While we’re only a couple of months into 2025, there are already some important developments that financial advisors need to bring to their clients’ attention. Chief among them are the proposed tax changes put on the table by the new presidential administration, as well as a pressing need to address digital assets inheritance. Know that as an advisor, you don’t need to have all the answers. Many of these changes aren’t official and still in flux, but what you can do to support your clients is to bring these issues to their attention and prepare them to take swift action as at least some laws and policies are bound to change.
Preparing for Potential Tax Changes
Among the most pressing concerns are potential tax changes, particularly regarding the Tax Cuts and Jobs Act (TCJA). While uncertainty remains around the exact regulations, advisors should take steps now to prepare their clients for potential impacts.
“The Tax Cuts and Jobs Act, while a positive for many households, attached an expiration date for some of the most impactful provisions; the federal estate tax exemption is one of those,” explained Charles H. Thomas, III, CFP, founder of Intrepid Eagle Finance. “Unless Congress acts, the exemption will be cut in half when 2026 begins. That means whether Congress chooses to step in or not, some change is a distinct possibility. The most prudent step is to get ahead of the conversation now while there's still time to plan ahead.”
Chitra Patel, founder of WealthWorth, notes that advisors need to stay on their toes regarding these potential estate and gift tax exemption changes while at the same time guiding clients to leverage the exemption options currently at their disposal.
The Rise of Digital Estate Plans
With the increasing rise of cryptocurrencies, another element that’s growing in importance is accounting for digital assets in estate plans. This is relatively unchartered territory but with about 560 million crypto owners, it’s vital that a path be set for the transfer of these assets.
“Ensuring clients have the right structures in place to transfer these assets securely is a growing priority,” noted Tim Woodward, CFP, managing partner of Blend Wealth.
Patel concurs, noting that “advisors must incorporate digital asset planning into estate strategies to ensure seamless transfer and access.”
Experts predict that estate plans must now include specific provisions for passing down digital keys, online accounts, and even NFT collections. Advisors should encourage clients to maintain updated digital asset inventories and legal documentation to facilitate smooth transitions.
Communicating the Great Wealth Transfer
As the Great Wealth Transfer continues to occur, it will be prudent for advisors to ensure the smoothest transition of those assets. Cerulli Associates anticipates that $84 trillion will be transferred by 2045. This generational shift requires thoughtful conversations around family communication, inheritance fairness, and succession planning.
“With Baby Boomers passing on wealth to Millennials and Gen Z, advisors should prepare for discussions around family communication, inheritance fairness and succession planning,” Patel said. “The rise in blended families, single-parent households, and non-traditional relationships calls for tailored estate planning solutions that reflect unique family dynamics.”
The way Blend Wealth accomplishes this is by hosting “family meetings” that help clients explain their plans to their families. Woodward notes this gives everyone a chance to ask questions and dispel any rumors.
“We don’t talk about specific numbers, just percentages and how assets will transfer, keeping it simple and stress-free,” he said. “Clients have really loved these family meetings.”
A Call To Action: Estate Planning Is No Longer Optional
Trust & Will found that one quarter of advisors don’t have estate plans, let alone their clients. This year is an opportunity to check off this vital set of plans to ensure that assets are clearly protected and other important issues such as guardianship are formally established.
As 2025 progresses, financial advisors must take an active role in guiding clients through these critical issues, ensuring they are well-prepared for the future. By tackling tax changes, digital asset inheritance, and wealth transfer head-on, advisors can provide immense value in an evolving financial landscape. Lucky for them, Trust & Will is here to help! Interested in partnering with Trust & Will to enhance your own clients’ estate planning needs? Learn more about how you can join over 17,000 financial advisors and firms who are delivering peace of mind to their clients by offering a comprehensive estate planning solution. Schedule a free demo today.
Trust & Will is an online service providing legal forms and information. We are not a law firm and we do not provide legal advice.
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