Now’s the time to revisit your estate plan
If you’ve been putting off updating your estate plan, 2025 might be the year to take another look — because starting in 2026, several major tax and legal changes are set to take effect. And while many headlines currently focus on the impacts on the ultra-wealthy, some of these changes could also affect everyday families.
Coming estate tax changes
Here’s a quick guide to what’s coming — and what smart planning looks like.
Shrinking estate & gift tax exemptions
Individuals who pass away in 2025 can pass on up to $13.99 million without incurring federal estate taxes. The estate tax exemption for married couples is $27.98 million. But on January 1, 2026, that number is scheduled to drop by about half, to roughly $7 million per person (or $14 million per couple).
That’s because a major tax law — the Tax Cuts and Jobs Act (TCJA) — will expire unless Congress extends it.
What this means for you: Even if your estate wouldn’t be taxed today, it might cross the new threshold in a few years, especially if you own a business, farmland, or real estate that appreciates over time.
Other changes to know
1. Lower standard deductions and higher income taxes
Also expiring at the end of 2025 are larger standard deductions and lower income tax brackets. This could impact your retirement and gifting strategies, as well as the taxes your heirs will pay on inherited assets.
2. Trusts and Generation-Skipping transfers (GST)
The GST exemption — used in trusts that benefit grandchildren and beyond — will also be cut in half. If your plan includes multi-generational trusts, this matters.
3. Changes for inherited IRAs
If you inherit a retirement account, you may now be required to empty it within 10 years — and take taxable withdrawals along the way, depending on the original account holder’s age. This can be a surprise for adult children inheriting IRAs.
So, what should you do?
Regardless of the value of your estate, now is a good time to take the following steps:
• Review your estate plan with an attorney before the end of 2025.
• Consider gifting strategies that make use of today’s higher exemption amounts.
• Revisit trusts to ensure they still meet your goals.
• Meet with an accountant and plan for taxes your heirs might face on inherited assets.
Even if these changes don’t affect you today, the goal of estate planning is to stay ahead of what’s coming — not scramble when the laws shift.
If you have questions about how the upcoming changes may impact you or your family, let’s discuss them now so you can feel confident about the future.
