During tax season, many people concentrate on gathering financial records, calculating deductions, and preparing for important deadlines. But this annual ritual also creates a valuable opportunity to take another look at your estate plan. Because both areas involve your assets and long-term financial goals, reviewing them together can uncover outdated provisions, overlooked details, or planning opportunities that may affect you and your heirs.

Tax laws shift over time, and your personal situation may evolve right along with them. A plan created several years ago might not reflect current regulations or your present wishes. Using tax season as a reminder to revisit your documents can help ensure your legal and financial strategies still work hand in hand.

Why Taxes and Estate Planning Should Go Hand in Hand

An estate plan does far more than specify who receives your assets. It also plays a significant role in managing potential taxes that could affect your estate or your beneficiaries. Choices related to account ownership, how assets pass, and whether to use trusts can all carry tax implications.

If tax planning and estate planning happen separately, it is easy for important considerations to be missed. Coordinating these strategies creates a more efficient and cohesive plan that reflects your long-term goals. Tax season naturally encourages a closer look at whether everything is still aligned.

A Good Time to Revisit Key Estate Planning Documents

While you sort through financial paperwork, it’s a convenient moment to review your foundational estate documents. Your will, powers of attorney, health care directives, and any trusts should accurately represent your wishes as they stand today. Even a fairly recent plan may need updates due to life changes or legal adjustments.

By reviewing these documents regularly, you help ensure your intentions are clearly communicated and that the people you have named to represent you are still appropriate choices. A periodic checkup can prevent confusion or unintended outcomes down the road.

Recent Tax Law Changes That Influence Estate Planning

The 2025 tax year brought notable changes to federal estate and gift tax rules. With the implementation of the One Big Beautiful Bill Act, the federal estate, gift, and generation-skipping transfer tax exemption increased to $15 million per individual beginning in 2026. This update eliminated the anticipated reduction in exemption amounts, providing more long-term predictability for planning.

Although the higher exemption may reduce federal estate tax concerns for many families, thoughtful planning remains essential. State-level taxes may still come into play, and personal wealth transfer goals should continue to shape your decisions. Reviewing your plan under these updated guidelines can help highlight any adjustments that may be needed.

Trusts Require Ongoing Oversight and Tax Awareness

Trusts can be extremely valuable components of an estate plan, but they require regular attention. Many trusts must meet ongoing tax obligations. For example, trusts that generate at least $600 in income or include nonresident beneficiaries typically need to file an annual income tax return.

Trustees must also prepare Schedule K‑1 forms for beneficiaries to report distributed income. Income that remains within the trust is often taxed at higher, compressed trust tax rates. Reviewing trust activity during tax season helps ensure compliance and thoughtful distribution planning.

How the 65-Day Rule Can Support Trust Tax Planning

Certain non-grantor trusts may benefit from an IRS provision known as the 65-Day Rule. This rule allows trustees to treat distributions made within the first 65 days of the new year as though they were issued in the previous tax year. When used strategically, it can shift taxable income from the trust to beneficiaries who might fall into lower tax brackets.

Because the decision to apply this rule is made when filing the trust’s tax return, coordination between legal and tax professionals is essential. Evaluating trust distributions during tax time ensures trustees can make informed decisions about whether this option is advantageous.

Common Estate Planning Issues That Develop Over Time

Even well-prepared estate plans may become outdated if they are not reviewed regularly. Beneficiary designations may no longer reflect your wishes, account titles might be inconsistent, or tax implications may have shifted without your knowledge. These gaps can create headaches or produce outcomes you did not intend.

Major life events such as marriage, divorce, a new child, or significant financial changes should always prompt an estate plan review. Updates to tax laws can also influence how assets transfer or how they are taxed. Scheduling periodic evaluations helps ensure your plan remains accurate and effective.

The Importance of Communication Between Legal and Tax Advisors

Strong communication between your attorney and your tax professional can make a meaningful difference in the success of your planning efforts. When each advisor understands your overall financial picture, they can structure both legal documents and tax strategies that work in harmony.

Keeping your tax preparer aware of your estate plan, and your attorney informed about your tax situation, reduces the risk of oversights. This teamwork becomes even more essential when trusts, lifetime gifts, or complex assets are involved.

How Estate Planning Attorneys Help You Meet Long-Term Goals

Estate planning attorneys offer guidance and structure, helping ensure your plan is legally sound and tailored to your goals. Whether drafting or updating wills, creating trusts, or advising on wealth transfer strategies, they provide clarity in a constantly evolving legal landscape.

The right attorney can also identify planning opportunities that align with current exemption limits and your personal objectives. Regular check-ins ensure your documents stay compliant and flexible as life and laws change.

Why Tax Season Is the Perfect Moment to Update Your Plan

Since tax season already requires you to gather financial information, it naturally lends itself to a broader look at your long-term planning. Revisiting your estate plan during this time can confirm that your documents, trust management, and tax strategies remain in sync.

If it has been a while since you last reviewed your estate plan or if you’re unsure whether it reflects recent changes, now is an ideal time to schedule an update. We are here to help you navigate the process with confidence and clarity.