Should You Review Your Estate Plan in 2025?

May 22

With looming changes to estate tax laws and key sunset provisions set for 2026, there’s never been a better time to revisit your estate plan. Wills, trusts, and gifting strategies that worked a few years ago may no longer serve your goals under the new tax landscape. Here’s what you need to know, and why 2025 may be your window of opportunity.

What’s Changing in 2026?

The Tax Cuts and Jobs Act (TCJA), enacted in 2017, included a significant temporary increase to the federal estate and gift tax exemption. That exemption is currently over $13 million per individual (or over $26 million per married couple), meaning most estates aren’t subject to federal estate tax.

However, those increased thresholds are set to sunset at the end of 2025, effectively cutting the exemption in half (adjusted for inflation). Unless new legislation is passed, this could dramatically expand the number of estates subject to taxation starting in 2026.

Why Your Estate Plan May Need a Refresh

Even if you’ve already done some estate planning, here’s why it’s worth revisiting now:

Exemption levels may impact your current strategy: A plan built under higher thresholds might no longer be as tax-efficient in 2026.
Gifting opportunities may be time-sensitive: You can gift more now without triggering gift tax, potentially moving significant wealth out of your estate before the exemption shrinks.
Trusts may need updating: Irrevocable and revocable trusts should be reviewed to ensure they still align with your goals and take advantage of current laws.
Life changes matter too: If you’ve had a marriage, divorce, birth of a child, or a major financial event, your estate plan may need to reflect those changes.

Don’t Wait Until It’s Too Late

Estate planning is about more than taxes, it’s about protecting your legacy, your loved ones, and your peace of mind. With the 2026 sunset approaching, 2025 is your chance to act proactively, not reactively.

Let’s Review Your Plan Together

Not sure where your estate plan stands? We’re here to help. Whether you need a full review, help evaluating gifting strategies, or a referral to a trusted estate planning attorney, 4Wealth Advisors can guide you.

Request your Estate Plan Review today, and make sure your legacy is protected, no matter what changes the future brings.

Email: advisors@4wealthfg.com

Phone: 708-695-5300