Estate Planning Deadline 2025: What High-Net-Worth Families Need to Know

Building on our mid-year wealth security assessment, this might be the most urgent item on your checklist.

As we discussed in our recent mid-year review piece, comprehensive wealth protection is a broad topic. Today, we need to address a time-sensitive planning consideration high-net-worth families might face: the approaching estate tax exemption deadline.

If your family’s net worth approaches or exceeds $10 million, the end of 2025 represents an important planning deadline that could impact your legacy for decades to come.

The Exemption Changes Coming

Currently, individuals can transfer $13.61 million during their lifetime or at death without triggering federal estate taxes. Married couples can effectively use over $27 million in combined exemptions.

These enhanced exemptions are scheduled to expire on December 31, 2025.

Without congressional action (which is about as predictable as short-term financial market moves – not at all), the exemptions are expected to revert to roughly half of current levels—approximately $7 million per person, adjusted for inflation.

Questions Your Family Should Consider

For families with significant wealth, this deadline raises important planning questions:

• How might the exemption reduction impact your family’s estate tax exposure?
• What planning strategies could help families use current exemptions effectively?
• How can families structure plans that provide for the next generation without creating unintended consequences?
• What steps should families consider taking before the deadline, and what are the risks of waiting?

The Planning Timeline

Effective estate planning around this type of deadline typically involves several phases:

Assessment Phase: Understanding your current estate tax exposure under both current and projected exemption levels, or other proposals being considered by legislators.

Strategy Development: Working with qualified professionals to evaluate planning options that align with your family’s goals and values.

Implementation: Executing chosen strategies with proper legal documentation and compliance requirements.

The complexity of advanced estate planning strategies means implementation often requires months rather than weeks, and effective implementation may involve multiple and carefully orchestrated steps

Beyond Tax Considerations

While the exemption deadline creates urgency, comprehensive estate planning serves multiple family objectives:

• Providing financial security for loved ones
• Supporting charitable causes important to you
• Ensuring smooth business succession if applicable
• Creating structures that align with your family’s values
• Maintaining family harmony within and across generations

The most effective planning considers both tax efficiency and these broader family goals.

Working with Professional Advisors

Given the complexity and deadline pressure involved, we believe families typically benefit from coordinated advice from:

• Wealth management advisors who can coordinate overall financial strategy
• Estate planning attorneys familiar with current law and strategy options
• Tax professionals who understand the implications of various approaches
• Other specialists as needed based on specific family circumstances

This type of comprehensive planning requires early coordination among your advisory team.

The Importance of Starting Early

While December 31, 2025 may seem distant, the complexity of advanced planning strategies and the coordination required among various professionals means starting the conversation sooner rather than later is typically beneficial.

Families who wait until late 2025 may find themselves with limited options or rushed implementation timelines, causing greater stress around decisions with possibly permanent impacts.

Taking Next Steps

If you haven’t had a comprehensive estate planning review recently, or if your family’s circumstances have changed significantly, consider:

• Scheduling consultations with qualified estate planning professionals
• Gathering current valuations for significant assets (i.e., your personal net worth statement)
• Reviewing existing estate planning documents
• Discussing family goals and values that should guide planning decisions

The deadline and potential changes creates urgency, but the planning process should be thoughtful and aligned with your family’s long-term objectives.

This information is for educational purposes only and should not be considered legal, tax, or investment advice. Estate planning involves complex legal and tax considerations that vary based on individual circumstances. Please consult with qualified legal and tax professionals regarding strategies appropriate for your specific situation.