News

The One Big Beautiful Bill (OBBB) brings a wave of changes that could significantly alter the estate planning landscape—especially for high-net-worth individuals. At FLSV, we believe in staying ahead of legislative shifts to ensure our clients protect their wealth and legacy. In this Q&A, we break down how these changes may impact your estate plan and what you can do now to prepare. 

Q: Why is now a critical time to revisit your estate plan? 

A: Currently, the estate and gift tax exemptions are at historically high levels—$13.99 million for individuals or $27.98 million for married couples in 2025. These elevated exemptions were set to expire on December 31, 2025; however, the new legislation increases the exemption amount to $15 million for individuals and $30 million for couples. This eliminates the ‘sunset’ provisions that would have reduced the exemption. 

We encourage clients to evaluate and execute planning strategies early to maximize tax savings since early planning will allow for assets to appreciate outside of the client estate, therefore passing more wealth to the next generations. 

Q: What are effective strategies to minimize taxes under OBBB? 

A: One impactful tactic is Roth IRA conversion, especially for those with large retirement accounts. By converting now and paying the tax from non-IRA funds, you can pass down tax-free income to grandchildren. Combining this with a properly structured life insurance trust can further reduce estate and income taxes.  

Keep in mind that this is just one approach. There isn’t a one-size-fits-all strategy for reducing estate taxes. Our team tailors every strategy to our clients’ goals—whether focused on family wealth transfer, philanthropy, or both. 

Q: What should every estate plan include in light of the new legislation? 

A: Despite an all-time high unified credit, every comprehensive plan should account for the potential reduction in lifetime exemptions, as the estate tax has seen many changes over the last 20 years. Families need to consider how best to use these generous exclusions before they change. It comes down to one essential question: Do you want your wealth to go to your family, to charity, or to the IRS? Strategic planning helps ensure it goes where you intend. 

Q: Should charitable giving be part of an OBBB-informed estate plan? 

A: Definitely. While OBBB doesn’t substantially overhaul charitable giving rules, it does phase out certain deductions for high-income earners (under the 2/37 rule and the 0.5% floor), which makes smart planning more essential. High-income individuals may lose some itemized deductions, but charitable strategies like donating appreciated assets or using charitable remainder trusts can offset capital gains or reduce estate size. These tools still offer significant tax leverage even under OBBB.  

Q: Do you recommend utilizing trusts under OBBB? 

A: Grantor trusts continue to be an effective approach in estate planning. In this type of trust, the grantor pays income tax on trust earnings, the assets inside the trust are preserved and grow for beneficiaries while the grantor bears the tax burden. Charitable trusts also remain valuable for individuals balancing giving and income planning. As always, the best type of trust depends on your specific situation, goals, and timeline. 

Planning Forward: Making the Most of Your Estate Plan 

At FLSV, estate planning is never one-size-fits-all—especially in light of new legislation like OBBB. Our process is built for flexibility and accuracy. We collaborate with clients and their advisors to tailor strategies that align with personal goals, family dynamics, and evolving tax laws. 

 What sets us apart is our process: from fact-finding and family meetings to scenario modeling and document coordination, we guide clients every step of the way. We stay agile by tracking IRS updates and legislative shifts and adjust plans proactively.  

While OBBB introduces change, it also opens doors. With thoughtful planning and the right team, your estate plan can evolve with the times and reflect your vision for the future.