The Big Beautiful Bill Has Passed — What It Means for You and Why Estate Planning Still Matters More Than Ever

On July 4th, President Trump signed into law what is now officially known as the “One

Big Beautiful Bill Act” (OBBBA). This sweeping piece of legislation—passed along thin

party lines—has significant implications for tax policy, federal spending, and,

importantly, estate planning. While political and economic interpretations of the bill vary

widely, one thing is clear: those with meaningful wealth should be paying close

attention.

Estate and Gift Tax Exemption Set at $15 Million—Permanently (For Now)

One of the most headline-worthy provisions of the OBBBA is the permanent extension

of the federal estate and gift tax exemption at $15 million per individual, or $30 million

per married couple, indexed for inflation. At first glance, this might seem to render

estate planning unnecessary for all but the wealthiest 0.25% of American families.

But that assumption is not only short-sighted—it’s risky.

Why Estate Planning Still Matters (and May Matter More)

Let’s start with the basics: Congress has declared the $15M exemption “permanent.”

Yet in legislative terms, permanence is a relative concept. Political winds shift

quickly—particularly when federal deficits balloon. The OBBBA is expected to add

nearly $4 trillion to the national debt over the next decade, and if economic growth fails

to offset this, future lawmakers may well look to higher estate taxes, or even a wealth

tax, to close the gap.

Proposals such as Senator Elizabeth Warren’s wealth tax and Senator Bernie Sanders’

aggressive estate tax reforms may gain renewed traction in a future

Congress—especially if there is a political shift in response to the perceived social and

economic impacts of OBBBA.

Translation: Now is the time to act. Even if your current estate falls below the exemption

threshold, you may still want to lock in planning strategies while they remain available.

Tax Code Complexity Creates New Incentives—and New Pitfalls

The bill introduces a range of complicated and, frankly, arbitrary tax preferences. For

example:

• Tip income enjoys special treatment through 2028.

• Car loan interest is deductible—but only from 2025 to 2028.

• 20% pass-through deductions are extended for certain businesses, but

professionals (lawyers, doctors, architects) are excluded.

• Sale of farmland to qualified farmers can be paid in four annual tax installments.

  
  

This complexity underscores a key point: tax planning, estate planning, asset protection,

and wealth transfer are increasingly interwoven. A decision in one area often has ripple

effects in others. That’s why we advocate for integrated, forward-looking strategies, not

one-off tactics.

The Rise of Political Risk in Estate Planning

OBBBA’s passage happened in an atmosphere of political polarization, marked by deep

divisions and antagonism. This is not just a cultural issue—it’s a planning concern. More

litigation, more scrutiny, and more dramatic swings in tax policy may become the norm.

For high-net-worth individuals, this makes protective planning—especially the use of

irrevocable trusts and asset protection structures—more critical than ever.

Even if you believe you are not “rich enough” to worry about estate tax, you may be

“visible enough” to attract litigation or regulatory risk. Proactive planning is your best

defense.

What You Should Do Now

1. Review Your Current Plan: If your estate plan was built with lower exemption

amounts in mind—or hasn’t been reviewed in the last 2 years—it may now be

outdated.

2. Consider Advanced Planning: Techniques like Spousal Lifetime Access Trusts

(SLATs), Grantor Retained Annuity Trusts (GRATs), or sales to Intentionally

Defective Grantor Trusts (IDGTs) remain powerful tools.

3. Weigh the Risk of Future Tax Reform: Even “permanent” laws can be changed.

Acting now lets you lock in today’s favorable rules.

4. Think Beyond Taxes: Asset protection, business succession, charitable giving,

and family governance all deserve attention in today’s climate.

Let’s Talk About Your Legacy

At Lara Sass & Associates, we help clients turn complexity into clarity. We specialize in

forward-thinking, tax-efficient planning designed to protect what matters most—your

family, your business, and your legacy.

If you’d like to review your current plan or explore strategies that align with the new law,

let’s schedule a time to speak. As always, we offer fixed-fee engagements and deeply

personalized service.

The "One Big Beautiful Bill Act" (OBBBA) is now law — and it’s a game changer for estate and tax planning.