Helen was sitting at her kitchen table on a warm July afternoon when her daughter called.
“Mom,” Karen said, “you and Dad need to talk to your estate planning attorney about this new tax law. Big changes are coming, and you don’t want to get caught unprepared.”
That conversation was the wake-up call Helen needed. Like many retirees, she assumed her old estate plan was still good enough. But as she quickly learned, laws change, families change, and waiting too long to update your plan can leave your loved ones facing unnecessary taxes, confusion, and even family disputes.
Why New Tax Laws Matter for Your Estate Plan
When Congress passed the One Big Beautiful Bill earlier this year, it introduced several changes that could impact how retirees and their families should approach estate planning. While some of these changes are helpful, many of them are temporary or depend on your income level and how your current plan is structured.
At Bellomo & Associates, we help families understand what these changes mean and how to adjust their plans to protect what they have built. Below are a few key highlights to be aware of and why now may be the time to take action.
Higher Estate Tax Exemption
The federal estate tax exemption is increasing to fifteen million dollars per person next year. While this means fewer families need to worry about federal estate taxes right now, that does not eliminate the need for a well-thought-out estate plan. Income taxes, capital gains taxes, probate fees, and family disagreements can still reduce what your heirs receive if your plan is outdated or incomplete.
Larger Standard Deduction for Seniors
Couples over sixty-five can now claim a larger standard deduction, which may eliminate income taxes on Social Security benefits for many retirees. However, if you have significant other income from investments or required minimum distributions, you could still face higher taxes without proper planning.
Increased Cap on State and Local Tax Deductions
The cap on state and local tax deductions has gone up from ten thousand dollars to forty thousand dollars for those under certain income levels. This may present an opportunity to adjust how and when you make charitable gifts, which can benefit your tax strategy and your legacy goals.
Charitable Deduction for Non-Itemizers
Even if you do not itemize deductions, you can now deduct up to two thousand dollars per couple in charitable donations. While this is a nice benefit, we can also help you explore even more tax-efficient ways to give, such as gifting appreciated securities or making qualified charitable distributions from retirement accounts.
Why You Still Need an Attorney
It may be tempting to think that these changes mean you can stop worrying about your estate plan. The truth is, a strong plan is about much more than just taxes. At Bellomo & Associates, we work with you to make sure your plan reflects your current wishes, minimizes stress for your family, and takes full advantage of new opportunities in the law.
We can help you:
- Review your will, trust, powers of attorney, and healthcare directives so they match your current situation
- Determine if your current trust structure still makes sense in light of the higher estate tax exemption
- Coordinate with your CPA and financial advisor to align your tax strategies with your estate plan
- Make sure the people you have named as your helpers are still the right choice
- Adjust your plan to reduce probate costs, protect your heirs from creditors or divorce, and pass assets efficiently and privately
Even though fewer families will pay estate taxes under the new law, planning remains essential to avoid unnecessary costs and complications for your loved ones.
Take Control of Your Family’s Future
As Helen discovered, waiting too long to update your plan can leave your family vulnerable. Tax laws and family dynamics are always changing, which is why it is better to review your plan now while you still have all your options.
If it has been more than a few years since your last estate planning meeting, or if you have never created a comprehensive plan, now is the perfect time to meet with the team at Bellomo & Associates. You have worked hard to build your legacy. Let us help you protect it.
We invite you to register for a workshop and take the first step toward peace of mind for you and your family.
