The Complete Guide to Estate Planning Compliance in 2025

The estate planning landscape for 2025 is defined by uncertainty. With the Tax Cuts and Jobs Act exemption sunset looming in 2026 and new regulations on digital assets and retirement accounts (SECURE 2.0), the "standard" plan is no longer safe.

This guide outlines the critical compliance checkpoints for every estate planner this year.

Key Concepts

Compliance is now a moving target.

• Exemption Sunset — The impending reduction of the federal estate tax exemption by ~50%.
• Digital Asset Access — The absolute necessity of RUFADAA-compliant language for crypto, email, and cloud accounts.
• 10-Year Rule — The elimination of the stretch IRA for most beneficiaries, requiring new trust drafting strategies.

The Sunset Panic

On January 1, 2026, the federal exemption will drop from ~$13M to ~$7M (adjusted for inflation). Clients with $8M-$14M estates who felt "safe" are suddenly in the danger zone.

Action required: Implement SLATs and gifting strategies now. Waiting until Q4 2025 will result in a bottleneck where appraisers and attorneys are at capacity.

Retirement Accounts & Trusts

Old "Conduit Trusts" formatted for the Stretch IRA are now often disastrous, forcing a full payout (and massive tax bill) within 10 years.

Review every trust named as an IRA beneficiary. Most should be converted to "Accumulation Trusts" to protect the principal, even at the cost of higher trust tax rates.

Conclusion

2025 is not a year for maintenance; it is a year for renovation. Every plan drafted prior to 2020 needs a structural review. The cost of inaction is a devastated inheritance.

Frequently Asked Questions

What is the new exemption amount?

Projected to be around $14.3M in 2025, dropping to ~$7M in 2026.

Do checking accounts need digital language?

Yes. Most banking is now online. Without authorization, digital executors cannot access statements.

Sources & Further Reading

• IRS Pub 590-B (Distributions)
• ACTEC Comments on SECURE 2.0