Several key estate planning and elder law rules changed in 2026, including a permanently higher federal estate tax exemption, continued New York estate tax exposure, and updated Medicaid and Medicare rules. Those updates may affect how your estate plan works, even if it was carefully drafted just a few years ago.
When the law shifts, your documents do not automatically adjust. A higher federal exemption may sound like good news, but New York’s separate tax system and evolving long-term care rules still demand attention. This is a good time to make sure your wills, trusts, and planning strategies still reflect both current law and your current life.
The Federal Estate Tax Exemption Is Now $15 Million Per Person
In 2026, the federal estate and gift tax exemption increased permanently to $15 million per person and $30 million for married couples, with future inflation adjustments built in. That prevents the sharp drop that had been scheduled at the end of 2025.
For many families, federal estate tax is no longer the driving concern it once was. However, if your estate plan was drafted under prior exemption levels, provisions in your wills and trusts that are tied to tax exemption amounts may now distribute assets differently than you expected. Higher exemptions can create flexibility, but only if your documents are aligned with current law.
New York’s Estate Tax and the “Cliff” Still Create Risk
New York maintains its own estate tax system, separate from federal law. For 2026, the New York estate tax exemption is approximately $7,350,000.
The complication is the so-called “cliff.” If your taxable estate exceeds the exemption by more than 5 percent, or roughly $7,717,500, the estate may be taxed on its full value, not just the amount above the exemption. That can result in a significantly higher tax bill than families expect.
New York also does not allow portability between spouses. If the first spouse to die does not fully use the exemption, the unused portion is lost. For couples whose assets have appreciated, this makes coordinated planning particularly important.
Proper structuring of trusts, beneficiary designations, and lifetime gifts can reduce exposure, but those tools must be reviewed periodically to remain effective.
Medicaid Eligibility and Long-Term Care Planning in 2026
Long-term care planning continues to be one of the most important elder law issues in New York.
The five-year look-back period for nursing home Medicaid remains in effect, and New York continues phasing in a 30-month look-back for Community Medicaid. Income and asset limits are updated periodically, affecting eligibility for benefits.
Asset protection planning strategies, such as a Medicaid Asset Protection Trust, may help preserve assets while maintaining eligibility, but timing matters. Transfers made within the look-back period can result in penalties.
If you are concerned about protecting your home or savings from long-term care costs, reviewing your strategy sooner rather than later gives you more options.
Traditional Wills Still Required in New York
Although New York has passed legislation authorizing electronic wills, it has not yet taken effect. In 2026, traditional paper wills that comply with all statutory signing requirements are still required for probate.
If your documents were signed years ago, it may be time to review them and consider how probate might affect your family, making sure everything complies with current law and reflects your wishes today.
Why 2026 Is a Good Year to Review Your Estate Plan
Legal changes are only part of the equation. Your assets may have grown, your family may have changed, and your health needs may look different from what they did a few years ago.
You may want to review your plan if:
- Your estate value has increased near or above New York’s exemption
- You have updated retirement account beneficiaries
- You are thinking about long-term care
- Your documents are more than three to five years old
A thoughtful review can confirm that your estate tax planning, beneficiary designations, and long-term care strategies still work together.
Make Sure Your Plan Reflects Today’s Rules and Your Current Goals
At the Law Office of Angela Siegel, we help New York families update estate plans and refine elder law strategies with clarity and care. If you would like to understand how the 2026 changes affect your specific situation, we invite you to schedule a consultation to discuss your options.