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Citigroup Employees: 10 Critical Estate Planning Steps After the 2025 Tax Law

Healthcare Provider Update: Healthcare Provider for Citigroup: Citigroup's primary healthcare provider is UnitedHealthcare, which offers a range of health insurance products for Citigroup employees, including employer-sponsored plans that provide comprehensive coverage. Potential Healthcare Cost Increases in 2026: As we look ahead to 2026, healthcare costs associated with the Affordable Care Act (ACA) are projected to rise dramatically. With insurers requesting average premium increases of 18% and some states seeing hikes surpassing 60%, millions of consumers could face unprecedented out-of-pocket costs. Key factors driving these increases include the potential expiration of enhanced federal premium subsidies, which could lead to a staggering 75% increase in out-of-pocket premiums for approximately 92% of marketplace enrollees. The combination of escalating medical costs and the withdrawal of financial assistance presents a significant financial challenge for many families across the nation. Click here to learn more

“Citigroup employees should proactively revisit their estate and trust strategies—incorporating adjustable trust provisions, state-level mitigation tactics, and digital asset protocols under the new law—and consult a qualified legal or tax advisor for individualized guidance.” – Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.

“Citigroup employees would be well advised to integrate flexible trust provisions, state-level tax strategies, and digital asset instructions into their legacy plans—and consult a legal or tax advisor to tailor these measures to their circumstances.” – Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article we will discuss:

The key federal and state tax exemption updates and their planning implications.
How trust taxation, long-term care funding, and digital asset protocols have changed under the new law.
Key strategies for business succession and legacy preservation.

Citigroup employees should conduct a thorough review of their legacy arrangements in light of the major federal estate and gift taxation changes introduced by the One Big Beautiful Bill Act of 2025. Though high net worth households have drawn much of the spotlight, these updates impact everyone managing health care funding, retirement savings, and intergenerational asset transfers.

First , the Act permanently raises the federal estate, gift, and generation-skipping transfer tax exemption to $15 million per individual and $30 million for married couples. While this allows more assets to pass free of federal tax, the political landscape remains unsettled; if control of Congress shifts, senators like Elizabeth Warren and Bernie Sanders could push to reduce exemptions. Citigroup employees can build in flexibility by using adjustable trust provisions or formula clauses in wills to adapt to future legislative shifts.

Second , even though the prior “sunset” clause on exemptions is gone, Congress still has the power to roll back benefits. A change in legislative majority could restore lower exemption levels. To lock in current advantages without sacrificing flexibility, consider contingency vehicles such as charitable lead trusts and grantor retained annuity trusts (GRATs) tailored to your planning needs.

Third , the new law compresses trust income tax brackets and alters distribution rules, accelerating the point at which the highest rates apply for undistributed income. Citigroup employees should review existing irrevocable trusts and evaluate tiered distribution strategies to limit accelerated taxation and help preserve assets for beneficiaries.

Fourth , several states—including Massachusetts, Oregon, and Minnesota—still impose estate or inheritance taxes with exemption thresholds far below federal levels (for example, Massachusetts taxes estates over $2 million at up to 16%). Incorporating state-level exposure into planning, perhaps through state-qualified charitable remainder trusts or spousal lifetime access trusts (SLATs), may help Citigroup employees mitigate unexpected liabilities.

Fifth , according to Genworth’s 2024 Cost of Care survey, the median annual cost of a nursing home is $108,405 and a semi-private room averages $96,060. ¹ With long-term care expenses rising and potential Medicaid funding cuts on the horizon, Citigroup employees may benefit from Medicaid asset protection trusts or commercial long-term care insurance, taking into account individual health trends and premium deductibility under IRS rules.

Sixth , the law preserves or increases tax deductible limits for qualifying long-term care insurance premiums, ranging in 2025 from $450 for those under 40 to $5,640 for anyone over 70. Confirming that policies meet IRS Section 213(d) criteria helps Citigroup employees claim every available deduction.

Seventh , IRAs, Roth conversions, and income shifting techniques are affected by the Act’s revised individual income tax rules. Although the top rate remains 37%, phased-out deductions and new bracket thresholds may raise taxable income. Citigroup employees can coordinate retirement distributions with estate planning—such as using IRA assets to fund charitable remainder trusts—to lower overall tax exposure and help preserve legacy value.

Eighth , changes to grantor trust status, minority interest treatment, and valuation discounts directly influence family owned business successions. Citigroup employees involved in closely held enterprises should examine buy-sell agreements, equity freeze techniques, and liquidity planning to facilitate effective transfers and address potential estate tax obligations.

Ninth , digital assets must now be explicitly addressed in wills, trusts, and powers of attorney. Clear transfer instructions and designated fiduciaries are vital for online banking accounts, digital wallets, and cryptocurrencies. Establishing a digital asset memorandum with custodial details and wallet access protocols can help Citigroup employees preserve these holdings.

Tenth , comprehensive estate planning goes beyond taxes to encompass guardianships, philanthropic goals, and family values. Whether it’s donor advised funds, multigenerational wealth education, or special needs support, updating documents ensures they reflect current priorities. Citigroup employees should review plans regularly to align with evolving family circumstances.

All things considered, the 2025 tax law demands a holistic reassessment of estate plans—covering exemption thresholds, trust taxation, state exposures, long-term care funding, tax planning interplay, business succession, digital asset stewardship, and broader legacy objectives. By engaging a seasoned estate planning attorney and working with a trusted financial advisor, Citigroup employees can preserve flexibility for an uncertain legislative future while aligning documents with current law.

Articles you may find interesting:

Sources:

1. Business Wire. “ Genworth and CareScout Release Cost of Care Survey Results for 2024 .” Business Wire , 4 Mar. 2025.

2. Assaf, Rita. “ While Over 70 % of Retirees Say Retirement Is Going as Planned, Confidence in Retirement Outlook Is Down Among Pre-Retirees .” Fidelity Investments , 11 Mar. 2025.

3. Watson, Garrett, et al. “ “One Big Beautiful Bill Act” Tax Policies: Details and Analysis .” Tax Foundation , 4 July 2025.

4. Internal Revenue Service. “ Eligible Long-Term Care Premium Limits .” Internal Revenue Service , 2024.

5. Dangremond, Samuel. “ How to Protect Digital Assets in an Estate Plan .” Real Property, Trust and Estate eReport , American Bar Association, 26 Feb. 2025.

What are the main eligibility criteria for participating in the Citigroup Pension Plan, and how can Citigroup employees ensure they meet these requirements throughout their employment? Furthermore, what implications does the merger of prior pension plans into the Citigroup Pension Plan have on the benefits for employees from acquired companies, and what steps should they take to understand how their previous service is credited under Citigroup?

Eligibility Criteria for Citigroup Pension Plan Participation: Employees hired before January 1, 2007, are eligible to participate in the Citigroup Pension Plan if they were employees of a Participating Employer. Employees hired after that date are generally not eligible to participate. Additionally, employees from acquired companies may have their prior service credited under Citigroup. It's important for these employees to review the plan's specific provisions or contact the Citi Pension Center to ensure accurate service credit(Citigroup_Pension_Plan_…).

How does the Citigroup Pension Plan address survivor benefits for employees who pass away before their pension benefits commence, and what steps must their beneficiaries take to claim these benefits? Additionally, how can employees ensure that their loved ones are adequately informed about the options available should they face this unfortunate event?

Survivor Benefits for Pre-Retirement Death: If an employee passes away before benefits commence, the surviving spouse may receive a lifetime annuity based on the account balance or opt for a lump sum. Employees should ensure that their beneficiaries are aware of these options and the process to claim benefits(Citigroup_Pension_Plan_…).

For Citigroup employees wanting to learn more about the pension plan's benefits and options available to them, what contact methods should they use? How does Citigroup facilitate communication regarding the pension plan, and what are the most efficient ways for employees to get their questions answered?

Contacting Citigroup for Pension Plan Inquiries: Employees can contact the Citi Pension Center by phone at 1-800-881-3938 for U.S. inquiries or use the online portal to access their pension details. These methods provide the most efficient way to get answers to any pension-related questions(Citigroup_Pension_Plan_…).

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Citigroup offers both a traditional defined benefit pension plan and a defined contribution 401(k) plan. The defined benefit plan provides retirement income based on years of service and final average pay. The 401(k) plan includes company matching contributions and various investment options such as target-date funds and mutual funds. Citigroup also provides financial planning resources and tools to help employees manage their retirement savings.

Citigroup is planning to cut 20,000 jobs as part of a major restructuring effort to streamline operations and save $2.5 billion. The bank is also focusing on international growth and simplifying its management structure from 13 layers to eight. Despite the layoffs, Citigroup continues to offer comprehensive retirement benefits, including 401(k) plans and health benefits. Understanding these benefits is important in today's political environment.

Citigroup grants RSUs that vest over several years, giving employees shares upon vesting. They also provide stock options, allowing employees to purchase shares at a set price.