How to Act Now to Lock in Tax and Family Benefits Before the Sunset

The end of 2025 will bring one of the most significant changes to estate planning in years — and it could affect far more families than most people realize.

The current federal law, part of the 2017 Tax Cuts and Jobs Act (often referred to as the “One Big Beautiful Bill”), temporarily doubles the amount individuals can transfer to others during life or at death without paying federal estate or gift taxes. For 2024, that amount is $13.61 million per person (or $27.22 million for married couples).

Unless Congress takes new action, that exemption is scheduled to drop by roughly half on January 1, 2026. While that might sound like an issue only for the very wealthy, the reality is that many middle-class families could also be affected, especially when you factor in home equity, life insurance, retirement accounts, and future growth.

Why This Matters Even if You’re Not “Wealthy”

You don’t need to have millions in the bank to benefit from good planning. The 2025 “sunset” matters because it shapes the rules that determine how your assets are taxed, transferred, and protected.

  • Rising home values and larger retirement accounts mean more estates may cross the new, lower threshold once the exemption drops.

  • Some states have their own estate or inheritance taxes that kick in at much lower levels than federal limits.

  • Even families under the exemption can lose out on opportunities to reduce probate costs, avoid family disputes, or protect inheritances from creditors or divorce.

Leading advisory firms (including Bessemer Trust, RSM US, and Risk Strategies) have emphasized that now is the time for everyone to review their plan, regardless of net worth.

Smart Moves to Consider Before the Sunset

According to Selzer Gurvitch and RSM US, individuals and couples can act now to preserve flexibility and peace of mind. Some steps include:

  • Updating your will or trust to reflect your current wishes and tax realities.

  • Making strategic gifts to children or grandchildren (even modest ones) to move growth out of your taxable estate.

  • Establishing a revocable or irrevocable trust to simplify future administration and reduce family stress.

  • Reviewing your life insurance and retirement beneficiaries to make sure they still fit your goals.

And the good news: the IRS has confirmed that there will be no penalty or “clawback” if you use today’s higher exemption amounts before they expire.

What You Can Do Now

Even if your total assets fall below the current thresholds, reviewing your estate plan now helps ensure that your family, property, and legacy are protected no matter how laws change.

Godbey Law LLC can help you:
✅ Review your existing will, trust, or beneficiary designations.
✅ Evaluate whether gifting or trust strategies could strengthen your plan.
✅ Identify opportunities to save on taxes and legal costs for your heirs.

Free Estate Planning Resource

Download our “Estate Sunset Readiness Checklist” to see where you stand, whether your estate is large, small, or somewhere in between.
(Download the Checklist as a PDF)

About Godbey Law LLC

For more than 30 years, Godbey Law LLC has helped Greater Cincinnati families protect what matters most. Our estate planning team combines compassionate guidance with practical strategies, from simple wills to advanced trust and tax planning, so you can feel confident about your family’s future.

📞 Contact us today at 513-241-6650 to schedule your complimentary consultation and ensure your estate plan is ready before the 2025 sunset.