What Does the One Big Beautiful Bill Act Mean for Estate Planning?
As the One Big Beautiful Bill Act becomes law, many Americans are left wondering how it will impact them financially. While this controversial Bill will have varying impacts on different segments of society, the ramifications that effect Estate Planning are profound. For those with substantial assets, it offers the ability to capitalize on the expected estate tax exemption increase. This increase allows for an exemption of $15,000,000 per person ($30,000,000 for married couples). This statute diverges from the Tax Cuts and Jobs Act’s expiration clause that was set to lower the exemption on December 31st of this year. This means wealthy couples can transfer up to $30,000,000.00 before a hefty, blended state and federal tax of over 50% kicks in. While larger estates can leverage this allowance to transfer sizeable portions of their wealth before inevitable legal shifts occur, everyday American households stand to benefit as well.
According to the U.S. Federal Reserve Survey of Consumer Finances, the median net worth for those aged 65-74 was $409,900; far lower than the net worths of the multimillionaires who will be taking advantage of this new exemption. However, average American families will soon be able to avoid the complex and expensive Trusts that would have been necessary if not for the passing of this Bill. They can opt for more affordable, straightforward plans to achieve the same results, focusing more on family planning than tax planning. These plans outline when, and how the values of your family are passed from generation to generation. Families can focus on protecting their homes, small businesses, farms and, most importantly, their loved ones. Beyond these protections, Estate Planning provides families with the opportunity to teach future generations what it means to be a member of their clan. Trusts are often established specifically to enable families to leave a meaningful legacy for their children and future generations.
Although the Bill takes effect in 2026, it is important to document your intentions and pick the right people to steward your wealth today, as not acting early enough can have serious ramifications for how well your Estate Plan protects you. Fortunately, our firm specializes in fully customizable Estate Plans that ensure families can protect their assets, their loved ones, and themselves. Schedule a free consultation today to see if Wiley Law can assist you in creating the perfect Estate Plan.