Congress recently passed the One Big Beautiful Bill Act (OBBBA), bringing significant changes to the federal tax landscape. While much of the public discussion has focused on income taxes and business provisions, one of the most important changes for estate planning is the treatment of the federal estate and gift tax exemption.
If you already have an estate plan, or have been putting one off, this legislation is an excellent reminder to review your documents and ensure they still accomplish your family's goals.
As an estate planning attorney serving Miami Lakes and families throughout South Florida, I often remind clients that estate planning is not something you do once and forget. Changes in the law, your finances, and your family can all affect whether your plan continues to work as intended.
What Changed?
One of the most significant provisions of the OBBBA is that it permanently increases the federal estate and gift tax exemption beginning in 2026.
The exemption will increase to $15 million per individual, indexed annually for inflation. Married couples may be able to shield approximately $30 million from federal estate taxes through proper planning.
Prior law scheduled a substantial reduction in the exemption after 2025. The OBBBA eliminates that looming decrease by making the higher exemption permanent, providing greater certainty for individuals and families engaged in long-term estate planning.
Although relatively few families pay federal estate tax, the increased exemption creates important planning opportunities for individuals with significant assets, closely held businesses, investment portfolios, and appreciating real estate.
Does This Mean Estate Planning Is No Longer Necessary?
Absolutely not.
One of the biggest misconceptions is that estate planning is only about avoiding estate taxes.
In reality, a comprehensive estate plan also helps:
- Avoid unnecessary probate proceedings
- Protect minor children
- Plan for incapacity
- Preserve privacy
- Coordinate beneficiary designations
- Reduce family disputes
- Protect inherited assets
- Facilitate business succession
- Create clear instructions for loved ones
For the vast majority of Florida families, these goals are far more important than federal estate tax planning.
Should Existing Trusts Be Reviewed?
Yes.
Many trusts contain provisions tied directly to the federal estate tax exemption amount.
If your trust was drafted years ago, formulas based on exemption amounts may now produce results that differ from what you originally intended.
Reviewing existing trusts after major tax legislation is one of the most important steps you can take to ensure your plan still reflects your wishes.
Opportunities for High-Net-Worth Families
For individuals with substantial wealth, the increased exemption provides additional flexibility.
Depending on your circumstances, planning opportunities may include:
- Lifetime gifting strategies
- Dynasty trust planning
- Irrevocable trust planning
- Business succession planning
- Asset protection planning
- Family wealth preservation
Every family's situation is different, making personalized legal advice especially valuable.
Florida Residents Continue to Enjoy Important Advantages
Regardless of federal tax changes, Florida remains one of the most attractive states for estate planning.
Florida does not impose a state estate tax or inheritance tax.
Combined with Florida's strong homestead protections, favorable trust laws, and robust asset protection statutes, many families continue to view Florida as an ideal state for long-term wealth preservation.
Estate Planning Is About More Than Taxes
Even families whose estates are well below the federal exemption benefit from having a comprehensive plan.
A properly prepared estate plan may include:
- A Last Will and Testament
- Revocable Living Trust
- Durable Power of Attorney
- Designation of Healthcare Surrogate
- Living Will
- HIPAA Authorization
- Appropriate beneficiary designations
These documents help ensure that your loved ones can carry out your wishes while minimizing unnecessary legal complications.
Why Regular Reviews Matter
Estate plans should be reviewed whenever there is:
- A significant change in tax laws
- Marriage or divorce
- Birth or adoption of a child
- Death of a beneficiary
- Purchase or sale of a business
- Significant increase in assets
- Relocation to another state
The OBBBA serves as an excellent reminder that estate planning is an ongoing process rather than a one-time event.
Final Thoughts
The One Big Beautiful Bill Act provides welcome certainty regarding the federal estate and gift tax exemption, particularly for families with significant wealth. However, it does not eliminate the need for thoughtful estate planning.
At Gold Legacy Law, PLLC, I help individuals and families throughout Miami Lakes and South Florida create customized estate plans designed to protect their loved ones, preserve their assets, and adapt to changes in both the law and life. Whether you already have a trust or are creating your first estate plan, periodic reviews are essential to ensure your documents continue to reflect your goals and take advantage of current legal opportunities. If you need assistance establishing an Estate Plan or would like your current plan reviewed, call us today at 305-556-5209.
Disclaimer: This article is provided for informational purposes only and does not constitute legal advice. Reading this content does not create an attorney-client relationship between you and Gold Legacy Law. For legal advice regarding your personal situation, please contact our office to schedule a consultation.
