On July 4, 2025, President Trump signed H.R.1, titled the “One Big Beautiful Bill Act” (the “Act”) into law. The Act contains important changes to the Internal Revenue Code that impact individuals and estates throughout the country.
Currently, the federal estate tax exemption is $13.99 million per person, and it is portable between spouses, creating a $27.98 million exemption from federal estate tax for married couples.
The Act includes a “permanent” increase in the maximum lifetime exemption for federal gift and estate taxes, raising the exemption amount to $15 million per person. This means that married couples may now shelter up to $30 million from federal estate and gift taxes. The exemption will be adjusted annually for inflation to maintain its value over time.
Unlike the 2017 Tax Cuts and Jobs Act, the increased exemption amounts do not expire. If the Act was not passed, the federal estate and gift amounts would have reverted to approximately $7,000,000 per person on January 1, 2026.
While the change may be “permanent,” Congress may change the law at any time, although no new legislation is expected to be introduced in the near future.
For more information or questions about how these changes might affect your estate planning, contact Craig Panholzer, a partner in Cooper Levenson’s Business & Tax practice group in its Florida office. Craig concentrates his practice on business transactions, estate planning, special needs planning, probate and tax matters. Craig may be reached at (954) 889-1856 or via e-mail at cpanholzer@cooperlevenson.com.
The content of this post should not be construed as legal advice. You should consult a lawyer concerning your particular situation and any specific legal question you may have.