With the recent passage of the new "Big Beautiful Bill" by the Trump administration, there are many tax changes, including a few updates that affect estate planning and education savings. Two of the most important changes to know about are:

• The federal estate tax exemption has increased.
• The benefits of 529 education savings plans have expanded.

Understanding these updates will help you better make your estate plan and consider your family’s financial future.

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Federal Estate Tax: Now Only for the Ultra-Wealthy

The federal estate tax is a tax on the assets someone leaves behind after passing away. If it applies, your assets are taxed before your loved ones receive their share. It's a hefty tax — the IRS takes 40%. But there's good news: most people will never owe any estate tax.

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Who pays the federal estate tax?

• Every person gets an exemption amount — assets under that limit aren’t taxed.
• Before 2017, the federal estate tax exemption was $5 million per person.
• The 2017 Tax Cuts and Jobs Act doubled this exemption to $10 million per person, indexed for inflation. For married couples, the exemption effectively doubled to $20 million combined.
• However, this doubling was scheduled to expire at the end of 2025, which would have reverted the exemption amount back to $5 million per person.

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What did the new law change?

The new bill permanently raises the federal estate tax exemption to $15 million per person, indexed for inflation — meaning that starting in 2026 and beyond:

• Individuals with estates under $15 million will not owe federal estate tax.
• Married couples can protect up to $30 million in combined assets before estate taxes apply.

This change means the federal estate tax now affects only a small fraction of Americans with very high net worth.

Note: Many states still impose their own state estate taxes, which are separate from the federal rules and may have lower exemption limits.

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What this means for estate planning and online Will creation with Herbie

With fewer estates subject to federal tax, more Americans can confidently use online estate planning platforms like Herbie to create their Wills and Revocable Living Trusts without costly legal fees. Herbie simplifies the estate planning process while ensuring you still feel confident in your estate plan.

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Expanded Uses of 529 College Savings Plans in 2025

529 plans remain one of the best ways to save for education, allowing you to invest after-tax dollars and grow them tax-free as long as the money is used for qualified education expenses.

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What’s new with 529 plans under the new tax law?

The definition of qualified expenses has expanded significantly:

1. Originally, 529 plans were focused on using savings for college tuition expenses, but they since expanded to allow $10,000 a year for K-12 tuition at public, private and religious schools. This amount has now doubled to $20,000 per year.
2. While expenses at the K-12 level had focused on tuition, they have now expanded to include a wide variety of categories:
   • Curriculum, books and online educational materials
   • Tutors and national standardized test fees
   • Dual enrollment programs
   • Educational therapies such as occupational, behavioral, physical and speech-language therapy
3. Now professional certifications, licenses, and adult education programs qualify as expenses as well.

All of these enhancements make 529 plans more flexible, covering a broader range of education and training needs.

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How this affects your estate plan

When planning your finances and family's future, it’s important to take into account your 529 accounts along with your other assets. Platforms like Herbie help you track 529 plan balances and other investments in one easy-to-manage dashboard.

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Ready to start your estate plan?

The expanded federal estate tax exemption and widened 529 plan benefits make estate planning and education savings easier for most families. Whether you’re creating a Will or trust, or managing education funds, staying up to date is critical.

Herbie offers a convenient online estate planning service designed for today’s families, helping you:

• Create Wills and Revocable Trusts tailored to your needs
• Track 529 plans alongside your other assets
• Simplify your estate and education planning — all online

Check if Herbie is available in your state and sign up today to secure your family’s future with a clear and affordable estate plan.

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