Building wealth is a dream that many people have and rarely achieve. But when it does happen, various aspects of your life are subject to change.
One of these is how it affects your current estate plan. As it is not a one and done document, knowing where issues tend to surface is the first step toward keeping it effective.
Navigating the federal estate tax as your wealth grows
For Indiana residents, the good news is that the state does not impose its own estate or inheritance tax. However, your estate is still subject to the federal estate tax, and that is where growing wealth can create gaps.
The federal estate tax applies a 40% rate to the portion of your estate above the lifetime exemption. Under the One Big Beautiful Bill, signed into law in July 2025, that exemption now sits at $15 million per person and $30 million for married couples in 2026, with yearly inflation adjustments going forward.
Even if your estate falls below the current exemption, future law changes could lower that number. Checking your plan with these moving parts in mind can help you stay ahead of tax issues rather than reacting to them later.
Revisiting trusts and beneficiary designations
A trust or beneficiary form that made sense five years ago may not reflect your current financial picture. As your wealth grows, the way assets flow through your estate plan deserves a closer look.
For instance, a revocable living trust you created when your estate was worth $2 million may include language tied to the federal exemption amount. With federal exemption limits subject to legislative shifts, that same language could direct far more to one group of heirs than you originally intended.
Beneficiary designations on accounts like IRAs and 401(k)s generally override the instructions in your will or trust. Keeping these forms current and aligned with your broader estate plan ensures your assets are distributed exactly as you intend.
Safeguarding business interests through strategic gifting
If you own a business in Indiana, your estate plan carries added weight. A growing company raises the value of your taxable estate, and without a clear transfer strategy, your heirs could face difficult financial decisions.
It could be worth exploring the annual gift tax exclusion., which allows you to transfer up to $19,000 per recipient in 2026 without using any of your lifetime exemption. Married couples can elect to split their gifts, combining this limit for up to $38,000 per person, though this requires filing an annual gift tax return.
Gifting ownership shares in a family business or moving assets into an irrevocable trust are two strategies that may help shift future growth outside of your taxable estate. A properly drafted irrevocable trust can also offer a layer of creditor protection for your heirs down the road.