Wills and Trusts: Tools for Estate Planning and Tax Efficiency in 2025

It’s April, and tax season is officially in full swing. As W-2s get submitted and last-minute deductions are double-checked, many families are also thinking about the bigger picture. At Bascom Law, this is one of the best times of year to talk about estate planning—not just as a future-focused exercise, but as a real-time opportunity to reduce estate tax exposure.

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Wills and trusts aren’t just about what happens after you’re gone. They’re powerful financial tools that, when set up correctly, can lower estate taxes, minimize probate expenses, and help you transfer wealth to loved ones and business partners with fewer complications. With the April 15 filing deadline just around the corner and the federal estate tax exemption set to decrease significantly after December 31, 2025, now is the perfect time to align your estate planning strategy with your tax strategy.

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Trusts: A Strategic Tool for Tax Reduction

Trusts are often associated with the ultra-wealthy, but they’re incredibly useful for everyday individuals, families, and small business owners looking to reduce their taxable estates and ensure smooth asset transfers.

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• Revocable Living Trusts allow you to maintain control of your assets during your lifetime while avoiding probate after death—a process that can be both time-consuming and expensive. While they don’t offer direct tax savings, they streamline administration and offer privacy.
• Irrevocable Trusts, on the other hand, remove assets from your taxable estate. These trusts can be used to shield life insurance proceeds, real estate, and other assets from estate taxes. This is particularly important with the federal estate tax exemption currently set at $13.99 million per person in 2025, but scheduled to drop by about half in 2026 unless new legislation is passed.
• Grantor Retained Annuity Trusts (GRATs) and Charitable Remainder Trusts (CRTs) offer specific benefits for individuals with appreciating assets or charitable inclinations. GRATs let you transfer future appreciation of an asset to heirs with minimal gift tax. CRTs provide income to the grantor during life and a future gift to charity, reducing current income taxes through a partial charitable deduction.

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Wills: A Foundation for Efficient Transfers

A will remains an essential part of any estate plan. It ensures your wishes are honored and can prevent costly disputes and administrative delays. While a will alone does not avoid probate, combining it with smart tax planning can reduce the overall burden on your estate.

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For example, including instructions for paying taxes from specific assets can avoid liquidity issues. And for small business owners, a will can direct succession plans that avoid unnecessary tax complications at transfer.

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According to the National Association of Estate Planners & Councils, poorly drafted or outdated wills can unintentionally trigger tax consequences, especially when state inheritance or estate taxes come into play. Keeping your will updated in line with tax law changes is key to ensuring efficiency.

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What You Can Do This Tax Season

Review and Update Your Estate Plan

Tax season is the perfect reminder to revisit your estate plan. Ask yourself:

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• Has your financial situation changed?
• Have you bought or sold property?
• Have there been changes in your family structure or business interests?

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Even small changes can have a big impact on your estate’s tax exposure.

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Consider Creating or Modifying a Trust

With the estate tax exemption potentially being cut in half starting January 1, 2026, now is a smart time to consider irrevocable planning options. Meet with an estate planning attorney to explore trusts that align with your financial goals.

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Coordinate With Your Tax Advisor

Estate planning and tax planning should go hand in hand. Work with a CPA or tax advisor to ensure your strategies are aligned and up to date. Having all your financial professionals on the same page ensures your documents reflect the smartest tax moves.

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Conclusion

At Bascom Law, we see wills and trusts as more than legal documents—they’re financial tools that help families protect what they’ve built. Whether you’re looking to minimize estate taxes, avoid probate, or ensure your children inherit wisely, there are proven strategies that can start with a simple review this tax season.

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We’re here to help you turn financial resolutions into real, lasting security.

To schedule a tax-season estate planning consultation, visit BascomLaw.com or call 770-285-5493.

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Sources

IRS

Investopedia

NAEPC

Forbes

U.S. Department of the Treasury: Tax Policy

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