Given the dramatic increase in the federal gift and estate tax exemption over the last 20 years, there's a common misconception that federal estate planning is a concern of only the wealthiest individuals. Indeed, with the exemption amount currently at $13.99 million (increasing to $15 million in 2026), most families don't need to be concerned with gift or estate tax liability. However, having an up-to-date estate plan remains critical to ensure that your family is taken care of after your death and according to your wishes.
Review Your Plan Regularly
Life rarely stands still. Families grow, priorities shift and what once made sense for your estate may no longer reflect your current circumstances. Here are four key reasons to revisit (and if necessary, revise) your estate plan.
1. Changes to your family. You've likely created your will and may have also set up trusts to maximize your exemption and protect assets from creditors and spendthrift family members. However, circumstances change over time. Is your list of beneficiaries still complete and accurate? You may need to update your will and estate plan to reflect births and (unfortunately) deaths in the family.
Likewise, your estate plan will likely require revisions if you've divorced, especially if you've remarried and your new spouse has children of his or her own. Along the same lines, one or more of your children may have divorced, requiring adjustments to your estate plan. The need to update your plan could even extend to pets that will need care if you unexpectedly pass away.
It's also critical to review who's listed as the executor of your estate. The executor is the quarterback of your estate planning team. Maybe your children were minors when you originally drafted your plan, and now your grown children may be better suited to serve as executors than your aging parents.
Carefully select your executor and a successor (to serve as a backup executor in case the appointed executor predeceases you or is otherwise unable to fulfill the duties). To prevent problems after your death, consider meeting with your successor to address any potential issues or challenges. Even if your first choice is still on board, you may periodically want to "check in" and review matters.
2. Changes to assets and liabilities. Review your estate plan any time there's a significant change in the value of your estate, including the value of any business interests, real estate or securities you own. A major increase or decrease in the value of one asset could cause you to rethink how your holdings will be allocated among your beneficiaries. Similarly, the sale or purchase of an asset may require adjustments to your plan.
3. Change in residence. State law generally controls estate matters. Therefore, the state where you legally reside can make a big difference. The differences may range from the number of witnesses required to attest to a will to the minimum amount a spouse must inherit from an estate. Furthermore, your legal state of residence may affect other estate planning documents besides your will, such as a power of attorney, living will or advance medical directive.
If you're moving to another state, or you've already moved, meet with a local estate planning advisor to review your current plan and determine whether changes are needed. This is especially important when you have a substantial estate for tax purposes. Be aware that your previous home state may assert that you didn't change your legal residence and continue to pursue state death tax obligations.
4. Changes to estate tax law. If you haven't updated your estate plan since the One Big Beautiful Bill Act (OBBBA) passed, it's worth checking in with your estate planning advisor to ensure your plan reflects current tax law.
Under the Tax Cuts and Jobs Act (TCJA), estate planners faced a looming date: January 1, 2026. The TCJA effectively doubled the unified federal gift and estate tax exemption to $10 million (adjusted annually for inflation). However, it also required the amount to revert to its pre-TCJA level after 2025, unless Congress extended it. This caused uncertainty for wealthy individuals whose estates would be exposed to gift and estate taxes if the higher exemption amount were to expire.
The OBBBA provides a great deal of certainty for affluent families. Beginning in 2026, it will permanently increase the federal gift and estate tax exemption amount to $15 million ($30 million for married couples). The amount will continue to be adjusted annually for inflation. If your estate exceeds, or is expected to exceed, the exemption amount, consider implementing planning techniques today that can help you reduce or avoid gift and estate taxes down the road.
Don't forget: Federal tax law changes don't provide protection at the state level. So, it's important for your estate plan to take any applicable state death taxes into account.
Update Your Plan Now
Too often, well-intentioned people create an estate plan, including a will, and then stick it in a drawer or safe deposit box where it gathers dust. This can potentially leave a legacy of estate tax complications and frustrations for your family members when they can least afford it, financially and emotionally. To ensure your final wishes are kept, your assets are preserved and your family taken care of, work with your financial and legal advisors to devise a flexible, comprehensive plan — and review it on a regular basis.