The One Big Beautiful Bill Act (OBBBA) brings welcome news for families looking to preserve wealth for future generations. By increasing the federal estate and gift tax exemption, it gives individuals and families more room to transfer assets tax-efficiently and more reason to revisit their estate plans.

Higher Exemptions

The OBBBA raises the federal estate and gift tax exemption to $15 million per individual, up from about $13.99 million, and indexes it for inflation going forward.

That means a married couple could now potentially shield $30 million+ from federal estate and gift taxes through strategic planning.

Why This Matters

Even with this increased exemption, estate and gift taxes can still take a significant bite out of large estates if planning isn’t done properly.

• The exemption increase creates opportunities for additional lifetime gifting without triggering tax.
  
  
• Gifting sooner rather than later could help lock in the current higher exemption amounts before any potential future reductions.
  
  
• Trust strategies, family partnerships, and charitable giving remain important tools in a comprehensive plan.

What Should You Do Now?

If your estate plan hasn’t been reviewed in the last few years, or if your wealth has grown, now is the time to revisit your strategy.

• Ensure your current plan aligns with the new exemption levels.
  
  
• Consider making additional gifts to heirs or trusts during your lifetime.
  
  
• Review beneficiary designations and coordinate them with your plan.
  
  

At Reagan & Reagan CPA, we help individuals and families take full advantage of these opportunities and craft thoughtful strategies for wealth transfer. Contact us today to review or update your estate plan under the new law.