Most high net worth families assume that once a will is drafted, their estate is protected. It is not. A will does not avoid probate. It simply tells a probate court what to do with assets after death, and probate itself comes with real costs. For a family with $10 million or more in assets, administrative fees through probate can run into significant sums. A properly funded trust avoids this process. An unfunded one, even if it exists on paper, does not.
What the New Federal Exemption Actually Changed
The federal estate tax exemption now sits at $15 million per person, or $30 million for a married couple, indexed for inflation. For most families, that number removes the tax question entirely. But estates above that threshold still face a 40% tax rate on the excess, payable within nine months of death. A single person with a $20 million estate, for example, would owe close to $2 million in estate tax.. Married couples must also actively preserve the deceased spouse’s exemption through proper elections. It does not transfer automatically.
Estate Planning Is Not Only About Taxes
A lower urgency around taxes does not mean lower urgency around planning. Families with disabled children, blended families, creditor concerns, or multiple generations to consider still need a coordinated plan. Spendthrift beneficiaries, second marriages, and long term care needs all require planning..
Florida Residency Is Not Automatic
Buying a home in Florida does not make someone a Florida resident for tax purposes. States like New York and California apply multiple tests, including voter registration, driver’s licenses, vehicle registration, utility usage, and time spent in the state. Cell phone location data and connected vehicles make these records easy to verify. Families relocating from high tax states need to file the correct affidavits and documentation, not just assume residency because of a mailing address.
Homestead Protection Has Real Limits
Florida’s homestead protections are stronger than most states offer, shielding a primary residence from certain creditors and providing property tax benefits. For families with a home valued at $3 to $4 million, homestead can be a meaningful piece of a wealth preservation strategy. But it is not a substitute for a full estate plan, and its protections apply specifically to a primary residence, not to other real estate holdings.
Old Trusts Need a Second Look
Estate plans drafted before 2025, especially those built around funding formulas tied to older exemption amounts, may no longer reflect a family’s actual intent. A formula based on $5 million, for instance, can send assets to the wrong trust entirely once exemption amounts change. Reviewing these formulas is one of the most overlooked steps in keeping an estate plan current.
The Real Cost of Waiting
A higher exemption creates more room, not more certainty. Families who built wealth through decades of hard work deserve a plan that reflects where they actually stand today, not one built around assumptions from years ago.
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