As the year draws to a close, families across Texas gather to celebrate, reflect, and prepare for what’s ahead. It’s also the perfect time to make sure your legal and financial plans are ready for 2026.
In estate planning, timing matters. Federal estate and gift tax exemptions remain historically high in 2025. While the outlook is favorable, tax laws can change at any time, making this an ideal time to review your plan and take advantage of today’s generous opportunities before the new year begins.
Whether you’re reviewing your will, updating a trust, or preparing for long-term care, these seven smart legal moves will help protect your family, your assets, and your peace of mind.
1. Review and Refresh Your Estate Plan Before Year-End
Life changes quickly; new grandchildren, career shifts, or property purchases can all impact your estate plan. If your plan hasn’t been reviewed in the last year, now is the time.
Texas law allows for a wide range of estate planning tools, including wills, trusts, and powers of attorney. Reviewing these documents ensures they still reflect your current wishes and comply with today’s laws. Regular reviews can also prevent costly probate disputes and delays for your loved ones.
2. Take Advantage of 2025 Federal Estate and Gift Tax Opportunities
The federal estate and gift tax exemptions are at their highest levels in history for 2025, with additional increases scheduled to take effect in 2026 under current law. This makes now an excellent time to consider strategic lifetime gifts that can reduce your future taxable estate.
These gifts can be made directly to loved ones or used to pay tuition and medical expenses to providers.
3. Explore Trust Options to Protect and Grow Family Assets
Trusts remain one of the most versatile tools in estate planning. In Texas, they can help you avoid probate, protect assets, and provide long-term stability for your beneficiaries.
Depending on your goals, your attorney might recommend:
- Revocable Living Trusts – Provide control and privacy, while avoiding the probate process.
- Irrevocable Trusts – Offer protection from creditors and can help with Medicaid eligibility.
- Spousal Lifetime Access Trusts (SLATs) – A strategic option for married couples to use today’s historically high exemptions and remove future asset growth from their taxable estates.
Each trust type carries unique benefits and tax implications. An experienced estate planning attorney can ensure your trust structure supports your financial and family goals.
4. Review Business and Life Insurance Arrangements
If you own a business or have life insurance policies designed to fund a buyout or succession plan, year-end is an ideal time to review them.
Recent federal court rulings have clarified how life insurance proceeds may affect business valuations. To avoid unwanted estate tax exposure, it’s essential to confirm your buy-sell agreements and ownership structures are up to date.
In addition, reviewing key-person insurance and succession planning ensures that your company and your loved ones are protected in the event of the unexpected.
5. Update Beneficiary Designations and Asset Titles
Beneficiary designations often override what’s written in your will. If you’ve had any life changes, such as marriage, divorce, or the birth of a child, take time to update your designations.
Review these accounts carefully:
- Life insurance policies
- 401(k), IRA, and retirement accounts
- Payable-on-death (POD) and transfer-on-death (TOD) accounts
- Bank and brokerage accounts
Properly aligned designations help ensure your assets pass directly to the people you intend, avoiding probate complications.
6. Plan for Long-Term Care and Medicaid Eligibility
Long-term care is one of the most overlooked aspects of estate planning. In Texas, Medicaid has a 60-month look-back period for asset transfers, meaning you must plan early to preserve eligibility and protect your estate.
Establishing a Medicaid Asset Protection Trust (MAPT) or considering a Lady Bird Deed are two Texas-specific tools that can safeguard assets while preparing for potential nursing home costs.
The earlier you begin this planning, the more options you’ll have to preserve wealth and maintain control over care decisions.
7. Have the Family Conversation (While Everyone’s Together)
The holidays provide a rare opportunity to gather your family and discuss important issues such as wills, trusts, and future care preferences. These conversations don’t need to be intimidating; they’re about love, protection, and clarity.
Here are a few ways to start:
- Share your own planning progress and encourage family members to do the same.
- Discuss your choices for executor, guardian, or healthcare proxy.
- Encourage older family members to share where important documents are stored.
- Talk about charitable goals or family values to pass along.
Key Takeaways
- 2025 is an ideal time to plan, with historically high federal estate and gift tax exemptions in place and even larger amounts scheduled for 2026.
- Texas does not impose a state estate or inheritance tax, but federal rules still apply.
- Review wills, trusts, and powers of attorney annually or after major life changes.
- Consider trust strategies like SLATs and MAPTs for advanced protection and planning.
- Plan early for Medicaid eligibility and long-term care costs.
- Use family gatherings to start meaningful, proactive conversations about the future.
Start Your Planning Conversation
As the year comes to a close, now is the ideal time to review your estate plan, update key documents, and make thoughtful choices that protect your loved ones. Taking action today can bring clarity, reduce future stress for your family, and give you confidence heading into the new year. Protect your family’s harmony. Book a call today with Bromlow Law and begin planning for peace of mind.
References: Forbes (September 10, 2024) “2024 Year-End Estate Planning: Are You Ready?”
And The National Law Journal (November 29, 2018) “2018 Year-End Estate Planning: Double the Tax Benefits, but with an Expiration Date”
