Helen was sitting at her kitchen table on a warm July afternoon when her daughter called.
“Mom,” Karen said, “you and Dad really need to talk to your estate planning attorney about this new tax law. There are big changes coming, and you don’t want to get caught unprepared.”
That was the wake-up call Helen needed. Like many retirees, she thought her old estate plan was still good enough. But as she quickly learned, laws change, families change, and waiting too long to update your plan can leave your loved ones with unnecessary taxes, confusion, and even some family tension no one wants.
Why New Tax Laws Matter for Your Estate Plan
Earlier this year, Congress passed what they’re calling the One Big Beautiful Bill. The name may be a little much, but the changes are real and could have a big impact on your family’s future.
Some of the changes work in your favor, but many are temporary. Some expire in just a few years, and others depend on your income level or how your plan is currently set up.
At Bello & Morton, LLC, we help families like yours understand what these updates mean and how to adjust your plan to keep your legacy safe and your family prepared. Here are just a few key highlights.
Higher Estate Tax Exemption
The estate tax exemption was set to drop to around seven million dollars per person in 2026. Instead, it will increase to fifteen million per person next year. That’s good news for many families who may not have to worry about federal estate taxes right now.
But don’t assume you can skip planning altogether. Income taxes, capital gains taxes, probate costs, and family disputes can still take a big bite out of what you leave behind if your plan isn’t properly structured.
Larger Standard Deduction for Seniors
Couples over 65 can now take a much larger standard deduction. This may eliminate income taxes on Social Security benefits for many retirees with modest incomes. If you have other significant income, like retirement distributions or investment earnings, you’ll still need a strategy to avoid paying more than necessary.
Increased State and Local Tax Deduction Cap
The cap on state and local tax deductions has been temporarily raised from ten thousand dollars to forty thousand dollars for households under a certain income. This opens the door to more strategic charitable giving, which can also be a powerful part of your estate plan.
Charitable Deduction for Non-Itemizers
Even if you don’t itemize, you can now deduct up to two thousand dollars per couple in charitable donations. That’s a nice perk, but there may be smarter ways to give, like donating appreciated securities or making qualified charitable distributions from your retirement accounts.
Why You Still Need an Attorney
At Bello & Morton, LLC, we know it’s tempting to think these new laws mean you can just relax. The truth is, a strong estate plan is about much more than just taxes. Our attorneys will help make sure your plan reflects your current wishes, avoids unnecessary complications, and takes full advantage of the new opportunities in the law.
We can help you:
- Review your will, trust, powers of attorney, and healthcare directives to reflect your current family, finances, and preferences
- Advise on whether your current trust structure still makes sense with the higher estate tax exemption
- Coordinate with your CPA and financial advisor to align tax strategies like Roth conversions and charitable giving with your estate plan
- Confirm your named helpers, like trustees and powers of attorney agents, are still the right fit
- Adjust your plan to minimize probate costs, protect heirs from creditors or divorce, and transfer assets efficiently and privately
Even if you’re unlikely to owe estate taxes now, it’s still essential to plan for the income and capital gains taxes your heirs may face, as well as the many personal and legal challenges that arise when someone passes away.
Take Control of Your Family’s Future
As Helen discovered, waiting too long to update your plan can leave your family vulnerable. Tax laws and family situations are always changing. It’s better to review your plan now while you still have every option available.
If it has been more than a few years since your last estate planning meeting, or if you’ve never created a comprehensive plan, now is the perfect time to meet with the team at Bello & Morton, LLC. You’ve worked hard to build your legacy. Let’s make sure it’s protected.
Contact Bello & Morton, LLC today to register for a workshop or request a consultation and take the first step toward peace of mind for you and your family.
