Estate Planning You Can Trust | Estate Planning badger lawyers you can trust to ensure your wishes are fulfilled. It is more than just writing a will it includes a lot of various legal and financial plans to take care of your legacy and loved ones. Estate planning has undergone several significant changes, with new laws that took effect in 2025, making it an ideal time to reassess and adjust your plans.
Understanding Estate Planning
Estate planning is how you legally structure the management and disposal of your estate during your life and after you die. It seeks to eliminate as much uncertainty and as many expenses as possible — with the goal of maximizing the value of your estate and having your assets distributed according to your wishes.
Essential Elements of An Estate Plan:
- Will: A legal document directing how your assets will be distributed after your passing.
- Trusts: Legal entities that allow a third party to hold assets for the benefit of one or more beneficiaries sometimes with tax advantages and avoiding probate.
- Power of Attorney: A document that gives someone permission to handle your financial affairs should you become incapacitated.
- Healthcare Directive: Commonly called a living will, tells your family what you want as far as medical treatment goes if you can’t speak for yourself.
- Beneficiary Designations: The individual(s) named to inherit assets from retirement accounts, insurance policies, or financial instrument.
What Has Changed in Estate Planning for 2025
It is important to stay abreast of the current laws and regulations affecting estate planning. Key updates for 2025 are as follows:
- While the federal estate tax exemption now stands at $13.99 million per individual ($27.98 million per couple for the estate tax), it was $13.61 million in 2024. This modification means people can pass along more wealth without facing federal estate taxes. But those exemptions are set to drop sharply in 2026 unless Congress acts.
- Increased Annual Gift Tax Exclusion: The annual exclusion for gifts for 2025 is increased to $19,000 per recipient (2024: $18,000). Married couples can give to each person up to $38,000 without applying their lifetime exemptions. An opportunity that allows wealth transfer without incurring gift taxes.
- Sunset of Lifetime Exclusion Amounts: The large lifetime exclusion amounts are scheduled to automatically terminate at the end of 2025 to be replaced by a base amount of $5 million (with inflation adjustments) in 2026. People who are thinking about making substantial gifts or doing estate tax planning should complete the process before these changes come into play.
How to Improve Your Estate Plan in 3 Steps
With that changing environment, now is a good time to take affirmative action to review and refresh your estate plan:
- Seek the Help of an Estate Planning Lawyer: Working with a proper estate planning attorney can offer customized advice specific to your needs. If you’re looking for an “estate planning attorney near me,” do the following:
- Search for Local Attorneys: Find estate planning attorneys with strong reviews and proven successful case history
- Get Referrals: Consult friends, family members or financial advisors for recommendations of experienced estate planning attorneys in your locality.
These consultations are a great way to get an assessment of whether you think the attorney would be a good fit for you.
- Review and Update Beneficiary Designations: Make sure that all beneficiary designations on retirement accounts, insurance policies, and other financial instruments are up to date and in line with your overall estate plan.
- Think About Setting Up Trusts: Depending on your situation, setting up trusts can provide benefits — including asset protection, tax savings and avoiding probate. Trusts can be especially beneficial for accommodating complicated estates or for taking care of beneficiaries with special needs.
- Stay Updated On Tax Laws: Tax laws can have a significant impact on the value of your estate and the distribution process. Federal and state tax laws change regularly so be sure to keep on top of recent developments by annually reviewing rules with your estate planning attorney.
- Communicating the Plan: Make sure your family members and beneficiaries are aware of your estate plan so that they can follow your wishes when the time comes.
Additional Resources
To learn more about estate planning, consider checking out:
- American Bar Association (ABA): The ABA provides basic introductory guides and articles about estate planning and best practices.
- Investopedia: Offers in-depth explanations of different estate planning tools and techniques.
- National Association of Estate Planners & Councils (NAEPC): Helps you find local estate planners and other resources.
Conclusion
Estate planning is part of overall financial planning and is integral to protect the estate and ensure that it is transferred in accordance with public policies. Changes made in 2025 mean it’s more critical than ever to review and modify your estate plan. Working with an estate planning attorney who understands estate law, data as of October 2023, and being proactive can help you feel secure in managing your estate and passing it on to beneficiaries for generations.
