A new year always brings change, and 2025 is no exception. This year, California has enacted more laws affecting estate planning, taxes, business owners, and families than ever before. With so many updates, it can be overwhelming to keep up. But don’t worry—we’ve done the heavy lifting for you.
Below are some key legal changes that could impact you and your loved ones, along with tips on how to stay ahead.
1. Estate & Tax Planning: The Clock is Ticking on the Estate Tax Exemption
For years, high-net-worth individuals have enjoyed a generous estate tax exemption—meaning they could pass down up to $13.99 million per person tax-free. However, this is set to drop by half on January 1, 2026, reverting to roughly $7 million per person (or $14 million for married couples).
Tip: If your estate is above these thresholds, now is the time to act.
- Consider strategic gifting to use the higher exemption before it disappears.
- Set up or revise trusts to protect your wealth and avoid unnecessary taxation.
- Consult with an estate planning attorney before the end of July 2025 to ensure there’s enough time to put a solid plan in place.
This isn’t just about the ultra-wealthy. If you own a business, real estate, or have a large retirement account, this change could directly affect your family’s inheritance.
2. Changes to Gifting & Inheritance Rules
- Annual Gift Tax Exemption Increase: You can now gift up to $19,000 per person per year without triggering taxes. A married couple can give $38,000 to each child or grandchild tax-free.
- New Property Transfer Rules: If you inherit your parents’ home and move in within one year, you may be able to avoid a property tax reassessment—but you must file the right paperwork on time.
- Easier Small Estate Transfers: If your estate is worth $184,500 or less, your heirs can now avoid probate through a simplified process.
3. Beware of the “Hidden Trap” in Real Estate Transfers
A new California law tries to make it easier for families to inherit lower-value homes without probate. If a primary residence is valued at $750,000 or less, it can be transferred using a simplified court process.
But here’s the catch:
- The fair market value (not the equity) is what matters. In most areas of California, single-family homes exceed this limit, so probate may still be required.
- This only applies to primary residences—not vacation homes or rental properties.
- You still need a court petition, which means delays and legal costs.
Tip: Avoid the trap—set up a trust.
If you own real estate in California, a revocable living trust is still the safest and most efficient way to ensure a seamless transfer of property after your passing.
4. Business Owners: Changes You Need to Know
- Beneficial Ownership Information (BOI) Reporting is Paused: The federal government is not enforcing BOI filings—for now. However, this could change, so stay tuned.
- Digital Signatures for Property Taxes: You can now e-sign property tax documents, making transactions easier.
- New Tenant Rights & Landlord Responsibilities: If you own rental properties, be sure to review the new landlord-tenant laws to avoid legal trouble.
5. Trusts & Conservatorships: Avoiding Common Pitfalls
Updating Your Trust is More Important Than Ever
- A recent court case confirmed that emailing trust changes is not legally valid—formal amendments must follow specific procedures.
- If you’ve remarried, check your beneficiary designations on retirement accounts. If your ex-spouse is still listed, they could inherit your assets instead of your new spouse.
Conservatorship Protections Have Been Strengthened
- If a conservator moves someone to a new facility, family members must now be notified to prevent cases of elder isolation.
- If a loved one is receiving care at a Continuing Care Retirement Community (CCRC), they now have expanded rights to ensure fair treatment.
6. Veterans & Caregivers: New Financial Support
Veterans and their families now have more options for healthcare, in-home care, and financial assistance:
- The Elizabeth Dole Act expands VA coverage to non-VA doctors and provides more options for in-home care and assisted living.
- Veterans Aid & Attendance benefits now allow spouses and adult children who care for veterans to receive financial compensation.
Tip: If you or a loved one is a veteran, check with the VA to see if you qualify for new benefits.
7. The Social Security “Windfall” & What It Means for Retirees
A major change is coming that will allow teachers and government workers to collect Social Security benefits they were previously excluded from. While this is great news for many retirees, it could put additional strain on Social Security funding.
Tip: Plan ahead for possible Social Security reductions.
- If you’re near retirement, consult a financial planner to see how this could impact you.
- If you’re still working, consider diversifying your retirement savings to reduce dependence on Social Security.
What Should You Do Next?
- Review Your Estate Plan: If you haven’t updated your will, trust, or beneficiary designations recently, now is the time.
- Act Before July 2025: If you need to make large gifts or set up tax-saving strategies, don’t wait until the end of the year.
- Stay Informed: The laws are always changing. Our firm will continue to update you on legal shifts that affect you and your loved ones.
Need help navigating these changes? Contact Snyder Law today to schedule a consultation. We’re here to help you make the best decisions for your estate, your business, and your family.
Final Thought
Change can be challenging, but it’s also an opportunity. The best way to protect your legacy is to stay proactive and informed. With the right planning, you can make sure your family, your assets, and your future are secure—no matter what changes come your way.
Let’s make 2025 the year we take action. Your future self (and your loved ones) will thank you.
