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Will the Death Tax Be Repealed in 2025? What the Proposed Law Could Mean for You
- Sabine Franco
- May 5
- 3 min read
Have you spent your life building something meaningful, only to worry that a chunk of it might vanish due to taxes after you're gone? You're not alone—and you're not imagining it. The federal estate tax, often called the “death tax,” can claim up to 40% of your wealth before it reaches your loved ones. But now, a new bill is making waves in Congress: the Death Tax Repeal Act of 2025. If passed, it could change everything.
So, what does the possible repeal of the estate tax mean for you, your family, and your estate plan? Let’s break it down in simple terms.
What Is the Estate Tax, and Why Does It Matter to Families Like Yours?
The estate tax applies to estates over a certain threshold—currently about $13.61 million per person in 2025. If your estate exceeds that, the government takes 40% of what’s left before it goes to your heirs. That’s why many families feel like they’re being taxed twice: once while earning, and again at death.
The Death Tax Repeal Act of 2025 (DTRA) would eliminate this tax completely. Supporters argue it’s long overdue. After all, why should the assets you’ve already paid income tax on be taxed again just because you died?
Critics worry about the economic consequences, such as reduced government funding and increasing wealth inequality. But for you and your family, the most important question is:
How could this repeal affect your estate plan and your loved ones' future?
If the Death Tax Goes Away, What Changes for You?
Whether your estate is worth $3 million or $30 million, this law could impact how you pass on your legacy. Here’s what might change:
Simplified Estate Planning
You may no longer need complex strategies like irrevocable trusts, family limited partnerships, or certain life insurance policies solely for tax savings. This could make your plan cleaner and easier to manage.
More Focus on Income Tax for Heirs
With estate taxes gone, strategies may shift to managing capital gains taxes when your heirs eventually sell assets. That includes basis step-up planning, which can still offer big savings.
Charitable Giving Becomes More Personal
Without the incentive of estate tax deductions, charitable giving could be based purely on your values—not tax advantages. This means you can give with more heart than strategy.
What If the Law Doesn’t Pass? (Spoiler: Big Changes Are Still Coming)
Here’s the catch: even if the repeal doesn’t happen, current law already says that by 2026, the estate tax exemption will drop by about half. That would expose many more families—especially business owners and property owners—to federal estate taxes.
That’s why now is the time to revisit your plan, whether or not Congress acts.
How to Protect Your Family No Matter What Happens in Washington
Tax laws change. What matters more is whether your plan is flexible, updated, and built to stand the test of time. That’s exactly what we do through our Life & Legacy Planning Process.
With our approach:
Your legal documents stay current (and relevant).
You’re guided through tax law changes like the DTRA.
Your loved ones avoid court, confusion, and conflict.
This isn’t cookie-cutter estate planning. It’s about building a real relationship with someone who helps you stay ahead—so your family doesn’t fall behind.
🧾 How The Ambitious Legacy Firm Can Help You Move Forward with Clarity
At The Ambitious Legacy Firm, we know that changes in tax law—like the potential repeal of the federal estate tax—can raise more questions than answers. That’s why we go beyond boilerplate documents and cookie-cutter solutions. Our mission is to equip ambitious families, entrepreneurs, and wealth builders with the tools and legal strategies they need to protect their assets and preserve their legacy.
Whether the Death Tax Repeal Act passes or not, your estate plan needs to be ready. We'll help you:
Clarify how potential tax law changes affect your specific estate
Update your plan to reflect new goals, values, and financial realities
Strategize to keep your family’s wealth intact across generations
Ensure that your business, property, and investments are secured for the people who matter most
This article is a service of The Ambitious Legacy Firm. We do not just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Legacy Planning Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by using the link below to schedule a call with our Client Services Director, who will be able to guide you on scheduling your Legacy Planning Session.
WE CARE ABOUT YOUR LEGACY.
LET US HELP YOU PLAN IT!
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