Estate Planning Is Quietly Shifting in 2025: What Americans Need to Know Now

Estate planning rarely grabs headlines, yet 2025 has delivered a flurry of legal and financial shifts that affect nearly every household—whether wealthy, middle-class, or somewhere in between. From sweeping federal tax reforms to troubling gaps in public preparedness, the emerging picture is clear: Americans are entering a new era of estate planning, and most aren’t keeping up with the change.

Federal Reform: Higher Exemptions, Higher Stakes

The most consequential update comes from the One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025. Beginning in 2026, the federal estate, gift, and generation-skipping transfer tax exemption rises permanently to $15 million per individual—roughly $30 million for married couples.
This is not a temporary extension. Analysts emphasize that the permanence of the exemption fundamentally alters the planning landscape, removing the looming “sunset” deadline that once pushed high-net-worth families into urgent legal restructuring.

Estate professionals note that the higher limit doesn’t eliminate the need for sophisticated planning. As MarketWatch reports, even with fewer families subject to estate tax, advisors expect sustained demand for wills, trusts, and legacy strategies because tax avoidance is only one part of the planning ecosystem.

Trust lawyers warn that the revised exemptions carry new administrative challenges. The ACTEC commentary on OBBBA highlights areas where the IRS rules create added complexity, particularly in trusts with “future interest” gifts and changing deduction structures.

States Are Changing Their Rules Too

Federal changes aren’t the whole story. States are moving in different directions—some modernizing estate-planning laws, others tightening oversight.

A national review from JD Supra shows widespread adoption of updated statutes, including digital-will recognition, stricter fiduciary standards, and broader authority for trust decanting. This evolution matters because even when federal taxes don’t apply, state-level probate rules, trust requirements, and inheritance laws can dramatically shape outcomes for families.

In New York, recent enforcement actions show why consumers must tread carefully. A Saratoga Springs company—Avoid Probate New York LLC—was shut down after authorities found the business was illegally preparing transfer-on-death deeds without legal licensing. The case underscores a longstanding warning: improperly drafted estate documents can be invalid, no matter how “simple” the service claims to be.

Shifting IRS Rules May Affect Trusts and Gifting Strategies

Notable IRS rule updates—particularly around irrevocable trusts—may reshape how families structure inheritances. Analysts warn that some trust arrangements could unintentionally trigger unfavorable tax treatment if planners misunderstand the new guidance.

Meanwhile, wealthy households are exploring non-grantor trusts to capitalize on new deduction opportunities under the SALT-cap revisions. Kiplinger reports that in some cases, the new deduction framework can generate substantial tax savings—if executed correctly.

Most Americans Still Lack Even Basic Estate Documents

All these legal changes collide with another stark reality: most Americans are unprepared.

A major 2025 study by Trust & Will, the largest of its kind, found that 55% of Americans have no estate-planning documents whatsoever, and only 31% have even a simple will. The survey also showed deep inequalities in who completes estate plans—variations by income, race, gender, and education were significant, suggesting the benefits of new laws may be disproportionately inaccessible to many families.

The report frames the lack of planning as part of a larger financial-anxiety crisis: Americans feel instability rising, yet are not preparing legally for unexpected life events.

Cross-Border Families Face Additional Pressure

For Americans living abroad—or those with heirs overseas—the estate-planning puzzle is even more complex. A recent Forbes Council piece highlights how conflicting tax obligations, residency rules, and inheritance laws can completely alter how estates must be structured for expatriates or dual-country families.

With the rise of remote work and global households, cross-border estate planning has become less of a niche legal practice and more of a mainstream necessity.

The Bottom Line

Estate planning is undergoing its most significant shift in over a decade. Higher exemptions, fast-changing state laws, evolving IRS rules, and widespread public unpreparedness create a landscape where doing nothing is increasingly risky. Whether someone owns substantial assets or simply wants clarity about guardianship and distribution, the need for up-to-date, legally sound planning is more urgent than it may appear.

If you or your loved ones haven’t reviewed your estate documents since before these 2025 changes took effect, now is the time to reassess your strategy with a qualified professional. Your future beneficiaries will thank you.

For legal guidance tailored to today’s evolving estate-planning landscape, speak with an experienced estate planning lawyer like Moorhead Law Group who can help you navigate these changes with confidence.