New opportunities for estate planning, American families can expect this since July 4th (2025) marked a new dawn in estate planning- the age of ONE BIG BEAUTIFUL BILL ACT (the OBBBA)! This wide-ranging law is a turning point, with permanent changes on the federal tax code that will alter how people protect their assets, pass wealth and plan for future generations.
If you’re wondering what this all means for you or your loved ones, we understand. The OBBBA makes larger exemption amounts permanent and provides new savings vehicles for families, as well as changes which may prompt you to revise your estate plan — even if you thought it was carved in stone.
What Is the One Big Beautiful Bill?
The OBBBA represents an impressive benchmark in tax reform by the current U.S. administration. Among its most significant changes is a series of moves that would make permanent many of the tweaks scheduled to have expired in 2026 under the 2017 Tax Cuts and Jobs Act. That sunset provision would have reduced the exemptions and increased the tax burden on many estates.
Now, with this new law, families have more certainty. Under the OBBBA, the federal estate and gift tax exemptions would increase for the better, and the Generation-Skipping Transfer (GST) tax exemption would match those higher amounts. This stability is a welcome one for anyone creating an estate plan that will last over the long haul, and it should help pave the way for more confident — and, in some cases, even more generous — planning.
Higher Exemptions Mean New Opportunities
Among the major amendments that made headlines: With effect from January 2026, the federal margin for estate and gift taxes will rise to US $15 million per person. By means of proper planning, a couple can pass on as much as US $30 million estate tax-free. These limits will rise in step with inflation. The upshot is that families can pass on a lot more now without having to pay a 40% estate tax.
Consider a couple with $20 million in assets. Before, a spot of their legacy might have been lost to tax. Under the OBBBA, they pass their wealth along to children or grandchildren without the hit and everything from complicated business succession to personal bequests are simple.
Equally crucial, the annual gift tax exclusion still exists. In 2025, you can transfer $19,000 per person and per year without tapping your lifetime exemption. Married couples can gift $38,000 per recipient and gradually pass on wealth without more sophisticated legal juggling.
Enter Trump Accounts: A Children’s Savings Option
The OBBBA is not only a tax reform, but it brings new savings products to families. Foremost among them is the Trump Account, a tax-deferred investment account established for children under 18.
How do Trump Accounts work?
Parents may contribute up to $5,000 annually for each child, and the money can grow tax-deferred. Contributions use after-tax dollars. When the child reaches 18, withdrawals are taxed at ordinary income rates.
- Original bonus: The government pays the first $1,000 for kids born between 2025 and 2028.
- Employer perk: Employers can also add up to $2,500 a year, tax-free to the employee.
Trump Accounts are meant to provide more flexibility than 529 college savings plans because the money is not earmarked for educational spending. After the child reaches 18, the money can be withdrawn for any purpose — college tuition and a home down payment as well as capital to start a business.
Simpler than traditional trusts, which don’t have the same kind of legal overhead or significant administrative fees a Trump Account still does not offer the asset protection or control over distributions.
Planning for the Next Generation
With larger exemptions and flexible savings tools available, families have the opportunity to recalibrate how they pass money on. Here is how the OBBBA revolutionizes the game:
Smoother Business Succession
Now, if you’re an owner of a family business, transferring ownership to the next generation has just gotten easier. The $30 million exemption is on behalf of a married couple, which generally includes the majority of privately held businesses. Families once had to engage in complex, multiyear planning simply to stave off taxes — often sacrificing flexibility and peace of mind. With these changes, smooth transitions can be made, keeping you focused on business health, not tax costs.
Dynasty Trusts Made Stronger
The OBBBA also increases the GST tax exemption, and so dynasty trusts become even more attractive. These trusts enable us to get wealth down to grandchildren (or even deeper) without any estate or GST taxes on that multi-generational transfer. Wealth transferred to a dynasty trust today could help provide for your family members several generations from now, particularly if you’re able to fund it full up the new exemption limits.
Charitable Giving Reevaluated
While increased exemptions may reduce the direct tax benefit for some donors of making gifts to charitable organizations, there remain a host of reasons why philanthropy should still be considered in estate planning. Charitable remainder or lead trusts may provide income tax benefits, and help mudulate how you affect the things in life you cared about, aiding your control over social impact at a time when federal taxes are taking less of a bite out of your estate.
Don’t Overlook State Taxes
Federal overhauls are a huge win, but there’s still the estate tax in many states — New York and Pennsylvania among them. And these state rules can “eat up a big chunk of your estate if you’re not careful.” The OBBBA doesn’t mess with these local taxes, so you’ll want to make sure your estate plan aligns itself well with federal and state law when considering any planning decisions.
What Should Families Do Now?
Then you might have the qualified real estate planning attorney Like many estate planning attorneys, who will tell you that it is wise to review your plan every few years or whenever there are significant new legal developments. Now that the OBBBA is law, here’s what to do:
- Check trust documents and wills: That means if your trust divided assets based on how much you could have transferred to it prior to OBBBA, the distribution may be doing other than what you intended.
- Rethink your giving strategy: Consider whether gifting assets during your lifetime, especially now that the exemptions are higher, could benefit your family or decrease future state tax burdens.
- Consider all your options: Trump Accounts, revocable trusts with updated language, outright gifts, and other plans may all have a place in a comprehensive plan
Understand how Pennsylvania inheritance tax impacts your estate plan.
Take Control of Your Legacy - Get Reliable Legal Counsel
The One Big Beautiful Bill Act provides for clear definitions, expanded exceptions and new aggressive enforcement tools to protect your family’s future. But because every family is different, there’s no replacement for individual legal advice.
Get Expert Help with Estate Planning
Leave nothing about these choices to chance. If you are in New York, the compassionate attorneys at Bartal Law in Fresh Meadows can help. Visit bartallaw. com to arrange a private consultation and ask how the OBBBA’s which present themselves can serve your legacy and family best. Protect what is most important to you — contact Bartal Law today.
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