Does the New Tax Law Impact Your Estate Strategy?

In July 2025, the federal estate tax exemption was set at $15 million per person and $30 million for married couples. For most families, this means the federal estate tax is no longer a significant planning concern. Fewer than 0.1 percent of estates owe any federal estate tax.

But it may be time to take another look at your estate plan—not because of the federal tax change, but because life changes. Families come together in the summer. Schedules are more relaxed. And there is no more useful conversation to have during an unhurried time than one that addresses a simple question: Does what we have in place still reflect what we want to happen?

Why Estate Plans Can Drift

Estate documents can go out of date in two ways. They drift slowly as life and law change around them, or they shift suddenly when someone in the family dies, divorces, remarries, or has children. Most families update their plans after sudden events but may not notice the slow drift.

If your estate plan was created five, ten, or more years ago, it is worth revisiting—not necessarily because something is wrong, but because circumstances change. A plan that was thoughtful when it was prepared may not reflect your current family situation or your current wishes.

Some Things Worth Reviewing

Regardless of the size of your estate, here are a few things worth a second look with your legal and financial advisors:

• Beneficiary designations— Retirement accounts and life insurance policies have designated beneficiaries. These should be reviewed to confirm they match your current wishes and have been updated after major life events.
• Powers of attorney and healthcare directives— These documents name people to make decisions on your behalf if you cannot. The people you named years ago should still be living, willing, and the right choice today.
• Executors and trustees— Has your choice of who handles your affairs changed? The people you named years ago may have moved, aged, or changed their relationship with your family.
• Who has copies of your documents— Your family should know where your documents are stored and who can access them when needed.

If You Live in Certain States or Own Property in Multiple States

The federal exemption change does not affect state-level rules. Some states have their own estate or inheritance taxes with lower thresholds than the federal level. Additionally, if you own property (such as a vacation home or investment property) in a state other than where you live, that state's rules may apply to those assets.

If this applies to your situation, it is worth confirming with your estate attorney or tax professional how state rules affect your specific circumstances.

How to Move Forward

There is no urgency tied to a tax deadline. The federal exemption is not expiring. The reason to review your plan is simply this: life has probably changed since your documents were created, and it is worth confirming that your plan still reflects what you want.

This is best done as a conversation involving your family, your estate attorney, and your financial and tax professionals. Each plays a different role:

• Yourestate attorneyinterprets your legal documents and advises on whether changes are appropriate.
• Yourtax professionaladdresses tax considerations in your specific situation.
• Yourfinancial professionalcan help organize your financial account information, confirm that beneficiary designations match your current wishes, and ensure coordination among your professional team.

If you would like to organize your financial account information or have questions about how to coordinate with your estate attorney or tax professional, we are happy to help. We can also answer general questions about how to structure that conversation with your family and professional team.