For many families, legacy planning is about more than wealth transfer. It is about preserving values, protecting loved ones, and creating impact for future generations. The One Big Beautiful Bill expands several provisions that make this an ideal time to review and refine estate strategies.
Higher Estate and Gift Tax Exemption
The lifetime estate and gift tax exemption has increased to $15 million per individual and will continue to adjust for inflation. This higher threshold means a married couple can now transfer up to $30 million during life or at death without incurring federal estate tax.
This expanded exemption provides a significant opportunity for families with large estates or business assets. Gifting appreciated property, funding irrevocable trusts, or transferring interests in closely held businesses can now be done with greater flexibility and less exposure to estate tax.
Even clients whose estates fall below the new limit can benefit from proactive planning. Using gifts strategically during life may help reduce future estate complexity and ensure assets are positioned according to long-term goals.
Trust and Gifting Strategies
Trusts remain one of the most effective ways to protect and direct family wealth. With higher exemptions in place, it may make sense to revisit or establish:
Irrevocable Trusts to remove assets from the taxable estate while retaining oversight of how beneficiaries receive funds.
Grantor Retained Annuity Trusts (GRATs) to transfer appreciation on assets to heirs with minimal tax cost.
Spousal Lifetime Access Trusts (SLATs) for married couples who want to leverage gifting while maintaining some indirect access to funds.
Dynasty or Legacy Trusts to preserve wealth across multiple generations under current favorable limits.
Timing is important. Although the exemption is currently high, it could be reduced by future legislation. Acting while these provisions are in effect helps lock in today’s benefits.
Charitable Planning and Philanthropy
The current environment also supports more strategic giving. Charitable remainder trusts, donor-advised funds, and qualified charitable distributions from IRAs can all play a role in reducing taxable income while advancing causes you care about.
Integrating charitable intent with tax planning can help maximize both impact and efficiency.
Coordinating with Business Succession Plans
Business owners stand to benefit from both the expanded estate exemption and the permanent 20 percent pass-through deduction. Combining succession planning with gifting strategies can help reduce estate value while transitioning leadership to the next generation.
Updating buy-sell agreements, ownership structures, and key-person insurance ensures your business legacy aligns with your personal and family goals.
Next Steps
The One Big Beautiful Bill has opened a window for thoughtful legacy planning. Whether your focus is protecting heirs, simplifying future administration, or leaving a charitable impact, the higher exemption provides valuable flexibility.
Our next article will focus on Small Business and Entrepreneur Planning Opportunities, including how the bill strengthens deductions, credits, and expensing rules that support business growth and succession.
If you would like an updated review of your estate plan, contact our team to coordinate with your attorney and CPA for a complete strategy review.
---
This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.