Estate tax planning addresses how wealth is transferred in a way that minimizes unnecessary tax exposure while preserving flexibility and control. For individuals and families with significant or appreciating assets, federal estate and gift taxes—and in some cases state-level estate taxes—can materially affect what is ultimately passed to the next generation. Effective planning requires more than understanding the rules; it requires structuring assets and transfers in a way that anticipates how those rules will apply over time.
Federal Estate, Gift, and GST Tax Framework
The federal estate and gift tax system is unified. Transfers made during life and at death are combined to determine overall tax exposure. The top federal transfer tax rate is 40%. For 2026, the federal basic exclusion amount is $15,000,000 per individual, and prior taxable gifts reduce the amount available at death.
The system also includes a separate generation-skipping transfer (GST) tax, which applies to transfers made to grandchildren or more remote descendants, or to certain trusts for their benefit. The GST tax also carries a 40% rate and has its own exemption, equal to the estate and gift tax exclusion amount. Proper allocation of GST exemption is essential for multi-generational planning.
Although current exemption levels are historically high, they are subject to change. Planning decisions must take into account not only present law, but also the likelihood of future legislative adjustments and the impact of asset growth over time.
Portability and Its Limitations
For married couples, portability allows a surviving spouse to use a deceased spouse’s unused federal estate tax exclusion amount, provided that a federal estate tax return is timely filed and the election is made.
While portability can preserve unused exemption, it has important limitations. It does not apply to the GST exemption, and it does not provide the same benefits as properly structured trust planning, particularly with respect to asset protection, control, and planning for future appreciation. As a result, portability is typically considered as part of a broader strategy rather than a standalone solution.
At Miller Legal Group, we evaluate when portability is appropriate and when more structured planning provides a stronger long-term outcome.
State Estate Tax Considerations
State-level estate tax rules vary and can significantly affect planning decisions.
- Virginia and California do not currently impose a state estate tax.
- Maryland and the District of Columbia impose estate taxes, generally at exemption levels lower than the federal threshold.
For clients with ties to multiple jurisdictions, these differences can influence how assets are structured, where they are held, and how transfers are planned. Changes in residence or asset location can also affect whether state-level tax applies.
Miller Legal Group incorporates these jurisdictional considerations into the planning process to ensure that both federal and state-level exposure are addressed in a coordinated and practical way.
Evaluating Estate Tax Exposure
Effective estate tax planning begins with a detailed evaluation of the estate as it exists today and how it is expected to evolve. This includes analyzing asset composition, projected appreciation, ownership structures, prior gifting, and existing planning arrangements.
At Miller Legal Group, Ms. Miller works with clients to identify not only current exposure, but also where exposure may arise in the future. This forward-looking analysis is particularly important for estates with appreciating assets, concentrated holdings, or long-term planning horizons.
Lifetime Gifting Strategies
Lifetime gifting is one of the most direct ways to reduce estate tax exposure. By transferring assets during life, future appreciation occurs outside of the taxable estate. This may include annual exclusion gifts, direct payments for education or medical expenses, and more structured gifting programs.
For larger estates, gifting strategies are often used to gradually shift value out of the estate in a controlled manner. These decisions must be carefully balanced to preserve liquidity, maintain financial flexibility, and avoid unintended consequences.
Ms. Miller advises clients on how to implement gifting strategies that align with both tax objectives and broader planning goals.
Irrevocable Trust Planning and GST Strategy
Irrevocable trusts are a central component of estate tax planning. When properly structured, these vehicles remove assets from the taxable estate while allowing for controlled distributions and long-term planning flexibility.
Strategies may include spousal lifetime access trusts (SLATs), grantor trusts, and multi-generational trusts designed to take advantage of the GST exemption. When GST exemption is properly allocated, assets can pass across multiple generations without being subject to transfer tax at each generational level.
At Miller Legal Group, Rhonda A. Miller focuses on both the technical design and the practical implementation of these structures, ensuring they are properly funded, coordinated, and capable of functioning as intended over time.
Planning for Appreciating and Illiquid Assets
Estate tax exposure is often driven by assets that are expected to appreciate significantly or that are difficult to liquidate. Closely held businesses, real estate, and concentrated investment positions require careful planning.
This may involve valuation strategies, restructuring ownership, or transferring interests in a way that reduces future tax impact. It also requires attention to liquidity, as estate taxes may become due at a time when assets cannot easily be converted to cash.
Miller Legal Group works with clients to address these issues proactively, helping to preserve value and reduce the risk of forced sales or administrative complications.
Charitable Planning Strategies
Charitable planning can be an effective component of an estate tax strategy. When structured properly, charitable giving can reduce the taxable estate while allowing clients to support causes that are important to them.
This may involve lifetime gifts, testamentary transfers, or charitable trust structures. These strategies are integrated with the broader estate plan to ensure they achieve both tax efficiency and personal objectives.
Coordination with the Overall Plan
Estate tax planning does not operate in isolation. Decisions involving trusts, gifting, and asset transfers must be coordinated with fundamental estate planning, beneficiary designations, business succession planning, and long-term financial objectives.
At Miller Legal Group, this coordination is a central part of the process. Rhonda A. Miller ensures that tax-driven strategies integrate with the broader plan, avoiding conflicts and unintended consequences that can arise when planning is done in isolation.
A Forward-Looking Approach
Tax laws change, asset values fluctuate, and personal circumstances evolve. Effective estate tax planning must be designed with enough flexibility to adapt without requiring constant restructuring.
Drawing on her experience in both planning and estate administration, we develop strategies that are not only technically precise, but practical to implement and maintain over time.
Preserving Wealth Across Generations
A well-designed estate tax plan reduces unnecessary tax exposure while preserving flexibility, control, and long-term value. It allows wealth to be transferred more efficiently and predictably across generations.
At Miller Legal Group, estate tax planning is approached as a coordinated, long-term strategy—ensuring that planning decisions made today continue to serve their intended purpose over time.