Legal and legislative information reviewed November 4, 2026.
The November 2026 elections have changed the political landscape in Washington, and families with substantial wealth may be wondering what those results mean for their estate plans.
Democrats have won control of both chambers of Congress, creating a divided federal government for the remainder of President Donald Trump’s term. In Virginia, Democrats already controlled the governorship and General Assembly following the 2025 elections.
For families with significant assets, these developments raise reasonable questions. Could federal estate-tax exemptions change? Might Virginia reconsider its approach to taxing inherited wealth? Should families accelerate gifts or reconsider trusts established under earlier tax laws?
Those questions deserve attention, but they also require an important distinction: Election results do not change tax laws. Legislation does.
The most useful response is to understand the rules currently in effect, identify where future legislation could affect an existing plan, and determine whether adjustments are appropriate before circumstances become urgent.
What Has Actually Changed Since the Elections?
The November 3 results give Democrats control of the House of Representatives and Senate when the new Congress convenes in January 2027.
That changes which lawmakers will lead congressional committees, set legislative priorities, and consider future tax proposals.
However, a Democratic Congress does not automatically produce changes to federal estate or gift taxes. Legislation must pass the applicable congressional process and receive presidential approval or be enacted over a veto.
The current federal estate-tax exemption remains in place.
At the state level, Virginia entered 2026 with a Democratic governor and Democratic majorities in both legislative chambers. That political alignment may influence future legislative priorities, but it does not establish that Virginia will enact new taxes on estates or inheritances.
Families should therefore distinguish among three categories: existing law, legislation that has already been enacted, and proposals that may be introduced or considered in the future.
Only the first two establish rules on which current planning decisions can reliably depend.
The Federal Estate-Tax Exemption Remains $15 Million
One of the most consequential developments for wealth-transfer planning occurred before the midterm elections.
Federal legislation enacted in July 2025 established a $15 million basic estate and gift-tax exclusion for 2026, with inflation adjustments beginning in subsequent years.
That replaced the previously scheduled reduction in the exemption that had concerned many families and estate-planning professionals.
According to the Internal Revenue Service, the basic exclusion amount for 2026 is $15 million per individual.
The federal estate and gift-tax system generally applies a top rate of 40% to taxable transfers above the available exclusion.
For married couples, proper planning may allow substantial additional wealth to pass without federal estate tax. However, preserving a deceased spouse’s unused exclusion through portability generally requires an appropriate federal estate-tax return and election. Portability also has limitations, including its treatment of generation-skipping transfer tax exemptions.
Importantly, the $15 million exemption is not scheduled to revert automatically to the much lower amount previously anticipated for 2026.
Congress could change the exemption through future legislation, but no such change has resulted from the November elections.
Why Families Below the Exemption Still Need to Pay Attention
Consider a Virginia couple with a privately owned business valued at $12 million, investment accounts worth $7 million, and real estate and other assets totaling $5 million.
Their combined estate is approximately $24 million.
Under current law, the couple may have opportunities to transfer that wealth without federal estate tax, depending on ownership, prior taxable gifts, available exclusions, and how their estate plan is structured.
But what happens if the business doubles in value over the next decade?
Their estate could grow substantially even without additional investments or acquisitions.
If the couple has not coordinated ownership, trusts, and available exemptions, the resulting estate-tax exposure could be significant. They might also face a liquidity problem if much of their wealth remains concentrated in the business.
This is why effective estate-tax planning considers both current asset values and how those assets may appreciate.
The question is not simply whether a family exceeds today’s exemption. It is whether its estate plan can accommodate future growth, changes in ownership, and the possibility of different tax rules.
What About Virginia Estate and Inheritance Taxes?
Virginia currently does not impose a general estate tax or inheritance tax.
According to the Virginia Department of Taxation, the state’s former estate tax was effectively repealed in 2007. Limited historical exceptions concerning certain remainder interests remain.
That position has not changed because of the 2026 midterm elections.
Nevertheless, state tax considerations remain important, particularly for families with residences or property in multiple jurisdictions. Maryland and the District of Columbia, for example, have separate estate-tax systems that may affect certain families with connections to those jurisdictions.
Virginia’s political leadership may also consider new tax proposals in future legislative sessions. Such proposals should be evaluated on their actual terms rather than treated as inevitable changes.
For now, families should plan under existing Virginia law while maintaining enough flexibility to respond if legislation affecting their circumstances is enacted.
Virginia Has Already Made Other Estate-Related Changes
Although the elections have not changed federal estate-tax law, Virginia enacted several relevant changes during its 2026 legislative session.
One concerns the duties of agents acting under powers of attorney.
Amendments to Virginia Code § 64.2-1612 address an agent’s obligation to disclose certain actions and records when legally authorized persons request information. The amendments also establish requirements for provisions intended to relieve agents of specified disclosure duties.
For families with substantial assets or complicated financial relationships, the selection of an agent and the authority granted under a power of attorney deserve careful consideration.
Another enacted change affects the time available to claim certain allowances from a deceased person’s estate.
Under the amended Virginia Code § 64.2-313, the deadline for claiming a family allowance, exempt property, or homestead allowance is generally measured from the later of the admission of the will to probate or qualification of an administrator, rather than simply from the date of death. Separate protections apply to certain purchasers of real estate.
These changes concern estate administration and fiduciary responsibilities rather than the federal estate-tax exemption.
They also illustrate why a useful estate-plan review should address legal developments beyond tax rates alone.
Which Potential Changes Should Families Monitor?
Several areas deserve continued attention as federal and Virginia lawmakers consider future legislation.
Federal estate and gift taxes. Future proposals could seek changes to exemption amounts, tax rates, or particular wealth-transfer techniques. Whether any proposal advances will depend on its specific provisions and the legislative process.
Trust taxation and administration. Families with irrevocable or multigenerational trusts should monitor changes affecting trust income, distributions, transfer taxes, and the treatment of particular planning strategies.
Capital gains and income taxes. Changes affecting the taxation of appreciated assets could alter the relative advantages of lifetime gifting, holding assets until death, or using certain trust structures.
State-level taxes and fiduciary rules. Virginia residents should monitor enacted legislation affecting estate administration, powers of attorney, trusts, and any future proposals concerning state taxation.
Not every potential legislative change requires immediate action. The important consideration is whether a particular development could materially affect the family’s objectives or existing arrangements.
What Should Families Review Now?
A useful review should begin with the estate plan’s current effectiveness, not with predictions about Congress.
For families with significant assets, five areas deserve particular attention.
- Current and projected estate values. Are business interests, investments, real estate, and other assets valued accurately? Could expected appreciation create future estate-tax exposure?
- Existing trusts and available exemptions. Do trusts still serve their intended purposes? Have prior taxable gifts been properly considered? Are portability and generation-skipping transfer tax issues being addressed where relevant?
- Lifetime gifting decisions. Would transferring particular assets now accomplish a meaningful objective? What would be sacrificed in terms of control, liquidity, or income-tax treatment?
- Business ownership and estate liquidity. If a substantial portion of the estate consists of a privately held business or other illiquid assets, how would potential taxes, expenses, or buyout obligations be funded?
- Fiduciary appointments and document coordination. Are trustees, executors, and agents still appropriate? Do beneficiary designations, ownership arrangements, and powers of attorney support the overall plan?
These considerations often overlap. For example, transferring an appreciating business interest through a trust may affect estate taxes, income taxes, management control, and future family distributions.
That is why sophisticated wealth-transfer strategies require coordinated legal and tax analysis rather than isolated decisions.
Preparation Is Better Than Reacting to Political Headlines
There may be circumstances in which families benefit from acting before legislation changes. But that does not mean every election should trigger substantial gifts, new irrevocable trusts, or major restructuring.
Some strategies involve surrendering control of valuable assets. Others introduce administrative responsibilities, tax consequences, or restrictions that cannot easily be reversed.
A decision made primarily because of uncertainty about future legislation may create problems that outweigh the anticipated benefits.
The more durable approach is to understand what the estate plan accomplishes today, identify areas of vulnerability, and evaluate whether appropriate flexibility already exists.
For many families, that review will reveal opportunities to improve their planning even if no significant tax legislation is enacted.
Make Decisions Based on Your Estate, Not Election Predictions
The 2026 elections have changed the political environment, but they have not eliminated the need for disciplined, long-term estate planning.
The federal estate and gift-tax exemption remains $15 million per individual for 2026. Virginia continues to operate without a general state estate or inheritance tax. Additional legislation may emerge, but its eventual form and effect remain uncertain.
Families with substantial wealth should be prepared for possible changes without allowing speculation to dictate irreversible financial decisions.
Miller Legal Group advises individuals, families, and business owners on sophisticated estate and tax planning, trust structures, and long-term wealth-transfer strategies. If you are concerned about how changes in tax policy could affect your existing plan, contact Miller Legal Group to discuss your current exposure and appropriate planning options.
