Changes are coming in 2025, and being prepared isn’t just a good idea—it’s mission-critical for your estate plan to succeed. Key developments are outlined in the article “The 2025 Theme for Estate Planning: Be Prepared” from Forbes. Here’s what you need to know and steps to consider taking in the coming year.
Corporate Transparency Act and Reporting Compliance: As of this writing, a court injunction has been re-instated for Limited Liability Corporations and other legal entities to file detailed ownership reports for Beneficial Ownership Information or BOI. The uncertainty may continue as the Texas Top Cop Shop v. Garland case in the Fifth Circuit continues. Your estate planning attorney will recommend what you should do to comply whether this changes again (and again). In the meantime, gather documents and review trusts, LLCs and any entities you own to see which are subject to CTA reporting.
2017 Tax Cuts and Jobs Act. Whether the tax cuts resulting from this act are made permanent or sunset on December 31, 2025, steps must be taken to protect your estate. Lifetime gifting to irrevocable trusts and the use of Grantor Retained Annuity Trusts should be discussed with your estate planning attorney. Review your current estate plan to see if it is prepared for whatever changes occur. Prepare documents for execution, if needed, to avoid last-minute delays if the law does not sunset.
Possible Economic Changes. Whenever a new president takes office, there are concerns about the impact on the economy. This year is no different. This is the time to stress-test portfolios for market volatility and how it might impact estate liquidity and funding for taxes and charitable bequests. Review asset allocations to ensure that assets are shielded from market fluctuations and creditors.
Emerging Trends in Digital Assets and Technology. Estate planning today must include planning for the management and disposition of digital assets as well as traditional assets. Numerous platforms are now used to centralize and manage digital assets so owners and their executors can more easily manage assets after the owner’s death. Estate plans must also address cryptocurrency to avoid losses because of a lack of planning.
Charitable Bequests are on the Rise. Charitable giving is more common than before and is integrated into tax planning for estate plans. An experienced estate planning attorney will work with you to identify qualified charitable organizations with meaning to you and determine your goals for charitable giving. Charitable Remainder Annuity Trusts provide fixed income for beneficiaries and generous donations to nonprofits.
Being proactive about your estate plan protects and preserves wealth, but it must also be strategic, positioning the individual and their family to thrive over time and during changes. Schedule a review of your estate plan to ensure that it meets your needs in 2025.
To learn more about estate planning in the East Valley, Gilbert, Mesa and Queen Creek, schedule your free consultation with Attorney Jake Carlson by using one of the links above.
Reference: Forbes (Jan. 2, 2025) “The 2025 Theme for Estate Planning: Be Prepared”