Most families in New Hampshire never have to worry about federal estate taxes. As of 2024, the federal estate tax exemption was about $13.6 million per person—a limit so high that it excluded nearly everyone.
But in July 2025, Congress passed (and President Trump signed) the “One Big Beautiful Bill”, which permanently raised the exemption to $15 million per person (or $30 million for a married couple), starting January 1, 2026. From then on, the exemption will also adjust upward with inflation.
This effectively means that the vast majority of families do not have to worry about a federal estate tax especially if they live in New Hampshire, which has no separate state estate tax. But for wealthier households, and for those who want to plan ahead, there are still important strategies to keep in mind.
How “Portability” Works
When one spouse passes away, any unused portion of their estate tax exemption can be transferred—or “ported”—to the surviving spouse. This means that together, a couple can shield up to $30 million from estate taxes.
There’s a catch, though: this benefit isn’t automatic. The surviving spouse (or their advisors) must file an estate tax return promptly after the first spouse’s death, even if no taxes are owed at that time. Without this filing, the unused exemption could be lost, leaving the surviving spouse’s estate exposed to significant taxes down the road.
Trusts as a Planning Tool
While portability gives couples a powerful way to double their exemption, it isn’t the only strategy available. In fact, some families still use special trusts to optimize their estate tax planning.
One common option is a Credit Shelter Trust (also called a “Bypass Trust” or “Family Trust”). Here’s the basic idea, in plain English:
When the first spouse dies, instead of leaving everything outright to the survivor, a portion of the estate is placed into a trust.
That trust is designed to use up the deceased spouse’s full exemption, shielding those assets from future estate taxes.
The surviving spouse can still benefit from the trust during their lifetime—for example, by receiving income or even principal if needed—but the assets are kept out of their taxable estate when they eventually pass away.
Why consider this if portability exists? Because a credit shelter trust can:
Lock in today’s exemption amount (protecting against future changes in the law),
Preserve growth outside the surviving spouse’s estate (so appreciation on those assets isn’t taxed later), and
Add flexibility and protection, such as shielding assets from creditors or remarriage risks.
For some families, the simplicity of portability is enough. For others, especially those with larger or more complex estates, a trust can provide an extra layer of planning security.
Why This Matters Even If Your Estate Is Smaller
At Cohen & Winters, we don’t typically handle estates in the $15–30 million range, nor do we prepare estate tax returns. However, it’s worth knowing about these rules for two reasons:
Circumstances can change. A growing business, rising real estate values, or a major inheritance could push an estate into taxable territory.
The law could change. While the $15 million exemption was recently extended indefinitely, Congress has the power to reduce it in the future. Families who are well below the threshold today could find themselves above it tomorrow if the cap is lowered.
Even if your estate doesn’t come close to the federal exemption, it’s wise to stay informed. Estate planning is about preparing for the future—not just today’s reality.
At Cohen & Winters, our focus is helping New Hampshire families create practical, thoughtful estate plans that bring peace of mind. If your situation changes or you’re concerned about how future tax laws could impact your family, we’re here to help you think ahead and make a plan.