The One Big Beautiful Bill (OBBB) introduces a series of legislative changes that impact tax, estate, and financial planning strategies. While the bill is broad in scope, many of its provisions reinforce or extend planning tools already in use.
For families with multigenerational goals, the current environment offers greater clarity for decision-making, not a need for sweeping revisions.
Tax Planning: Stability That Supports Strategy
One of the most notable provisions of the OBBB is the continuation of the individual income tax brackets established by the 2017 Tax Cuts and Jobs Act. With those brackets now made permanent, taxpayers have a more predictable framework for decisions around income recognition, Roth conversions, and capital gains. This consistency can be particularly helpful for individuals approaching retirement or significant liquidity events.
The legislation also reinstates 100 percent bonus depreciation for qualified property placed in service after January 1, 2025. This may provide a planning opportunity for business owners and real estate investors by enabling full expensing of certain capital investments.
For households earning under $500,000, the cap on State and Local Tax (SALT) deductions has been raised to $40,000. While this change is subject to a five-year sunset, it offers near-term flexibility for affected taxpayers.
Estate Planning: More Time, More Flexibility
The estate and gift tax exemption has been permanently increased to $15 million per individual and $30 million per couple. For many of our clients, this expanded threshold supports continued use of strategies such as lifetime gifting, trust planning, and charitable coordination.
For those who previously used much of their exemption or created plans under prior limits, this may be a good time to reassess existing documents and structures. Others may find the current environment offers reassurance that their current path remains on course.
The increased exemption also provides more flexibility for charitable planning. Tools such as donor-advised funds (DAFs), charitable remainder trusts (CRTs), and private foundations remain useful options for families who wish to integrate giving into their legacy, engage younger generations in philanthropy, and ensure that values endure over time.
Certain situations may still warrant more timely attention. These include approaching or exceeding past exemption levels, planning a business transition, or experiencing health-related or life changes. However, the overall tone remains one of stability and strategy.
Financial Planning Across Life Stages
The changes introduced under the OBBB also extend to broader financial planning strategies at all life stages. Whether clients are building wealth or transitioning into retirement, the current environment supports thoughtful, multi-year planning.
For Individuals in Their Accumulation Years
The expanded exemption supports early implementation of lifetime wealth transfers. Bonus depreciation offers opportunities for business owners and property holders to optimize reinvestment strategies. Stable tax brackets help with the deliberate timing of income realization, capital gains, and Roth conversions.
For Retirees and Those Nearing Retirement
Predictable tax rates help guide decisions on portfolio withdrawals and conversion strategies. Expanded estate exemptions support the transfer of illiquid assets such as real estate or business interests into long-term planning vehicles. Individuals can now use this stability to fine-tune legacy plans using tools like spousal lifetime access trusts (SLATs) and grantor retained annuity trusts (GRATs).
Planning for Education, Healthcare, and Long-Term Care
Beyond wealth transfer and retirement income, the OBBB also enhances flexibility in funding life’s essential needs.
Families now have more capacity to:
- Contribute tax-free to 529 plans or education trusts
- Make direct tuition payments without triggering gift tax
- Cover medical expenses through unlimited, tax-exempt direct payments
- Fund long-term care trusts or hybrid life insurance solutions that protect assets and preserve family wealth
These provisions are particularly valuable for families with multigenerational priorities, allowing them to support children and grandchildren without sacrificing overall estate efficiency.
Final Thoughts: Plan Steadily, Not Hastily
Recent legislative changes expand on many existing tools without requiring dramatic shifts. With greater clarity around income taxes, estate thresholds, and gifting opportunities, the current environment supports proactive and measured planning.
Whether you are updating your estate plan, exploring gifting opportunities, or preparing for retirement, now is a good time to review your financial strategy through a long-term lens. The strongest plans are built on clarity, flexibility, and thoughtful execution, not urgency.
At Heritage, we help families navigate these decisions with confidence through integrated expertise, steady guidance, and a commitment to values-based planning.
