Unofficial Inflation Adjustments for 2026

Posted on by September 12, 2025

The Bureau of Labor Statistics has published the Chained Consumer Price Index (C-CPI-U) for August 2025, and so it’s possible to calculate various inflation adjustments for 2026. The following are the significant federal estate planning numbers calculated for 2026, with the numbers for 2025 shown in parentheses:

  • The annual gift tax exclusion will remain at $19,000 (same as for 2025).
  • The annual gift tax exclusion for a non-citizen spouse will be $194,000 (had been $190,000 for 2025).
  • The “2 percent” amount for purposes of section 6166 will be $1,940,000 (was $1,900,000).
  • The limitation on the special use valuation reduction under section 2032A will be $1,460,000 (was $1,420,000).
  • The top (37%) income tax bracket for estates and trusts will begin at $16,000 (was $15,650).
  • The alternative minimum tax exemption for estates and trusts will be $31,400 (was $30,700), and the phaseout of the exemption will start at $104,800 (was $102,450).

Not included in the above list is the federal estate tax base applicable exclusion amount (and generation-skipping tax exemption), because it was changed to $15,000,000 for deaths and gifts in 2026 by section 70106 of P.L. 119-21 (formerly known as the “One Big Beautiful Bill”). It had been $13,990,000 for 2025, and will not be adjusted for inflation until 2027.

The Internal Revenue Service will publish the official inflation adjustments for 2026 in a Revenue Procedure that will probably appear in 4-8 weeks.

Insufficient Evidence of Breach of Fiduciary Duty by Agent

Posted on by September 2, 2025

Because the Superior Court had previously ruled that the agent’s deposit of a refund check of the principal into a joint account with the agent was not a per se breach of fiduciary duty, the court in the second appeal would not consider arguments that the deposit was a breach of loyalty or good faith because of the law of the case doctrine, and there was insufficient evidence that the deposit was not in the best interests of the principal. The decision of the Orphans’ Court to deny legal fees to the executor of the principal’s estate was also affirmed because on remand the executor had failed to provide sufficient evidence on the amount or purpose of the fees paid. In re: Estate of Eugenia M. Finnie, 652 EDA 2024, 653 EDA 2024 (Pa. Super. 8/25/2025) (non-precedential).

For the earlier opinion of the Superior Court in the same case, see “No Improper Commingling of Assets by Agent.”

No Improper Commingling of Assets by Agent

Posted on by September 2, 2025

The duties of an agent under 20 Pa.C.S. § 5601.3 apply to powers of attorney created before January 1, 2015, but do not apply to acts of omissions of agents that occurred before that date, and an agent’s deposit in 2014 of a refund check payable to the principal into a bank account in the joint names of the principal and agent was not an improper commingling of assets when the joint account was created by the principal and did not include funds of the agent, but could be a breach of fiduciary duty for other reasons. Because the Orphans’ Court failed to consider other possible reasons, and prevented the parties from developing a record relevant to those other reasons, the case was remanded for further proceedings. In re: Estate of Eugenia M. Finnie, 1476 EDA 2022, 1477 EDA 2022 (Pa. Super. 2/27/2023) (non-precedential), vac’g and rem’g, 12 Fid.Rep.3d 203 (Montgomery O.C. 2022).

For a later opinion of the Superior Court in the same case, see “Insufficient Evidence of Breach of Fiduciary Duty by Agent.”

No Inter Vivos Gift of Realty without Deed

Posted on by September 1, 2025

The handwritten, notarized document signed by the decedent by which he purportedly “gave” his house to the claimant, with the condition that the claimant pay the existing mortgage until he was able to obtain a mortgage in his own name, was not an inter vivos gift of the property because there was no delivery of a deed, and so the claimant filed to present clear, direct, precise, and convincing evidence of his interest in the property. In re: Estate of Robert O. Garvin II, 1346 WDA 2024 (Pa. Super. 8/28/2025) (non-precedential).

Bucks Co. Fees of the Orphans’ Court and Register of Wills

Posted on by September 1, 2025

Bucks County has published new fee schedules for the Clerk of the Orphans’ Court and the Register of Wills. “Fees of the Clerk of the Orphans’ Court; Administrative Order No. 125” (8/19/2025), 55 Pa.B. 6171 (8/30/2025); “”Fees of the Register of Wills; Administrative Order No. 124” (8/19/2025), 55 Pa.B. 6174 (8/30/2025).

Proposed Amendment to Pa. R.O.C.P. 5.8 on the Discharge of a Fiduciary

Posted on by August 18, 2025

The Orphans’ Court Procedural Rule Committee has proposed amendments to Pa. R.O.C.P. 5.8, on the discharge of a fiduciary, in order to clarify that the rule does not apply to the discharge of a trustee under a nonjudicial settlement.

Comments, suggestions, or objections to the proposed amendment should be submitted by email (which is preferred) or regular mail and should be received by October 17, 2025.

“Proposed Amendment of Pa. R.O.C.P. 5.8,” 55 Pa.B. 5856 (8/16/2025).

Proposed Amendments to Pa. R.O.C.P. 7.1 on Discovery

Posted on by August 18, 2025

The Orphans’ Court Procedural Rule Committee has proposed amendments to Pa. R.O.C.P. 7.1 in order to include the procedures under Pa. R.Civ.P. 234.3 for notices to a party to attend a hearing or produce documents or things, and in order to to clarify that the discovery rules of the Pennsylvania Rules of Civil Procedure should apply in cases in which there are no local Orphans’ Court rules for discovery and no local civil rules for discovery.

Comments, suggestions, or objections to the proposed amendment should be submitted by email (which is preferred) or regular mail and should be received by October 17, 2025.

“Proposed Amendment of Pa. R.O.C.P. 7.1,” 55 Pa.B. 5858 (8/16/2025).