The start of a new year is a time for financial review. We gather documents to prepare for tax returns and, for the truly financially savvy, take a moment to review our estate plans. A well drafted estate plan does more than outline who gets what, it helps you to make the most of your estate. This can include taking advantage of tax planning and gifting opportunities so you can live life to its fullest.
Estate plans are heavily guided by tax law, so it makes sense to use the preparation for tax returns as a time to also review and update estate plans. Although a good idea to have this as part of a regular routine, it is arguably even more important this year.
What should you check for when reviewing your estate plan?
Ideally, your estate plan is tailored to your specific family needs and not a generic fill-in-the-blank form. If you currently have a generic plan, you may want to seek legal guidance on how to tailor a plan that is in line with your wishes. In either situation, it is important to review who you have named on your plan to handle financial and health care matters in the event of an emergency. Life situations change and the individual we originally named to serve in this role may no longer be the best fit. Take a moment to double check and update if needed.
The same holds true for intended beneficiaries. Families change. Make sure those you name as heirs are still those you intend to benefit from your generosity.
This is also a good time to review titles for real estate, beneficiary designations, trust funding, and even whether you have your digital assets accounted for within your plan. From cryptocurrency to social media accounts, you may want to include the necessary information to access these accounts within your plan.
Why is an estate plan review important in 2026?
President Donald Trump has touted the many benefits of his One Big Beautiful Bill Act (OBBBA) for months. The bill includes many provisions which go into effect this year – many of which directly impact tax and gifting strategies. As such, when reviewing your estate plan, it is important to check for how these changes could impact your plan. For example, the OBBBA provides clarity over the gift tax exemption, setting the lifetime estate and gift tax exemption at $15 million per individual and $30 million per couple. For those who already maxed out their lifetime gifting in 2025, the change provides an additional $1 million per individual in 2026.
Taking the time to review your estate plan serves as a risk management exercise that provides an opportunity to adjust the plan to reflect changes in beneficiaries and the law. With careful review and attention to detail, you can better ensure you are making the most of your estate and have a plan in place that is in line with your goals.