As your trusted financial advisors, we understand that estate planning is more than just paperwork—it’s about protecting your loved ones, preserving your legacy, and ensuring your wishes are honored. Whether you’re updating an existing plan or starting fresh, 2025 brings new opportunities and challenges worth exploring. In this post, we’ll walk you through the essentials of wills and trusts, highlight key legal updates, and share strategies to help you build a legacy that lasts.
What Is Estate Planning?
Estate planning involves organizing your financial and legal affairs to ensure your assets are distributed according to your wishes. Key components include:
- Wills: Specify who inherits your assets and who will care for minor children.
- Trusts: Provide control, privacy, and potential tax advantages.
- Powers of Attorney & Healthcare Directives: Ensure someone can act on your behalf if you’re unable to.
What’s New in 2025?
Federal Estate Tax Update
The federal estate tax exemption is $13.99 million per person in 2025. Starting in 2026, this exemption will increase to $15 million per person and $30 million for married couples, offering expanded opportunities for tax-efficient legacy planning.
Annual Gift Tax Exclusion
You can now gift up to $19,000 per recipient annually without triggering gift taxes. Married couples can gift $38,000 per recipient—a powerful tool for reducing taxable estates.
Trusts & Business Ownership
New reporting requirements under the Corporate Transparency Act (CTA) may affect trusts that own business entities. We’re helping clients navigate these changes to stay compliant and protected.
Trusts: More Than Just Tax Tools
Trusts are increasingly used for:
- Asset Protection: Shield assets from creditors or lawsuits.
- Medicaid Planning: Preserve wealth while qualifying for long-term care benefits.
- Legacy Planning: Ensure multi-generational wealth transfer.
Types of trusts we’re helping clients explore include:
- Revocable Living Trusts
- Irrevocable Trusts
- Dynasty Trusts
- Charitable Trusts
Planning for Digital Assets
From cryptocurrency to cloud storage, digital assets are now a vital part of estate plans. We recommend:
- Creating a digital inventory
- Naming a digital executor
- Including access instructions in your estate documents
Planning for Blended Families & Non-Traditional Heirs
Estate planning is evolving to reflect modern families. If you have stepchildren, unmarried partners, or close friends you’d like to include, a will or trust is essential—state laws may not recognize these relationships by default.
Strategic Planning Tips
Here’s how we’re helping clients make the most of their estate plans in 2025:
- Review and update documents regularly
- Use trusts to manage complex family or financial situations
- Coordinate with your CPA to minimize estate and income taxes
- Plan for incapacity, not just death
Let’s Build Your Legacy Together
Estate planning isn’t just for the wealthy—it’s for anyone who wants peace of mind and clarity for their loved ones. Whether you’re just starting or refining your plan, we’re here to help.
Let’s talk. Schedule a conversation with us to review your estate strategy and explore how trusts and wills can support your goals.
Warm regards,
Your Financial Advisors at Sage Capital Wealth Partners
Phone: 864-999-4150
Email: admin@sagecapitalwealth.com
Website: www.sagecapitalwealth.com
