Tax legislation is subject to change.
Significant tax changes are on the horizon as the 2026 tax sunset approaches.
This legislative shift will reverse certain provisions of the 2017 Tax Cuts and Jobs Act (TCJA), potentially impacting estate and income taxes for high-net-worth individuals starting January 1, 2026.
As a financial advisor, you may be wondering:
With the deadline fast approaching, now is the time to initiate conversations with your clients about potential estate tax issues. Position yourself as the trusted advisor by addressing their concerns and offering proactive solutions.

If navigating the tax sunset feels overwhelming or if you’re looking to refresh your estate planning expertise, Core Income is here to help.
From reviewing client plans to sharpening your knowledge, we’ll ensure your clients’ estate plans are optimized for the upcoming changes.
Call us at 800-541-7713 or reach out at info@coreincome.com to get started.
Understanding the 2026 Tax Sunset
The great tax sunset of 2026 refers to the reversal of certain provisions from the 2017 TCJA, which is set to expire on December 31, 2025.
The TCJA brought significant changes to the tax code, including adjustments to tax brackets, deductions, and credits. However, many of these updates were temporary and are set to revert to their pre-TCJA levels unless new legislation is enacted to extend or modify them.
Unless Congress acts before the deadline, key changes include:
Estate and gift tax lifetime exemptions will revert to 2017 levels, adjusted for inflation.
Income tax brackets and rates will reset to pre-TCJA levels.
The sunset means over $4 trillion in tax increases would take effect, creating potential challenges for high-net-worth individuals and families. Financial advisors must proactively address these changes to mitigate surprises for clients.
Who Will Be Affected?
The tax sunset primarily impacts your clients with substantial estates and those with a high net worth.
Estate and Gift Taxes
Advisors must help their clients prepare their estate plan accordingly, especially those with taxable estates exceeding $13 million for individuals or $24 million for families.
The current exemption of $13.61 million per individual ($27.22 million for couples) will drop to approximately $6.8 million per individual ($14 million for couples).
This reduction poses a considerable challenge for high-net-worth and ultra-high-net-worth individuals, particularly baby boomers, who may face increased tax liabilities.
Income Taxes
The expiration of TCJA’s income tax cuts will also directly affect many high-net-worth individuals, especially those with net worths exceeding $5 million.
With the sunset, tax brackets will revert to pre-TCJA levels, with the top individual, estate, and trust income tax rate rising from 37% to 39.6%.
To prepare clients for a higher tax environment, advisors should explore strategies to optimize the current lower tax brackets, which may include accelerating income, such as a Roth IRA conversion.
How Financial Advisors Can Prepare Their Clients
The tax year of 2026 could be a big surprise for many US taxpayers without proper planning.
As an advisor, you play a crucial role in helping individuals and families navigate these changes. Here are actionable steps you can start taking today:

Stay Informed
Monitor legislative updates to adjust strategies as needed.
Discuss with Clients
Proactively discuss how the tax sunset may affect their financial goals.
Conduct Scenario Analyses
Help clients understand potential outcomes under different tax scenarios.
Optimize Retirement Accounts
Evaluate contributions and conversions to maximize tax efficiency.
Work with Experts
Partner with tax professionals and estate planning attorneys to deliver comprehensive advice.
Plan for Estate Taxes
Discuss strategies to minimize tax consequences, such as transferring assets to beneficiaries or leveraging life insurance solutions.
How Core Income Can Help
As an advisor, you can utilize Core Income as a vital resource to ensure you deliver financial confidence to your clients in the wake of the potential tax sunset.
The Core team is here to support you by:
Helping you address your clients’ complex estate planning needs with our team of life insurance strategists.
Reviewing your clients’ irrevocable life insurance trusts (ILITs) and estate plans.
Connecting you to trusted estate planning attorneys within our network.
Guiding you in how to navigate these conversations with your clients.
Providing resources to sharpen your understanding of estate and tax planning.
With the 2026 tax sunset approaching, there’s no time to delay.
Engaging with Core Income ensures you have the insights and solutions needed to help your clients preserve their wealth and achieve their financial goals.
Call us today at 800-541-7713 or email info@coreincome.com to explore how we can work together to prepare your clients for these changes.
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Core Income is an FMO, IMO, and independent insurance brokerage dedicated to serving financial advisors, their staff, and their clients.
Our mission is to help advisors deliver financial certainty by supporting them through actuarial precision, elite responsiveness, and collaborative partnerships.
To learn more about how we can support you, schedule a consultation with our team or call us at 800.541.7713.
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Insurance policy guarantees are subject to the financial strength and claims-paying ability of the issuing insurance company. The death proceeds will be reduced by a long-term care or terminal illness benefit payment under this policy. Clients should consult a tax advisor regarding long-term care benefit payments, terminal illness benefit payments, or when taking a loan or withdrawal from a life insurance contract. Please keep in mind that the primary reason to purchase a life insurance product is the death benefit. Life insurance products contain fees, such as mortality and expense charges, and may contain restrictions, such as surrender periods.
This material may contain a general analysis of federal tax issues. It is not intended for, nor can it be used by any taxpayer for the purpose of avoiding federal tax penalties. This information is provided to support the promotion or marketing of ideas that may benefit a taxpayer. Taxpayers should seek the advice of their own tax and legal advisors regarding any tax and legal issues applicable to their specific circumstances. These materials are for informational and educational purposes only and are not designed, or intended, to be applicable to any person’s individual circumstances. It should not be considered investment advice, nor does it constitute a recommendation that anyone engage in (or refrain from) a particular course of action.
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