How Estate Plans Are Changing Under the Trump Administration

Estate planning is never static. 

In fact, it is often shaped by evolving legislation, shifting political climates and the unique needs of each client, and with President Trump now in his second term, estate tax policy has once again taken center stage. Potential reforms, ranging from a complete repeal of the estate tax to an extension of the Tax Cuts and Jobs Act (TCJA) provisions, could significantly impact estate planning strategies. With that in mind, advisors need to ensure that clients are well positioned regardless of what changes come to pass. 

Open lines of communication, multi-generational education and strategic use of current tax advantages can serve as critical tools for advisors. By projecting alternate scenarios and staying ahead of any potential reforms, they can proactively help clients safeguard their wealth and legacies in what is shaping up to be an unpredictable economy and geopolitical situation.

What’s Up With TCJA?

The TCJA, enacted in 2017, significantly increased the federal estate tax exemption to approximately $14 million per individual, and $28 million per couple, for 2025, according to a Fidelity report. However, these provisions are set to expire at the end of the year, meaning they could potentially revert to pre-TCJA levels — approximately $6 million to $7 million per individual. Advisors should be evaluating clients’ financial plans for a host of scenarios, including reduced exemptions, extended provisions or even the complete elimination of the estate tax.

Historically, estate tax policies have often been used as political bargaining chips. For example, during the Obama administration, many of the Bush-era tax cuts were extended, but individual income tax rates were increased to offset corresponding revenue losses. If the estate tax is further reduced or even repealed under the current administration, it is likely that other taxes, such as consumption taxes, may be introduced to compensate for lost revenue. This underscores the importance of proactive planning and flexibility when considering client estate strategies.  

For high-net-worth and ultra-high-net-worth clients, the stakes are particularly high. Advisors should facilitate family meetings to educate the next generation on financial literacy, governance and emergency preparedness. They should encourage open conversations about critical considerations regarding wealth transfer, including power-of-attorney responsibilities and the importance of emergency documents, which can help ensure smooth transitions and protect family legacies.

The State of Affairs. One effective tool that advisors should consider is the annual gift tax exclusion, currently set at $19,000 per recipient. Gifting allows clients to transfer wealth in a tax-efficient manner, while concurrently engaging younger generations in discussions centered around financial responsibility and literacy. Advisors can take this a step further by introducing matching programs—similar to employer 401(k) matching contributions—so parents, grantors, patriarchs and matriarchs may incentivize heirs to invest and develop financial responsibility.

While federal estate tax changes often dominate headlines, state-level estate and inheritance taxes remain an important consideration. Some states have significantly lower exemption thresholds, and high-tax states may impose additional burdens on estates. Advisors must ensure clients’ plans account for both federal and state taxes, particularly as policies evolve.  

Proactive Planning. Looming changes to estate tax policies under a new presidential administration highlight the importance of ongoing, proactive estate planning. By staying informed about legislative developments at both the federal and state levels, advisors can help clients mitigate uncertainty while optimizing their tax strategies.  

Estate planning should serve to preserve wealth, protect legacies and ensure a smooth transition for future generations. Through open communication, multi-generational education and strategic use of tools like gifting and matching programs, advisors can empower their clients to face the future with confidence.  

Craig Robson, CFP®, CIMA®, CDFA®, Founding Principal and Managing Director at Regent Peak Wealth Advisors, an Atlanta-based registered independent advisor serving creators of significant wealth across the country.

The views expressed in this op-ed are solely those of the author and do not necessarily reflect the opinions or policies of The Daily Upside, its editors, or any affiliated entities. Any information provided herein is for informational purposes only and should not be construed as professional advice. Readers are encouraged to seek independent advice or conduct their own research to form their own opinions.