On July 4, 2025, the “One Big Beautiful Bill” Act became law, making the federal estate and gift tax exemption a permanent $15 million per individual (or $30 million for married couples), with future inflation adjustments. This shift brings significant certainty to estate planning, but doesn’t mean planning is any less critical.
Why This Matters
1. Greater Certainty vs. Temporary Status
- Previously, high exemptions were temporary and set to expire in 2026, reverting to approximately $7 million. Permanency eliminates the risk of sudden changes that require emergency planning.
- Still, future legislative changes could lower the exemption, so planning remains dynamic and flexible.
2. Planning Beyond Tax Avoidance
- Even estates below the exemption threshold benefit from clear distribution directives via wills, trusts, powers of attorney, and healthcare directives. These tools ensure your wishes are followed and avoid default state succession rules.
3. Evaluating Lifetime Transfers
- Large gifts made now may trigger gift taxes and affect your capital gains basis. In some scenarios, gifting accelerated can yield little net tax benefit over holding assets until death.
- Advanced strategies like Spousal-Limited Access Trusts (SLATs) take advantage of grandfathering but require careful legal structuring.
4. Generation-Skipping Transfers
- The exemption also covers generation-skipping transfers, maintaining the opportunity to transfer wealth tax-efficiently across multiple generations.
What To Consider Doing Next
- Review & Update Your Plan: Ensure your estate documents reflect the new exemption and align with your goals.
- Strategize With a Professional: Advanced tools, such as SLATs, GRATs, and basis considerations, require expert guidance.
- Stay Informed: Tax policy can shift with elections—even laws that seem permanent may change.
- Consider State Taxes: State-level estate/inheritance taxes may still apply despite the federal exemption.
Planning With Confidence
At IM Wealth Partners, we believe in clarity, humility, and proactive planning—not hype. The $15 million exemption offers an opportunity, but meaningful legacy planning extends far beyond tax thresholds. We’re here to help you:
- Translate the law into action
- Protect your legacy
- Navigate complex trusts and gifting strategies
- Ensure your estate reflects your intentions
Ready to take control of your legacy? Contact us today to create a personalized estate plan that supports your family, values, and the future you envision.
Sources:
- WealthManagement.com – Impact of New $15M 'Permanent' Estate/Gift Tax Exemption
- Forbes – Estate Planning and the Final OBBBA
- TLD Law – What the new “Big Beautiful Bill” Could Mean for Estate and Gift Taxes
- MarketWatch – Even with the megabill's higher $15M exemption... estate planners won't be out of jobs
- Wall Street Journal – Trump-Era Bill Would Lock in $15M Estate Tax Exemption