President Trump’s tariff talk could significantly affect the value of your estate, from businesses to stock portfolios.

President Donald Trump’s on-again, off-again threats to raise tariffs by as much as 125% have ignited discussions about how those levies — essentially taxes on imports — will increase prices on everyday consumer goods and the potential repercussions of an escalating trade war with China.

However, little discussion has focused on the significant impact tariffs could have on estate planning — an oversight that could be costly, as tariffs threaten to shake up the valuations of businesses, portfolios and real estate assets.

On April 2, Trump announced a 10% universal tariff on all imports, dubbing it “Liberation Day.” A week later, he paused tariffs on most countries for 90 days but threatened to raise tariffs on Chinese imports to 145%. In May, the U.S. and China agreed to temporarily reduce those tariffs to 30% for 90 days.

Amid Rising Anxiety

Amid rising anxiety over proposed tariffs and a volatile economic outlook, consumers and homeowners alike are feeling the effects. The University of Michigan’s index of consumer sentiment rose slightly toward the end of May from earlier in the month but has declined steeply since the beginning of the year.

Why Tariffs Matter

“We’re seeing, you know, people are closing their wallets,” estate planning attorney Laura Cowen, founder of the 2-Hour Lifestyle Lawyer, said. “The headlines are so scary.”

When people hear “tariffs,” they worry about the price of eggs or iPhones, not estate planning, Cowen said. That could be a costly mistake.

While individuals can’t control global trade policy or the stock market, they can control how they fortify their estate and whether they hire an expert to help to protect their wealth despite uncertain conditions.

“The money you pay an expert in estate planning now is going to be pennies compared to what you may pay later on,” said estate planning attorney Travis R. Christiansen in St. George, Utah.

The Initial Impact of Tariffs

In the weeks following the first tariff announcement, attorney Padideh Jafari, founder of the Jafari Law & Mediation Office in Southern California, sent her clients an email to say she was available to answer their questions and offer strategic advice on how tariffs could affect their estates.

“We thought about writing a letter, but even when you get a letter from your attorney, the letterhead scares people,” Jafari said. “I thought the email would be less threatening and more informative.”

Only about 10% of the recipients responded, primarily to ask how tariffs could impact their import-export businesses.

One responder, an SEO firm, had two retainer clients cancel contracts due to projected revenue loss. Another client, whose air conditioning business relies heavily on importing from China, had concerns about the future valuation of his business.

“It’s important to have an estate planning attorney in your back pocket to discuss questions like: ‘Is it time to downsize the business?’ ‘Get products from other countries?’ ‘Pivot to American-made goods?’” Jafari said.

Recently, 14 states and several businesses have challenged the legality of the Trump administration’s tariff proposals in federal courts, including the U.S. Court of International Trade and the U.S. Court of Appeals for the Federal Circuit.

For example, V.O.S. Selections, a family-owned New York City-based wine importer, was the lead plaintiff in a case that was later consolidated with a suit brought by 12 of those states.

What to Do if an Asset Loses Value

Together, they argued that Trump did not have the authority to set tariffs through the International Emergency Economic Powers Act of 1977. The U.S. Court of International Trade issued a permanent injunction blocking the tariffs, finding they were outside of the president’s powers. The Federal Circuit is scheduled to hear further arguments in July.

Why to Rethink Your Plan

The looming legal uncertainty leaves estate planners who consider the value of business assets that rely on imported materials in a state of limbo. Tariffs can compel them to raise prices to their customers or shrink their own profit margins — either way making their businesses less valuable.

Business owners may want to reevaluate their succession plans, especially if multiple heirs are involved. For example, if one heir is slated to receive a business that declines in value because of tariffs while others receive real property or other assets that do not decline, one heir could end up with less than the estate holder intended. Planners may need to update the estate allocation to ensure fairness if asset values change.

In 2024, the National Association of Home Builders reported that the United States imported 7% of the construction materials used to build new homes. By April 2025, builders estimated tariffs had raised the average new home cost by $10,900. That was before Trump promised to increase tariffs on steel and aluminum imports from 25% to 50%.

For many families, rising home prices are the largest driver of estate value increases. In 2021, home equity constituted a median of 45% of U.S. homeowners’ net worth, according to Pew Research.

If an estate is left to probate court, the court and attorney fees could be determined by the estate’s value.

“If the tariffs that cause the value of one’s home to be higher, and as a result, the value of one’s estate to be higher, then if that estate goes through probate, the probate fees are going to be higher and the legal fees are going to be higher,” said estate planning attorney Asher Rubinstein, a partner at the law firm Gallet Dreyer & Berkey in New York City.

Be Aware of Changes in Tax Law

In addition to the direct impact of tariffs on estate values, estate planners must also account for the upcoming sunset of the Tax Cuts and Jobs Act, which calls for the current federal estate tax exemption — $13.9 million per single person and twice as much for married couples — to revert to roughly half of current levels after 2025. However, Trump’s proposed “One Big, Beautiful Bill” now before the Senate would extend and increase the 2017 exemption to $15 million per individual.

These changes could amplify the effects of tariff-driven shifts in asset values and accelerate the need for strategic gifting or trust formation.

A recent UBS survey found that 53% of super-wealthy families globally now have a will or estate plan in place, up from 47% a year ago and 42% in 2023. Establishing revocable living trusts, updating asset allocations and gifting earlier could offer strategic advantages.

“We can’t control what the government does other than voting them out,” Rubinstein said. “But estate planning is within our control.”

Do Not Procrastinate

Business owners should consider revisiting their succession plans or gift strategies, especially if they believe their business’s value may change. Updating an estate plan now can help ensure fairness among heirs and prevent conflicts if values change unexpectedly.

Time is of the essence, Rubinstein cautions.

“It’s like hiring an accountant on April 14 to maximize your deductions,” Rubinstein said. “This is something that needs to be done well ahead of time.”