Election results often bring a lot of questions. And one question I hear from clients is, “What does this mean for my taxes and estate plan?”

With Democrats winning control of both the House and Senate in the November 2026 elections, we could see some changes in the years ahead.

But there’s an important point I want to make right away.

The election did not change our tax laws. And major changes are unlikely before 2029.

President Trump remains in office through January 2029. Although Democrats will control Congress, the President can veto legislation he doesn’t support.

That means both parties will generally need to work together to make significant changes.

But looking beyond the next two years, there are some important tax issues that Michigan families should understand.

Why This Matters

The Estate Tax Exemption Is Still Very High

One of the biggest concerns in estate planning is the federal estate tax.

This is a tax that may apply when someone dies and leaves behind a large amount of money or property.

Under the tax law passed in July 2025, each person can leave up to $15 million in 2026 without paying federal estate tax. That amount increases with inflation.

For married couples, proper planning can potentially protect twice that amount.

The law also removed the automatic expiration date that previously threatened to reduce this exemption.

That’s good news for families with significant assets.

But here’s something important to remember.

Just because a tax law is called “permanent” doesn’t mean Congress can’t change it.

A future Congress and President could lower the exemption. In fact, previous proposals have suggested reducing it to as little as $3.5 million per person.

Nothing like that has become law. But it reminds us why estate planning needs to be flexible.

Some Popular Tax Breaks Will Expire After 2028

The 2025 tax law also created several temporary tax benefits.

These include:

  • An additional tax deduction of up to $6,000 for qualifying taxpayers age 65 and older.
  • Tax deductions for certain overtime pay.
  • Tax deductions for certain tip income.
  • A deduction for interest paid on qualifying new car loans.

These benefits have income limits and other restrictions.

Under current law, these deductions are scheduled to end after December 31, 2028.

Congress could extend them, but there’s no guarantee.

For retirees, especially those who qualify for the additional senior deduction, this is something worth keeping in mind when planning future income and taxes.

The Bigger Changes May Come in 2029

The next presidential election will take place in November 2028.

At that point, voters will decide who controls the White House and Congress beginning in 2029.

Depending on the results, we could see proposals involving:

  • Lower estate tax exemptions.
  • Higher taxes on larger estates and high-income families.
  • Changes to how inherited property is taxed.
  • Changes to certain trusts used to protect and transfer family wealth.

These are possibilities, not changes that have already happened.

And while some proposals may receive a lot of attention over the next two years, they won’t become law simply because Congress discusses them.

What Does This Mean for Michigan Families?

For most of the families I work with, federal estate taxes aren’t the biggest concern.

Michigan families are often more concerned about avoiding probate, protecting assets from long-term care costs, making sure the right people can help when needed, and passing property to children without unnecessary problems.

Those concerns don’t disappear because of an election.

But families with larger estates, family businesses, substantial retirement accounts, or property that has increased significantly in value may need to pay closer attention to future tax changes.

And even if your estate is well below the current federal estate tax exemption, changes in tax laws can affect how your family receives and manages an inheritance.

That’s why I believe a good estate plan should do more than address today’s rules.

It should also have enough flexibility to handle changes we can’t predict.

Simple Lesson

We can’t control what happens in Washington. But we can control how well we prepare.

An estate plan should reflect your wishes today while giving your family the ability to adjust when circumstances change.

That’s especially important when tax laws, family needs, and financial situations can look very different ten years from now.

Action Step

If you haven’t reviewed your estate plan in several years, this may be a good time to do so.

You don’t need to make changes simply because of an election.

But it’s worth making sure your plan still reflects your wishes, protects the people you care about, and has the flexibility to work as laws change.

And if your estate is large enough that federal estate taxes could become a concern, consider reviewing your planning with your estate planning attorney and tax advisor before the next major round of tax changes.

The goal isn’t to predict the future.

It’s to be prepared for it.

Questions about planning for the future? You can call our office at (517) 548-7400 or connect with us here: https://www.michiganestateplans.com/contact-us