Why Business Owners Shouldn’t Ignore the 2026 Estate Tax Sunset
By Gabe Llewellyn | Llewellyn Financial LLC
There’s a quiet countdown happening in the background of America’s tax code—one that could have big implications for business owners in the food and supply chain world.
In 2026, the Trump-era estate tax exemption is scheduled to sunset. That means the current threshold—$13.61 million per person—will drop to roughly half, around $6.8 million. On paper, this sounds like something that only impacts billionaires.
But that couldn’t be further from the truth.
For many business owners, farmers, and entrepreneurs in the CPG and supply chain industries, this change could force unwanted sales, trigger liquidity crises, or derail succession plans that have been decades in the making.
👨🌾 The Farmer Example: Land Rich, Cash Poor
Let’s start with a familiar story.
A third-generation farming family in Iowa owns 1,200 acres of productive farmland. It supports a modest, steady income—but on paper, the land is worth $12 million. If the exemption drops in 2026 and the owners pass away or transfer the land, their heirs could face an estate tax bill of over $2 million.
Where does that money come from? In many cases, it doesn’t exist. Families may have to sell land—sometimes the most productive or strategically located parts of the operation—just to pay the IRS.
The result? Generational disruption. Fragmented assets. And a business that’s harder to keep in the family.
🏢 The CPG Founder: A Business at Risk
Now let’s zoom out.
Imagine a founder who built a $25M regional food manufacturing business. They supply several major retailers and employ 75 people. The business is profitable and stable—but most of the founder’s wealth is tied up in the business itself.
If they pass away post-2025, their heirs could be looking at a $5M+ estate tax liability. If that tax isn’t planned for, the family may have to sell business assets, lay off employees, or even consider selling the business entirely—just to meet the IRS’s deadline.
This isn’t theoretical. I’ve seen families blindsided by tax implications they thought “didn’t apply to people like us.”
📦 The Hidden Risk for Supply Chain Operators
Asset-heavy businesses—like warehouse operators, trucking companies, cold storage, and logistics—are especially vulnerable.
You may not feel "wealthy," but if you own land, rolling stock, and buildings outright, your balance sheet might say otherwise. In today’s market, property appreciation and industry consolidation have pushed values up. The IRS won’t care how liquid your assets are.
**The estate tax is due nine months after death—**not after the business is sold, or the next crop is harvested.
✅ What Business Owners Should Do Now
If you’re a CPG or supply chain business owner, here’s what I recommend:
Run a preliminary estate valuation: Get a realistic estimate of your net worth, including illiquid assets.
Review ownership structures: Consider trusts, buy-sell agreements, or family partnerships.
Talk with your CPA and estate attorney: Coordinate strategies early.
Model different scenarios: What happens if the exemption is cut in half? What would your heirs actually owe?
🌟 Planning with Purpose
At Llewellyn Financial, I work with executives and owners across the food and supply chain landscape—many of whom never expected to be thinking about estate taxes. But smart planning now can mean keeping a business in the family, avoiding forced sales, and ensuring that your legacy lives on.
If this article hits close to home—or you just want a second set of eyes on your plan—I’m here to help.
👉 Schedule a quick call here
👉 Or download our Free Executive Checklist
About the Author
Gabe Llewellyn is the founder of Llewellyn Financial, a fee-only fiduciary advisor based in Charlotte, NC. He specializes in helping CPG and supply chain executives build intentional wealth plans that align with their values, families, and long-term goals.
