Our perspective
The One Big Beautiful Bill Act (OBBBA) does not reduce the need for proactive, sophisticated estate planning. The legislation permanently sets a lifetime estate tax exemption of $15M (inflation-adjusted) per person starting in 2026 (302(a)), improving clarity, but estate planning has never been only about taxes. It has been and remains about control, governance, asset protection, family dynamics, and preserving a legacy. If anything, the OBBBA provides a stable base from which to renew focus on the structural, generational, and governance issues that ultimately determine whether family wealth is handled in alignment with the values, purpose, and needs of the family’s members.
Text of the OBBBA is available here: https://www.congress.gov/ bill/119th-congress/housebill/1/text. We include the relevant section in parentheses where appropriate.
What has changed (and what hasn’t)
- Certainty on exemptions. OBBBA eliminates the scheduled 2026 “sunset” of estate tax provisions under the Tax Cuts and Jobs Act of 2017 (301(b)), providing families with a stable framework for pla Starting in 2026, the exemption is now permanently set at $15 million per individual ($30 million for a married couple) and will adjust for inflation going forward.
- The same fundamentals. Families of substantial means still face exposure, and the deeper challenge is ensuring that wealth remains a constructive force that strengthens family relationships, protects enterprises, and reinforces shared purpose.
An example
Consider a family with $50+ million in assets, including a mix of operating businesses, real estate, and a concentrated securities portfolio. Even under the new $30 million per-couple exemption, a substantial portion of their wealth remains exposed to estate tax at the 40% rate.
- With no planning, heirs could face liquidity challenges at death, forcing the sale of illiquid assets.
- With comprehensive planning, the family can use dynasty trusts, charitable vehicles, and/or family partnerships to:
- Reduce taxable exposure,
- Ensure asset protection across generations, and
- Establish governance structures to manage wealth together
Next steps
The OBBBA shouldn’t be seen as a reason to hit pause on estate planning. The exemption may be staying high, but it doesn’t erase exposure. Estate planning is an ongoing discipline: aligning structures with values, preparing the next generation, and ensuring wealth serves its intended purpose. The exemption level may shift, legislation is always subject to change, and tax efficiency is an important outcome, but not the purpose.
