You May Be Worth More Than You Think
Posted on April 23, 2026
As we earn, save, and invest over time for retirement and the wellbeing of future generations, many of us think estate taxes are not something to worry about. We simply do not believe we are among the very wealthy. While this may be an accurate assessment now, our assets grow over time along with changes in the federal tax code. Families are often surprised after liquidity events or unexpected circumstances that may significantly increase the value of their estate along with very real tax consequences.
How do we know if our net worth will be taxed (rates can be as high as 40%) after we pass? A few points can help us determine whether our collective assets are or will be subject to federal estate tax.
Understand the Federal Estate Tax Exemption
In the US, estate tax only applies if your net worth exceeds a certain amount. Currently, the exemption is $15 million for an individual and $30 million for married couples. If your estimated net worth is below these thresholds, it is very likely your estate will not owe estate tax depending on the timing and executing of your estate documents (wills and trusts).
However, there is no guarantee that this high exemption amount will not be lowered by Congress through future legislation. This means estates with less than the current exemption could eventually be subject to estate tax. In addition, some of us may have already used a portion or all our lifetime exemption through prior gifts.
What Defines an Estate
Your net worth most likely includes more than cash and investment accounts.
Assets to consider:
– Business ownership
– Real Estate
– Investment and Retirement Accounts
– Life Insurance – Cash value and Death Benefit
– Personal property – Art, Jewelry, Collections, etc.
If the value of your collective assets, less liabilities and certain deductions such as charitable pledges and marital transfers is below $5m, it is likely you will have no current or future estate tax exposure. If the value is between $5m and $15m it is important to start planning. If over $15m, immediate and proactive planning is critical.
Valuations Can Change Rapidly
Although some do not feel like high-net-worth families now, we may be unknowingly exposed to estate taxes if we own the following:
Business interest: A sudden change in a dynamic industry with a sale event could push your net worth over the threshold quickly.
Real Estate: Long-held property sold at current or future vales can inflate the value of an estate.
Life Insurance: If not structured correctly, death benefits may be included in your taxable estate.
Dual Income Couples: Combined assets often exceed exemptions faster than expected.
These are a few situations that can generate “surprises” in estate tax exposure. It is also a good idea to review and update valuations as well as take inventory of assets you may likely inherit before your estate is passed on. If you have made gifts in the past to family members or other beneficiaries, it is helpful to account for them by reviewing your most recent gift tax return (Form 709). Certain accumulated gifts over your lifetime may effectively reduce your estate tax exemption.
When to Consult Your Advisors
If your current net worth falls between $5M and $15M, and you own a business, real estate, or a life insurance policy, you may want to consider strategies to preserve value and provide income for future generations. In that case, a conversation with your trusted advisors would be time well spent. Florida Trust is also a beneficial resource along with your tax professionals in your estate planning process.
If you are evaluating your options, Florida Trust Wealth Management would welcome the opportunity to have a conversation about what may be the most appropriate wealth management approach for your family.
Hood Craddock
Director of Family Office Services
James McArthur
EVP – Family Office Services
LEGAL, INVESTMENT AND TAX NOTICE: This information is not intended to be and should not be treated as legal advice, investment advice or tax advice. Readers, including professionals, should under no circumstances rely upon this information as a substitute for their own research or for obtaining specific legal or tax advice from their own counsel. Not FDIC Insured | No Guarantee | May Lose Value
My Account