The recently signed One Big Beautiful Bill Act introduces sweeping changes to federal estate planning, charitable giving, education funding, and small business taxation. Signed into law on July 4, 2025, the Act makes permanent some provisions that were scheduled to expire, while adding new opportunities for individuals, families, and business owners to plan more effectively for the future.

Estate and Gift Tax Updates

One of the most significant changes comes in the area of estate and gift taxes. The Act permanently extends the doubled gift, estate, and generation-skipping tax exclusion amounts, which were originally implemented in the 2017 Tax Cuts and Jobs Act. Going forward, individuals will benefit from a $15 million exclusion, while married couples will see theirs set at $30 million, both indexed for inflation. These provisions, once due to sunset at the end of 2025, are now a permanent part of the tax code. The law also makes permanent the elimination of miscellaneous itemized deductions for Trusts and estates, applied retroactively to 2017.

Charitable Giving Incentives

The Act also makes noteworthy adjustments to charitable giving rules. For the first time, taxpayers who do not itemize deductions may claim a charitable income tax deduction, up to $1,000 for individuals and $2,000 for couples filing jointly. For those who do itemize, charitable deductions will now be subject to a small floor of 0.5% of adjusted gross income, while corporate taxpayers will face a 1% floor. At the same time, the higher limitation on cash gifts to qualified charities has been permanently extended, making it easier for donors to maximize their contributions.

Expanded Education Savings Opportunities

Families saving for education will also see meaningful changes. The Act expands the scope of 529 plan qualified expenses to cover tutoring, educational therapy for students with disabilities, standardized testing, college entrance exams, and related books and materials. Beginning in 2026, the total annual limit for K-12 educational expenses will double from $10,000 to $20,000. In addition, the Act introduces new “Trump” accounts, which are retirement-style savings accounts for minors. Each eligible child born between December 1, 2025, and December 31, 2028, will receive a $1,000 government contribution, with the option for family and others to contribute up to $5,000 annually. Contributions will grow tax-deferred and can be withdrawn under rules similar to traditional retirement accounts, offering families another tool to build financial security for children.

Support for Small Business Owners

Finally, the Act reduces the minimum holding period for Qualified Small Business Stock (QSBS) from five years to three, while also expanding eligibility for companies and increasing the maximum excludable capital gain from $10 million to $15 million, adjusted for inflation. These provisions could create more favorable exit opportunities for entrepreneurs and investors in growing businesses.

Looking Ahead

The One Big Beautiful Bill Act is broad in scope, but its estate planning provisions stand out for their potential to significantly reduce tax burdens and create new opportunities for charitable giving, education funding, and small business investment. For individuals and families, these changes are a reminder of the importance of regularly reviewing estate plans to ensure they reflect current law and take full advantage of available benefits.

The changes brought by the One Big Beautiful Bill Act present new opportunities, as well as new considerations, for individuals, families, and business owners. If you’d like to review your estate plan or explore how these updates may benefit your goals, our team is here to help. Contact us today to schedule a consultation and ensure your legacy is protected for generations to come!