What the Death Tax Repeal Could Mean for Your Family—and Your Legacy

There’s a new bill making waves in Washington: the Death Tax Repeal Act of 2025 (DTRA). If passed, it would eliminate the federal estate tax altogether. Supporters argue this change is long overdue, calling the tax a form of double taxation—assets earned and taxed during life shouldn’t, they argue, be taxed again at death.

But like most proposed legislation, the potential repeal raises both opportunities and concerns. At Starsia Law, we believe it’s worth taking a closer look—especially if you’re focused not just on minimizing taxes, but on creating a legacy that reflects your values and protects the people you love.

Estate Tax 101: Why the DTRA Matters

Aside from a brief pause in 2010, the federal estate tax has existed in some form for over a century. As of 2025, estates valued above $13.61 million per individual are taxed at 40% on anything over that threshold. Unless Congress acts, that exemption is set to drop to roughly $6–7 million per person in 2026.

For families with hard-to-sell or appreciating assets—like small businesses, farms, or investment properties—the estate tax can present real challenges. Paying the tax might mean selling off important assets or taking on significant debt, compromising what you’ve worked hard to build for future generations.

The DTRA aims to eliminate that burden—but critics raise fair questions about what might be lost in the process.

Weighing the Pros and Cons for American Families

Potential Benefits:

• Preserving Family Businesses & Land
  Repealing the estate tax could make it easier for family-owned businesses or farms to stay in the family, rather than being sold off to cover a large tax bill.

• Simpler Planning for Large Estates
  Without estate taxes to navigate, some families could skip complicated tax-avoidance strategies and focus on more straightforward planning.

Potential Drawbacks:

• Loss of Federal Revenue
  Estate taxes help fund public services like education and healthcare. If this funding disappears, it could shift the tax burden elsewhere—potentially onto middle-income families.

• Widening the Wealth Gap
  Some economists worry that eliminating the estate tax would accelerate wealth concentration among a small number of families, making it harder for future generations to access economic opportunity.

These are big-picture debates—but at Starsia Law, we help you focus on what matters most: how these changes affect your family, your values, and your legacy.

How the DTRA Could Shift Your Planning Strategy

Whether or not the DTRA passes, now is a good time to revisit your estate plan. Here's how the proposed repeal might shift your approach:

• Less Complexity, But More Strategic Thinking
  Many tax-driven structures (like GRATs, ILITs, and FLPs) might become unnecessary. But that doesn’t mean planning becomes unimportant—it just shifts focus.

• Income Tax Planning for Heirs
  With no estate tax, capital gains and income taxes may take center stage. Planning for step-up in basis and tax-efficient asset transfers becomes even more critical.

• Charitable Giving Choices May Shift
  Currently, many families give to charity in part to reduce their taxable estate. Without that incentive, future giving may rely more on personal values—an opportunity to align your philanthropy with what truly matters to you.

Preparing Your Family for an Uncertain Future

Even if the DTRA doesn’t pass—or changes significantly before becoming law—the conversation around estate taxes is unlikely to go away. That’s why we focus on building flexible plans that can evolve as laws and family circumstances change.

With our Life & Legacy Planning Process, we:

• Review and Update your plan regularly as tax laws shift.

• Explore "what if" scenarios to stay ahead of potential changes.

• Focus on your legacy, not just your assets—ensuring that your stories, wisdom, and values are passed on with just as much care as your finances.

Unlike traditional estate plans that may gather dust in a drawer, Life & Legacy Plans are living documents—and we’ll be there to help you update them as needed, so your family is always protected.

Let’s Build a Plan That Works—No Matter What Happens in Washington

Whether the estate tax remains in place or disappears tomorrow, one thing won’t change: your desire to care for your loved ones and leave behind a legacy that reflects your heart.

As your Personal Family Lawyer®, I’ll help you create a plan that works today, tomorrow, and for generations to come—whatever the tax laws decide.

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Click below to schedule a complimentary 15-minute consultation and discover how our Life & Legacy Planning Process can bring peace of mind, no matter what the future holds.

This article is a service of Starsia Law, a Personal Family Lawyer® Firm. We don’t 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 Life & 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. 

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.