The Effect of Federal Estate Taxes on Business Transitions
There are many factors—both financial and personal—to consider when crafting a business transition. Among the financial factors is taxation, and one element of taxation that few owners have had to consider since 2018 is the effect of federal estate taxes on business transitions. Currently estates of less than $12.92 million (or $25.84 million for a married couple) pay no federal taxes. As of January 1, 2026, however, and unless Congress acts, the exemption level falls to approximately $5 million, as adjusted for inflation. Double that for married couples.[1] The value