Estate planning has always been about more than just paperwork. It’s about protecting your family, avoiding unnecessary stress, and making sure your wishes are honored. But in 2025, several new issues have moved to the forefront—changes in tax law, evolving digital legacies, and shifting family dynamics.
At Terry Law Firm, P.S., we’ve seen how these factors can catch families off guard. That’s why it’s important to take stock of the most pressing estate planning challenges right now.
The shrinking estate tax exemption
One of the biggest issues of 2025 is the scheduled reduction of the federal estate tax exemption. For years, families in Washington have benefited from historically high thresholds. With those protections set to shrink, many estates that were once untaxed could now fall into taxable territory. Reviewing your plan before the exemption decreases can save your heirs from facing steep and unexpected costs.
Gifting opportunities under new rules
Alongside estate taxes, lifetime gifting rules have shifted. Families have a limited window to transfer assets at today’s favorable levels. This is especially critical if you own real estate, a family business, or a large investment account. Making use of current gifting rules may mean your loved ones keep more of what you’ve worked for.
Retirement accounts and new regulations
Inherited IRAs and required minimum distributions have been reshaped by recent legislation. These changes affect not just your retirement but what your children and grandchildren inherit. Without adjustments, beneficiaries could face unnecessary taxes or restrictions.
The rise of digital assets
In 2025, digital inheritance is no longer optional. From cryptocurrency wallets to social media profiles and cloud storage, digital assets hold both financial and emotional value. Without specific instructions in your estate plan, loved ones may struggle—or fail entirely—to access them. At Terry Law Firm, P.S., we guide clients in mapping out their digital legacies alongside traditional assets.
Protecting family businesses
Washington is home to thousands of family-owned businesses. Whether it’s a farm, restaurant, or construction company, these enterprises represent more than income—they’re family legacies. Passing them on requires more than a simple will. Succession planning, management transitions, and valuation under new tax rules are critical issues to resolve now.
Health care decisions and incapacity planning
Estate planning isn’t only about what happens after death. Health care directives and powers of attorney are essential in 2025, especially with families often spread across states. If the wrong person is still listed to make decisions—or if no one is—your loved ones could face confusion and conflict at the worst possible moment.
Sentimental assets and family harmony
It may surprise people, but some of the hardest conflicts we’ve seen at Terry Law Firm, P.S. aren’t about money. They’re about heirlooms—wedding rings, quilts, tools, or furniture that carry emotional value. Including sentimental assets in your estate plan can prevent painful disputes.
Why review your plan now
The truth is, no estate plan should stay untouched for years. Life changes—marriages, divorces, new children, aging parents—shift the ground beneath your plan. Add in the 2025 tax changes, and even a well-crafted plan from a few years ago may no longer fit.
How Terry Law Firm, P.S. can help
Our role is to help Washington families make sense of all this. We don’t just look at tax code—we look at your whole picture: your family, your assets, and your wishes. Updating your estate plan in 2025 is less about reacting to law changes and more about staying one step ahead.
If you’ve been putting off a review, now’s the time. A short conversation today could spare your loved ones years of stress tomorrow.
For more information or to schedule a review of your estate plan, visit www.terrylawfirm.com.
- Critical Estate Planning Issues to Address in 2025 - January 17, 2026
- Mid-Year Estate Planning Checklist: Don’t Overlook These Key Updates - January 3, 2026
- 10 Reasons to Reevaluate Your Estate Plan After the 2025 Tax Changes - December 20, 2025
