One big beautiful bill act
New Year, New Tax Laws, New Opportunities
Welcome to 2026! The One Big Beautiful Bill Act (OBBBA) reshapes the estate and tax planning landscape for ultra-wealthy families. While the law's increased estate tax exemption has drawn attention, families with significant wealth should view this moment not as a reason to pause planning — but as an opportunity to strengthen it.
For families with $20 million or more in net worth, the current environment offers planning advantages that may not last. Acting now can protect future growth, preserve flexibility, and position wealth efficiently for the next generation.
Source: One Big Beautiful Bill Act, January 2025
Why Wealthy Families Must Act Now
Even though the exemption is high, families between $20 million and $30 million occupy an important "planning middle ground."
Trust Flexibility Is Essential
Modern estate planning is no longer about locking wealth away. It is about flexibility.
Today's most effective trust structures are designed to adapt over time. They may allow:
- Indirect access to assets if circumstances change
- Adjustments if tax laws evolve
- Protection from creditors and lawsuits
- Long-term guidance for children and grandchildren
Trusts that include flexible access provisions, powers of appointment, and trust protector oversight help families plan confidently without sacrificing control or security.
Wealth Transfer Opportunities Unique to the Current Law
Although some wealthy families fall below the new $30 million married exemption, strategic transfers continue to deliver strong long-term benefits.
Use Today's Exemption to Move Appreciation Out of Your Estate
Even if you do not "need" to use the exemption today, shifting assets to trusts can:
- Remove growth from the future taxable estate
- Protect wealth from creditors
- Provide long-term guidance for children and grandchildren
- Protect against future reductions in the exemption
Freeze and Shift Techniques
These remain powerful for families with concentrated wealth:
- Sales to grantor trusts
- Discounted gifting or sales to a trust of closely held businesses
- Intra-family loans
These strategies fix the taxable value of assets today and push future appreciation to heirs.
QSBS Planning: A Major Opportunity
The law significantly expands the Qualified Small Business Stock (QSBS) capital-gains exclusion. QSBS planning is one of the most impactful techniques available and is often overlooked or under-utilized.
| Feature | Previous Limit | New Under OBBBA |
|---|---|---|
| Company Assets at Issuance | $50 million | $75 million |
| Maximum Gain Exclusion | $10 million | $15 million |
Source: IRC §1202; One Big Beautiful Bill Act, January 2025
New flexibility for earlier exits
Increased benefits with longer holding
Maximum benefit achieved
Families can multiply this exclusion across multiple family members or trusts, making QSBS more valuable than ever using the stacking technique. For families with operating businesses, startup investments, or venture exposure, QSBS can provide one of the most powerful tax-planning opportunities available today.
Income Tax Changes and Opportunities
While much attention has focused on estate tax exemptions, several income-tax changes materially affect wealthy families and create meaningful planning opportunities when addressed proactively.
For wealthy families, non-grantor trusts can restore lost deductions, reduce taxable income, and improve overall tax efficiency, while also supporting long-term estate and legacy planning. It is vital to incorporate your long-term goals with current tax planning; in many instances, a grantor trust will be more advantageous.
Planning Priorities for Ultra-Wealthy Families
Families with significant and/or growing wealth should focus on five core priorities:
Flexibility
Plans must adapt to tax, family, and economic changes
Asset Protection
Shielding wealth from lawsuits and claims is critical
Growth Management
Removing future appreciation from the estate
Income Tax Efficiency
Coordinating trusts, entities, and investments
Legacy Planning
Preparing heirs and structuring long-term guidance
Recommended Actions
A terrific starting point would be reviewing your current estate documents to identify risks and areas of opportunity. Some recommended changes could include:
- Review current asset titling
- Update buy-sell agreements for business owners
- Modernize your irrevocable trust(s):
- Adding powers of appointment
- Adding trust protectors
- Potentially decanting into a more flexible trust structure
- Incorporating income tax optimization features
Final Thoughts
The One Big Beautiful Bill creates opportunity — but only for families who act. For some, with the increased exemption amount, estate tax is not an immediate threat — but it could be soon.
The combination of higher exemptions, expanded business incentives, and modern trust planning tools makes this a pivotal moment for wealthy families to revisit and strengthen their plans. Additionally, with the changes to itemized/standard deductions, charitable contributions, and some increased phaseouts, combining income tax planning with trust/estate planning has never been more impactful.
Work With Your Advisory Team
It is paramount to incorporate your wealth advisor, trust & estate attorney, and CPA into these discussions. At TOC-23, we believe your family's wealth purpose should drive these decisions now and into the future. Thoughtful action today can preserve flexibility, reduce future risk, and protect family wealth for generations to come.
Get In Touch
For more information about how the OBBBA affects your estate planning, contact our team of experts.