Jensen Estate Law
January 2025 Newsletter
Hi clients and friends,
A new year always brings changes, and 2025 is no exception. From potential shifts in estate and tax policies to compliance requirements like the Corporate Transparency Act (which is currently on hold), there are important developments to keep in mind in the months ahead.
At our office, we’re also working on ways to streamline the estate planning process to make it more efficient for our clients. This includes our new estate planning intake form, which features updated scheduling options and more focused questions to help us better understand your needs from the very first consultation. We’re also emphasizing gifting strategies as an effective tool for reducing taxable estates and ensuring that more of your wealth benefits your loved ones.
Our priority this year is to keep an eye on the legal landscape so you don’t have to—providing clear, timely updates along the way. To start, we’re introducing a new short video series with Derek W. Jensen, JD, LLM, covering key tax and estate issues for Washington residents.
This month’s newsletter highlights what you need to know to stay informed and prepared.
The Washington Gift Trust: A Smart First Step in Advanced Planning
Did you know that Washington’s estate tax threshold is significantly lower than the federal exemption? Many families who avoid federal estate taxes may still face unexpected state tax burdens. The Washington Gift Trust offers a streamlined way to reduce your taxable estate while keeping your current estate plan intact.
Learn how this trust works, why it’s simpler than traditional strategies, and how it could help protect your legacy. If your estate is above $2.193 million, this could be your first step into advanced estate planning—with minimal complexity.
New Video Series:
Tax Issues for Washington Estates
Understanding estate taxes in Washington can be complex, but our new video series with Derek W. Jensen, JD, LLM, breaks it down into clear, practical insights. This series explores key tax considerations for
Washington residents, including the state estate tax, capital gains tax, and their interactions with federal transfer and income taxes.
Our first videos cover:
📌 Strategies to Minimize Estate Taxes – How gifting and other planning techniques can help reduce or eliminate tax burdens.
📌 The Washington Estate Tax – How it applies to estates over $2.193 million and why proactive planning matters.
Each video is concise, easy to follow, and designed to help you make informed decisions about protecting your wealth.
🎥 Watch the first videos now, and stay tuned—more topics will be added soon!
News & Updates You Should Know
Corporate Transparency Act (CTA) – What You Need to Know
You may have seen recent headlines about the Corporate Transparency Act (CTA) and its new reporting requirements for small businesses and LLCs. A recent legal decision has put these rules on hold—for now—but that could change. While no immediate action is needed, it’s important to stay informed.
As of December 27, 2024, the U.S. Court of Appeals for the Fifth Circuit issued a nationwide preliminary injunction, suspending enforcement of the CTA and its Beneficial Ownership Information (BOI) reporting requirement. This includes the January 13, 2025, deadline for companies formed before 2024. We’ll continue to monitor developments and keep you updated on what this means for your LLC or business entity.
Preparing for Potential Tax Law Reforms
With a new administration taking office, potential tax law changes could significantly impact estate and wealth transfer planning. One major uncertainty is whether the Tax Cuts and Jobs Act (TCJA) will sunset as scheduled in 2025, causing the federal estate and gift tax exemption to drop from its historically high levels. The administration may push for an extension, seek to make the higher exemption permanent, or propose a completely new approach—potentially even eliminating the estate tax altogether. There have also been discussions about overhauling the income tax system, with some extreme proposals suggesting its complete repeal. Given these uncertainties, staying informed and proactive is critical. We will provide an update as soon as new details emerge, so be sure to check back next month or look out for our next alert.
From Our Office: Making Estate Planning Easier & More Accessible
We understand that estate planning can feel overwhelming, which is why we’re committed to making the process simpler, more accessible, and tailored to your needs. To help with that, we’ve streamlined our intake process to improve ease of access and peace of mind. Our new intake form allows you to schedule your initial consultation immediately and answer key questions in advance, ensuring your concerns are addressed from the first meeting. Whether you’re creating an estate plan for the first time or making updates, this tool makes the process more efficient and stress-free. If you’ve been thinking about getting started, take a look—or share it with a friend who may be ready to begin.