CONTRIBUTED CONTENT: Good news on estate taxes — and what Idahoans should still watch

When people hear the words “estate tax,” they often assume their family is in for a battle with the government after they’re gone. That fear drives a lot of decisions — sometimes good ones, sometimes unnecessarily complicated ones. If you live in Idaho, here’s something worth knowing upfront: Idaho has no state estate tax. None.

That’s not the case everywhere. Several states (including Washington) impose their own estate taxes on top of the federal one, sometimes kicking in at estate values as low as $1 million. Idaho repealed its estate tax in 2005, and it hasn’t come back. For Idaho residents, the only estate tax you need to think about is federal — and for most families, even that isn’t the issue they think it is.

The Federal Exemption Is Now Permanently High

For years, estate planners were watching a looming deadline: the higher federal exemption created by the 2017 Tax Cuts and Jobs Act was scheduled to expire at the end of 2025, which would have cut the exemption roughly in half. That deadline generated a lot of anxiety — and a lot of rushed planning.

That sunset never happened. The One Big Beautiful Bill Act, signed into law on July 4, 2025, permanently eliminated the expiration date. As of 2026, the federal estate tax exemption is $15 million per individual — $30 million for a married couple using both exemptions — and it is indexed for inflation going forward. Most Idaho families will never come close to those numbers.

Who Actually Needs to Think About This?

For most Idaho families, federal estate tax is simply not a factor. You don’t need an elaborate tax-driven trust structure just because your neighbor mentioned one at a barbecue. What you do need is a clear, well-drafted estate plan that reflects your wishes and protects the people you love.

That said, estate tax planning is a real conversation for families whose assets include:

· Significant real estate holdings, especially farmland or commercial property that has appreciated substantially over time

· A closely-held business or professional practice

· Large retirement accounts combined with other assets

· Life insurance proceeds that could push an estate over the threshold

If your estate might approach the $15 million threshold, there are legitimate strategies — gifting programs, irrevocable trusts, charitable tools — that can reduce the taxable estate. These should be done thoughtfully, with both an estate planning attorney and a CPA, not reactively.

Don’t Let the Tax Tail Wag the Dog

Here’s what I see too often: families who don’t have a federal estate tax problem tie themselves in knots trying to avoid one anyway. They create unnecessary complexity, restrict access to assets, or make irrevocable decisions based on a fear that the numbers don’t support. Good planning starts with an honest look at what you actually have — not a worst-case assumption.

The far more common planning concerns for Idaho families aren’t taxes at all. They’re things like: Who makes medical decisions if I can’t? What happens to my minor children? How do my kids avoid probate? Will my wishes actually be followed? These are the questions that deserve your attention first.

The Bottom Line

Living in Idaho already gives you one advantage most Americans don’t have: no state estate tax. And with the federal exemption now permanently set at $15 million per person, most Idaho families can stop worrying about estate taxes entirely — and start focusing on the real issues of estate planning.

Estate planning is about making sure the people you love are taken care of, your wishes are followed, and your family doesn’t have to figure things out in the middle of grief. If you’re not sure where your estate stands, an attorney can walk you through it. Often the best news is the simplest: you’re in better shape than you thought.

My law firm is currently offering free telephonic, electronic, or in-person consultations concerning probating estates or creating estate planning documents.

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Robert J. Green is an Elder Law, Trust, Estate, & Guardianship Attorney and the owner of Kootenai Law Group, PLLC in Coeur d’Alene. If you have questions about estate planning, probates, wills, trusts, powers of attorney, guardianships, Medicaid planning, or VA Benefit planning, contact Kootenai Law at 208-765-6555, [email protected], or visit www.KootenaiLaw.com.

This has been presented as general information and not as legal advice. Do not engage in legal decision-making without the advice of a competent attorney after discussion of your specific circumstances.