The Best Way to Get Estate Planning Started: 4 Smart Moves to Prepare for 2025 and Beyond

If you’ve been putting off estate planning, now is the time to act—especially with the looming expiration of key tax provisions. The Tax Cuts and Jobs Act is set to expire on December 31, 2025, which could significantly reduce the current estate and gift tax exemption. Without preparation, families who never worried about estate taxes before may find themselves facing unexpected tax burdens and a diminished legacy.

The good news? There are proactive steps you can take today to stay ahead of these changes and ensure your estate plan protects both your assets and your loved ones.

1. Take Advantage of Annual Gifting

The annual gift tax exclusion allows individuals to give up to $19,000 per year to as many people as they like—$38,000 per recipient for married couples. These gifts can reduce your taxable estate while allowing you to witness the positive impact of your generosity during your lifetime.

This strategy is especially valuable for parents or grandparents looking to support their children or grandchildren with education, housing, or other life expenses—all while reducing future estate tax exposure.

2. Consider Charitable Giving and Donor-Advised Funds (DAFs)

Charitable donations are a win-win: they support causes you care about and provide tax advantages. If you donate appreciated assets, like stocks, you can avoid capital gains taxes and receive a charitable deduction for the full market value.

If you’re unsure which nonprofit to support immediately, a Donor-Advised Fund (DAF) can be a great solution. You make a donation now, enjoy the tax benefits, and then recommend grants to different charities over time.

3. Review Titles and Beneficiary Designations

One of the most overlooked but critical steps in estate planning is reviewing how your assets are titled and who is listed as a beneficiary. Assets such as life insurance, retirement accounts, and investment portfolios pass directly to named beneficiaries and aren’t controlled by your will.

Failing to update beneficiary designations—especially after major life events like divorce or remarriage—can result in assets going to unintended recipients. Likewise, if you’ve created a trust, make sure assets are properly retitled or funded into the trust to avoid probate and preserve control.

4. Organize Your Documents and Digital Assets

Estate planning isn’t just about taxes and inheritances—it’s also about making life easier for your loved ones. Make sure your key documents are stored in a safe, accessible place. This includes:

• Your will and trust documents
• Financial account information
• Passwords and digital account credentials
• Power of attorney and healthcare directives

An organized estate plan ensures that your family can access what they need without unnecessary stress or delay.

Don’t Wait to Update or Create Your Estate Plan

Spring might be calling you outside, but your estate plan deserves your attention now—before the laws change. Whether you’re starting from scratch or updating an outdated plan, the sooner you act, the more flexibility and options you’ll have.

At The Werner Law Firm, we understand that starting your estate plan can feel daunting—especially with changing tax laws on the horizon. Our Frisco estate planning lawyers are here to guide you through every step, from gifting strategies to reviewing your beneficiaries, so you can protect your assets and provide for your loved ones with confidence.

If you have any questions, schedule a free appointment with us through our online appointment page.

You can also read reviews from some of the hundreds of clients we have helped over the years.

Reference: MSN (March 26, 2025) “4 Strategies to Kickstart Your 2025 Estate Planning (and Why You Need to Start Now)”