Is Your Estate Plan Ready for 2025?

As the new year approaches, it’s essential to revisit your estate plan. With potential legislative changes on the horizon, including updates to the SECURE Act, Social Security regulations, and tax exemptions, understanding what lies ahead is crucial for protecting your assets and loved ones. McCammon Law can guide you through the complexities of estate planning in an ever-changing legal landscape.

Key Considerations for 2025 Estate Planning

Possible SECURE Act Updates

While retirement policy is always in flux, the outlook shaping up for 2025 is particularly dynamic says a recent article from Think Advisor, “7 Big Unknowns That Could Shake Up Retirement Planning.” The SECURE Act and SECURE 2.0 have significantly impacted retirement and estate planning since their introduction in 2019 and 2022. Early signs indicate Congress may introduce a third version in 2025. This could further alter the rules for required minimum distributions (RMDs) and Roth conversions, potentially impacting your retirement accounts and overall estate plan. Staying informed and proactive with your estate planning is vital.

Estate Tax Exemption Uncertainty

The historically high estate tax exemptions established by the 2017 Tax Cuts and Jobs Act are set to sunset in 2025. Without legislative action, these exemptions may be significantly reduced, leading to increased tax liability for larger estates. This presents a window of opportunity to utilize gifting strategies and trusts to mitigate future estate taxes.

Social Security and Retirement Changes

Potential changes to Social Security include the elimination of taxes on benefits, adjustments to the Full Retirement Age (FRA), and revisions to the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). These reforms could influence retirement planning and income for San Antonio residents. McCammon Law can help ensure your estate plan adapts to these developments.

Charitable Contributions and Tax Advantages

Year-end planning often includes strategies like charitable donations and tax-loss harvesting. Donations made by December 31 count toward the current tax year and can reduce your taxable income. These strategies also align with long-term estate planning goals, helping you leave a legacy while minimizing tax liabilities.

Actionable Steps for Your San Antonio Estate Plan

1. Maximize Retirement Contributions
   • Contributions to IRAs and 401(k)s can lower your taxable income and strengthen your retirement fund. Ensure you meet year-end deadlines for employer-sponsored plans and plan for additional IRA contributions before tax filing deadlines.
2. Leverage Gifting Strategies
   • In 2024, individuals can gift up to $18,000 per beneficiary without affecting lifetime gift tax exemptions. Strategic gifting is an effective way to transfer wealth while reducing estate tax exposure.
3. Establish or Update Trusts
   • Trusts offer flexibility and control over your assets, ensuring they are distributed according to your wishes. They also provide protection for minor children or dependents with special needs, a common concern for many families McCammon Law serves.
4. Prepare for Potential Legislative Changes
   • With the possibility of changes to tax laws and retirement regulations, working with an experienced estate planning attorney ensures your plan remains compliant and optimized for your needs.

Why Choose McCammon Law for San Antonio Estate Planning?

Client reviews highlight Shawn McCammon’s professionalism, responsiveness, and personalized approach. Families trust McCammon Law to address their unique needs, from setting up trusts for children with special needs to creating comprehensive estate plans for business owners. At McCammon Law, we are committed to helping San Antonio families protect their assets and secure their legacy. Don’t wait for legislative changes to catch you off guard—start planning now by requesting a consultation with our team.