The 60th Annual Heckerling Institute on Estate Planning convened in January 2026 in Orlando, marking a pivotal moment for wealth transfer professionals as the industry adapted to sweeping tax reforms. The conference centered on the implementation of the One Big Beautiful Bill Act, signed into law in July 2025, which permanently altered the estate planning landscape and eliminated years of uncertainty surrounding wealth transfer exemptions.
According to speakers Charles A. Redd and Margaret G. Lodise, the 330-page legislation established a permanent $15 million basic exclusion amount for estate and gift taxes, indexed for inflation beyond 2026. The Act also raised the state and local tax deduction cap to $40,000 through 2029, though it introduced new limitations on itemized deductions affecting high-income taxpayers, trusts, and estates.
Estate Planning Modernization Takes Center Stage
The Heckerling Institute emphasized that modern estate planning requires a fundamental shift from traditional approaches. Robert H. Sitkoff and Ronald J. Scalise Jr. addressed what they termed a “revolution” in conflicts of trust laws, noting that geographic fragmentation of families and the shift to liquid financial assets have disrupted traditional legal frameworks. They presented the draft Uniform Conflict of Laws in Trusts and Estates Act, designed to simplify outdated rules and honor donor intent.
Additionally, Philip J. Hayes and Carol A. Harrington explored the erosion of traditional fiduciary duties in their session on directed trusts and silent trusts. They examined how states including South Dakota, Delaware, and Tennessee have enacted statutes that significantly reduce trustee obligations to monitor or inform beneficiaries, provided fiduciaries avoid willful misconduct.
Strategic Tax Planning Opportunities Under New Legislation
Paul S. Lee presented detailed strategies for maximizing Qualified Small Business Stock exclusions, which he described as the “Next Big Bang” of tax planning. Under the new Act, the per-taxpayer exclusion increased to $15 million, while the holding period for partial exclusions decreased to three years for C Corporations. Lee demonstrated how practitioners can structure multiple trusts to potentially shield hundreds of millions in capital gains from federal income tax.
However, these strategies require strict compliance with IRC Section 1202 requirements and navigating anti-abuse provisions. The business incentives also include permanent status for the Section 199A qualified business income deduction, providing ongoing benefits for pass-through entity owners.
Protecting Vulnerable Populations
Meanwhile, the conference addressed the growing challenges of an aging population. Tara Anne Pleat, Kristen M. Lewis, and Bridget O’Brien Swartz highlighted gaps in community-based care systems, urging families to test support networks before crises occur. The speakers emphasized proactive planning for incapacity and disability.
In contrast to preventive measures, Steven K. Mignogna, Charles P. Golbert, and Reid Kress Weisbord examined elder financial abuse, noting that 87.5% of cases go unreported according to industry research. Many states have responded by enacting statutory remedies including treble damages and mandatory fee-shifting provisions to combat exploitation of vulnerable adults.
Technology and Ethics in Modern Practice
Jeff Chadwick, Tracy M. Potts, and Elizabeth B. Vandesteeg warned that technological competence is now a mandatory ethical requirement under Model Rule 1.1. They explored risks associated with generative artificial intelligence, including potential confidentiality breaches when sensitive client data is entered into unsecured public tools. The speakers stressed that estate planning professionals must balance innovation with client protection obligations.
Asset Protection Strategies for High-Net-Worth Clients
Gideon Rothschild, Melissa Langa, and Barry A. Nelson provided comprehensive guidance on modern asset protection techniques. While Domestic Asset Protection Trusts are now available in 21 states, the presenters noted that Foreign Asset Protection Trusts may offer advantages for high-risk clients in specific circumstances. They cautioned that foreign jurisdictions typically do not honor U.S. judgments and that such trusts involve additional compliance requirements including FBAR and Form 3520 reporting.
Furthermore, the speakers highlighted Inter Vivos QTIP Trusts as potentially offering superior asset protection compared to Spousal Lifetime Access Trusts in certain jurisdictions. These sophisticated structures require careful analysis of state law variations and federal tax implications.
Managing Inherited Retirement Accounts
Natalie Choate presented detailed guidance for fiduciaries managing inherited retirement accounts following the SECURE and SECURE 2.0 Acts. Executors face critical responsibilities including completing pre-death rollovers through hardship waivers and ensuring required minimum distributions are satisfied to avoid excise taxes. Choate explained that nonspouse beneficiaries must use direct trustee-to-trustee transfers rather than 60-day rollovers, and explored strategic cleanup maneuvers including qualified disclaimers.
The conference confirmed that estate planning has entered a new era requiring technical precision and ethical vigilance. As Dana G. Fitzsimons Jr. noted in reviewing recent fiduciary cases, the transparency of the digital age means advisors must function as both legal draftsmen and risk managers. The profession will continue adapting to legislative changes as implementation guidance emerges throughout 2026.
