How the Tax Code Taxes Your Inheritance in 2026

In this episode of The Tax Policy Podcast, Lucas and Luna unpack the state of inheritance taxes in August 2026. With the federal estate tax exemption set to expire at the end of next year, they explain what that means for wealthy families and the broader economy. They walk through the current $13.61 million exemption, the 40 percent top rate, and the looming sunset that could cut the exemption roughly in half. They also explore the rarely discussed 'step-up in basis' rule, which lets heirs avoid capital gains tax on appreciated assets, and why that provision is worth more than the estate tax itself. With anecdotes from family farms to tech founders, they discuss why some states have their own estate taxes, how portability works for married couples, and what the coming policy battle might look like. If you've ever wondered whether you'll owe taxes on an inheritance, this episode cuts through the confusion with practical examples and a look ahead to 2027. #EstateTax #InheritanceTax #StepUpInBasis #TaxCode #WealthTransfer #FederalExemption #TaxPlanning #FamilyBusiness #Heirs #Economics #FiscalPolicy #IRS #WealthInequality #CapitalGains #MarriedCouplesPortability #TaxSunset #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo