Estate Tax Exemption Increased Under the One Big Beautiful Bill

The One Big Beautiful Bill, signed into law on July 4, 2025, includes a permanent increase to the federal estate tax exemption. Beginning January 1, 2026, the exemption will be $15 million per individual (or $30 million per married couple) and will be indexed for inflation going forward. This replaces the current 2025 exemption amount of $13,990,000 per individual, which was scheduled to decrease after 2025 under prior law. The new exemption level eliminates the sunset provision established under the 2017 Tax Cuts and Jobs Act.  We encourage clients to review their estate plans in light of the higher exemption level and to take advantage of new planning opportunities made possible by the change.