The 2025 tax changes—sometimes called the “One Big Beautiful Bill”—have already made waves across the country. But here’s the truth: the effects go far beyond accountants and spreadsheets. For families in Washington, these changes create an important moment to pause and ask whether your current estate plan still makes sense.
At Terry Law Firm, P.S., we’ve been talking with families about what these shifts mean in real life, and why it’s worth taking another look at the plans they put in place years ago. Here are ten reasons why revisiting your estate plan in 2025 is a smart move.
The estate tax exemption is shrinking
The federal estate tax exemption, which had been historically high, is set to decrease. If your plan relies on those higher limits, you could be facing unnecessary taxes later. Adjusting now may save your family significant costs.
Gifting rules have shifted
The new law changes how much you can give away during your lifetime without triggering tax consequences. This could be an opportunity to transfer assets to children or grandchildren sooner rather than later.
Retirement accounts have new rules
From inherited IRAs to required minimum distributions, the law alters how retirement accounts are taxed. If your plan hasn’t accounted for these changes, your beneficiaries could be left with an unexpected tax bill.
Washington’s state estate tax still applies
Even if federal thresholds seem generous, Washington has its own estate tax rules that families can’t afford to ignore. Your plan should balance both state and federal law.
Family businesses need tailored planning
If you own a local business—whether it’s a restaurant, a small farm, or rental properties—the new rules may affect how it’s valued and transferred. Updating your plan ensures your hard work doesn’t create headaches for the next generation.
Trusts may need updating
Many estate plans use trusts to manage taxes and protect assets. But trusts written before 2025 may not match the current law. A quick review can keep your strategy effective.
Digital assets aren’t covered in older plans
Five or ten years ago, few people thought about digital inheritance. Today, online accounts, crypto wallets, and cloud photo libraries are real assets. Your estate plan should say who gets access.
Family dynamics change over time
Maybe your kids are grown now, or your parents need more care, or there’s been a new marriage in the family. Tax laws aren’t the only reason to update—life changes matter just as much.
Health care directives may be outdated
Alongside your will, powers of attorney and health care directives need attention. If the wrong person is still listed, or no one is, your loved ones could be stuck in a difficult spot during a crisis.
Peace of mind matters
Ultimately, reviewing your estate plan after the 2025 tax changes isn’t just about dollars. It’s about knowing your family won’t be left guessing. An updated plan gives clarity, comfort, and a smoother path forward.
Why work with Terry Law Firm, P.S.
We’ve seen too many families in Washington face unnecessary stress because an old estate plan didn’t reflect new laws. At Terry Law Firm, P.S., we help clients look at the whole picture—taxes, family, assets, and legacy—so their plan still fits their real life in 2025.
Even if you don’t make major changes, just having the conversation can make all the difference.
For more information or to schedule a review of your estate plan, visit www.terrylawfirm.com.
- 10 Reasons to Reevaluate Your Estate Plan After the 2025 Tax Changes - December 20, 2025
- Including Sentimental Assets in Wills: What You Need to Know - December 6, 2025
- How Digital Inheritance Is Changing the Way Estates Are Planned - November 22, 2025
