The recent passage of the One Big Beautiful Bill Act ushers in a new era of stability for legacy planning. By making the federal estate tax exemption permanent at approximately $15 million per person, the law provides families with a clear foundation for the future.
This significant change resolves years of uncertainty and opens new opportunities for intentional, values-based planning. To help you navigate this new landscape, we’re answering some of the pressing questions our clients are asking.
- Is the $15 million federal estate tax exemption per person or per couple?
The exemption is $15 million per individual. This means a married couple can combine their exemptions to pass on approximately $30 million to their heirs, completely free of federal estate or gift taxes. The law also stipulates that these amounts will continue to be adjusted for inflation annually.
- How does the new permanent exemption change my legacy planning strategy?
The new stability in the law shifts the focus of estate planning from reacting to potential tax changes to proactively designing a long-term legacy. This allows for a more thoughtful approach, giving families the breathing room to:
- Align their estate plan with their core values and long-term vision.
- Design and fund trusts or family investment vehicles that support goals like education, entrepreneurship, or philanthropy.
- Engage in deeper family governance conversations without the pressure of a tax-driven deadline.
- What’s the right wealth transfer strategy for my family now?
With a permanent high exemption, the right strategy depends less on a deadline and more on your specific goals. The approach changes based on your situation:
- For families who haven’t yet maximized their gifting: The pressure is off. You can now be more deliberate, taking the time to structure transfers that best reflect your family’s purpose.
- For families who have already used their full lifetime exemption: This is a new opportunity. The law provides an additional exemption per person capacity, allowing you to transfer even more wealth free of estate taxes to family or charity.
- What types of assets are best to gift now versus letting my heirs inherit?
This is a key strategic decision. Gifting assets with high growth potential, like business interests or real estate, can remove their future appreciation from your taxable estate. However, assets passed down at death receive a step-up in basis, which can eliminate capital gains taxes for your heirs if they sell the asset. Deciding whether to gift now or transfer at death involves balancing these estate and income tax considerations, and the right answer is unique to your family’s situation.
Explore What This Means for You
Understanding how to leverage this permanent exemption requires a personalized approach that integrates directly with our Net Worthwhile pathways, which help you grow the impact of your money, protect all you’ve worked for, give where it matters most, and live the life you want.
If you are ready to explore what these changes could mean for your legacy, contact a SignatureFD advisor to begin the conversation.
