The Passage of the OBBBA

On July 4, 2025, President Donald Trump signed the One Big Beautiful Bill Act (OBBBA) into law, which significantly impacts estate and financial planning.

The Estate Tax Exemption Gets a Boost — But Planning Is Still Essential

For years, estate planners and high-net-worth families were racing the clock. The 2017 Tax Cuts and Jobs Act (TCJA), passed during Trump’s first administration, doubled the federal estate and gift tax exemption, along with the generation-skipping transfer (GST) tax exemption, but only temporarily.

Without action, the exemptions were set to drop back to pre-2017 levels (adjusted for inflation) at the start of 2026 due to a TCJA “sunset” provision that had many scrambling to lock in wealth transfers.

The OBBBA rewrites that narrative. Beginning in 2026, the federal estate, gift, and GST tax exemptions will increase to $15 million per individual (and $30 million per married couple), with inflation adjustments starting in 2027.

• For most Americans, this change means estate tax exposure is unlikely. Even for wealthier families, it removes some of the urgency created by the TCJA’s pending expiration.
• The GST exemption will also rise. The GST tax exemption will climb to $15 million, giving families using dynasty trusts or multigenerational planning more breathing room.
• Do not assume your plan is set. State estate taxes, which often have much lower thresholds, remain a concern. And even with a higher exemption, trusts and other estate planning techniques for wealth protection, privacy, and family governance won’t become obsolete overnight.

The bottom line: The higher federal limits buy time, but they don’t “sunset” the need for a thoughtful, up-to-date estate plan. Now is a good time to review your existing plan to ensure it still aligns with your goals.

While the new exemption limits will probably only impact around 1 to 2 percent (or fewer) of households, they are just one small part of a sweeping, hundreds-of-pages-long law. Whenever tax laws change — and the OBBBA is full of tax changes — it is recommended that you revisit your plan.

Time for “One Big Beautiful” Plan Review

The OBBBA has been called a “tax bill” and a “budget reconciliation bill” but it is really a sweeping overhaul of financial, health care, and estate planning rules. In addition to long-term care and estate tax changes, the legislation:

• Permanently extends the TCJA 2017 tax cuts and increases the standard deduction
• Introduces a $6,000 deduction for seniors aged 65+ (income limits)
• Creates “Trump Accounts,” a new tax-advantaged savings option for minors
• Allows up to $1,000 ($2,000 married) in charitable contributions to be deducted even if you do not itemize
• Reduces the amount of itemized deductions for high earners

Meet with your Estate Planning Attorney

The federal estate, gift, and generation-skipping transfer tax exemptions will rise to $15 million per individual starting in 2026. This reduces estate tax exposure for most Americans but does not eliminate the need for comprehensive estate planning. The OBBBA makes it essential for you to review your estate plan with a trusted advisor. The estate planning attorneys at Kommer Bave & Ciccone LLP can help you evaluate your current circumstances and plans, understand how the OBBBA might affect them, and adjust strategies if needed.

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