Decoding the 2025 Tax Law: How it Impacts Your Estate Plan

Ever wondered how the 2025 Tax Law affects your estate plan? Estate planning isn’t just about drafting a will. It’s about managing your assets during your life and preserving them for your beneficiaries. The 2025 Tax Law has introduced changes that might impact your current plan. Here’s why you should reevaluate it.

Firstly, the tax law has adjusted the exemption amounts. This could mean more of your estate is now subject to estate tax. It’s crucial to calculate your potential estate tax liability under the new law.

Secondly, the law has brought changes to gift tax rules. This could affect your plans to reduce your taxable estate by gifting assets during your lifetime. You may need to revise your gifting strategy.

Another significant change is the treatment of trusts. The law has introduced more stringent rules for certain types of trusts. If your estate plan includes these trusts, you should review their structure and tax implications.

Lastly, the law has changed how certain assets are valued for estate tax purposes. This might affect your estate’s value and the amount of estate tax due. You might need to consider different asset transfer strategies.

With these changes, it’s time to dust off your estate plan and give it a fresh look. Consult with a tax or estate planning professional to ensure your plan aligns with your goals and the new tax law.

Source: www.forbes.com