Estate and Wealth Transfer Planning in a Changing Tax Environment

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The landscape of estate and wealth transfer planning is undergoing significant changes, particularly with the enactment of the One Big Beautiful Bill Act (OBBBA). These legislative updates have introduced higher exemptions and new rules that impact how individuals and families approach wealth transfer. However, despite these changes, many Americans remain unprepared. A recent survey revealed that only 31% of Americans have a will, and a mere 11% have a trust, leaving a substantial portion of the population vulnerable to potential complications in transferring their assets.

What Has Changed in Estate and Gift Taxes

Starting in 2026, the lifetime estate and gift tax exemption rises to $15 million per individual, adjusted annually for inflation. While this provides significant flexibility for high-net-worth families, other changes—such as the new 0.5% floor for charitable contribution deductions and limitations on high-income deductions—require careful consideration. Even individuals who may not owe estate taxes can benefit from planning to reduce potential tax liabilities, align with family goals, and preserve wealth across generations.

Planning Considerations for Families and Individuals

Effective estate and wealth transfer planning goes beyond taxes. Families should coordinate strategies with financial advisors, investment advisors, attorneys and tax advisors to ensure assets are distributed according to their wishes. A tax advisor can help navigate complex federal and state rules, identify opportunities to minimize taxes and ensure compliance with changing legislation. Succession planning and charitable giving strategies can help reduce tax exposure while supporting long-term family objectives. Even modest assets—like a checking account, vehicle or personal property—warrant thoughtful planning, and guidance from a qualified tax advisor can provide peace of mind that your plan is both effective and legally sound.

Planning Across Life Stages

Planning is beneficial at any stage of life. Individuals approaching retirement can address estate and succession considerations, while younger clients can take advantage of compounding benefits and start long-term strategies early. Early planning also provides the opportunity to communicate intentions clearly, reduce potential conflicts and ensure a seamless transfer of wealth and responsibilities within families.

Plan with Confidence

A changing tax environment presents both challenges and opportunities for estate and wealth transfer planning. At Frazier & Deeter, we help families navigate complex tax and estate rules, uncover planning opportunities and implement strategies that preserve wealth across generations. Reach out today to review your current plan and ensure your family’s goals are fully protected.

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