Estate & Trust Partner
The new One Big Beautiful Bill Act has rewritten some of the most important estate and trust tax rules. We’ve highlighted the updates that matter most for high-net-worth individuals and anyone focused on smart estate planning.
Effective Start: January 1, 2026 (unless otherwise noted)
Estate, Gift & GST Tax Exemptions Permanently Raised
- Starting in 2026, the federal estate and gift tax exemption increases permanently to $15 million per person ($30 million per married couple) and will be annually indexed for inflation.
- The Generation-Skipping Transfer (GST) exemption also increases to $15 million per person, indexed for inflation.
Trust Income Tax Brackets Made Permanent
- The rates for trusts and estates are 10, 24, 35, and 37 percent.
State and Local Tax Deduction Expansion
- The legislation increased the deduction from $10,000 to $40,000 in 2025.
- Increased by 1% annually through 2029; reverts to $10,000 in 2030.
- Benefit begins to phase out, or decrease, for taxpayers with more than $500,000 of income.
Changes to Charitable Giving
- $1,000 above the line deduction for those who take the standard deduction.
- New .5% floor applies to itemized deductions.
- Permanent 60% contribution base limitation on individual deduction for cash gifts to public charities.
Additional Planning Considerations
- Greater opportunity for wealth transfers due to the higher exemptions.
- Review current trust structures to determine any changes needed to better reflect the new exemptions thresholds.
- Accelerated gifting strategies may be beneficial.
Final Thoughts
The One Big Beautiful Bill introduces sweeping changes to estate and trust planning strategies. While many provisions offer increased exemption amounts and permanence, others impose new limitations. High-net-worth individuals and families should revisit their estate plans with qualified advisors to assess how these reforms impact existing trusts, gifting strategies, and long-term legacy goals.
Our team at WFY is here to guide you through the opportunities and ensure you are positioned for long-term success. Click here to contact us now. You can sign-up for our newsletter here to receive more updates.
Wright Ford Young & Co. is headquartered in Irvine, CA and is one of the largest local CPA firms in Orange County. WFY is a full service corporate accounting firm offering audit, tax, estate and trust, and business consulting services to closely held company and family business owners. More information about our Firm can be found at www.cpa-wfy.com.