Estate Planning Strategies Under the One Big Beautiful Bill Act

The estate and gift tax landscape was poised for a major shift at the end of 2025 with the scheduled sunset of the Tax Cuts and Jobs Act of 2017 (TCJA). That sunset would have significantly reduced the federal estate and gift tax exemption amounts.

However, on July 4, 2025, President Trump signed the One Big Beautiful Bill Act (OBBBA) into law, making permanent several key tax provisions originally enacted under the TCJA. Among the most impactful changes for estate planners: a substantial increase to the federal estate and gift tax exemption thresholds.

What Changed Under the OBBBA?

Beginning January 1, 2026, the federal estate and gift tax exemption will rise to $15 million per individual, or $30 million for married couples, with both amounts indexed annually for inflation. This means that individuals may transfer up to $15 million—and married couples up to $30 million—free from federal estate and gift taxes.

Planning Opportunities in a Shifting Landscape

While the OBBBA offers welcome certainty in the near term, it’s important to recognize that future Congresses can still modify or reduce the exemption. For example, a change in the political majority could occur as early as 2027 (after the 2026 midterm elections) or in 2029 (following the 2028 presidential election). A new Congress could repeal or revise the OBBBA provisions, bringing planning opportunities to a close.

Although the urgency to act before the end of 2025 has eased, high-net-worth individuals should not assume these favorable exemptions are permanent. It remains prudent to consider using available exemption amounts now, especially through lifetime gifting strategies, before any potential legislative rollback.

Bottom Line

The OBBBA has delivered a powerful planning opportunity for individuals and families to preserve and transfer wealth. But with political uncertainty always in play, it’s wise to consult with your estate planning attorney to evaluate your current plan and explore options for taking advantage of today’s historically high exemptions while they last.

For help with estate planning and estate administration matters, please contact Joshua B. Beisker at jbeisker@underbergkessler.com or 585-258-2879.