As we step into 2025 soon, it's the perfect time to review your existing estate plan or start the journey of creating one. Regularly updating your estate plan ensures it reflects your current wishes and aligns with any changes in tax laws or life events. It's also a great opportunity to discuss your plans with family, friends, or anyone involved in your estate, so everything is clear and set to move smoothly when needed.
Stay Ahead of New Laws
Each year brings new tax laws at both federal and Ohio state levels. While most won't directly impact your estate plan, it's wise to check in with your estate planning attorney to stay informed.
In 2025, the federal gift and estate tax exemption amount will increase slightly to $13.99 million per person from $13.61 million in 2024. This means individuals can transfer up to $13.99 million tax-free during their lives or at death, and married couples can transfer up to $27.98 million without federal estate or gift taxes.
Potential Changes in 2026: The Federal Exemption Sunset
While 2025 offers a historically high exemption, significant changes are anticipated in 2026 due to the scheduled “sunset” of the current federal tax laws. Unless new legislation is passed, the federal gift and estate tax exemption will revert to pre-2018 levels, estimated to be around $6 million per person, adjusted for inflation. This could mean that estates valued over this lower exemption threshold may be subject to federal estate tax beginning in 2026, impacting both high-net-worth individuals and families whose estates have appreciated over time.
Ohio-Specific Considerations
While Ohio does not currently impose a state estate tax, it's essential to keep your estate plan up-to-date in case of future changes in state laws. If you have real estate, business interests, or other assets outside of Ohio, consult your attorney to understand how other states' laws may impact your estate plan.
Funding Your Trust
If you established an estate plan last year, make sure your revocable trust is properly funded! This means titling assets such as real estate, bank accounts, and stocks in the trust's name. Any new assets acquired should also be titled appropriately and included in your trust or will.
Making Changes: The Right Way
Regularly revisiting your estate plan is essential. Each year brings potential changes in laws and tax regulations that could significantly impact your estate planning strategies. Life events—such as marriage, divorce, births, or deaths—may also require updates to your estate plan. Similarly, changes in your asset portfolio, like buying a new property or opening new financial accounts, should be reflected in your plan. An annual review will help ensure that your estate plan remains current.
Updating your trust or will isn't as simple as adding a note or informal update. Both trust and will amendments need to be properly documented and meet Ohio's legal requirements.
Starting Your Estate Plan
If you don't have an estate plan, now is a great time to create one! At Halterman Law, LLC, our process is straightforward and tailored to Ohio families. Here's how it works:
- Peace of Mind Planning Session – Book an initial meeting to discuss your goals and concerns.
- Design Meeting – If you decide to move forward, we'll design your estate plan in detail.
- Signing Ceremony – After reviewing the final documents, you'll come to our office for a signing ceremony.
The new year is an excellent time to ensure your estate plan is up-to-date and aligned with your current life and goals. If you have questions or are ready to get started, book your Peace of Mind Planning Session with us today or call our office at (614) 420-2038. We're here to guide Ohio families through the estate planning process every step of the way.
Disclaimer: The information provided in this blog is for educational purposes only and does not constitute legal advice. Every situation is unique, and laws may vary based on jurisdiction. Please consult a qualified estate planning attorney for personalized advice regarding your specific circumstances.
