The One Big Beautiful Bill Act (OBBBA) is now law and while much of the spotlight is on income tax changes, one quiet shift could have a major estate planning impact: the federal gift and estate tax exemption is now permanently set at $15 million, indexed for inflation.

This sounds simple enough, but it carries big planning implications depending on your financial situation. This article takes a closer look.

High-net-worth individuals should continue long-term planning, as future administrations could reduce the exemption or raise tax rates. Even clients below the threshold should consider strategies that offer flexibility and income tax efficiency, especially with many OBBBA benefits phasing out at certain income levels.

Moderately wealthy clients often overlook estate planning beyond avoiding probate. However, trusts can still provide income tax savings and asset protection.

And we can’t forget state estate taxes. Washington’s rate now tops out at 35%, and others may follow.

The bottom line is this: This new law is a great opportunity to revisit estate plans, add flexibility, and ensure clients are positioned for whatever comes next. Ready to reassess your estate plan? Give Rhodes Law Firm a call today.