Estate Planning is Changing: What Families Should Revisit Now

Estate planning looks very different today than it did a generation ago. For many families, creating a will or trust was seen as a milestone rather than an ongoing process. Once the documents were signed, the plan was considered complete until a major life event triggered a review.

Today, as more Americans live longer and Baby Boomers retire in record numbers, families are navigating a new era of estate planning. Longer retirements, rising healthcare costs, and evolving tax laws are prompting many families to think differently about how they preserve, manage, and eventually distribute their assets.

Below, we discuss several areas worth reviewing as part of a modern estate planning strategy, including trust structures, tax planning, investments, liquidity, and charitable giving.

Keeping Your Estate Plan Current

Estate plans are, by design, long-term documents meant to serve families for years. However, over the course of time, these plans inevitably outlive some of the assumptions they were built on. Family dynamics change, wealth evolves, and the tax and estate planning laws that drive these strategies continue to reset every few years.

Periodically reviewing your estate plan ensures it continues to reflect your current goals and circumstances. Consider how trusts are being administered, whether beneficiary designations and asset ownership records are up to date, and whether charitable contributions still align with your priorities.

It’s also important to evaluate the ongoing costs of trust administration and investment oversight, as certain expenses may affect distributable income, taxable income, and overall planning efficiency.

Reviewing Your Tax Strategy

The tax strategies supporting an estate plan require the same ongoing attention as the plan itself. How assets are taxed influences not only how wealth is used during life, but ultimately how much passes to the people and causes that matter most.

Recent legislative changes have expanded estate and gift tax exemptions, creating additional planning flexibility for some families. Under the One Big Beautiful Bill Act (OBBBA), higher exemption amounts may allow individuals and couples to transfer more wealth during life or at death without triggering federal estate or gift taxes. Amounts transferred above the available exemption remain subject to estate, gift, and generation-skipping transfer (GST) taxes at a rate of up to 40 percent.

Trust structures warrant ongoing review as well, particularly when family circumstances, asset values, or planning objectives have changed. The allocation of GST exemptions should be reviewed to confirm that multigenerational trusts are structured appropriately. When GST exemptions are not allocated correctly, assets transferred to grandchildren and future generations may become subject to both GST and estate or gift taxes.

Married couples should confirm that portability elections have been properly addressed within their estate plan. Preserving an unused estate tax exemption from the first spouse to pass away can provide additional planning flexibility for the surviving spouse and future generations. Families with assets, trustees, or beneficiaries located in different states should also understand how trust residency and administration rules could affect state income tax obligations, as changes in location or trust administration can create tax consequences that were not originally anticipated.

Managing Assets for the Years Ahead

Along with a sound tax strategy, the assets within long-term estates and trusts must be positioned to meet both immediate distribution needs and long-term growth goals. Achieving that balance requires periodic review of the trust's asset allocation to confirm that market volatility and annual cash flow demands stay aligned with the family’s timeline and risk tolerance.

Planning for medical and long-term care expenses is an equally important consideration. While some costs can be anticipated, unexpected medical events can trigger an immediate need for liquidity. For families whose wealth is concentrated in real estate or privately held businesses, those assets may not be readily available to cover a sudden expense. Maintaining an appropriate reserve of cash or liquid securities allows short-term funding needs to be met without forcing the sale of long-term assets at an inopportune time.

When it’s time to consider how assets will be transferred, the timing and structure matter. Gifting assets during life may reduce future estate taxes, but certain appreciated assets may receive a step-up in basis at death, potentially reducing capital gains taxes for heirs. Many estates are no longer subject to estate tax, due to the higher exemption amounts of $15 million per individual, so retaining assets to obtain the basis step-up at death may be the most tax efficient strategy.  

Next Steps

Depending on your stage of life, estate planning may involve very different priorities, from preserving retirement income and preparing for future healthcare needs to structuring the efficient transfer of wealth. Taking the time to start the conversation now can lead to more thoughtful decisions and a more intentional strategy than waiting until choices become limited by time or circumstance.

We’re here to help you and your family navigate these life stages to ensure that your estate and legacy goals are aligned for the years ahead.