Summer break is often a good time to review financial goals, and family priorities. It can also be an important opportunity to revisit your estate plan—especially in light of recent tax law changes. While estate planning strategies vary from family to family, the following three moves are commonly worth reviewing now or before the end of the year.
1. Review Your Estate Tax Exposure
The federal estate and gift tax exemption under Internal Revenue Code Section 2010 remains historically high. For many families:
- Individuals may transfer over $15 million free of federal estate tax
- Married couples may transfer over $30 million
Even with these higher limits, estate taxes can still be relevant for families with significant real estate, closely held businesses, or concentrated investment portfolios. Review whether your current estate plan still aligns with:
- your net worth
- projected asset growth
- potential future estate tax exposure
2. Use Your Annual Gift Tax Exclusion
Each year, individuals can give assets to others without triggering gift tax reporting under Internal Revenue Code Section 2503. These gifts can be made to children, grandchildren, and other family members. For 2026, the annual exclusion allows gifts of approximately:
- $19,000 per recipient
- $38,000 per recipient for married couples
Over time, consistent gifting can reduce the size of a taxable estate while helping younger generations earlier in life. Consider whether year-end gifts could support:
- education funding
- home purchases
- long-term investment accounts
3. Consider Funding or Updating Trusts
Trusts remain one of the most powerful tools for managing wealth across generations. Trusts can also help protect assets from creditors, divorce risk, and spendthrift behavior. Common trust strategies include:
- revocable living trusts for probate avoidance
- irrevocable trusts for estate tax planning
- lifetime discretionary trusts for asset protection
- dynasty trusts designed to preserve wealth across generations
Review whether existing trusts should be:
- funded with additional assets
- updated to reflect changes in family circumstances
- aligned with current tax law
Estate planning is not a one-time event. As tax laws, family situations, and financial circumstances evolve, periodic reviews are absolutely critical in ensuring your money passes to the right beneficiary in an tax efficient way as you intend to.
Now is a good time to coordinate with your financial advisor and estate attorney to confirm that your estate strategy remains aligned with both current tax rules and your long-term family objectives.