Most people think of tax season and estate planning as two separate things—but they're more connected than you might expect.

As the One Big Beautiful Bill Act (OBBBA) raised the estate tax exemption to $15 million per person, more families now find themselves focused on income tax planning instead of estate tax avoidance. This makes your 1040 a key part of long-term legacy planning.

At Barina Law Group, we help families in Temple and Central Texas align their annual tax strategies with their long-term estate goals—for smarter planning, greater savings, and better results.

How Income Taxes Impact Estate Planning

Even if you're far below the estate tax exemption, you're still paying income tax every year—and so will your heirs if planning is neglected.

Here's what to look for when your CPA or tax software prepares your 1040:

1. Required Minimum Distributions (RMDs)

If you're 73 or older, RMDs from IRAs and 401(k)s are taxable. Planning ahead with:

• Roth conversions
• Charitable giving
• Trust beneficiaries

…can reduce taxes over time and help leave more to your heirs.

1. Capital Gains & Step-Up in Basis

Assets like real estate and stocks receive a “step-up” in cost basis when you die, which can eliminate capital gains taxes for your heirs.

✅ If you sell assets during life → your gains are taxed
✅ If you hold until death → gains may be wiped out

Knowing when to sell or gift makes a difference.

1. Annual Gifting Strategy

You can give up to $18,000 per person per year (2025) without filing a gift tax return. Use this to:

• Lower the size of your taxable estate
• Shift income-generating assets to lower tax brackets
• Help children or grandchildren now instead of later

1. Charitable Deductions

Giving through:

• Donor-Advised Funds (DAFs)
• Qualified Charitable Distributions (QCDs)
• Charitable Remainder Trusts (CRTs)

…can offset high-income years and allow you to fund a cause you care about.

1. Family Business or Rental Income

Business owners and landlords should coordinate:

• Business succession plans
• Entity structure
• Inheritance provisions in trusts or wills

to ensure income-producing assets are passed on smoothly and tax-efficiently.

Estate Planning = More Than Just a Will

It's a strategy that touches:
✅ Your tax return
✅ Your retirement accounts
✅ Your charitable goals
✅ Your family's financial future

Every year is an opportunity to review and improve your plan.

How Barina Law Group Can Help

We don't prepare tax returns—but we work hand-in-hand with your accountant or financial advisor to:

• Reduce taxes across generations
• Protect heirs from unnecessary liabilities
• Create integrated legacy strategies using trusts, gifting, and charitable planning

📞 Call to Action

Let's align your estate and tax plans before the next April 15th deadline.

📞 Call (254) 699-3755
🌐 www.bobbybarinalaw.com
📍 Barina Law Group – Temple, TX