How the OBBBA Reshapes Estate Planning for High‑Net‑Worth Households
Estate planning has always required thoughtful, forward‑looking decisions — especially for individuals and families whose wealth approaches or exceeds major tax thresholds. With the recently passed One Big Beautiful Bill Act (OBBBA), the rules have shifted in meaningful ways. This legislation brings both relief and new considerations for high‑net‑worth households, and this blog breaks down the most important changes in a clear, actionable format.
The New $15 Million Lifetime Exclusion
Beginning in 2026, the OBBBA creates a $15 million lifetime exclusion for both estate and gift taxes. Because it’s indexed for inflation, high‑net‑worth families can expect this figure to increase over time, offering more long‑term stability and clarity in planning.
What This Means for Couples: A $30 Million Combined Exclusion
For married couples, the combined exclusion rises to $30 million — a substantial increase that will dramatically reduce potential estate tax exposure for many families. This expanded window provides significantly more flexibility when structuring long‑term wealth transfers.
How Previously Used Exclusions Still Count
The new law doesn’t erase past gifting activity; previously used exclusions continue to apply. For example, someone who previously used $13.99 million of their exemption would now receive an additional $1.01 million starting in 2026. This creates fresh opportunities for strategic planning even for those who have already used substantial exclusion amounts.
Portability and GST Rules Remain the Same
Portability — allowing a surviving spouse to claim a deceased spouse’s unused estate tax exemption — remains unchanged. However, portability does require filing a federal estate tax return. In contrast, the GST (generation‑skipping transfer) exemption is still non‑transferable, meaning couples must plan proactively if they wish to maximize it.
The Permanence of the New Law (and Why That Still Comes With Risks)
While the OBBBA does not include a sunset clause, “permanent” tax law is only as durable as the next piece of legislation. Future administrations or congressional changes could revisit these thresholds. Timely planning remains wise for families wanting to lock in favorable conditions.
Changes for High Earners and Charitable Givers
The act also includes updates for high earners and philanthropists. The top income tax rate of 37% is now permanent. Charitable deductions remain capped, and cash donation rules now allow deductions up to 60% of AGI — provided giving exceeds 0.5% of income. These adjustments reinforce the importance of coordinated tax and charitable planning.
Less Urgency — But No Less Importance
Without a looming 2025 deadline, planning no longer carries the same time pressure. However, this doesn’t make estate planning any less essential. The expanded exclusions, stable structure, and preserved portability rules all present valuable opportunities — but only for those who act thoughtfully.
Final Thoughts
The OBBBA gives high‑net‑worth families more certainty and a broader planning runway, yet it also adds layers of complexity — especially for those who have already made significant gifts. Now is an ideal moment to revisit your estate plan, take advantage of the increased exclusions, and ensure your strategy remains aligned with your long‑term goals. Consider connecting with a trusted advisor who can provide individualized guidance tailored to your family’s needs. Next Bloom Wealth is here to help!