The One Big Beautiful Bill Act Transforms Estate Planning for Seniors and Families  – Thompson Von Tungeln

The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduces transformative changes for estate planning, offering new opportunities for seniors and families to secure their financial legacies. A key provision permanently raises the federal estate, gift, and generation-skipping transfer (GST) tax exemption to $15 million per individual ($30 million for couples) starting in 2026, indexed for inflation. This increase, up from the scheduled $7 million, allows high-net-worth families to transfer substantial wealth tax-free, providing long-term planning certainty.

The OBBBA provides substantial tax relief for homeowners. Specifically, the State and Local Tax (SALT) Deduction has been raised from $10,000 to $40,000 for 2025–2029 (inflation-adjusted, subject to renewal). Now, most families in the Santa Clarita Valley can fully deduct their property as well as state and local income taxes on their federal income tax returns.

For seniors, the OBBBA introduces a $6,000 additional standard deduction for those over 65 effectively eliminating income tax on social security for most seniors and enhancing retirement income flexibility. Families benefit from expanded 529 plan uses, covering K-12 expenses like tutoring and special education, and new “Trump accounts” for children, allowing up to $5,000 in annual tax-advantaged savings. These provisions encourage proactive financial planning to maximize tax benefits and secure future generations’ education and wealth.

However, the Act’s complexity underscores the need for expert guidance. Without proper planning, families risk missing opportunities or facing unintended tax consequences. Now is the time to act: review trusts, optimize gifting strategies, and align your estate plan with these changes.

Don’t navigate this alone. Call us at (661) 945-5868 to schedule a consultation with one of our board-certified estate planning specialist attorneys or join one of our free estate planning seminars to learn how the OBBBA impacts you.