📅 2026 Update: Changes in Estate Planning and Trusts

Since the original article was published, there have been important updates in estate planning and trust laws that affect how parents can protect their children. These changes impact tax exemptions, probate processes, and trust regulations. The earlier article continues further down the page, offering foundational information on testamentary trusts.

📈 Federal Estate Tax Exemption Increase

In 2025, the federal estate and gift tax exemption increased significantly to $15,000,000 per individual. This change, brought about by the One, Big, Beautiful Bill Act, means that individuals can pass on more wealth to their heirs without incurring federal estate taxes. This increase can be especially beneficial for families looking to secure their financial legacy.

🏛️ Maryland Inheritance Tax Exemption Repeal

In 2026, Maryland repealed the exemption from the inheritance tax for personal property that passes from a nonresident decedent. This is outlined in House Bill 17. Families in Maryland need to be aware of this change, as it may increase their tax liabilities if they inherit property from individuals who were not Maryland residents.

📜 California Uniform Directed Trust Act

Starting January 1, 2024, California implemented the Uniform Directed Trust Act. This law provides a clearer framework for the creation and management of trusts in California. It affects how trustees are directed to manage trust assets, potentially simplifying the process for those setting up testamentary trusts.

⚖️ Florida Fiduciary Bond Premiums

Florida law now considers the premium for a fiduciary bond as an allowable expense of administration. This means that families may incur some costs, but these can be covered through the estate's funds. Understanding these costs is crucial for those planning their estates in Florida.

📌 Key Points to Remember

  • Federal estate tax exemption increased to $15,000,000 per individual.
  • Maryland has repealed the inheritance tax exemption for nonresident decedents.
  • California's new trust law provides more structure for managing testamentary trusts.
  • Florida fiduciary bond premiums are now allowable expenses in estate administration.

💡 Tips for Protecting Your Children with a Testamentary Trust

It is essential to discuss your specific situation with an attorney to ensure the best outcomes for your estate planning.

📝 Understand the Federal Estate Tax Changes

The increase in the federal estate tax exemption means more of your estate can pass to your heirs tax-free. This can significantly influence how you set up your trusts and plan your estate.

⚖️ Be Aware of State-Specific Laws

Changes in state laws, such as Maryland's repeal of the inheritance tax exemption for nonresidents, can affect your estate planning. It's important to stay informed about your state’s laws to avoid unexpected tax burdens.

📊 Consider the Impact of Trustee Compensation

In Florida, trustee compensation must be reasonable and can be reviewed by the court if challenged. When selecting a trustee for your testamentary trust, consider their fees and how they align with the trust's management expectations.

🏛️ Review Trust Management Laws

With the introduction of the California Uniform Directed Trust Act, trusts in California may have new management guidelines. Familiarize yourself with these changes to ensure your trust operates smoothly.

⏰ Monitor Important Deadlines

Maryland's House Bill 17 includes retroactive provisions affecting inheritance tax filings. Be aware of deadlines to avoid penalties or complications in your estate's administration.

🏆 Services for Estate Planning Ranked by User Reviews (2026)

This section covers services for estate planning and writing wills, which are essential for protecting your children's futures. The rankings are based on user reviews from Trustpilot and reflect the most recent feedback as of October 2026. Ratings may fluctuate, and star ratings are just one indicator of service quality.

🥇 1. Quicken Willmaker

Quicken Willmaker has been rated 4.5. It is known for providing comprehensive legal documents and estate planning software. However, some users find that editing documents can be challenging, which may complicate the process for those unfamiliar with legal terminology.

🥈 2. Trust & Will

Trust & Will holds a 4.5 rating. This service offers estate planning services with attorney-approved documents, making it a reliable choice for families. However, some reviewers have reported technical issues, which can affect the user experience during the document creation process.

🥉 3. USLegalWills.com

USLegalWills.com has been rated 4.5. It specializes in will writing services and estate planning documents. While it offers a straightforward process, some users have indicated that the overall experience can be time-consuming, which may deter those seeking a quicker solution.

🆓 Free Government Resources

The Internal Revenue Service provides free resources and forms related to estate taxes, including Form 706 for estate tax returns. This can be a valuable tool for families looking to navigate estate taxes without additional costs.

🔎 What to Compare When Choosing Estate Planning Services

  • 🌐 Range of services offered for estate planning.
  • 📋 Ease of use and document editing capabilities.
  • 💬 Customer support options available.
  • 💰 Cost transparency for any fees involved.
  • 📝 Reviews from other users regarding their experiences.

❓ Frequently Asked Questions

❓ What is a testamentary trust?

A testamentary trust is created through a will and comes into effect after the person’s death. It helps manage assets for beneficiaries, often minors, until they reach a specified age or milestone.

🏛️ How do state laws affect testamentary trusts?

State laws can vary significantly regarding the creation, management, and taxation of testamentary trusts. It’s important to understand these laws to ensure compliance and optimize benefits for your beneficiaries.

📅 Are there deadlines for filing estate taxes?

Yes, estate taxes generally need to be filed within nine months of the decedent's death. Extensions may be available, but it's crucial to submit the necessary forms on time to avoid penalties.

💼 What are the duties of a trustee?

The trustee is responsible for managing the trust assets according to the terms set in the trust document. This includes distributing funds, maintaining records, and ensuring tax obligations are met.

📜 Can a trustee be removed?

Yes, a trustee can be removed under certain circumstances, such as mismanagement of funds or failure to act in the beneficiaries' best interests. Courts can intervene if a beneficiary raises concerns.

🏦 How does the repeal of the Maryland exemption affect nonresidents?

The repeal means that personal property inherited from nonresident decedents is now subject to Maryland inheritance tax. This increases potential tax liability for beneficiaries in Maryland.

⚖️ Recent Cases Related to Testamentary Trusts

Recent court rulings have clarified various aspects of testamentary trusts, including management and beneficiary rights. Understanding these rulings can help parents make informed decisions about protecting their children's assets.

Explore more about how recent rulings affect testamentary trusts and estate planning by checking out more rulings on the news page.

End of October 2026 Update






An individual who has children may wish to establish a testamentary trust, so that in the event that he/she dies, the funds that are left to his/her children are handled responsibly. A testament trust is established to protect a minor or a young adult when he/she inherits extensive quantities of money, which is disbursed following a loved one's death. 

If the appointee dies, the individual that he/she appointed as the trustee obtains the responsibility of handling the funds that are inherited by the minor, until he/she reaches a certain ages. For example, the conditions of a testamentary trust may state that the minor or young adult will gain full rights to this inheritance when he/she reaches the age of 21, or when he/she graduates from college. The conditions vary from on testament to another. 

Protecting Your Children with a Testamentary Trust

When a trustee is appointed, he/she must ensure that the funds are used responsibly, to care and provide for the child. If a parent or loved one does not appoint a trustee to handle the trust, the court may appoint a trustee. However, an individual should appoint someone that he/she trusts completely, to ensure that the trustee is acting in the best interest of the child. 

An individual who is appointed as a trustee will be required to visit the probate court regularly, so that the court can review the trust fund and ensure that the funds are being spent appropriately. If possible, it may be more appropriate for an individual to establish a revocable living will, however, in some instances, a testamentary trust is necessary, such as when a parent possesses a significant life insurance disbursement.