New estate laws went into effect in Virginia on July 1, 2025, and they matter now, whether you’re reviewing old documents or drafting a brand-new plan. These changes offer more protection for families, boost home allowances, and align with sweeping federal shifts. Let’s walk through what’s changed and why it affects you.
Bigger Allowances for Families and Property
- Family Allowance (VA Code § 64.2-309)
This allowance, long used to support a surviving spouse and minor children immediately after a death, rises from $24,000 (since 2014) to $30,000. That extra $6,000 can help pay bills, groceries, or funeral expenses without touching the estate’s core assets.
- Exempt Property Allowance (VA Code § 64.2‑310)
Personal items like cars, clothing, and household goods are now protected up to $25,000, up from $20,000. That means more of your family’s belongings pass directly to them faster.
- Homestead Allowance (VA Code § 64.2‑311)
Surviving spouses or minor children can now claim $25,000 of home equity, increased from $20,000.
These three allowances now align at $25K–$30K, simplifying estate administration and making it easier for families to plan.
How Virginia Families Benefit
These changes mean quicker access to funds and fewer worries about immediate debts. If someone in your family dies, these allowances help cover daily costs without selling assets or draining savings. Increased protection for personal items and the home helps preserve your real legacy.
If your existing plan uses fixed dollar amounts, it may now leave loved ones underprotected. That gap can cost time and raise stress at a difficult moment.
The “One Big Beautiful Bill Act” Federal Connection
The federal One Big Beautiful Bill Act (OBBBA) was signed on July 4, 2025. It raises the federal estate and gift tax exemption to $15 million per person (or $30M per married couple), indexed for inflation.
- Good news if your estate falls under that threshold, you won’t owe federal estate tax.
- This exemption will stay high unless Congress changes it.
Still, even with federal tax protection, Virginia’s allowances for family, exempt property, and homestead matter a great deal. They protect families from debts, probate costs, and loss of property.
Why You Should Act Now
- Update dollar-based plans.
- Match state and federal benefits. A strong estate strategy uses both state protections and federal exemptions.
- Avoid surprise shortfalls. If your wills or trusts still reference old numbers, loved ones could lose out.
Even if your estate is under federal taxable limits, these changes can improve your plan’s protection and certainty.
Next Steps You Can Take
- Review current estate documents to check for old allowance amounts.
- Update where needed to reference the new limits in your plan.
- Look at federal exemptions and decide if and when to use gifting or estate tax strategies.
- Talk with someone who understands both state and federal rules.
These new laws offer stronger protections, lower risk, and more family peace of mind. The July 2025 updates create a unique moment to ensure your plan fully supports your wishes and your loved ones.
Act now to put these improvements to work. Norton Pelt can help you review, update, and strengthen your estate plan so it matches today’s laws by protecting what’s important, both in Virginia and beyond. Contact us today to see how we can help you.
Norton Pelt
