Big News for Estate Planning – Why High-Net-Worth Families and Business Owners Should Pay Attention

For years, estate planning has been clouded by uncertainty—especially around what would happen when key provisions of the 2017 Tax Cuts and Jobs Act (TCJA) expired at the end of 2025.

Under the TCJA, the federal gift and estate tax exemption temporarily doubled to $10 million (indexed for inflation), but it was always set to drop back to pre-TCJA levels unless Congress acted. That rollback would have meant a much lower exemption, higher estate taxes, and more families pulled into the estate tax net.

Now, the recently passed One, Big, Beautiful Bill Act (OBBBA) changes the outlook and eliminates that uncertainty.

A Permanent Change

The OBBBA permanently increases the federal gift and estate tax exemption to $15 million per person (or $30 million for married couples) beginning in 2026, with annual inflation adjustments.

This is a major win for affluent families and business owners—especially if the value of your company or investment portfolio already exceeds or could grow beyond the exemption limit. Whether you plan to pass your business to the next generation or sell and invest the proceeds, this expanded exemption creates powerful opportunities to transfer wealth more efficiently.

Why Planning Still Matters

A higher exemption doesn’t make planning optional. You still need a strategy because:

• Future growth in your investments or business could push your estate above the exemption threshold
• Strategic, phased transfers can help reduce or even eliminate future estate tax exposure
• Transferring a business without a plan can cause liquidity issues for heirs
• Federal estate taxes could still take a meaningful portion of your legacy

Trusts: A Powerful—but Not the Only—Tool

Trusts remain one of the most effective estate planning strategies, but they are just one of many tools available. The right trust can help you:

• Move assets out of your taxable estate in a tax-efficient way
• Maintain access or control over certain assets, if desired
• Protect wealth from creditors and disputes
• Provide clear instructions for managing and distributing assets

From revocable living trusts to advanced structures like grantor retained annuity trusts (GRATs), intentionally defective grantor trusts (IDGTs), spousal lifetime access trusts (SLATs), and special power of appointment trusts (SPATs), your plan can be tailored to your unique goals.

When combined with other tools—such as gifting strategies, retirement beneficiary planning, charitable giving, and business succession planning—you can create a comprehensive, tax-smart estate plan.

Aligning Your Legacy with Your Goals

Estate planning isn’t just about tax minimization—it’s about ensuring your wealth supports the people, causes, and values most important to you. That might mean:

• Providing for family members
• Supporting charitable or philanthropic causes
• Preserving your business or investments for future generations

Why You Should Act Now

The OBBBA has created a larger, permanent exemption—but that also means we have a clear framework for planning. With the uncertainty gone, now is the ideal time to:

• Revisit your existing estate plan
• Take advantage of favorable transfer opportunities
• Implement strategies while asset values and interest rates may still be advantageous

Collaboration Is Key

The most effective estate plans are built through teamwork. We work closely with your estate attorney to ensure your plan is legally sound, tax-efficient, and aligned with your long-term vision. Together, we can help you take full advantage of the opportunities created by the new law and ensure your legacy is transferred on your terms—not dictated by taxes or lack of planning.

Schedule an appointment to learn how we can support you

© Copyright 2025. All rights reserved.