Sarah D. McDaniel, CFA

Jan 08, 2026

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Why January is the Perfect Time to Start Estate Planning Conversations

The new year naturally prompts clients to reflect on their priorities and reassess their goals. While many focus on financial resolutions and self reflection, this mindset creates an ideal opportunity to introduce estate planning conversations to ensure client wishes are properly documented and their loved ones protected. Just as clients wouldn’t operate with an outdated financial strategy, their estate plans require regular attention to remain aligned with current circumstances and intentions.

A systematic review identifies gaps between clients’ current plans and present reality, demonstrating your commitment to holistic wealth management beyond investment performance.

Frame it as an estate health check

Present estate planning reviews as a comprehensive wellness exam for your client’s legacy, a proactive rather than reactive measure. Life events continuously reshape estate planning needs: marriages, divorces, births, deaths, relocations, business transitions, and wealth accumulation all impact how estates should be structured.

Conducting these health checks doesn’t need to be complicated. Vanilla Estate Health Check provides an interactive assessment experience that helps you evaluate the current state of a client’s estate plan and establish a framework for substantive, actionable conversations. This positions you as a comprehensive advisor who addresses all aspects of financial wellbeing, not just investment performance.

Go beyond basic documentation

Estate planning extends far beyond having a will or trust. Guide clients to understand that comprehensive planning encompasses healthcare directives, beneficiary designations, guardianship provisions, asset distribution strategies, and tax mitigation techniques. Each element protects what matters most to them and their families.

The key is meeting clients where they are. Whether they already have documents in place or are starting from scratch, here’s how you can leverage Vanilla for your conversations:

For clients with existing estate plans, Vanilla AI (V/AI) Estate Summaries allow you to drag and drop multiple estate plan documents into Vanilla to unlock a high-level, editable overview in minutes. Then you can use V/AI Co-pilot to query documents individually or in combination to uncover specific details that matter most to your client.  

For clients without estate plans, Vanilla Document Builder guides clients through a step-by-step questionnaire that identifies their objectives while explaining the nuances of essential estate documents. Clients can share their progress and final documents directly with you, keeping you central to the process.

When specialized legal expertise is needed, the Vanilla Attorney Network provides access to qualified attorneys in all 50 states through Vanilla’s partnership with The Will & Trust Center, a nationwide law firm with over 25 years of experience. 

Navigate the tax landscape

Estate and inheritance taxes represent significant planning considerations that many clients overlook. While federal exemptions protect most estates, state-level taxation creates exposure that requires attention.

Federal estate tax (2026)

• 2026 Exemption: $15 million per individual ($30 million married), indexed for inflation thereafter
• Tax Rate: 18% to 40% on amounts exceeding the exemption threshold

Most estates avoid federal taxation, but high-net-worth clients need proactive strategies to maximize exemption usage and minimize exposure.

State estate taxes

Thirteen jurisdictions impose estate taxes with  exemption thresholds varying dramatically—from $1 million in Oregon to $15 million in Connecticut, creating planning complexity for clients with multi-state connections.

Key states to watch:

• Lowest Thresholds: Oregon ($1M), , Massachusetts ($2M), 
• Highest Rates: Washington (35%), Hawaii (20%)
• Most Common Top Rate: 16% (D.C. and seven states:, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, and Vermont)

State inheritance taxes

Five states tax heirs who receive assets, with rates depending on the beneficiary’s relationship to the deceased and, in some states, the amount received:

• Kentucky: 16% max (0% spouses, parents, children, grandchildren siblings)
• Maryland: 10% max (also has estate tax) (0% spouses and direct or lineal heirs)
• Nebraska: 15% max (0% spouses and anyone under age 22)
• New Jersey: 16% max (0% spouses, children, parents, grandchildren)
• Pennsylvania: 15% max (0% spouses & children age 21 or younger, 4.5% direct descendants and lineal heirs, 12% siblings)

Your action plan for client conversations

1. Identify candidates. Screen your book for clients who:

• Haven’t reviewed estate plans in 3+ years
• Recently experienced life changes
• Have estates approaching state exemption thresholds
• Own property in multiple states
• Have complex family situations

2. Frame the conversation. Position estate planning as part of comprehensive wealth management, emphasizing peace of mind, family protection, and tax efficiency.
3. Demonstrate immediate value. Use Vanilla Estate Health Check to reveal planning gaps and create natural next steps, reinforcing your role as a trusted advisor.
4. Leverage technology. Harness Vanilla’s tools to streamline the process while keeping you central to the client relationship. 
5. Deepen relationships. Advisors who initiate regular estate planning conversations move beyond transactional relationships to become trusted partners. This differentiation strengthens retention and grows wallet share. 

Make January count

The beginning of the year represents your best opportunity to establish estate planning as an ongoing component of your client service model. Don’t let another year pass with clients operating under outdated or incomplete plans.

This January, position estate planning as your clients’ most important resolution. Whether you’re helping clients create new estate plans or update existing ones, taking action now protects their goals, families, and legacies while demonstrating the comprehensive value you provide.

Want to explore how Vanilla can support your estate planning conversations? Request a demo today.

The information provided here does not constitute legal, financial, or tax advice. It is provided for general informational purposes only. This information may not be updated or reflect changes in law. Please consult with an estate attorney, financial advisor, or tax professional who can advise as to your particular situation.