The One Big Beautiful Bill Act of 2025 has brought updates to tax law, and many of these changes affect estate planning directly. While professionals are still analyzing every detail, families can already see areas where their existing plans may need to be adjusted.
For individuals and families in Tyler, TX, estate planning is about protecting your home, your savings, and your family’s future. These new changes present opportunities, but also potential challenges. A timely review of your estate plan ensures your wishes are honored and your loved ones are cared for.
The federal estate, gift, and generation-skipping transfer tax exemption is now $15 million per individual and $30 million for married couples. This means many families can transfer more wealth without triggering federal estate taxes.
However, estate planning is a long-term process, and tax laws can change. While today’s exemptions are historically high, there is no guarantee they will remain this way in the future. Families who wish to make the most of these rules may want to consider proactive planning now, while these benefits are available.
The 2025 law also permanently revised trust income tax brackets and rules. For anyone who has established a trust or is considering one, this may be an important time to review how it is structured.
Some questions to consider:
A well-planned trust can be one of the most effective tools for managing wealth and protecting beneficiaries.
Texas does not have its own estate or inheritance tax, but families who own property in other states should take note. Some states link their rules to federal exemptions, while others operate independently.
If you own a vacation home, investment property, or other assets outside of Texas, those properties could be subject to different estate tax rules. This makes it important to review how your out-of-state assets are titled and included in your estate plan.
One area where the 2025 law may have the most impact is long-term care planning. Adjustments to public healthcare programs are expected to affect eligibility and benefits in the years ahead.
For many middle-class families in Tyler, long-term care costs are a major concern. Without careful planning, these expenses can quickly reduce savings and assets meant for children and grandchildren. Options like long-term care insurance or Medicaid planning strategies can help protect your estate while ensuring quality care is available when it’s needed most.
The law also preserved and may expand deductions for qualified long-term care insurance premiums. Families should check whether their policies meet the updated requirements.
The law also brought permanent changes to retirement accounts, including IRAs and Roth conversions. For example, Roth conversions may now play a larger role in planning because income tax brackets have shifted, making it more favorable for some families to convert traditional IRAs to Roth IRAs during their lifetime.
In addition, new rules affect how inherited retirement accounts are taxed. Beneficiaries may face different distribution timelines than in the past, which could mean higher tax bills if withdrawals aren’t planned carefully.
For East Texas families who own businesses, farms, or real estate, the 2025 law also included updates to valuation rules and succession planning. These changes could affect buy-sell agreements, liquidity planning, and leadership transitions.
If you’ve worked hard to build a business, you’ll want to ensure it continues to thrive after you step away. Reviewing succession plans now can help avoid family disputes, tax issues, or other complications that may jeopardize the future of the business.
At Campbell Law Firm, we’ve been helping East Texas families with estate planning in Tyler, TX, for over 35 years. The 2025 tax law is a reminder that an estate plan should never be “set it and forget it.” A review today can help your family avoid stress and unexpected costs tomorrow. Book a consultation today to make sure your estate plan reflects the latest changes in the law and continues to protect your legacy.
References: Forbes: 10 Reasons To Reevaluate Your Estate Plan Following The 2025 Tax Law, IRS: Estate and Gift Taxes, Medicaid.gov: Long-Term Services & Supports
