Navigating Change: 2024 in Review

As 2024 comes to a close, many of you may be looking back on your year. It’s an ideal time to reflect on our careers, lives, and personal growth—what goals we achieved and where we want to focus our efforts in 2025. 

This past year was an exciting and challenging year for will, estate, and trust professionals as our sector continued to evolve. These challenges reflect changes in legislation, economic conditions, and our clients’ needs. We saw many significant developments influencing our planning strategies and client decisions. 

Let’s take this opportunity to highlight some of the most significant changes in our sector and how they are likely to impact 2025.

1. Adjustments to Federal Estate and Gift Tax Exemptions

The federal estate tax exemption increased to $13.61 million at the start of the year, and the annual gift tax exclusion increased to $18,000 per recipient. These adjustments have provided expanded opportunities for wealth transfer and tax efficiency. However, these increased exemptions are set to sunset at the end of 2025, reverting to pre-2018 levels.

While there is some speculation that the pending change in government could lead to further extensions, the looming deadline creates a time-sensitive window for proactive planning, especially for high-net-worth individuals seeking to maximize current benefits.

2. IRS Policy Updates on Irrevocable Trusts

At the very end of 2023, the IRS passed modifications to the tax treatment of irrevocable trusts, with significant implications for beneficiaries. Updates to the step-up provision, which determines the taxable value of inherited assets, mean that the assets in the irrevocable trust now must be included in the taxable estate at the time of the grantor’s death. 

Now, because of the $13.61 million per-person exclusion in 2024 ($13,990,000 in 2025), most Americans do not need to worry about this change. However, if you are an estate planner who works with clients with this level of wealth, it will be critical to carefully evaluate your clients’ trust strategy and adjust as needed.

3. The Role of Technology in Estate Planning

Digital innovations like AI are transforming all aspects of our lives, and estate planning is no exception. 2024 has felt like the year when AI has taken on a whole new form, and changes are happening faster than many of us realize. From AI-powered tools that streamline document preparation to online platforms that enhance accessibility, technology is reshaping how professionals and clients approach estate planning. 

If your firm has embraced or is trying out some of these tools, you may have already reaped some of the rewards, like higher efficiency and lower costs. However, AI’s plethora of benefits comes with plenty of uncertainty. As these technologies continue to evolve in 2025, it will be critical to remember that:

1. feeding sensitive information to an AI service could jeopardize your client’s security.
2. errors are very common in the work produced by these tools.
3. a tool built on identifying patterns cannot replace the flexible and creative solutions that a legal, trust, and estate professional can provide.

4. Shifts in Client Attitudes Post-Pandemic

The urgency of estate planning, heightened during the pandemic, has receded to pre-pandemic levels. Many Americans (approximately 66%) delay creating or never create essential documents like wills, often believing estate planning is only necessary for those with significant wealth. The end result is often unnecessary stress, expenses, and heartache for those they leave behind.

As legal and trust professionals, it’s essential to prioritize educating clients on the importance of estate planning, regardless of asset size or life stage. It ensures their assets are distributed how they would want and is the best parting gift to leave for their families.

5. Legal Cases That Made Headlines

High-profile cases continued to highlight the complexities of trust and estate management in 2024. For instance, Rupert Murdoch’s unsuccessful attempt to alter the control of his family trust showed us the complexities of succession planning—an important case to review if you have clients with family businesses to account for in their trusts. 

The nuances of holographic wills made headlines as well with a court case surrounding Aretha Franklin’s estate. If you practice or have clients with assets in states that allow holographic wills, reviewing this legal could help you provide even better estate planning advice to your clients.

6. The Impact of the Great Wealth Transfer

The ongoing transfer of wealth from baby boomers to younger generations, like Millenials and Gen Z, continues to shape estate planning strategies. Real estate remains the largest asset in many estates. 

With changing priorities and interests from older generations to younger generations, understanding the tax and estate implications of more modern assets, like cryptocurrency, will need to be top-of-mind for estate planners as they guide their clients through the inheritance process and offer tailored solutions that align with their needs.

Looking Ahead

As our industry adapts to these changes, legal, estate, and trust professionals like yourself have a unique opportunity to guide clients through an increasingly complex landscape. Whether leveraging new tax exemptions, incorporating cutting-edge technology, or addressing the nuances of digital currency, staying informed is key to delivering exceptional and personalized service.

Also, key is being proactive in client conversations to ensure your clients have wills and estate plans. If they do, ensure their plans reflect the latest changes in legislation so their heirs are taken care of after they’re gone.

If you find yourself working on an intestate estate or are working with an incomplete will and need to establish heirship for probate purposes, HeirSearch offers unparalleled service and commitment, with a 97% success rate. 

Contact us to learn more about our process and how we can support your needs. 

Phone: +1 (800)-663-2255

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