Congress.
Here's the practical takeaway: the vast majority of families will never owe a dime in federal estate tax. That's genuinely good news. But it has created a false sense of "I'm under the limit, so I don't need to do anything." That conclusion doesn't follow, and it's the part I want to walk through.
Estate planning is about control, not just taxes
Think about what an estate plan really does. A good one answers a handful of questions that every family eventually faces:
Who makes financial and medical decisions for you if you're alive but unable to decide for yourself?
Who raises your minor children, and who manages money on their behalf?
Where do your assets go, in what amounts, and on what timeline?
How does your family avoid unnecessary delay, cost, and conflict?
Notice that none of those are tax questions. They apply whether your estate is $500,000 or $50 million.
What happens if you don't have a plan?
If you pass away without a will, the state has one for you. It's called intestacy, and your assets get distributed according to a formula written by the legislature, not by you. That formula doesn't know your family. It doesn't know which child has special needs, which relative you've been estranged from for twenty years, or that you wanted something to go to a grandchild or a cause you cared about.
Without the right documents in place, families also tend to end up in probate, the court-supervised process for settling an estate. Probate can be slow, public, and more expensive than people expect, and a thoughtful plan can often reduce how much of your estate has to go through it.
A few things an estate plan handles that the exemption never touches
These come up constantly, and not one of them depends on whether you're over or under $15 million:
Beneficiary designations. Your retirement accounts and life insurance pass by beneficiary form, not by your will. If those forms are outdated, the wrong person can inherit, no matter what your will says.
Incapacity, not just death. A durable power of attorney and a health care directive decide who steps in if you're incapacitated. This is arguably the part of planning people are most likely to actually use.
Minor children. Naming a guardian in your will is how you decide who raises your kids. The alternative is letting a court decide.
Privacy and speed. Certain tools can keep your affairs private and move assets to your family faster than a court process.
So when do taxes enter the picture?
For some families, they still do. If your estate is approaching or above the $15 million individual or $30 million married thresholds, there are planning strategies worth discussing. One of the simplest is the annual gift tax exclusion, which lets you give up to $19,000 per recipient in 2026 without using any of your lifetime exemption. Gifting consistently over the years can gradually reduce the size of a larger estate.
There's also state-level estate and inheritance tax to consider. Several states impose their own taxes with thresholds far below the federal number, so "under $15 million" does not automatically mean "no estate tax exposure." This is exactly the kind of thing worth reviewing with a professional who knows the rules in your state.
What I'd suggest doing now
If it's been more than a few years since you looked at your plan, or if you've never built one, a few steps tend to be worthwhile:
Pull your beneficiary designations and confirm they still reflect your wishes.
Make sure you have current powers of attorney and health care directives.
Review any existing will or trust. Documents drafted years ago may include assumptions or language that no longer fit today's rules.
Coordinate the plan with your overall financial picture so the pieces actually work together.
Estate planning isn't a one-time event, and it isn't only for the wealthy. It's how you stay in control of decisions that matter to the people you love. The exemption being high is a reason to plan with confidence, not a reason to skip it.
Frequently asked questions
Do I need an estate plan if I'm under the $15 million exemption? Yes. The exemption only affects federal estate tax. An estate plan also governs who inherits, who makes decisions if you're incapacitated, guardianship for minor children, and whether your family can avoid probate.
What is the federal estate tax exemption in 2026? It's $15 million per individual and $30 million for a married couple following the law passed in July 2025.
What happens if I die without a will? Your assets are distributed according to your state's intestacy laws, and your estate will likely go through probate. The court, not you, effectively decides the outcome.
Does my state have its own estate tax? Some states do, often with much lower thresholds than the federal exemption. It's worth confirming the rules where you live.
If you'd like a second set of eyes on how your estate plan fits with the rest of your finances, Patten Financial Group is happy to help you think it through and coordinate with your attorney and tax advisor.
Schedule a complimentary consultation using this link Schedule Review Meeting or by calling us at (219)312-4128
Disclosures:
This material is provided for general educational and informational purposes only and does not constitute legal, tax, or investment advice. It is not a recommendation or solicitation to buy or sell any security or to adopt any investment or estate planning strategy. Estate planning documents should be prepared by a qualified attorney, and tax matters should be reviewed with a qualified tax professional. Tax and estate laws are subject to change, and their application depends on your individual circumstances. The figures referenced reflect federal rules as of 2026 and may not account for state-specific laws. Patten Financial Group/Aaron Patten does not provide legal or tax advice. Please consult your own legal, tax, and financial professionals before making decisions.
Investment advisory services offered through Redhawk Wealth Advisors, Inc., an SEC
Registered Investment Advisor. SEC Registration does not imply any level of skill or
understanding. Redhawk Wealth Advisors and Patten Financial Group are unaffiliated and
separate legal entities.
