I’m a CPA: 4 Critical Checks Seniors Need To Make for Their Estate Taxes
Written by
Lydia Kibet
Edited by
Rebekah Evans
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The estate tax rules have changed and if you’re a senior, that matters more than you think. A new federal exemption means that far fewer families will owe estate tax. But that doesn’t mean you’re automatically in the clear.
GOBankingRates spoke to Chad Cummings, certified public accountant (CPA) and attorney at Cummings Law, who shared what four things seniors need to check when it comes to estate taxes.
Confirm Whether You’re Even Subject To Federal Estate Tax
The first step is to find out if your estate is large enough to trigger federal estate tax under the new law. Under the One Big Beautiful Bill Act (OBBBA) signed on July 4, 2025, the federal estate tax exemption is $15 million per person ($30 million for married couples), which began Jan. 1, 2026, per Congress.
“The net result is that the vast majority of seniors will not pay federal estate tax when they pass away,” Cummings said. “But Congress can reduce or eliminate these exemptions through future legislation and any estate plan built on the $15 million figure carries that risk.”
Don’t Ignore State Estate Taxes
The federal exemption increase means nothing if you’re domiciled in a state with estate tax. “Seniors in states like Massachusetts or Oregon still face state estate taxes starting at $1 million,” he said.
If you split time between states, your legal domicile matters. Assuming that you’re protected under federal rules could leave your heirs facing an unexpected six-figure state tax bill.
Update Your Beneficiary Designations
Your will doesn’t override the beneficiary designations on your IRA, 401(k) or life insurance policy. Courts enforce whoever is named on file, regardless of your actual wishes. “it’s important that seniors check (and update) their beneficiary designations on every financial account. Courts enforce the designation on file, not the decedent’s intent,” Cummings said.
Rethink Your Charitable Giving Strategy
Starting in 2026, the OBBBA introduces a 0.5% Adjusted Gross Income (AGI) floor on itemized charitable deductions. If your donations don’t clear that threshold, you lose the deduction entirely.
“Qualified charitable distributions (QCDs) from IRAs for taxpayers age 70 and a half and older bypass this floor, making them the superior vehicle for charitable giving,” Cummings said. If you regularly donate to charity, shifting to QCDs from your IRA is now the smarter tax-efficient strategy.
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