As we move further into 2025, one topic that’s becoming increasingly important for many families is the upcoming change to the federal estate and gift tax exemption — set to take effect at the start of 2026 unless new legislation is passed.

While this might sound like something far off, for high-net-worth families and individuals thinking about legacy planning, now is a good time to begin conversations with your advisor and estate attorney.

A Quick Refresher: What’s Changing?

Back in 2017, the Tax Cuts and Jobs Act temporarily doubled the federal estate and gift tax exemption. That means, in 2025, an individual can gift or pass on up to $13.61 million without triggering federal estate or gift tax (or $27.22 million for married couples).

However, that higher exemption is scheduled to “sunset” after December 31, 2025 — dropping back down to roughly half (adjusted for inflation), unless Congress acts before then.

Why This Matters

For families planning to pass along wealth, make gifts to children or grandchildren, or set up trusts as part of their legacy plan, the next 18 months present a significant window of opportunity.

Some families are already having conversations about how to take advantage of the current exemption — whether through outright gifts, trust structures, or other planning tools. The idea is simple: if you wait too long, that higher exemption may no longer be available.

What You Can Do Now

If it’s been a while since you last reviewed your estate planning documents, this may be a good time to take another look — especially if there have been life changes such as a new grandchild, a recent move, or updates in your financial picture.

We’re here to help guide you through that process. Whether it’s making sure your beneficiary designations are current, helping you think through how you’d like assets passed to future generations, or coordinating with your estate attorney, our role is to help keep everything aligned with your broader goals.

If you’re unsure whether your documents reflect your current wishes — or if you’re just not sure where to start — we’re happy to talk it through with you.

We’re Here to Help

Estate planning can feel overwhelming, but you don’t have to navigate it alone. As part of your ongoing relationship with us, we’re here to help you think through your options, coordinate with your attorney, and ensure your estate plan reflects your wishes. If you’d like to revisit anything or have questions, just let us know — we’re always here to support you.