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Estate Tax Withdrawal Schedule Planner

This planner models a sequence of annual lifetime withdrawals from assets that would otherwise remain in a future estate. It projects how recurring outflows and investment growth may change the ending estate value and the amount above an entered federal exclusion.

The tool is useful for testing broad decumulation or transfer schedules before exploring the legal and tax character of each transaction. Each year, the withdrawal is taken from the available balance and the remainder grows at the assumed rate. At the end of the selected period, a simplified estate-tax estimate is applied to value above the exclusion. The default $15 million exclusion is a 2026 federal reference point and can be changed.

Withdrawal schedule assumptions

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$
years
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$
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Result
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Total planned withdrawals
Projected ending estate—
Ending amount above exclusion—
Estimated ending estate tax—
Projected after-tax estate—

1. Enter starting assets
Use the estate-related asset pool you want to project.

2. Set the annual withdrawal
Enter the recurring amount expected to leave the asset pool each year.

3. Choose the planning period
Set the number of years over which withdrawals will occur.

4. Add a growth assumption
Enter the annual return applied after each year’s withdrawal.

5. Set future tax assumptions
Enter the exclusion and estate-tax rate you want applied to the ending balance.

6. Compare schedule outcomes
Review cumulative withdrawals, ending estate value, taxable excess, and estimated tax.

Withdrawal in year n = min(Planned withdrawal, Opening balance)
Ending balance = (Opening balance − Withdrawal) × (1 + Growth rate)
Estimated ending tax = max(0, Final balance − Exclusion) × Tax rate

The sequence repeats once for each planning year. This models the economic reduction in the estate asset pool but does not determine whether a withdrawal is a taxable gift, deductible expense, or another type of transfer.

What the result means

The headline result is the total amount modeled as leaving the estate asset pool during the selected period.

The ending estate-tax estimate is simplified and does not account for the full federal estate-tax computation or state death taxes.

Given: $20,000,000 starting assets, $300,000 annual withdrawal, 2 years, 4% growth.

Calculation: Year 1 ending balance = ($20,000,000 − $300,000) × 1.04 = $20,488,000. Year 2 ending balance = ($20,488,000 − $300,000) × 1.04 = $20,995,520.

Result: Total withdrawals = $600,000 before considering any separate tax consequences of those outflows.

Interpretation: Growth can more than offset the scheduled withdrawals, so the future estate may still increase.

Are “withdrawals” the same as taxable gifts?

Not necessarily. This planner uses withdrawals as a broad lifetime outflow from assets that would otherwise remain in the projected estate. Whether an outflow is a taxable gift, expense, or other transfer depends on the facts.

How does growth interact with the annual withdrawal?

Each year the entered withdrawal is removed first, then the remaining balance grows at the selected rate. This creates a consistent planning sequence for comparing scenarios.

What happens if the estate falls below the planned withdrawal?

The calculator caps the withdrawal at the amount available so the projected balance does not become negative.

Does the ending tax estimate use the 2026 exclusion?

The default exclusion is $15,000,000 for 2026 federal planning, but you can edit it. The result is a simplified estimate and does not model the full estate-tax return.

Why might a smaller estate not mean a better plan?

Lifetime transfers can affect liquidity, control, basis, recipient behavior, and other taxes. Reducing a projected taxable estate is only one planning objective.