What does a “beautiful bill” have to do with your legacy?
Quite a bit.
The One Big Beautiful Bill Act (OBBBA), signed into law in July 2025, introduces some of the most significant updates to estate and tax rules in years. Starting January 1, 2026, these changes may affect how families, business owners, and farmers prepare for the future.
In simple terms, the new law raises the amount of wealth you can pass down without paying federal estate or gift taxes, updates charitable giving rules, and offers more clarity for business and farm owners planning to transition ownership to the next generation (1).
1. Higher Limits for What You Can Pass On
Starting in 2026, each person may be able to pass on up to $15 million (or $30 million per married couple) tax-free under federal estate and gift tax rules (1).
That means more flexibility when transferring assets like property, business shares, or investments to children or heirs.
This higher limit has no scheduled expiration date under current law, though future legislation could change it (1).
So, 2025–2026 may be an ideal time to review your estate strategy and see if updating your trusts, gifting approach, or ownership structure makes sense for your goals, preferably in consultation with your estate planning attorney or tax professional.
2. Charitable Giving Gets Easier
OBBBA also updates how charitable donations are treated (1):
New deduction for everyone: Starting in 2026, even people who don’t itemize taxes may deduct up to $1,000 (or $2,000 for couples) for qualified charitable donations.
Small floor for itemizers: If you itemize, you’ll need to give at least 0.5% of your income before you can deduct charitable contributions.
Permanent 60% of income limit: The previous limit on how much of your income you can deduct for cash gifts to public charities is now permanent.
These updates make charitable giving more accessible for many taxpayers and more predictable for those who regularly donate or use donor-advised funds or family foundations.
3. Business and Succession Planning Clarity
For business owners, OBBBA aims to create a more predictable environment for transferring ownership interests and planning for succession (1).
You can gift or sell shares in S-corps, LLCs, or partnerships with more consistent tax treatment.
Valuation rules are clearer, which may help reduce disputes or confusion when transferring part of a family business.
It also expands Qualified Small Business Stock (QSBS) benefits for those who invest in or operate small companies, which can align well with estate or trust strategies (1).
In short, it may now be easier to coordinate your business succession strategy with your estate approach, so your financial legacy transitions smoothly and efficiently.
4. A Note for Farmers and Ranchers
For farm and ranch owners, these new rules may be especially meaningful (1):
The higher estate exemption may help lower the likelihood of having to sell land to cover estate taxes.
Farms owned through LLCs, partnerships, or trusts may benefit from more consistent, long-term tax treatment.
Liquidity planning, ensuring enough cash or insurance, remains key to covering costs without breaking up the farm.
Aligning with USDA and Risk Management Agency rules helps maintain benefits during generational transitions.
Simply put, the OBBBA offers farm families more flexibility, but careful coordination with legal, tax, and agricultural professionals is still essential.
5. Questions to Ask Yourself
Now that the law is official, it’s a good time to ask:
Do my trusts and gifting strategies reflect the new $15M/$30M limits?
Have I updated my business or farm ownership documents recently?
Does my charitable giving approach make the most of the new deduction?
Do I know how my state’s estate tax could still apply, even with higher federal limits?
A conversation with your estate planning attorney and tax professional can help you understand how these changes may apply to your situation and identify opportunities that fit your goals.
The Bottom Line
The One Big Beautiful Bill Act doesn’t change the purpose of estate planning. It simply makes regular reviews even more important.
Your legacy still depends on clarity, timing, and good guidance.
If it’s been a while since you’ve reviewed your estate documents, now may be a good time to revisit them. Coordinating with your attorney and financial professional can help ensure your strategy fits tomorrow’s rules and continues to reflect your family’s values.
Sources:
(1) Dentons. “Leveraging the Permanent Estate Tax Exemption.” Dentons, 21 July 2025.
Venable LLP. “Estate Planning in the OBBBA Era: What the $15 Million Exemption Means.” Venable.com, Sept. 2025.
(3) Goodwin Law. “OBBBA Solidifies High Estate Tax Exemptions and Charitable Giving Changes.” Goodwin Law, July 2025.
(4) Kiplinger. “How the One Big Beautiful Bill Will Change Charitable Giving.” Kiplinger Personal Finance, Oct. 2025.
(5) Lowenstein Sandler LLP. “OBBBA Provisions Impact Charitable Contribution Deductions.” Lowenstein Sandler LLP, 2025.
(6) Brady Ware & Company. “The OBBB Act’s Impact on Estate Planning.” Brady Ware, 2025.
(7) First Business Bank. “How the One Big Beautiful Bill Could Affect Estate Tax Planning.” First Business Bank, 2025.
(8) Forbes. “What the One Big Beautiful Bill Act Means for Your Estate Plan.” Forbes, Aug. 2025.
(9) Internal Revenue Service. “One, Big, Beautiful Bill Act: Tax Deductions for Working Americans and Seniors.” IRS Fact Sheet FS-2025-03, July 2025.
(10) McEowen, Roger A. Interview. RFD-TV Market Day Report, 29 Sept. 2025.
This material is for informational purposes only and is not intended as legal, tax, or financial advice. Individuals should consult a qualified estate planning attorney, tax professional, or licensed financial representative for advice specific to their personal circumstances. Individuals should consult a qualified estate planning attorney, tax professional, or licensed financial representative for advice specific to their personal circumstances.
