The recently passed “One Big Beautiful Bill Act” (OBBBA) marks a significant shift in estate planning for high-net-worth families. While the bill has not yet been signed into law, it has already passed the House and is expected to be enacted soon. Here’s what you need to know about how this legislation affects your estate plan—especially if you’re planning for assets over $7 million.
🚨 The Big Change: Higher Estate Tax Exemptions Made Permanent
Beginning in 2026, the federal estate and gift tax exemption will be permanently set at $15 million per person (or $30 million for married couples), indexed for inflation moving forward.
What This Means for You:
- If your estate is under $15 million, you likely won’t owe federal estate taxes.
- If your estate is between $7 million and $15 million, this change eliminates the urgency to make large gifts before 2026.
- For ultra-high-net-worth families, this presents new opportunities for long-term planning without fear of the exemption being slashed in future years.
📊 The Generation-Skipping Transfer (GST) Tax Exemption Also Rises
The GST exemption, which allows assets to skip a generation (such as passing directly to grandchildren), will also be set at the new $15 million level and adjusted annually for inflation. This makes dynasty trusts and multigenerational planning significantly more powerful and predictable.
🧾 Non-Tax Reasons to Still Do Estate Planning
Even if your estate falls below the new exemption level, estate planning is still essential for:
- Avoiding probate
- Protecting minor or disabled beneficiaries
- Managing incapacity with powers of attorney and advance directives
- Ensuring privacy and avoiding family disputes
- Creating succession plans for family businesses
🛠️ Estate Planning Strategies to Consider
StrategyPurposeDynasty TrustsMaximize long-term family wealth protection across generations.Spousal Lifetime Access Trusts (SLATs)Allow gifting while retaining access to funds.Annual GiftingContinue leveraging the $18,000 per person annual exclusion.Grantor Retained Annuity Trusts (GRATs)Transfer appreciating assets while minimizing gift tax.Charitable Giving VehiclesAlign philanthropy with tax and legacy goals.
Now is the time to reassess your trust structure, gifting plans, and family business succession documents to make sure you’re aligned with these changes.
📅 Why Timing Still Matters
If your estate is approaching or exceeds the $15 million threshold, proactive planning remains critical. Certain strategies—like irrevocable trusts—require time to implement, and early action can lock in advantages before further law changes or asset appreciation.
🔍 Bottom Line
The OBBBA brings welcome relief and planning certainty to many families, but it doesn’t eliminate the need for a sound estate plan. If anything, it creates a valuable opportunity to simplify and strengthen your planning under a more favorable tax structure.
Whether your goal is to minimize taxes, protect beneficiaries, or preserve family harmony, now is the perfect time to review or create your estate plan.
📞 Ready to Revisit Your Estate Plan?
At Bart Scovill, PLC, we focus on crafting customized estate plans that match your goals, protect your legacy, and make life easier for your loved ones.
Call us at 941-365-2253📧 Or email: firm@scovills.com🌐 Learn more: Scovills.com
📚 Sources
- MarketWatchEven with the megabill’s higher $15 million estate-tax exemption, estate planners won’t be out of jobshttps://www.marketwatch.com/story/even-with-the-megabills-higher-15-million-estate-tax-exemption-estate-planners-wont-be-out-of-jobs-f2241ae2
- ForbesEstate Planning and the Final OBBBA: Key Changes High-Net-Worth Individuals Must Knowhttps://www.forbes.com/sites/matthewerskine/2025/07/03/estate-planning-and-the-final-obbba-key-changes-high-net-worth-individuals-must-know
- Frost Brown Todd LLPOne Big Beautiful Bill Act Enacts a Permanent Increase in the Estate and Gift Tax Lifetime Exclusion Amounthttps://frostbrowntodd.com/one-big-beautiful-bill-act-enacts-a-permanent-increase-in-the-estate-and-gift-tax-lifetime-exclusion-amount-for-2025-and-later-years
- The Wall Street JournalTrump Bill Would Raise Estate Tax Exemption to $15 Million and Make It Permanenthttps://www.wsj.com/personal-finance/tax-bill-estate-taxes-changes-cec157ff
- The Washington PostThe U.S. is giving up on taxing inheritanceshttps://www.washingtonpost.com/business/2025/06/18/inheritance-tax-exemption-increase https://scovills.com/?p=2447
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