The recent passage of the One Big Beautiful Bill (OBBB) marks the most comprehensive update to the U.S. tax code since the 2017 Tax Cuts and Jobs Act. At Heritage, our focus remains on guiding clients through the evolving policy landscape with a steady hand and an integrated strategy.
In this case, while the OBBB is full of provisions that affect high-net-worth families, it mostly builds upon a framework that was already in place. Think of it not as a radical reset, but as an extension of existing laws, with some important enhancements that allow you to continue planning with clarity and confidence.
Below, we share insights from three of our firm’s subject matter professionals:
A Stronger Foundation for Long-Term Planning
With insight from Zuzanna Kaczmarek
The OBBB introduces updates that largely reinforce current planning strategies while enhancing the tools available to families focused on legacy and multigenerational wealth.
Notably, the estate and gift tax exemption has been permanently increased to $15 million per individual ($30 million per couple). This extension provides clients with additional flexibility to engage in lifetime giving, structure trusts, and coordinate charitable objectives.
Other key provisions include:
- The permanence of individual income tax brackets and the return of 100% bonus depreciation, both of which support more predictable planning around Roth conversions, capital gains, and business investments.
- The Pass-Through Entity Tax (PTET) remains in place, preserving a valuable tool for managing state income tax exposure through eligible pass-through business structures.
- The State and Local Tax (SALT) deduction cap has been raised to $40,000 for households with adjusted gross income (AGI) under $500,000, offering additional flexibility for a segment of taxpayers previously impacted by the cap.
- The Qualified Business Income (QBI) deduction continues unchanged, providing ongoing relief for owners of eligible pass-through businesses and encouraging reinvestment and growth.
For those in accumulation years, this stability creates an environment to incorporate legacy strategies earlier, such as funding irrevocable trusts or executing tax-efficient wealth transfers. For retirees, it supports precise portfolio withdrawals and refined trust planning. Provisions for education and healthcare planning have also been enhanced, strengthening the framework for multigenerational support.
At Heritage, we view this as a moment to refine rather than overhaul. With extended thresholds and increased stability, clients have a rare opportunity to align planning decisions with long-term intentions and values.
If you’d like to explore how the OBBB impacts specific strategies around gifting, trusts, retirement, and multigenerational planning, we have created a companion article that walks through the details.
Investing in an Evolving Economic Landscape
With insight from Colin Frankenfield
While the projected $3.8 trillion increase to the federal deficit is substantial, the actual implications relative to GDP remain the subject of economic debate. Some estimates place the annual deficit near 7.3% of GDP, though tariff revenue and other offsets may keep the figure closer to current levels.
More significantly, market expectations around additional fiscal expansion appear to have moderated, as reflected in fixed income markets. Since the start of the year, 10-year Treasury yields have declined modestly. At the same time, core CPI in May suggested an annualized pace of 1.7% over the prior three months, indicating a cooling in inflation. Future inflation remains uncertain with the impact of tariffs a wildcard.
These signals may lay the foundation for interest rate cuts as early as this fall. Potential changes in Federal Reserve leadership could further shape a more accommodative monetary stance in the coming quarters.
The U.S. dollar faces a complex outlook. On one hand, structural deficits and diversification efforts by global central banks may create downward pressure. On the other, sustained growth and innovation – particularly in AI and productivity technologies – could support continued demand for U.S. assets.
Against this backdrop, we continue to favor a diversified approach. For most clients, this includes a mix of high-quality equities, real assets such as infrastructure and real estate, international exposure, and select alternatives that provide durable cash flows. For long-term investors with minimal liquidity needs, this may also suggest a reduced emphasis on traditional fixed income.
Philanthropy & Social Impact Strategy
With insight from Carrie Mills Miller
The OBBB introduces several changes to the landscape of charitable giving, with implications for both individual donors and the nonprofit sector more broadly.
At the personal level, new universal deductions provide modest relief ($1,000 for individuals, $2,000 for couples), while a new adjusted gross income (AGI) floor of 0.5% and a 35% cap on tax benefits may limit deductions for some high-net-worth donors. The tax on private endowments remains unchanged, but large private college endowments will now be subject to a tiered excise tax ranging from 1.4% to 8%, depending on endowment size per student. Public institutions are exempt from this change.
Outside of tax policy, the legislation outlines shifts in federal funding that may impact institutions and organizations that have historically relied on public resources. This includes:
- Reductions in Medicaid funding, potentially affecting rural hospitals and academic health centers
- Lower federal allocations for food assistance and biomedical research
- New lifetime caps on graduate and professional student loans ($100,000–$200,000)
- Potential downstream impact on arts and culture organizations reliant on discretionary giving
For philanthropically inclined families, this may be a timely moment to reassess giving strategies and align philanthropic capital with evolving needs. Community-based organizations may experience heightened demand, and even modest gifts can yield meaningful impact. Structured giving vehicles, such as donor-advised funds, charitable trusts, and family foundations, remain powerful tools for sustaining long-term intent.
Private philanthropy has long played a vital role in addressing systemic gaps. Today’s environment underscores the value of thoughtful giving that is both strategic and responsive.
Final Thoughts: Plan Steadily, Not Hastily
The OBBB reaffirms and extends much of the current planning environment, offering a valuable moment for review, refinement, and alignment. For our high-net-worth families, the opportunity lies not in reacting quickly, but in planning deliberately.
Whether you are refining your estate strategy, exploring charitable structures, or positioning your portfolio for the future, our team is here to guide you with clarity and confidence; helping you move forward with purpose.