The OBBB Act is bringing significant changes to how much wealth you can transfer tax-free during your lifetime or at death. Here’s a simple breakdown of what’s changing — and what it means for your estate tax planning.
Estate & Gift Tax Exclusion
How thing worked prior to the OBBB Act:
- From 2018 to 2025, the estate and gift tax exclusion amount was temporarily increased to $10 million, adjusted annually for inflation.
- For 2025, the inflation-adjusted amount was $13.99 million.
- Without new legislation, the exclusion was set to revert in 2026 to $5 million, also adjusted for inflation (estimated at about $7 million).
What has changed?
- The OBBB Act permanently raises the basic exclusion amount to $15 million starting in 2026.
- The amount will continue to be adjusted for inflation, using 2025 as the base year.
What Does This Mean?
Instead of dropping back to $7 million, individuals will now be able to transfer $15 million tax-free, and couples up to $30 million, starting in 2026. That’s a major boost in estate planning power made permanent.
Generation-Skipping Transfer (GST) Tax Exemption
How thing worked prior to the OBBB Act:
- The GST tax exemption matched the estate and gift tax exclusion.
- In 2025, that exemption stood at $13.99 million.
- It was set to drop back to the inflation-adjusted $5 million baseline in 2026.
What has changed?
- The OBBBA also raises the GST tax exemption to $15 million, permanently.
- Like the estate and gift exclusion, this amount is inflation-adjusted starting in 2026.
Why This Matters
The GST tax is designed to prevent people from avoiding estate taxes by skipping a generation (like leaving assets directly to grandchildren). The OBBBA’s change makes it easier to pass wealth down multiple generations without triggering extra tax.
Unified Credit and Tax Rates
New tax laws do not change the top federal estate and gift tax rate, which remains at 40%.
However, with the higher exclusion amount, fewer estates will actually owe that tax.
The unified credit — the dollar value of the exclusion applied to reduce taxes — will now reflect the $15 million limit and grow with inflation.
Key Numbers at a Glance
Starting in 2025, the SALT deduction limit will temporarily increase under the One Big Beautiful Bill Act (OBBB Act), offering short-term relief through 2029. However, this expanded deduction phases out for higher-income taxpayers and reverts back to the original cap in 2030.
| Tax Year | Exclusion Before OBBB Act | Exclusion After OBBB Act |
|---|---|---|
| 2010–2017 | $5 million (indexed) | N/A |
| 2018–2025 | $10 million (indexed) | $13.99M in 2025 |
| 2026+ | Reverts to ~$7M (expected) | $15 million (indexed) |
What This Means for Your Estate Planning
The OBBB Act reshapes the landscape for high-net-worth individuals and families by locking in historically high exemption amounts. What was once temporary is now permanent — creating long-term certainty for gifting, trust strategies, and legacy planning.
Whether you’re thinking of transferring assets now or planning for the future, this new law gives you a larger window of opportunity to minimize taxes and maximize what you leave behind.
Now’s a smart time to review your estate plan with a tax advisor — before the new rules take effect on January 1, 2026.
Contact ustoday so we can proactively plan your estate.
This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.