Understanding Missouri Estate Tax: Key Considerations for 2026
The fluid nature of estate tax laws means that your estate plan needs consistent updating as different laws are passed. Use this guide for general information regarding what to expect from Missouri’s estate tax laws as we head into 2026, including a permanent tax exemption increase to $15 million. Planning ahead is essential for protecting your assets in the coming year and an estate planning lawyer in St. Louis can help you.
Increased Estate Tax Exemptions Are Now Permanent
On July 4, 2025, a federal law referred to as the One, Big, Beautiful Bill Act (OBBBA) offered some relief to those concerned about losing the estate tax exemption that existed under the temporary terms of the 2017 Tax Cuts and Jobs Act (TCJA).
The OBBBA has made many of the provisions of the TCJA that were set to expire in 2026 permanent. This has resolved the dramatic “use it or lose it” mindset that was sparking more aggressive estate-planning strategies to secure the higher exemption amount before it expired.
The comprehensive OBBBA tax bill made many changes to existing tax laws that will affect individual income taxes, business income taxes, estate taxes and gift taxes. For an in-depth review of what this might mean for you, schedule a consultation with a knowledgeable local estate tax planning attorney in St Louis.
Higher Estate and Gift Tax Exemption Amounts
The main change for Missouri estate tax law under the OBBBA is that the higher estate tax exemption amounts are now permanent. The TCJA almost doubled the lifetime estate tax (and gift) exemptions. In 2025, the exemption amounts were $13.99 million for individuals and $27.98 million for couples (up from $5 million and $10 million, respectively).
The new OBBBA makes these increased estate and gift tax exemption amounts permanent; unlike the TCJA, this act does not have a sunset provision. The OBBBA will increase the exemption amount further to $15 million per person and $30 million per married couple filing jointly as of 2026. These amounts will be indexed for inflation annually starting in 2027.
Generation-Skipping Transfer (GST) Tax Exemption
The new, solidified exemption values also apply to the generation-skipping transfer (GST) tax. This change allows high-net-worth individuals to transfer their wealth directly to future generations without the GST tax – simplifying estate planning and providing greater opportunities for multigenerational wealth transfers. This exemption applies to the transfer of assets to grandchildren and other “skip” individuals.
The 40 Percent Estate Tax Rate Will Remain
Note that while the exemption amounts for estate taxes have now permanently increased, the 40 percent federal estate tax rate on anything exceeding these exemptions is still in place. This represents a substantial tax liability that can affect individuals and businesses – especially entrepreneurs, business owners and real estate investors. For this reason, proper estate planning remains essential.
How to Plan Your Estate Taxes for 2026
The major tax adjustments going into effect with the mid-year passing of the OBBBA make it crucial to start planning your estate taxes now, well before the start of the 2025 tax filing season. You could be in a position to optimize wealth transfers with the right tools and estate planning strategy.
Get a jump on tax planning by consulting with an estate planning attorney in Missouri right away. A lawyer can help you plan your estate with flexibility in mind to address the constantly evolving federal tax laws in the current political climate. This can prepare your estate for anything. Contact TdD Attorneys at Law today for a free consultation.