Tax
The 2026 exemption sunset, and what it does not require you to do
Acting in haste is its own risk. A measured reading of the scheduled reduction, and the three circumstances in which it should change your plan.
February 12, 2026
Transfer tax rewards patience and punishes improvisation. Most of the value in this work is created years before the return is filed.
The approach
The principal read tax law at New York University and practises it here in four registers: planning, preparation, compliance and controversy. The planning is where the leverage is — exemption use, valuation discounts, grantor-trust arbitrage, and the generation-skipping allocations that most plans handle by default rather than by decision.
When a return is examined, the firm represents the taxpayer before the Internal Revenue Service, before Appeals, and where necessary before the United States Tax Court. Preparation for that possibility begins at the planning stage, in the contemporaneous record that supports every position taken.
Major areas within the department
Structuring income, transfer and business tax positions before they are reported — including cross-border exposure and the formation of tax-exempt organizations.
The returns themselves, and the filings that keep a taxpayer current with the obligations planning created.
Defending a position once it has been questioned — through audit, administrative appeal, or litigation before the Tax Court or a district court.
From the journal
Acting in haste is its own risk. A measured reading of the scheduled reduction, and the three circumstances in which it should change your plan.
Sequencing the trust work before the letter of intent, and why the order matters more than the terms.
Taxation I forgot to file, Help! Introduction Filing back taxes can be a daunting task, especially if you’ve missed one
Resources
Representative matters
Details are altered to preserve confidentiality.
Questions
Should I act before the exemption changes?
Sometimes. The useful question is not whether the date is approaching but whether you can give away enough to matter without giving away what you will need.
Are valuation discounts still available?
Yes, where the underlying restrictions are real and documented. The discount lives or dies on the record, not on the appraisal.
What triggers an examination?
Large discounts, hard-to-value assets, and any inconsistency between the return and the instruments standing behind it.
Related
The first conversation costs nothing, and commits you to nothing.
