How the Big Beautiful Bill (BBB) Impacts Your Estate Plan

For over 99% of Americans, the Big Beautiful Bill (BBB) has little to no effect on their estate plans. The federal estate and gift tax exemption, which is the total amount a person can transfer during their lifetime and at their death without incurring federal tax, was already set at $13.99 million per individual this year under Trump's 2017 Tax Cuts and Jobs Act. This Act was scheduled to expire at the end of the year, which would have reduced the exclusion amount back to the original $5 million limit (adjusted for inflation to about $7.5 million). However, the BBB now makes the exemption amount "permanent" at $15 million, adjusted annually for inflation. For married couples, this amount is simply doubled.

A quick Google search reveals that less than one quarter of one percent of all American households have a net worth of $30 million or more. For these individuals and families, vigilant tax planning remains crucial, and there are many strategies available to minimize the impact of potential gift and estate taxation.

The Importance of Having an Estate Plan

In North Carolina, state estate tax concerns are not an issue, as the state repealed its inheritance tax over 10 years ago. For the rest of us, while we may not need to worry about gift and estate tax issues, the importance of having a thorough and thoughtful estate plan in place for everyone over 18 in your family remains unchanged. If you choose not to set up an estate plan, the state has a plan for you, which involves court intervention, facilitation, and costs. These plans often require urgent legal services, increased time, and emotional strain during times of illness or death, which are already stressful for families.

We encourage you to contact an experienced estate planning attorney today to create or update your estate plan and avoid unnecessary complications and costs.

Author: Leah B. Trowbridge, Estate Planning Attorney
The McIntosh Law Firm
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