Protecting Your Legacy

Protecting Your Legacy

Last year, the One Big Beautiful Bill Act made lasting changes to how families pass on wealth. Along with those changes comes an opportunity to revisit the documents and structures behind your own legacy strategy. This month, we're focusing on those foundational pieces and what they actually do. 

The Foundational Document Gap

☑️ Reality check: Many people believe that having a simple will means their legacy strategy is finished. In reality, a will is often just the beginning. 
☑️ Between the lines: For some, a well-rounded strategy also includes living documents, such as healthcare directives and powers of attorney. Without these, your family may need court intervention to make decisions on your behalf during a crisis. Consider reviewing your documents periodically to make sure your named representatives still align with your current situation and wishes. 

Strategic Legacy Structures

☑️ Smart move: Moving from a simple will to a more complete legacy structure can help your heirs manage the probate process. 

The conversation around legacy was never really about the tax code. It's about stewardship. It's about making sure the people you love aren't left guessing, waiting on a court, or sorting through paperwork that doesn't reflect your current wishes. Privacy and preparation are aspects that affect nearly every family, regardless of the size of the estate. 

Consider working with a tax, legal, or accounting professional if you have in-depth questions about taxes and your estate. 

💭 Thought Of The Month

📚 Suggested Resources

Retirement rules and headlines change fast, but by staying up to date, you can move forward with more confidence.

📖 Additional Resources

• Internal Revenue Service | Estate and Gift Taxes
• American Bar Association | Estate Planning Resources for Consumers
• U.S. Securities and Exchange Commission | SEC.gov
• Financial Industry Regulatory Authority | FINRA.org

✏️ Worth Noting 

🎯 Historical Perspective: Not long ago, the federal estate and gift tax exemption was on track to be cut roughly in half, down to about $7 million per person, once a prior tax law expired. That never happened. Federal legislation locked in a permanently higher exemption instead: $15 million per individual, or $30 million for married couples, adjusted for inflation each year going forward. Amounts above that threshold are still taxed at a top rate of 40 percent. 

📊 Behavioral Reminder: A 2026 survey found that 56 percent of U.S. adults have not prepared estate documents, and just over 25 percent have a will. Procrastination remains the most common reason people cite for not getting started, not cost or complexity.

💡 Food for Thought: There are other, more sophisticated estate management tools that can be used, depending on the size and complexity of your estate. Estate management is not a one-size-fits-all process. It's about matching estate tools to your family and its goals.

👉 Final Thoughts

Between the lines: A will tells the court several details about your estate, including who you’ve appointed as an executor and who has been named as a guardian for your minor children.

The bottom line: A permanently higher exemption is good news, but it answers only one question, and not the one most families are actually asking. Updating your legal documents, reviewing your beneficiary designations, and clarifying your legacy goals still matter just as much as they did before the law changed.