By Andrew Bellm
Your estate plan should adapt with shifting tax laws—and the “One Big Beautiful Bill Act” (OBBBA), recently signed by President Trump, brings significant updates that could directly impact your estate planning.
Key Tax Changes in the OBBBA
- Estate & Gift Tax Exemption Permanently Raised
Starting in 2026, the federal lifetime exemption for estate and gift taxes will increase to $15 million per person (or $30 million for married couples), with annual adjustments for inflation. Prior to this law, that exemption was set to be cut in half at the end of 2025, potentially subjecting more estates to federal taxes. This change means that many families will now have more room to pass on wealth without triggering a federal estate tax. - Generation-Skipping Transfer (GST) Tax Alignment
The GST tax exemption—used for gifts or bequests made to grandchildren or other individuals more than one generation below the donor—will also be raised to align with the $15 million figure. This provides greater flexibility for multigenerational wealth transfers. - Extension of 2017 Tax Cuts
The tax cuts enacted under the 2017 Tax Cuts and Jobs Act (TCJA), including lower individual tax rates and expanded bonus depreciation, were previously set to expire after 2025. The OBBBA makes many of these provisions permanent, creating long-term clarity and stability for tax planning.
What This Means for Your Estate Strategy
✅ More Exemption = More Flexibility
The increased exemptions mean you can transfer more wealth tax-free. For those individuals with estates between $7 million and $15 million, this law provides peace of mind. While the law is permanent, future legislation may reduce estate tax exemptions, so it is important to take advantage of the new law when crafting an estate plan and monitor any future changes to the legislation.
? Consider Lifetime Gifting
Using the increased exemption during your lifetime can remove appreciating assets from your taxable estate. Gifting now also allows your beneficiaries to enjoy and grow assets during your lifetime. By increasing the exemption, the OBBBA allows individuals more time to enact gift planning by eliminating the December 31, 2025 deadline to complete gifts. Traditional irrevocable trust planning and tax planning tools like Spousal Lifetime Access Trusts (SLATs), Grantor Retained Annuity Trusts (GRATs), and Dynasty Trusts can be used to take advantage of the higher exemption and shield assets from future estate taxes.
? Account for State-Level Taxes
While the OBBBA affects federal taxes, many states impose their own estate or inheritance taxes, often at much lower exemption levels. Your estate plan should consider both federal and state exposure.
Recommended Client Action
- Review your plan now – Especially if your estate is between $7M and $15M.
- Execute strategic gifts – Use the full exemption while it’s available.
- Use advanced trusts – Secure generational wealth efficiently.
- Monitor legislation – While passed, further changes or rollbacks are possible.
These developments present an opportunity to optimize your estate plan. As always, we’re here to ensure your estate strategy reflects your goals, values, and the latest law.