What Does the One Big Beautiful Bill Act Mean for Estate Planning?

Many Americans will be able to capitalize on the expected estate tax exemption increase provided by the One Big Beautiful Bill Act. 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. Larger estates can utilize this new allowance to transfer sizeable portions of their wealth before further legal shifts inevitably occur.

Moreover, moderately sized estates in certain states can 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 goals. However, in places with state specific estate taxes, such as Massachusetts and New York, the federal exemptions are superseded by state governance. In these states, creating a foundational Estate Plan is vital to protect the legacy you’ve built for your family and their future generations.

While the Bill takes effect in 2026, it is vital to act now. For people who are considering establishing an Estate Plan, difficulties often arise from waiting too long. One of the most crucial elements of Estate Planning is timing. Medicaid Asset Protection Trusts are especially time-sensitive, as they have a 5-year look back period. Not taking action early enough can have serious ramifications for how well your Estate Plan protects you. The new tax breaks provided by the One Big Beautiful Bill Act have given Americans the opportunity to establish plans that contribute to the growth of generational wealth like never before. 

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 and see if Wiley Law can assist you in creating the perfect Estate Plan.

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