For the past 60 years, estate planning attorneys have gathered at the annual Heckerling Institute on Estate Planning in early January to stay current with changes in tax laws affecting trusts and estates, learn about new estate planning strategies and network with peers. A report from the American Heart Association, “Highlights of Heckerling 2026: Charitable Estate Planning,” included highlights from the conference.

A presentation on Recent Developments 2025 provided an overview of the OBBBA and significant tax changes. With the gift and estate tax exemptions rising to $15 million per person, fewer families will owe federal estate taxes, although they may still owe state estate taxes. Most people can now prioritize income tax planning, gifting strategies and asset protection in their estate plans. The SALT tax (State and Local Tax Deduction), which allows taxpayers who itemize on their federal returns to deduct certain taxes from federal taxable income, is temporarily increased to $40,000, so some taxpayers may benefit from revisiting trust structures, especially non-grantor trusts, reviewing state residency planning and coordinating trust siting (more on trust siting below).

A presentation on Qualified Small Business Stock (QSBS) Exclusions explained how this tax incentive, created to encourage investment in small, growing U.S. businesses, can be used by owners to avoid paying taxes on up to $10 million – $15 million in gain when the business is sold. Most active operating businesses qualify, including tech, manufacturing and product development, among many others. This could be one of the most valuable tax incentives in the tax structure and should be examined alongside estate and succession plans.

Trust siting has become more challenging as our culture has changed. Trust siting refers to the legal location, jurisdiction, or “home” of a trust, which dictates which state’s laws govern its administration and taxation. Families are more mobile than ever, with settlors, beneficiaries and trustees often living in different states. Financial accounts can be held anywhere, rather than tied to real estate ownership or residency, as was once the case for situs trusts. Trust administration is today a national business, with banks and trust companies operating across state lines. Modern planning tools may allow a trust’s situs to be changed, offering opportunities to improve protection and tax efficiency.

Foreign assets were examined in a presentation on estate and tax planning for U.S. citizens with global investments and those living in other countries. Different legal systems, forced heirship regimes and the U.S. taxation of worldwide assets at a 40% estate tax rate present unique legal and tax complications. The U.S. has 15 gift and estate tax treaties to reduce double taxation. However, determining who will inherit, whether trusts will be honored and which planning strategies are acceptable requires an estate planning attorney with experience in cross-border planning.

Inherited Retirement Accounts were the subject of a presentation addressing the obligations and opportunities for trustees and executors. Inherited IRAs and retirement plans have special tax rules of their own, and guidance from a knowledgeable estate planning attorney is required to avoid unnecessary taxes and loss of long-term value. Executors have special responsibilities unique to retirement funds, including confirming whether the decedent made IRA contributions, determining if any pre-death plan distributions should be rolled over, verifying the decedent’s Required Minimum Distributions and overseeing correct titling of inherited IRAs to be sure transfers don’t become taxable events.

Estate planning attorneys attend this and other conferences throughout the year to keep up to date with changes in the law that impact estate plans. Regular reviews of estate plans are recommended every three to five years, as changes in the law and in our lives are almost always inevitable.

Reference: American Heart Association (Jan. 26, 2026) “Highlights of Heckerling 2026: Charitable Estate Planning”