Is it time to update your estate plan or trust? How often should one revisit existing estate planning? What impact will taxation have upon your present and future finances and estate planning?
Key Takeaways of Why This is a Good Time to Update Your Estate Plan or Trust:
- A lot of things change in a few years’ time. Has there been a recent marriage, divorce, new child or grandchild in the family? Have you sold or acquired a new business interest? Is a planned beneficiary struggling with a health, addiction, or financial management issue?
- The economic impact of recent national and international developments warrants a review of existing and future investment and tax strategies.
- Changes and updates to state and federal law (including congressional action on many provisions of the TCJA previously scheduled to sunset at years’ end) require a review and strategic update
Should the old saying “The only sure things in life are death and taxes…” be modified to include “change?” Is it time to update your estate plan or trust? Is it time to put these tools in place to protect your financial and business interests?
Estate planning should be reviewed every two to three years. Why so often? The simple answer: change. What has changed in your life over the past year or two? Have you experienced the death of a loved one, or a marriage, divorce, or addition to the family such as a child or grandchild? Did you sell or undertake a new business or significant investment in that time? What major events have occurred in your own life and the life of a spouse in the past few years? What is on the horizon between now and 2028?
Substantial Changes in Taxation and International Business and Investment Realities
2025 has brought substantial changes in taxation, as well as challenges associated with international business and investment realities. Consider the rise and fall of Bitcoin in 2025: from a high of almost $125,000 two months ago, to losing almost a third of its value since. Artificial Intelligence (AI) left it’s mark on 2025 as it has impacted everything from employment, to the online marketplace, search, and even the value of Bitcoin itself.
International tariffs have played a major role in U.S. and international economic conditions. Disruptions in existing supply chains, business, and even political relationships have presented substantial financial, tax, and even legal challenges. Many U.S. investors have offshore assets and investments. Offshore investments, accounts, and business interests present new potential financial and tax-related issues and reporting requirements.
Congress addressed most of the provisions of the TCJA scheduled to sunset at the end of 2025, while extending other important tax impacts of the TCJA going forward. U.S. taxpayers were thankful lower tax bracket rates and Child Tax Credits were made permanent, as well as provisions for the standard deductions and the new temporary senior deduction, though personal exemptions were permanently removed. The permanent estate and gift tax exemptions will make a significant impact on tax planning for significant portfolios and holdings.
Recent changes in state laws reflect the realities of the predominantly online financial activities of many grantors, and this is another reason it may be time to update your estate plan or trust.
For example, most states have recently enacted provisions that allow a person to give the executor or trustee sweeping powers to access a deceased person’s digital accounts and assets based on the Revised Uniform Fiduciary Access to Digital Access Act (RUFADAAA). This includes access to the deceased’s online information, accounts and assets, including digital assets and currencies such as Bitcoin. All of these changes are a primary reason to review and update your living will or trust.
These legal updates also provider the grantor of an estate the right to provide an executor or trustee with the permission to access other online information, including email, cloud storage, social media accounts, health records, content licenses, and databases. Further, theses laws also extend many of the same protections to an incapacitated person, or principal under a personal power of attorney, decedents or settlors, and beneficiaries of trust.
These changes reflect the substantial percentage of people’s lives and financial management that are conducted online, and the related challenges posed after a person dies or becomes incapacitated.
Contact An Experienced San Diego Estate Planning Attorney
It is time to update your estate plan or trust to ensure that it reflects recent developments in your own life, as well as national and international legal and financial realities.
If you have any questions regarding establishing or updating an estate plan or trust, our experienced estate planning, tax attorney, and international tax and transactional planning experts can help you today. We invite you to learn more about the integrated tax, legal, accounting and business consulting services of Allen Barron and contact us or call today to schedule a free consultation at 866-631-3470.
