How the One Big Beautiful Bill Act Reshapes Estate Planning
High‑net‑worth families often find themselves navigating a maze of financial decisions, especially when it comes to protecting multigenerational wealth. With the passage of the One Big Beautiful Bill Act (OBBBA), estate and gift tax planning has entered a new era—one that offers expanded opportunities but also calls for careful evaluation, particularly for those whose estates fall near or above the $7 million range. This blog breaks down the key updates in a clear, actionable way to help you plan with confidence.
The Combined $30 Million Exclusion for Couples
Couples now benefit from a combined $30 million lifetime exclusion, dramatically reducing exposure to federal estate and gift taxes. For many families, this expanded threshold represents significant protection from taxes that could otherwise erode long‑term legacy objectives.
The Permanence of the Law—With a Catch
While OBBBA does not include a sunset clause, no tax law is ever entirely immune to future revision. Even with today’s stability, the possibility of legislative change underscores why timely, intentional planning remains essential.
New $15 Million Lifetime Exclusion
Beginning in 2026, individuals will receive a $15 million lifetime exclusion applicable to both estate and gift taxes. This amount will be adjusted for inflation, offering a more generous planning landscape than many were bracing for.
Relief From the Previously Projected $7.2 Million Threshold
Before the new law, estate planners anticipated a drop to approximately $7.2 million per person—creating a pinch point for many high‑net‑worth households. The new exclusion dramatically reduces that risk, offering peace of mind for those who feared a substantial increase in tax liability.
Previously Used Exclusions Still Count
Any exclusion you’ve used so far remains part of your lifetime total. For example, someone who previously used $13.99 million of their exemption would still gain an additional $1.01 million in 2026—expanding opportunities for strategic gifting or restructuring existing plans.
Portability and GST Rules Remain Unchanged
Portability continues to allow a surviving spouse to use any unused exclusion, but only if a federal estate tax return is filed after the first spouse’s death. The generation‑skipping transfer (GST) exemption, however, is not portable—an important distinction for families creating multi‑generational planning strategies.
Updates for High Earners and Charitable Givers
OBBBA makes permanent the top individual tax rate of 37%, maintains the cap on certain deductions, and sets new parameters for charitable giving. Cash gifts may now qualify for a deduction of up to 60% of adjusted gross income, provided they exceed 0.5% of income—opening new avenues for tax‑efficient philanthropy.
Reduced Urgency—But Not Reduced Importance
With no looming 2025 deadline, families now have more flexibility in crafting or updating their estate plans. Still, complexity persists, especially for those who have already made significant lifetime gifts or who need to balance gifting, trusts, and long‑term tax exposure.
While the One Big Beautiful Bill Act offers stability and expanded opportunities, it also introduces new layers of nuance—particularly for individuals and families with intricate wealth structures. Now is an ideal moment to revisit your existing estate plan or build one that fully leverages the higher exclusions while they remain favorable. Consider connecting with a trusted advisor who can tailor a strategy that reflects your goals, circumstances, and legacy aspirations.