The short version
The tax side of estate planning runs across several areas at once, and it is rarely just one filing. Bringing the tax view in early is where a lot of value gets created, or lost.
Most powerful estate tax moves only work if they are done while you are alive and well, and often years in advance. By the time an estate is being settled, most of the planning levers have already been pulled or lost.
Who handles what
Your estate attorney drafts the legal instruments: wills, revocable and irrevocable trusts, powers of attorney, healthcare directives. They make sure your wishes are legally enforceable and your assets pass the way you intend.
Your financial advisor or wealth manager manages the investments, projects whether your assets support your goals, and keeps beneficiary designations and account titling aligned with the plan.
Your CPA is the tax seat at the table. That is where I focus:
- Modeling the income tax and transfer tax consequences of different strategies before they are locked in.
- Weighing the lifetime-gift versus step-up-at-death tradeoff on appreciated assets.
- Structuring charitable giving (DAFs, QCDs, charitable trusts) for maximum tax efficiency under the current rules.
- Coordinating the basis and gain picture so heirs are not handed an avoidable tax bill.
- Preparing gift tax returns (Form 709) and, when needed, estate and trust income tax returns.
- Planning around state-level estate and inheritance taxes, which often bite well below the federal threshold.
Why early coordination saves real money
Many of the most powerful estate tax moves only work if they are done while you are alive and well, and often years in advance. Gifting appreciating assets out of your estate, setting up a trust, or timing charitable gifts all lose potency or become impossible if they are left until the end.
The 2026 backdrop: OBBBA made the $15 million per person lifetime exemption permanent, so estate planning has shifted from racing a deadline toward deliberate, tax-smart structuring. At the same time, the new charitable deduction floors and caps mean the giving side of an estate plan now rewards careful timing more than it used to.
The basis question that sits in the middle
One decision shows up in nearly every estate plan and sits squarely between income tax and estate tax: should an appreciated asset be gifted during life or held until death? Gifting removes future growth from the estate but passes your cost basis to the recipient. Holding until death generally delivers a step-up to fair market value, erasing the built-in gain for income tax purposes. Which wins depends on the size of the estate, the asset, and your goals.
Where this trips people up
Treating estate planning as a one-time event
Tax law changes, asset values change, and family circumstances change. A plan built around the old sunset assumptions may now be needlessly aggressive given the permanent higher exemption. Plans need periodic review.
Leaving the CPA out until tax season
If the first time your tax advisor sees the plan is when filing the return, the planning window has usually closed. The tax view belongs in the room while decisions are still open.
Forgetting state taxes
Families often plan entirely around the federal exemption and overlook a state estate or inheritance tax with a much lower threshold. The state layer can change the answer.
Estate planning questions people ask
What does a CPA do in estate planning that the attorney does not?
The attorney drafts the legal documents. The CPA models the tax consequences, weighs the gift-versus-step-up tradeoff, structures charitable giving, handles gift and estate tax filings, and coordinates the basis and gain picture so heirs are not handed avoidable taxes.
Why coordinate early instead of at the end?
Most powerful estate tax strategies only work while you are alive and often need years to play out. By the time an estate is being settled, most of the planning levers are gone. Early coordination also prevents costly contradictions between documents.
Did OBBBA change estate planning?
Yes. It made the $15 million per person exemption permanent and indexed it, removing the deadline pressure to rush large gifts. It also added charitable deduction floors and caps starting in 2026, so the giving side now rewards careful timing.
Should I gift assets now or leave them in my estate?
It depends on whether estate tax or income tax is your real exposure. Gifting removes future growth from the estate but passes your basis along. Death generally delivers a step-up that erases the gain. The right answer is fact-specific.
Do I need to worry about state estate tax?
Possibly. Several states impose estate or inheritance taxes at thresholds far below the federal exemption. A plan built only around the federal number can miss a meaningful state liability.
Keep reading
Strategic gifting to heirs
The annual exclusion, the $15M exemption, and the basis tradeoff. →
Charitable remainder trusts
A structure that touches income tax, estate tax, and giving at once. →
Donor-advised funds
The giving vehicle that most often anchors the charitable side of a plan. →
All resources
Browse every explainer in one place. →
Building or updating your estate plan?
I work as the tax seat at the table alongside your attorney and advisor, and I am connected to a network of estate planners for the pieces beyond tax. Getting the tax view in early is where the savings live. Here is how to start a conversation.
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Andrew Sedlacek, CPA
Founder, OGCPA
Andrew is a Certified Public Accountant and the founder of OGCPA. He built his tax career at a local Bend firm and on Deloitte's tax team before founding the firm in 2019, and began professionally as a licensed financial advisor. He focuses on equity compensation, liquidity events, and the tax side of charitable giving and wealth distribution, and serves as the tax subject-matter expert for a venture-backed AI company. He works with clients across Bend, Oregon and the San Francisco Bay Area.
This article is general information, not tax or legal advice for your specific situation. Tax outcomes depend on your individual facts, and the rules change over time. Figures cited reflect 2025 and 2026 amounts and the changes made by the One Big Beautiful Bill Act. Talk to a qualified professional (I am happy to be that person) before acting on anything here. Reading this page does not create a client relationship.