President Donald Trump signed the One Big Beautiful Bill Act (“OBBBA”) into law on July 4, 2025. While the OBBBA represents a significant overhaul of the U.S. tax code in various ways, there are a few takeaways for individuals contemplating estate planning. 

Increased Exemption Amounts

Currently, the federal exemption for estate, gift, and generation-skipping transfer tax purposes is $13.99 million per individual. The OBBBA increases the federal exemption to $15 million per individual, beginning January 1, 2026, indexed for inflation for subsequent years. For married couples, this creates an ability to transfer up to $30 million to future generations, free of estate tax. 

Exemption Amount Becomes Permanent

Before the OBBBA, the existing federal exemption was scheduled to sunset at the end of 2025. The exemption amount entered into law as part of the OBBBA has no scheduled sunset date and will not be altered absent an act of Congress. This permanence gives individuals and families—and their estate planning professionals—increased certainty over the next few years.

Continued Need to Evaluate Planning Options

For individuals looking to maximize tax-free giving, the OBBBA brings good news: the opportunity to transfer at least an additional $1.01 million out of your estate without tax. This is a perfect time to take a look at your existing estate plan and update any planned giving amounts to reflect the increase in exemption. You should also continue to utilize the annual tax-free gift exemption of $19,000 per person per recipient ($38,000 per recipient for married couples) to move assets out of your estate without having to use any of the federal exemption.

For all individuals, regardless of your net worth, it’s a good reminder to review your existing estate plan to ensure it does not need updating. For example, if you have moved states since you created your estate plan, it should be updated to conform to your current state’s laws. If your relationship has changed with anyone named in your current estate plan, you should review whether updates are needed. If you live in Georgia, and your estate plan was created before 2007, you’ll need an updated Advance Directive for Health Care. If it was created before 2017, you should also update your Statutory Form Power of Attorney (financial power of attorney).

And of course, if you don’t have an estate plan in place – there is no time like the present! No matter your net worth, an estate plan is an important tool to ensure your wishes are known and carried out after your death. 

For personalized guidance on how the One Big Beautiful Bill Act may impact your estate plan, contact Gracie Shepherd Saas at [email protected] or (912) 236-0261.