Rose S. Whelan Estate Planning Attorney WHELAN LAW PLLC
As the priorities of the new Trump administration take shape, many DC-Area parents — especially federal workers — are facing uncertainty around their employment and financial futures. With job security and benefits in flux, it is important to revisit your estate plan to ensure your family is protected, no matter what the future holds.
Here are some key estate planning considerations to keep in mind:
If you’ve lost your job — or are worried you might — you could also lose your employer-sponsored life insurance and disability coverage. These protections are often overlooked, but they’re crucial for safeguarding your family’s financial security. It’s worth exploring private life insurance and disability insurance options to replace or supplement any employer-sponsored coverage. Having the right insurance in place ensures your family is supported if something unexpected happens to you.
A job change often brings changes in income, benefits, and retirement plans. It’s important to update your estate plan to reflect new assets like different insurance policies, retirement benefits, health savings accounts, stock options, or equity plans. Equally important is ensuring that your beneficiary designations on these accounts are up to date and align with your overall estate plan.
If a new job opportunity requires you to move to another state, your estate plan will likely need to be updated. Most aspects of estate planning, including wills, trusts, powers of attorney, and temporary guardian designations, are governed by state law — and these laws vary significantly. By reviewing and updating your estate plan after a move, you ensure that your documents remain valid and enforceable.
The Trump administration has proposed eliminating the federal estate tax or at least extending the current estate tax exemption of $13,990,000 per individual, which was set to sunset at the end of 2025 and return to its 2017 level (adjusted for inflation), likely around $7,000,000. While federal estate tax may not affect many families, you might be closer to that threshold than you realize — especially since life insurance benefits count toward your total estate value.
Even if federal estate taxes disappear, state-level taxes remain a concern. DC and some neighboring states, like Maryland, have estate taxes with much lower exemption amounts, and Maryland also imposes an inheritance tax. Understanding how these state-specific rules impact your estate is crucial for effective planning.
DC allows parents to name a standby guardian to care for their minor children if the parent dies, becomes incapacitated due to illness, or is subject to an adverse immigration action, such as detention or deportation. This provision allows parents to plan for their children’s care without giving up any parental rights. Given the likelihood of increased deportations under the Trump administration, this protection could be especially important for some families.
In times of change and uncertainty, having an up-to-date estate plan is one of the best ways to protect your family’s future. Whether you’re updating an existing plan due to job changes, a move, or new assets — or creating an estate plan for the first time — it’s important to make sure your documents reflect your wishes and current circumstances. An estate plan isn’t just for those with significant wealth — it’s about ensuring your children are cared for, your assets are distributed according to your wishes, and important decisions about your health and finances are made by people you trust. Taking these proactive steps today can help provide stability and peace of mind for whatever lies ahead.
If you’re ready to start or update your estate plan, there are many resources available to guide you. Local bar associations often provide lawyer referral services, and nonprofit legal aid organizations can offer assistance for those who qualify. For personalized guidance and to ensure your estate plan is comprehensive and tailored to your family’s needs, you can also reach out to an experienced estate planning attorney like Rose Whelan at Whelan Law PLLC to schedule a free initial consultation.
Learn more about Estate Planning for Parents. 5 Things Every Parent Should Know