The One Big Beautiful Bill Act was signed into law by President Donald Trump on July 4, 2025. This legislation increased the federal estate, gift, and generation-skipping transfer tax exemption to $15 million beginning on January 1, 2026. This means that an individual can now leave up to $15 million at the time of their death without paying any federal taxes, assuming they have their entire exemption remaining. Unlike the 2017 Tax Cuts and Jobs Act, which was set to expire in 2026, this One Big Beautiful Act has no sunset provision. Rather, the exemption will remain at $15 million, simply increasing each year to account for inflation.
Does this mean that if I believe my estate is worth less than $15 million, I have no reason to meet with an estate planning attorney? No! While many individuals may not have any federal taxes due at their death, there are still several important reasons to consult with an estate planning attorney. This includes, but is not limited to, the following:
- making sure assets are distributed in the desired way with minimal legal complications for heirs.
- evaluating state tax exposure.
- establishing and properly executing legal documents, such as wills, trusts, health care directives, and powers of attorney.
- Life care planning to preserve assets from high care costs; and many more!
Therefore, even if you believe you will have less than $15 million in assets at the time of your death, it is still important to meet with an estate planning specialist.
If you would like to discuss establishing an estate plan for the first time or updating an existing plan, please call our office at 856-489-8388 or visit us on our website at fendrickmorganlaw.com to schedule an appointment.
