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Retirees, Take Note: Recent Legislative Developments in Estate Planning and Elder Law

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Are you sure your estate plan still fits your life and the law?


As you enter or enjoy retirement, staying informed about legal changes is essential to protecting your financial future and legacy. Recent updates—especially at the federal level and right here in Tennessee—could impact everything from your Social Security benefits to how your assets are passed on.


Let’s take a closer look at the key developments you should know:


1. Federal Legislative Updates Effecting Estate Planning for Retirees

a. Social Security Fairness Act

In January 2025, President Joe Biden signed the Social Security Fairness Act into law, repealing the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These provisions previously reduced Social Security benefits for individuals receiving public pensions, such as teachers, firefighters, and police officers. The repeal is expected to increase monthly payments for approximately 2.5 million Americans, with retroactive benefits payable from January 2024.

b. Bonus Tax Relief for America's Seniors Act

In February 2025, Representative Nicole Malliotakis introduced the Bonus Tax Relief for America's Seniors Act (H.R. 1130). This bill seeks to significantly increase the additional standard deduction for seniors, raising it from $600 to $5,000 for individuals aged 65 and older. If passed, this change could reduce seniors' taxable income, offering much-needed tax relief.

c. Tax Relief Unleashed for Seniors by Trump (TRUST) Act

Another key proposal from Representative Malliotakis is the TRUST Act, which aims to raise the income thresholds at which Social Security benefits are taxed. Currently, individuals earning over $25,000 and couples earning over $32,000 see their Social Security benefits taxed. The TRUST Act proposes raising these thresholds to $50,000 for individuals and $64,000 for couples, which would lower the tax burden for many retirees.

d. Support for Family Caregivers

Several bills have been introduced to support family caregivers, who often face financial challenges. The Improving Retirement Security for Family Caregivers Act and the Catching Up Family Caregivers Act aim to help caregivers save for retirement, even if their incomes are reduced by caregiving responsibilities. One proposal allows caregivers to contribute up to $7,000 annually to a Roth IRA, regardless of their income level.


2. Tennessee State Legislative Updates

a. Changes to Probate Law

Tennessee’s House Bill 906 (HB906) and its companion Senate Bill 541 (SB541), introduced in February 2025, propose significant updates to probate law. The bills include new notification requirements, ensuring that personal representatives inform beneficiaries or heirs of their right to contest creditor claims against an estate. These changes are designed to enhance transparency and protect the interests of heirs during the probate process.

b. Amendments to Trusts and Estates Law

In April 2024, Tennessee passed House Bill 2713 (HB2713) and its companion Senate Bill 2256 (SB2256), introducing several important changes to the state’s trusts and estates laws. These include:

  • Clarifications on terms like “disinterested trustee.”

  • Changes to representation rules for minors, incapacitated adults, and unborn descendants.

  • Expanded trustee powers to appoint successor trustees and trust advisors.


Final Thoughts

Laws are always changing—but your peace of mind shouldn’t have to. As these legislative updates unfold, we’re here to ensure your estate plan keeps up. Whether you're reviewing your current documents or starting from scratch, we’re here to guide you every step of the way.



What You Can Do Next:

✅ Review Your Estate Plan: If you haven’t updated your will, trust, or power of attorney in the past few years, now is the time.

✅ Consult with an Estate Planning Attorney: An expert in estate and elder law can help ensure that your estate plan is in line with the latest laws and developments.

✅ Plan for Long-Term Care: If you haven’t addressed Medicaid planning or long-term care expenses, it’s never too early to start.

✅ Stay Informed: Keep track of legislative changes and how they may affect your retirement and estate planning.

📞 Need guidance? Contact our firm today for a consultation. Let us help you navigate these changes with confidence and peace of mind.




Sources:

The Guardian ArticleBiden Social Security Fairness Act (Jan. 5, 2025), https://www.theguardian.com/us-news/2025/jan/05/biden-social-security-fairness-act.

ThinkAdvisor ArticleNew Bill Doubles Social Security Tax Threshold (Mar. 10, 2025), https://www.thinkadvisor.com/2025/03/10/new-bill-doubles-social-security-tax-threshold/.

SSA - Social Security Fairness ActSocial Security Fairness Act, Social Security Administration, https://www.ssa.gov/benefits/retirement/social-security-fairness-act.html.

Tennessee General Assembly, SB 2256

Tennessee General Assembly, HB 906



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