Estate Tax Planning Attorneys in Alaska

Planning for the Unknown

Do you know the total value of your estate, including your home, retirement accounts, life insurance, and investments?

Are you confident your plan accounts for future growth, or that your family could cover tax obligations without having to sell property or businesses to raise cash?

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For high-net-worth individuals and growing families, federal estate tax exposure may not feel immediate, but it can surface unexpectedly. Many people do not realize how close they are to the federal exemption limit, especially after factoring in asset appreciation, life insurance proceeds, and retirement accounts.

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At Foley Pearson Riekkola Iverson, we help Alaskans understand whether estate tax planning is necessary for their situation—and if it is, we can recommend the appropriate legal tools to help minimize or manage that exposure effectively.

What Is the Current Estate Tax Law?

As of 2025, the federal estate tax exemption is $13.99 million per individual, or $27.98 million for a married couple using portability. Estates valued above that threshold are subject to a 40% federal estate tax on the amount that exceeds the exemption.

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Importantly, the One Big Beautiful Bill Act increased this number to $15 million, starting in 2026. The exemption amount will increase annually using an inflation index. There is no “sunset” provision for this Act, which means it will continue unless Congress takes action to change the law. However, Congress does have the power to change the estate tax exemption, and could do so in the future. This is why it is important to consult with an attorney to determine what the estate tax rules are when you are implementing your estate plan.

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Alaska currently does not have its own estate tax, but if you own property or real estate in another state that does, such as Oregon or Washington, your estate may be subject to that state’s tax laws as well.

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Additionally, because estate taxes are due within nine months of death, a lack of planning can result in liquidity problems—forcing families to sell property or borrow money just to cover the tax bill.

How We Help Reduce or Manage Estate Tax Exposure

We work with clients to understand the scope of their estate and offer custom strategies that may include:

Use of Portability and IRS Form 706

We guide surviving spouses in filing a Form 706 Estate (and Generation Skipping Transfer) Tax Return to elect portability of the unused exemption from the deceased spouse—helping preserve the full amount of available estate tax exemption for the next generation.

‍Credit Shelter Trusts (Bypass Trusts)

By creating a trust at the death of the first spouse, couples can preserve both spouses’ exemptions, control asset distribution, and remove appreciation from the taxable estate.

Lifetime Gifting Strategies

Federal law allows you to gift up to $19,000 per person per year (as of 2025) without reducing your lifetime exemption. Strategic gifting can remove appreciating assets from your estate while allowing you to support children or grandchildren during your lifetime.

Business Succession Planning

Closely held businesses require special planning. We help clients transition business ownership in ways that reduce estate tax exposure and preserve control, even when only some heirs are involved in the business.

Irrevocable Life Insurance Trusts (ILITs)

Life insurance is often used to cover estate taxes, but when owned directly, the proceeds may be taxable. An ILIT may be an option to remove policies from your taxable estate and ensure liquidity is available when needed.

Charitable Giving Tools

We help clients incorporate donor-advised funds, charitable remainder trusts, or planned bequests to reduce estate tax liability while supporting causes that matter to them.

What Could Happen Without Estate Tax Planning?

If your estate exceeds the federal exemption and no plan is in place, your heirs may face:

• A tax liability of up to 40% on the amount over the exemption
• Forced sales of illiquid assets such as real estate or business interests
• Loss of portability if no Form 706 is filed within the required deadline
• Missed opportunities to protect appreciation through gifting or trust structures

Many clients assume estate tax planning is only for the ultra-wealthy. But a few key assets—real property, a successful business, or large life insurance policies—can push an estate past the exemption limits faster than expected.‍

Why Work with Foley Pearson Riekkola Iverson?

We help Alaskans plan for what their estate may become—not just what it looks like today. Our team provides:

• A detailed review of your asset structure and potential exposure
• A planning process that integrates tax-saving strategies with your overall goals
• Coordination with your CPA and/or financial advisor
• Continued support through The Generations Program to adjust your plan as values grow or laws change

We understand that estate tax planning is not just about numbers—it’s about protecting your legacy and ensuring your family is not caught off guard.

Attend an Online Workshop to Learn More, Register Today

Wondering if estate tax planning applies to you? We invite you to start with one of our free, online attorney-led workshops. These sessions offer a practical, no-pressure way to learn what tools are available and when they make sense.