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

On July 4, President Trump signed into law the “One Big Beautiful Bill Act” (OBBBA), a sweeping piece of legislation passed along narrow party lines. While political and economic reactions to the bill vary, one thing is certain: individuals and families with meaningful wealth should be paying close attention. The changes introduced by OBBBA are far-reaching, and their impact on estate planning is significant.

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

Perhaps the most headline-grabbing provision is the permanent increase in the federal estate and gift tax exemption to $15 million per individual, or $30 million per married couple. This exemption is indexed for inflation and, at first glance, seems to reduce the urgency of estate planning for all but the wealthiest families. But that assumption is misguided—and potentially dangerous.

Legislative “permanence” is always subject to change. While Congress has declared this exemption permanent, history tells us that tax laws are rarely set in stone. A political shift in Congress could easily bring the exemption down—or introduce entirely new tax structures.

In short, the current window may be a temporary gift. Vehicles such as Spousal Lifetime Access Trusts (SLATs), Grantor Retained Annuity Trusts (GRATs), and sales to Intentionally Defective Grantor Trusts (IDGTs) remain powerful options, especially for those looking to reduce exposure and preserve wealth for future generations. Now is the time to review your estate plan and consider strategies to lock in today’s favorable laws before they potentially disappear.

A Higher Exemption Doesn’t Eliminate the Need for a Plan

Yes, the federal estate tax exemption is now a whopping $15 million per person. Most families will never come close to paying federal estate tax under this new threshold. But that doesn’t mean you don’t need an estate plan. Avoiding probate, ensuring your wishes are followed, protecting your children, and minimizing family conflict are all critical reasons to have a plan in place—regardless of your net worth.

Moreover, if you live in Connecticut or New York, you’re still facing state estate taxes with exemptions that haven’t changed. Connecticut currently taxes estates over $14million, and New York has a lower threshold around $7million. And those limits are not indexed in the same generous way the federal exemption is.

Business Owners: Your Window May Be Closing

If you own a closely held business, the OBBBA creates an important (but possibly brief) opportunity. Transferring business interests out of your estate today—while the $15 million exemption is in place—could save your heirs millions down the line. Techniques like irrevocable trusts, GRATs, or family LLCs can allow you to move future appreciation out of your taxable estate now, before the law changes again.

And let’s be realistic: this new “permanent” exemption could very well be rolled back by a future Congress. With political winds always shifting and federal deficits mounting, it’s not hard to imagine a scenario where exemptions are reduced or wealth transfers are taxed more aggressively. Acting now, while the law is favorable, lets you lock in advantages that may not last.

Estate Planning Isn’t Just About Taxes

One of the most common misconceptions we hear is: “I don’t have enough to worry about an estate plan.” But if you own a home, have retirement accounts, have minor children, or want to avoid probate, you absolutely do. A thoughtful estate plan includes more than just tax strategy—it includes naming guardians, establishing powers of attorney, protecting digital assets, and ensuring that your life’s work passes smoothly to those you love.

Complexity Is Growing—But So Is Opportunity

The OBBBA introduced dozens of new tax provisions, some temporary and many confusing. Certain deductions phase in and out over the next few years. Business owners face new compliance questions. Meanwhile, income tax planning—including Roth conversions, charitable strategies, and timing of capital gains—has become even more central to smart estate planning.

Let’s Talk About Your Legacy

At the Law Office of Elizabeth Roache we help clients turn complexity into clarity. We specialize in personalized, 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 discuss strategies aligned with the new legislation, we invite you to schedule a consultation. We offer fixed-fee engagements and deeply personalized service to clients throughout Fairfield and Westchester Counties. Contact us today to get started.

The law may have changed—but your priorities haven’t. Let’s ensure your estate plan reflects both.