Estate planning strategies just got a little more certain. For now.
The One Big Beautiful Bill Act (OBBBA) that passed in July 2025, cements a permanent increase in the federal estate and gift tax exemption: $15 million per person and $30 million per married couple, beginning January 1, 2026. After years of exemption levels toying with sunset dates and political uncertainty, this is a tax environment many planners have been waiting for.
Now is your window to craft sophisticated, intentional estate strategies. With less urgency but no less importance, here are five tactics that may benefit your clients.
Estate Planning Tips Post-OBBBA
#1: Update Overdue Formula Clauses
Pre-OBBBA documents often assume the tax exemption will drop dramatically, sometimes as low as $5–7 million. If an estate plan still triggers formula trusts based on those outdated figures, you may end up shifting more or less into trusts than intended once the new rules take effect.
Treat 2025 as a “refresh year,” and review and revise these clauses to align with the new $15 million baseline. Waiting may increase risk and limit flexibility in a client’s estate plan.
#2: Rebalance Bypass, QTIP, and SLAT Strategies
With exemptions effectively ballooning, planners should reassess trust structure balances:
- Bypass trusts, also known as credit shelter trusts, may no longer be necessary for many, but still useful for generation-skipping transfer (GST) planning in high-net-worth or blended-family scenarios.
- QTIP trusts are still a safeguard for surviving spouses, but should be tailored to integrate with unified exemptions.
- SLATs, or spousal lifetime access trusts, work exceptionally well now. They allow grantors to shift appreciation out of the estate, using high exemptions with potential access.
The key is how to use these vehicles and whether they’re still necessary or can evolve to better serve your client’s values.
#3: GST Re-Funding: Opportunity or Danger?
The generous, now‑permanent exemption carries GST capacity. However, unallocated GST can cause costly planning mistakes. This is the moment to refill GST allocations, especially in irrevocable trusts, to maximize tax-efficient benefits across generations.
Work with drafting attorneys to ensure new allocations are explicit and compliant with 2026 indexing.
#4: Be Charitable (But Smarter)
If your clients have philanthropic goals, 2025’s high exemptions provide room to deploy donor-advised funds (DAFs), charitable remainder trusts (CRTs), and charitable lead trusts (CLTs) more judiciously.
Accelerating gifts in 2025 may lock in tax benefits before potential future sunsets. Don’t be afraid to use creative vehicles to tie in charitable objectives with tax efficiency.
#5: Reinforce Values, Legacy, and Clarity
Higher exclusions don’t eliminate the need for estate planning—they actually raise it. Well-crafted estate plans ensure control, clarity, and intentional wealth transfer, steering clear of default state laws or family conflict.
Consider legacy letters, family meetings, or multimedia narratives to pass forward assets, stories, and values.
2025 Client Checklist: Estate Planning Next Steps
- Review and update formula clauses: Ensure accuracy under new exemption levels
- Reassess trust structures: Align with current client objectives to stay flexible
- Allocate GST capacity: Unlock multi-generation tax efficiencies
- Accelerate charitable strategy: Capitalize on the favorable tax environment
- Reconnect about legacy and values: In-depth estate conversations are still needed
Ready to dive deeper? Download the free Estate Planning Playbook to navigate tax-advantaged estate planning with clarity and confidence.
