While headlines about estate tax changes might seem relevant only for the ultra-wealthy, every family in our community needs a solid estate plan – whether you own a modest home or run a thriving business. Let’s break down what these changes mean for Wichita residents and why planning matters for everyone.
Understanding the Federal Estate Tax Picture
Currently, the federal estate tax exemption sits at a generous $13.99 million per person ($27.98 million for married couples). However, change is on the horizon. Without new legislation, this exemption could drop to around $8 million in 2026. While these numbers may seem astronomical, understanding them helps us make informed decisions about our family’s future.
Why Estate Planning Matters for Every Family
You might be thinking, “My estate isn’t worth millions, so why should I care?” Here’s why estate planning matters regardless of your net worth:
- Protecting Your Home and Assets: Whether you own a historic home in Riverside or a newer build in East Wichita, your house is likely your most valuable asset. A proper estate plan ensures your property passes smoothly to your chosen heirs, avoiding costly probate proceedings.
- Family Business Protection: For local business owners – whether running a manufacturing operation, restaurant, or retail shop – having a clear succession plan is crucial. This becomes especially important in a community like ours, where family-owned businesses are central to our economy.
- Investment and Retirement Assets: Even modest investment portfolios, retirement accounts, and life insurance policies can add up to significant value. Strategic planning helps ensure these assets transfer efficiently to your intended beneficiaries.
Practical Steps for Every Family
- Start with a Basic Will: Don’t let your estate be distributed according to state law by default. Even a basic will gives you control over who receives your assets and who will care for minor children.
- Consider a Living Trust: Assets in a living trust can bypass probate, saving your heirs time and money. This can be particularly valuable for families with real estate holdings or business interests.
- Review Beneficiary Designations: Keep beneficiary designations up-to-date on your retirement accounts, life insurance policies, and other financial accounts. These designations override your will, so they’re a crucial part of your estate plan.
Looking Ahead
While the new administration may bring changes to estate tax laws, the fundamentals of good estate planning remain constant. Whether you’re a young professional just starting to build wealth or a seasoned business owner, having a solid estate plan provides peace of mind for you and your family.
We're Here to Help
Estate planning isn’t just about tax savings – it’s about ensuring your hard-earned assets benefit the people and causes you care about most. In our community, planning ahead means protecting what matters most: our families and their future.
Don’t wait for tax laws to change to start planning. Schedule a consultation today to ensure your family’s legacy is protected, regardless of what changes come in 2025 and beyond.
