In a major development that will shape estate planning for decades to come, Congress has passed, and President Trump has signed into law, what is being dubbed as the “Big Beautiful Bill”—a sweeping piece of tax legislation that permanently sets the federal estate tax exemption at $15,000,000 per individual and $30,000,000 per married couple, effective January 1, 2026.
President Trump’s Big Beautiful Bill includes major tax cuts that will significantly impact estate planning for high-net-worth individuals, business owners, and real estate investors. Here is what you need to know about how the Bill will impact estate planning going forward.
What is Changing?
Prior to the Bill being passed, the federal estate and gift tax exemption was scheduled to drop dramatically at the end of 2025. The “sunset” provision incorporated into the 2017 Tax Cuts and Jobs Act would have taken effect and reduced the exemption to an inflation adjusted $5,000,000—equating to roughly $7,000,000 in 2026.
However, with the passing of the Big Beautiful Bill, the exemption has now been permanently raised to $15,000,000 per individual or $30,000,000 per married couple. Such exemption being “permanent” simply means that there is no sunset provision akin to that included in the 2017 Tax Cuts and Jobs Act. Furthermore, the $15,000,000 exemption will continue to be subject to an inflation adjustment on an annual basis, meaning that it will likely increase beyond 2026.
Why Does This Matter?
By locking in the $15,000,000 exemption, the Big Beautiful Bill tax cuts will shield far more families from federal estate tax exposure. So long as appropriate estate plans are in place, this will likely result in millions of dollars in savings for high-net-worth individuals, business owners, and several others. While the legislation does not directly affect the annual gifting exclusion, President Trump’s Big Beautiful Bill allows individuals to transfer significantly more wealth before being subject to federal estate taxation.
Allow Plakas Mannos to Assist in Updating Your Estate Plan
Overall, the Big Beautiful Bill marks one of the most significant shifts in estate tax law in nearly a decade. Whether you’re a business owner, real estate investor, or a high-net-worth individual with multigenerational goals, now is the time to revisit your estate planning strategy.
Haven’t updated your Estate Plan in several years? Unsure how the increased exemption affects you and your assets? Give the Estate Planning Team at Plakas Mannos a call today at 330-455-6112 to see how we can help you in developing an effective Estate Plan for years to come.
About the Authors
The estate planning team at Plakas Mannos brings together a wide range of experience to support clients with their personal and business planning needs. James Mannos focuses on real estate transactions, estate and probate matters, family law, and Claimant-side workers’ compensation matters. David Dingwell, a partner at Plakas Mannos, provides probate, estate, and trust administration and planning services, as well as ethics and professional conduct advisory services. Gary Corroto, an attorney and partner, practices law in various areas, including commercial litigation, energy, oil and gas, and more, offering valuable insight into complex estate issues. Hunter Miller, an associate attorney, focuses on commercial litigation, mergers and acquisitions, intellectual property litigation, and other practice areas that support strategic estate and succession planning.
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