By Susan M. Graham, Certified Elder Law Attorney*, Senior Edge Legal, Boise, Idaho
If you’ve been losing sleep over “the tax man” coming for your estate, you can relax—at least about that particular worry. For most of the families we work with, federal estate tax and Idaho inheritance tax simply aren’t the threat they used to be. But that doesn’t mean taxes don’t matter—it means your energy should go toward the taxes that actually affect you.
The Federal Estate Tax Rarely Applies Anymore
In 2026, an individual can pass $15 million to heirs, and a married couple $30 million, before the federal estate tax kicks in. Decades ago the exemption was far lower ($1 million in 2003), so “avoiding estate tax” used to drive many plans. Today, unless your estate is well into eight figures, it isn’t something you need to plan around. Idaho adds no state estate or inheritance tax on top of that.
So What Should You Actually Plan For?
Letting go of the estate-tax myth is good news, but income taxes still show up in places retirees don’t expect:
- RMDs: Required withdrawals from retirement accounts count as taxable income—unless you direct your annual IRA minimum distribution to charity.
- Social Security: Up to 85% of benefits can be taxable once total income exceeds $25,000 (individual) or $32,000 (married filing jointly).
- Inherited IRAs: Most non-spouse beneficiaries must empty the account within 10 years—done carelessly, this can push heirs into higher brackets.
- Capital Gains: How and when you pass on a home, investment account, or property changes what heirs owe—good planning can reduce or eliminate this tax.
The Real Work of Estate Planning
A good estate plan earns its keep not by dodging a tax that mostly doesn’t apply to you, but by sequencing withdrawals, choosing the right accounts to draw from first, and structuring how assets pass to your heirs—so they aren’t handed an unnecessary tax bill along with their inheritance. That’s planning most DIY estate documents never touch.
ACTION STEP: Call Senior Edge Legal at 208-344-0375 or visit senioredgelegal.com to schedule a review of your withdrawal strategy and income-tax exposure before your next RMD or Social Security check arrives.
FREE Public Seminar
Take Control of Your Future – Starting Today!
Wednesday, Sep 23 from 10:00 – 11:30 a.m.
Hampton Inn and Suites, Boise Spectrum, 7499 Overland Road
CALL NOW to register!! 208-626-6972
Or Contact Us here
* Certified by the National Elder Law Foundation
