How the Estate Tax Affects Fewer Than You Think in 2026

In Episode 70 of The Tax Policy Podcast, Lucas and Luna tackle the estate tax — one of the most misunderstood taxes in America. They anchor on a single vivid number: in 2026, the federal estate tax exemption is $13.99 million per individual, meaning fewer than 0.2% of estates actually file a return. Lucas walks through how the Tax Cuts and Jobs Act doubled the exemption in 2018 and how that's scheduled to sunset after 2025, potentially halving the exemption. Luna brings up the 'portability' rule that lets married couples double the exemption without fancy trust planning. They also discuss the real-world impact: while the tax raises about $20 billion annually, the planning costs for wealthy families are far higher. No scare tactics, just the actual math. If you've ever heard someone say 'the death tax will take my farm,' this episode explains why that's nearly impossible. Plus, a sincere moment where Lucas and Luna acknowledge that listener support keeps the show ad-free — find them at buy me a coffee dot com slash fexingo. #EstateTax #DeathTax #TaxCutsAndJobsAct #Exemption #Inheritance #WealthTransfer #Portability #IRS #EstatePlanning #Trusts #TaxPolicy #Revenue #FiscalPolicy #Economics #FexingoBusiness #BusinessPodcast #TaxReform #InheritanceTax Keep every episode free: buymeacoffee.com/fexingo