Los Angeles Estate and Gift Tax Planning Attorney
Planning Ahead With Insight From the Inside of the IRS
California does not impose its own state estate or inheritance tax, but that does not mean estate tax planning is unnecessary for Los Angeles families. Federal estate and gift tax rules, along with income tax considerations such as basis planning, can still have a significant impact on what your family actually keeps.
Mitch Port brings a unique perspective to this area of practice: before entering private practice, he served as an attorney in the IRS Office of Chief Counsel and as an IRS revenue and collection officer, giving him firsthand insight into how these rules are actually applied and enforced.
Current Federal Exemption Levels
Under the One Big Beautiful Bill Act, the federal estate and gift tax exemption is $15 million per individual in 2026, and $30 million for a married couple using portability, meaning a surviving spouse can add any unused portion of the deceased spouse's exemption to their own. These amounts are now permanent under current law and continue to be adjusted annually for inflation. The separate annual gift tax exclusion allows you to give up to $19,000 per recipient each year, or $38,000 per recipient for a married couple, without using any of your lifetime exemption or filing a gift tax return.
Why High Exemptions Do Not Mean Planning Is Unnecessary
Even with today's elevated exemption, tax laws change, exemption amounts can be reduced by future legislation, and rapidly appreciating assets, such as real estate or a closely held business, can push an estate's value higher than expected years down the road. We also help clients think beyond the federal exemption to strategies such as lifetime gifting to use exclusions before they might shrink, irrevocable trusts to remove future appreciation from the taxable estate, and coordinating step-up in basis rules so beneficiaries do not face unnecessary capital gains exposure when they eventually sell inherited assets.
Planning Strategies We Use
Depending on a client's specific goals, we may recommend an irrevocable life insurance trust to keep life insurance proceeds outside the taxable estate, a grantor retained annuity trust to transfer future appreciation to the next generation at reduced gift tax cost, qualified personal residence trusts for a primary or vacation home, or structured annual gifting programs. For business owners, valuation discounts available through properly structured family entities can also play a meaningful role in reducing overall transfer tax exposure.
Frequently Asked Questions
Does California have its own estate tax?
No. California repealed its state estate tax decades ago and does not currently impose a state inheritance tax either, though estates may still be subject to the federal estate tax if they exceed the federal exemption.
How much can I give away each year without filing a gift tax return?
In 2026, you can give up to $19,000 per recipient without needing to file a federal gift tax return, or up to $38,000 per recipient if you are married and elect to split gifts with your spouse.
Call (310) 526-3433 to build a tax-efficient estate plan with a former IRS attorney at the Law Office of Mitchell A. Port.
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"I highly recommend Mitchell A. Port"Living outside California, I needed an attorney from the Los Angeles area to handle my difficult LA Probate case. I went online and fortunately found a very experienced Probate Attorney in LA named Mitchell A. Port. Mitchell took my Probate case and did an excellent job helping me navigate through the intricacies of the LA Court Probate system. He quickly responded to any questions I had and was extremely knowledgeable about the steps required to complete the entire Los Angeles County Probate process. I highly recommend Mitchell A. Port to handle any of your future needs concerning the LA Court Probate system.- Randall
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"Knowledgeable, Personable and Results-oriented"Mitch is a great attorney - knowledgeable, personable and results-oriented. He helped me work through a challenging probate issue and his expertise was invaluable in terms of moving the case forward. Two thumbs up and five stars from me.- Jason
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"I found Mitch online and it was the best click I ever made"When I needed a probate attorney I found Mitch online and it was the best click I ever made. Thanks, Mitch- Norman S.
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"My brother and I have been so fortunate that my father chose Mitch Port to create his Trust!"My brother and I have been so fortunate that my father chose Mitch Port to create his Trust!- Cathy W
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"Mitch is compassionate, extremely knowledgeable and professional"
Mitch is compassionate, extremely knowledgeable and professional
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"Mitchell met my highest expectations."Mitchell met my highest expectations.- LaTrisha M
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"Mitch was awesome throughout this entire process and made this a stressless process."Mitch was awesome throughout this entire process and made this a stressless process.- M. C.
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"Probate cases can be difficult but attorney Mitchell Port makes them easier to understand."Probate cases can be difficult but attorney Mitchell Port makes them easier to understand.- Glendene W.
