The newly enacted One Big Beautiful Bill Act changes everything.
Starting in 2026, the Act establishes a permanent, inflation-adjusted $15 million estate and gift tax exemption per person, allowing married couples to shield at least $30 million from federal estate and gift taxes. This exemption will continue to increase annually with inflation, offering predictability for long-term wealth transfer strategies.
Why This Matters for High-Net-Worth Families
This landmark legislation is a gamechanger for affluent families, business owners, and legacy builders. Here’s why:
Certainty in Estate Planning: The Act prevents the steep drop in exemption levels that was scheduled for 2026, enabling more confident and long-range planning.
Expanded Lifetime Gifting: You can now transfer significantly more wealth during your lifetime to heirs, dynasty trusts, or other vehicles without incurring gift tax.
Multi-Generational Wealth Strategies: The Generation-Skipping Transfer (GST) tax exemption also rises to $15 million, creating new opportunities for dynasty trusts and other multi-generational structures.
Key Benefits Preserved: The step-up in basis at death and portability of unused exemptions for surviving spouses remain intact—two critical features for high-net-worth estate planning【IRC §1014; §2010(c)(5)】.
No Clawback Risk: For those who made large gifts under the TCJA-era exemptions, the IRS has confirmed that these amounts will not be “clawed back” after 2026【Reg. §20.2010-1(c)】.
Permanent Relief: Unlike previous legislation, the One Big Beautiful Bill Act includes no sunset provisions, meaning there is no expiration date on the new $15 million exemption amounts.
Opportunities for Strategic Planning
This change isn’t just about avoiding estate tax—it’s about optimizing wealth transfer and preserving family legacies. High-net-worth individuals should consider:
Revisiting Estate Plans: Ensure your current strategy takes full advantage of the expanded exemption and GST planning opportunities.
Advanced Trust Strategies: Establish or fund irrevocable trusts, such as dynasty trusts, spousal lifetime access trusts (SLATs), and charitable lead trusts to maximize the new exemption.
Business Succession Planning: If you own a closely held business, now is the time to explore tax-efficient succession strategies.
Charitable Giving: Leverage the increased exemption to integrate philanthropic goals with overall wealth preservation strategies.
Reduced Urgency: While strategic gifting remains beneficial for removing future appreciation from estates, the previous “use it or lose it” urgency before 2026 has been eliminated.
An Exciting Moment for Legacy Planning
The One Big Beautiful Bill Act brings stability, opportunity, and optimism to the often complex world of estate planning. For high-net-worth families, this is an unprecedented opportunity to secure your legacy, protect family wealth, and plan for generations to come with confidence.
If your estate exceeds $15 million or if you are considering large gifts, establishing trusts, or creating multi-generational wealth structures, consulting with qualified estate planning professionals can help you navigate this new legislative landscape.
Important Note: Estate planning is complex and highly individual. This article provides general information only and should not be considered personalized legal or tax advice. Please consult with experienced estate planning attorneys and tax professionals to understand how these changes apply to your specific situation.
References:
- One Big Beautiful Bill Act, signed into law July 4, 2025
- Internal Revenue Service. Revenue Procedure 2024-40. (Annual inflation adjustments for 2025)
- Tax Cuts and Jobs Act, Pub. L. No. 115-97
- Internal Revenue Code §2010(c), §1014
- Treasury Regulations §20.2010-1(c) (anti-clawback rules)
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Please consult with an attorney for advice on your specific situation.
