Navigating OBBBA 2025: Clarity and Confidence for High-Net-Worth Individuals

The recently enacted One Big Beautiful Bill Act of 2025 (OBBBA) brings sweeping changes to taxes, retirement accounts, health savings, and estate planning rules. It’s natural to feel uncertain about how these changes affect your wealth. Fortunately, you don’t have to go it alone. LoVasco Wealth Management is your guide, here to interpret the fine print and proactively adjust your plan so you stay on track.

In this post, we’ll break down OBBBA’s key provisions and what they mean for your financial strategy, using a clear narrative approach to make sense of the complexities.

Below is a quick summary, but keep reading for a more detailed analysis along with planning tips to consider!

Executive Summary: Key Changes at a Glance

Income Tax Rates Extended (Effective Now): The lower individual income tax brackets introduced in 2017 (ranging 10% to 37%) are now permanent instead of expiring after 2025. In other words, the scheduled tax hike in 2026 has been averted. LoVasco Insight: With historically low rates locked in, consider accelerating income (such as bonuses or Roth IRA conversions) before any future Congress might change course.

State & Local Tax (SALT) Deduction Cap Raised (2025–2029): The cap on state and local tax deductions quadruples from $10,000 to $40,000 for individuals (double for joint filers) starting in 2025. This higher cap phases out for those earning over $500,000 (the cap gradually shrinks back toward $10k at higher incomes) and is set to sunset after 2029, reverting to the $10k cap in 2030. Notably, a proposed crackdown on SALT cap workarounds (like pass-through entity tax elections) was not included in the final law. LoVasco Insight: High-income households should time and bunch deductible tax payments (e.g. property taxes) within 2025–2029 to maximize this benefit. Business owners can still utilize SALT workaround strategies where available, since those remain intact.

Capital Gains Relief & Investment Incentives: While OBBBA leaves long-term capital gains tax rates unchanged (top rate stays 20% plus NIIT), it expands tax-favored opportunities for investors. Qualified Opportunity Zones – which allow deferral and reduction of capital gains – are made a permanent part of the tax code, with new 10-year zones rolling out beginning in 2027. Additionally, Qualified Small Business Stock (QSBS) rules are enhanced: stock acquired after July 4, 2025 qualifies for 50% capital gain exclusion after a 3-year hold (75% after 4 years, 100% after 5 years), and the lifetime gain exclusion limit per issuer jumps from $10 million to $15 million (indexed for inflation). LoVasco Insight: If you invest in startups or real estate projects, talk to us about using QSBS or Opportunity Zone funds to potentially shelter gains. And since capital gains rates remain historically low, it may be wise to harvest gains strategically before any future changes.

Estate & Gift Tax Exemption Rises (2026 Onward): The federal estate, gift, and generation-skipping transfer (GST) tax exemption will increase to $15 million per individual (approximately $30 million per couple) for estates and gifts in 2026. This higher exemption will be permanent (indexed for inflation starting in 2027) rather than dropping back to pre-2018 levels. LoVasco Insight: This is a huge win for estate planning. We recommend reviewing your estate documents and gifting plans – even if you’ve used most of your current ~$13 million exemption, you’ll get an extra ~$2 million per person of tax-free gifting in 2026. Leverage this by shifting appreciating assets to heirs or trusts to lock in tax-free transfers under the expanded limits.

Retirement Plans (401(k)s & IRAs) – Status Quo Maintained: Despite speculation, OBBBA made no changes to 401(k) or IRA contribution limits, Roth conversion rules, or withdrawal ages. The retirement account rules set by prior legislation (including SECURE Act updates) remain in place. LoVasco Insight: Continue maxing out contributions to your 401(k), IRA, and Roth accounts. The absence of new restrictions means strategies like backdoor Roth conversions and Roth rollovers remain available – a continuity we can capitalize on for tax-efficient retirement planning.

New “Trump Accounts” for Kids (Starting Mid-2026): OBBBA introduces a new type of tax-advantaged savings vehicle humorously nicknamed “Trump Accounts,” essentially a special IRA for children. Beginning 12 months after the bill’s enactment (i.e. around July 2026), parents (and others) can contribute up to $5,000 per year (non-deductible) to a Trump Account for a beneficiary under 18. These accounts get a head-start boost: the U.S. Treasury will contribute $1,000 for any child born between late 2024 and end of 2028, and employers of the child’s parent can chip in up to $2,500/year without it counting as income. Funds must stay put until the child reaches 18, and only certain conservative investments are allowed. LoVasco Insight: If you have (or expect) children or grandchildren in the coming years, be ready to open Trump Accounts once available. We’ll help you fund them to jump-start the next generation’s nest egg – capturing “free” $1,000 Treasury contributions and any employer matches available.

Health Savings Accounts (HSAs) Expanded: Health Savings Accounts just became more powerful. Telehealth services are now permanently allowed to be covered by HSA-qualified high-deductible plans before you meet the deductible (this COVID-era relief is now permanent). Additionally, direct primary care arrangements (concierge medical plans) will no longer disqualify you from HSA participation – in fact, fees for direct primary care count as HSA-eligible medical expenses now. Finally, the law broadens what health plans can be considered HSA-qualified: all Affordable Care Act Bronze and Catastrophic plans will count as high-deductible HSA-compatible coverage. LoVasco Insight: More clients can now take advantage of HSAs’ triple tax benefits (pre-tax contributions, tax-free growth, tax-free medical use). If you’re still working and not yet on Medicare, check with us during your benefits enrollment – you may have new high-deductible plan options that let you contribute to an HSA. Maxing out HSA contributions ($4,150 self / $8,300 family in 2025, plus $1k extra if age 55+) can be a smart move for long-term, tax-free healthcare funding.

Charitable Giving Deduction Changes (2026+): OBBBA throws a small bone to charitable givers who don’t itemize, while slightly tightening rules for those who do. Starting in 2026, taxpayers taking the standard deduction can also deduct up to $1,000 of cash gifts to charity (or $2,000 for joint filers) as an “above-the-line” deduction. For itemizers, however, a new floor of 0.5% of AGI will apply – only charitable donations beyond 0.5% of your income count toward deductions (this primarily affects moderate givers). In good news for philanthropists, the higher limit allowing cash gifts up to 60% of AGI (versus the old 50%) is made permanent. LoVasco Insight: Charitable families should continue their gifting plans, but consider bunching donations into certain years if you oscillate between itemizing and taking the standard deduction – the $1k universal deduction in non-itemizing years and the 0.5% floor in itemizing years mean strategic timing of large gifts is wise. Also, if you’ve established a private foundation or donor-advised fund, note that a proposal to increase taxes on foundation investment income was dropped; the status quo continues. We can help adjust your charitable strategy so you get the most benefit under the new rules while fulfilling your philanthropic goals.

(Need help making sense of these changes? After reviewing the highlights above, consider scheduling a personalized planning session with LoVasco Wealth Management to review your strategy. Our team will ensure your tax, retirement, health, and estate plans are fully optimized for the new law.)

Tax Planning Provisions in OBBBA

Permanent Lower Tax Rates: The tax cuts from 2017 (Tax Cuts and Jobs Act) are now essentially permanent law. OBBBA locked in the seven-bracket individual income tax structure (with the top bracket at 37%) indefinitely. Previously, these rates were set to expire after 2025 and revert to higher pre-2018 levels. By preventing that reversion, the Act spares high earners a significant tax increase. The Alternative Minimum Tax (AMT) relief from 2017 is also continued permanently, meaning the higher AMT exemption amounts will remain in place so that far fewer people end up paying AMT. Keep in mind, “permanent” in Washington just means “no automatic sunset” – Congress could always change rates in the future.  

• Planning tip: The next few years continue to offer a window of historically low tax rates. High-net-worth clients might use this stability to execute tax optimization moves like Roth IRA conversions, realizing large capital gains (if it fits your broader plan), or accelerating income from deferred comp plans, all to take advantage of the current rates. We’ll be monitoring the political winds for any signs these rates could be altered down the road.

SALT Deduction Cap Increase: One of the headline changes in OBBBA is the relief for those in high-tax states via the State and Local Tax deduction cap. Starting with tax year 2025, the SALT deduction limit jumps to $40,000 (from the previous $10k) for most filers. This higher cap isn’t permanent, though – it’s slated to last through 2029, after which the cap returns to $10,000 absent further legislation. There’s a catch for top earners: if your modified AGI exceeds $500,000 (single or joint), the benefit of the higher cap phases down. In fact, for every dollar of income over $500k, the $40k cap is reduced by $0.30, until it bottoms out at the original $10k cap once income hits $600k. In effect, those making over $600k get no benefit from the increase.

Crucially, earlier drafts of the law sought to close certain SALT workarounds. Many business owners have been electing to pay state taxes through pass-through entities (PTEs) to skirt the $10k cap. The final Act did not eliminate these workarounds. This is good news for our clients using PTE tax elections or other strategies to fully deduct state taxes at the business level – you can continue those strategies under OBBBA.  

• Planning tip: If you typically itemize and have significant state income or property taxes, plan to maximize use of the $40k cap in 2025–2029. For example, you might choose to pre-pay property taxes or recognize state-taxable income in those years to take advantage of the higher deduction. We’ll also coordinate with your CPA to leverage any PTE elections or SALT cap workaround trusts where appropriate to ensure you’re getting the best possible deduction.

Temporary Deductions for Overtime, Tips, and More: In a populist twist, OBBBA includes several temporary deductions aimed at middle-income workers, but some high earners may also benefit. For tax years 2025–2028, certain types of employment income can be deducted or excluded from taxable income: up to $25,000 of tip income and up to $12,500 of overtime pay (or $25k if both spouses qualify) can be deducted even if you don’t itemize. These deductions phase out above $150k AGI (single) or $300k (joint), so many high-net-worth folks won’t qualify. However, if you or family members have income in the hospitality or service industries, be aware of these new deductions. Additionally, the Act provides a deduction for interest on new car loans – up to $10,000 of interest on a vehicle purchase (2025–2028) can be written off, with income phaseouts above $100k single/$200k joint. The vehicle must be newly purchased and assembled in the USA to qualify.  

• Planning tip: While these aren’t major factors for most of our high-net-worth clients, they present opportunities in niche cases. For instance, if you’re purchasing a qualifying new luxury vehicle in 2025, we’ll ensure the financing is structured to maximize the deductible interest. And for family members in tipped or overtime-heavy professions, these temporary deductions could provide a nice tax break – we can help your extended family take advantage of them.

Itemized Deduction Limitations: One change that does squarely affect high-income taxpayers is a new overall limit on itemized deductions’ value. Starting in 2026, if you’re in the top tax bracket, each dollar of itemized deductions (above the standard deduction) will only reduce your tax by 35 cents, effectively capping the benefit at the 35% tax rate. This rule prevents top-bracket taxpayers from getting the full 37% benefit from write-offs. It’s reminiscent of the old Pease limitation (which phased out some deductions for high earners), though structured differently.  

• Planning tip: This provision means that for very high earners, deductions are slightly less valuable on the margin. It won’t change most plans, but it reinforces the importance of tax-efficient investing (to reduce the need for large deductions in the first place) and timing deductions wisely. Notably, charitable contributions – which many high-net-worth families rely on for deductions – are still fully allowed, but their tax savings will be a bit lower for those in the 37% bracket. We will account for this 35% cap when projecting the tax impact of big deductions like charitable gifts, mortgage interest, etc., in your plan.

Energy Tax Credit Rollbacks: The Act also eliminates or cuts back some tax credits for clean energy that might have been in your financial plan. Notably, the credit for electric vehicles is ending after September 30, 2025. Likewise, residential energy-efficient property credits (like solar installation credits) sunset at the end of 2025. If you were planning a major home solar or energy upgrade, doing it before 2026 is critical to capture the current credits. The rationale here was to help offset the cost of extending other tax cuts, but it means fewer government incentives for going green.  

• Planning tip: If clean energy investments (EVs, solar panels, etc.) are part of your near-term plans, act soon. We can help you evaluate the ROI of these purchases net of expiring credits. Also, some states offer their own incentives – we’ll check those too as federal benefits phase out.

Investment Tax Benefits – QSBS & Opportunity Zones: High-net-worth investors often take advantage of special tax breaks on certain investments, and OBBBA expanded a couple of these. As mentioned, Qualified Small Business Stock (QSBS) acquired after July 4, 2025 now has higher exclusion limits and faster eligibility. Under prior law, QSBS held for 5+ years could be 100% exempt up to $10 million of gain. Now, you can exclude 50% of the gain after just 3 years (and more if held longer), and the cap is $15 million (plus inflation) per company. If you’re an angel investor or considering investing in a startup, the tax rewards for success could be even sweeter. Meanwhile, Opportunity Zone (QOZ) investments – which let you defer and reduce capital gains by investing in designated projects – have been made a permanent feature instead of expiring in 2026. Starting in 2027, new zones will be designated on a rolling basis each 10 years, and the rules were tweaked: for example, gains invested in 2027 or later can be deferred for 5 years, and a 10% exclusion of the deferred gain is available for 5-year holds (30% exclusion if the zone is a rural one). The full appreciation of a QOZ investment remains tax-free if held 10+ years, as before.  

• Planning tip: These provisions are pretty nuanced, but they create attractive tax alpha opportunities. If you have a large liquidity event (say you sell a business or a sizable stock position), QOZ funds could let you defer taxes and potentially avoid tax on new gains. And if you are investing in early-stage companies, QSBS treatment is now even more favorable – we’ll incorporate these new limits when doing your investment tax projections. One thing the law didn’t tackle: the taxation of carried interest (private equity and hedge fund managers’ profit share) remains unchanged, despite some talk of reform. So if you’re in the private equity world, the status quo continues.

Retirement and Savings Provisions

401(k)s, IRAs, and Roths – No New Surprises: High-net-worth retirement savers can breathe a sigh of relief that OBBBA made no sweeping changes to retirement accounts themselves. Contribution limits will continue to adjust for inflation, required minimum distribution (RMD) ages remain as updated by prior law (currently age 73, rising to 75 in 2033 per the SECURE 2.0 Act), and there were no new caps on Roth conversions or backdoor Roth strategies. As Trust Point reported, “401(k) and Roth rules remain unchanged, maintaining the status quo for retirement savers”. Some anticipated that Congress might “pay for” tax cuts by tightening retirement benefits (for example, by requiring high earners’ 401k catch-up contributions be Roth – a change that was enacted separately and takes effect in 2026 via a previous law). OBBBA, however, left these rules alone.  

• Planning tip: Continue to max out your workplace plans and IRAs as usual. With income tax rates staying low, we’ll also discuss whether shifting some traditional (pre-tax) retirement contributions toward Roth contributions makes sense for you – essentially paying tax now while rates are favorable, to enjoy tax-free growth later. Also, those ultra-high net worth clients who were concerned about a potential elimination of backdoor Roth conversions (a popular strategy to get funds into a Roth IRA despite income limits) can rest easy – that door remains open.

Introducing “Trump Accounts” for Minors: One brand-new savings vehicle created by OBBBA is the so-called Trump Account, a nod to the former president’s namesake on the bill. Despite the tongue-in-cheek name, this is essentially a children’s Roth-like account. Starting around July 2026, parents will be able to establish a Trump Account for a child and contribute $5,000 per year (after-tax, like a Roth). The money can be invested (with some restrictions to keep it safe – likely only conservative investments will be allowed initially), and no withdrawals are allowed until the child turns 18. At that point, presumably, it converts to something like a Roth IRA for the now-adult child. What makes this really interesting are the bonus contributions: the federal government will seed new accounts with $1,000 for any child born from late 2024 through 2028, and even employers can contribute up to $2,500 a year on behalf of an employee’s child without it counting as taxable income to the parent. In essence, it’s an incentivized savings account to give kids a financial head start.  

• Planning tip: If you’re a parent (or grandparent) thinking long-term, this is a tool to watch. We anticipate affluent families using Trump Accounts as part of intergenerational wealth planning – for example, setting up accounts at birth for each child/grandchild to maximize compounded growth over 18+ years. We’ll provide guidance on how to fund these (in addition to 529 college savings plans, not in lieu of them) and coordinate any employer contributions if you’re a business owner who wants to offer this perk to employees. Note that contributions are not tax-deductible, but the growth and distributions (after age 18) are expected to be tax-free, similar to a Roth. We’ll know more details once the Treasury issues guidance before the 2026 rollout.

Education Savings – 529 Plans and ABLE Accounts: OBBBA also made some modest improvements to other savings vehicles:

529 College Savings Plans got an expansion in what expenses are considered “qualified.” You can now use 529 funds for a broader set of K-12 education costs – the annual K-12 tuition withdrawal limit doubled to $20,000, and things like books, tutoring, and homeschooling expenses are explicitly allowed. This gives more flexibility for families with younger children. (Keep in mind, using 529 money for K-12 means less left for college, so it should be part of a careful plan.)

ABLE Accounts (tax-advantaged accounts for individuals with disabilities) saw temporary enhancements from prior law become permanent. For instance, higher contribution limits and the ability to rollover from 529 plans to an ABLE account (if the beneficiary becomes disabled) were set to expire in 2025, but OBBBA extended or made those features permanent. This is great for special needs planning, ensuring these accounts remain a viable tool for disabled individuals to save without jeopardizing benefits.

• Planning tip: If education funding is one of your goals, the enhancements to 529 plans mean we can potentially tap those funds for private schooling or tutoring tax-free. Just be cautious: our advisors will help project your child’s educational needs to make sure early withdrawals won’t shortchange college funding. For families caring for a disabled child or other relative, ABLE accounts are now even more attractive for long-term saving. We can discuss moving some funds from 529s into ABLE accounts where it makes sense, to take advantage of the flexibility and tax benefits.

Health and Family Tax Strategies

Health Savings Accounts (HSAs) – Greater Flexibility: HSAs were already a favorite tool for many of our clients – they offer unmatched tax advantages for covering healthcare costs in retirement. Now, OBBBA makes HSAs even more accessible and useful:

Telehealth Coverage: During the pandemic, Congress allowed high-deductible health plans to cover telehealth visits pre-deductible without disqualifying the plan from HSA status. This provision is now permanently extended. So you can enjoy telehealth services with no copay (or a low copay) without worrying that it voids your HSA eligibility.

Direct Primary Care: If you subscribe to a direct primary care arrangement (where you pay a monthly fee to a primary care doctor or clinic for broad access), that no longer makes you ineligible for an HSA. In fact, those fees can be treated as qualified medical expenses payable from your HSA. This is a big win – previously, participating in such arrangements meant you technically had other health coverage and couldn’t contribute to an HSA.

More HSA-Eligible Plans: The definition of what counts as a High Deductible Health Plan is widened. All Bronze-level and Catastrophic plans on the ACA exchanges will now count as HSA-qualified coverage. This could bring many more people into HSA eligibility, especially early retirees or others buying individual insurance.

• Planning tip: If you’re not yet on Medicare and have the option, strongly consider enrolling in an HSA-eligible health plan to unlock the triple-tax-free HSA. We often tell our high-net-worth clients to treat their HSA like a “Healthcare Roth IRA” – contribute the max each year, invest the funds for growth, and refrain from using them for minor expenses now. Instead, let it grow to cover big medical bills in retirement tax-free. With the new law, we’ll check if perhaps your current plan (especially for our clients under 65 on private or exchange plans) now qualifies for HSA contributions. If you’re an employer, these HSA changes might also influence your benefits strategy – more plan options could be HSA-qualified. We can collaborate with your benefits consultants to make sure you and your employees get the most out of these new rules.

Dependent Care FSA Boost: Childcare is a significant expense for many younger high-net-worth families. Starting in 2026, the annual limit for Dependent Care Flexible Spending Accounts (which allow pre-tax dollars to pay for daycare, nanny care, etc.) will increase from the current $5,000 to $7,500. This higher cap acknowledges the rising cost of care. While many HNW families spend far more than $7,500 on childcare, being able to shield an extra $2,500 from tax each year is still a notable savings (especially at high marginal tax rates).  

• Planning tip: If you have children under 13 (or dependent adults needing care), plan to up your DepCare FSA contributions in 2026 if your employer offers a plan. For business owners, consider adding or enhancing a Dependent Care FSA for your employees – it’s a relatively low-cost benefit that OBBBA just made more valuable.

Student Loan Repayment Assistance: An increasingly popular perk – employer-paid student loan assistance – got a permanent extension. Employers can contribute up to $5,250 per year toward an employee’s student loans, tax-free to the employee, under Section 127 of the tax code. This was slated to end in 2025, but OBBBA made it a permanent benefit.  

• Why it matters: If you or your adult children have student debt and a generous employer, this allows extra payments without tax. For our clients who are business owners, it’s a great tool to attract talent – you can help pay employees’ student loans (within the $5,250 limit) and deduct it as an employer, while the employee doesn’t pick it up as income.  

• LoVasco’s view: This provision aligns with a trend of companies offering more holistic financial wellness benefits. If you’re an executive or owner, we can discuss implementing a student loan assistance program as part of your reward package. If you’re an employee, be sure to take advantage if your company already offers it (and if not, it’s worth suggesting – it’s law now, not just a temporary COVID-era favor).

Estate and Legacy Planning Impacts

Higher Estate Tax Exemption = New Opportunities: The jump of the estate and gift tax exemption to $15 million per person in 2026 is perhaps the most significant change for wealthy families’ legacy plans. Under prior law, the current ~$12.92M exemption was going to fall by about half (to ~$6M) in 2026. Instead, not only will the ~$13M stay in place – it will increase to $15M, avoiding the so-called “2026 cliff” altogether. This means a married couple can shield about $30M of their estate from federal estate tax, and those amounts will keep rising with inflation. The estate tax rate on amounts above the exemption remains 40%.

For anyone who was restructuring their estate plan expecting a lower exemption, this change is a welcome relief. The wealth you can transfer to heirs either during life (gifts) or at death, free of federal transfer tax, is larger than ever.  

• Planning tip: We recommend revisiting your estate plan in 2025 in preparation for the 2026 increase. You’ll want to ensure your wills and trust formulas capture the full new exemption. For example, many bypass trusts or dynasty trusts are funded based on the available exemption – those should be updated to $15M if needed. Also, if your net worth is high enough that even $30M per couple doesn’t fully avoid estate tax, you now have an extra ~$3M per person of gifting capacity starting in 2026. Consider using that ASAP – for instance, through gifting assets to an irrevocable trust for your heirs or funding a spousal lifetime access trust (SLAT). Using the exemption sooner secures it; even though it’s “permanent,” political winds could always shift and reduce it later. One more nuance: the Generation-Skipping Transfer (GST) tax exemption is also $15M, so you can allocate that larger amount to multi-generational trusts to maximize what your grandkids (and beyond) can receive tax-free.

Charitable Giving and Philanthropic Planning: As outlined in the executive summary, OBBBA made a few changes to charitable deductions. The introduction of a small above-the-line charitable deduction for non-itemizers (2026–2031) of up to $1,000 is mainly a gesture to encourage broad charitable participation. Most of our clients itemize, so the bigger deal is the new 0.5% of AGI floor for itemized charitable deductions. Practically, if your AGI is $1,000,000, the first $5,000 of your charitable donations won’t count for deduction purposes (they “floor” it), and only giving beyond that generates a deduction. Many high-net-worth households give well above 0.5% of income, so this may have minimal impact – it will mostly affect those giving smaller amounts relative to their income. The 60% of AGI limit for cash donations to public charities is now permanent, meaning you can continue to offset a large majority of your income with major charitable gifts if desired (an important strategy for those looking to super-charge a donor-advised fund or family foundation in a particular year). Previously, that limit would have reverted to 50% of AGI.

One thing to note: The bill initially included an increase to the excise tax on investment income of private foundations (from 1.39% to something higher), but that provision was dropped before final passage. So if you have a family foundation or are on the board of one, you won’t see any change in how the foundation’s portfolio is taxed – it remains the flat 1.39%. And rules around donor-advised funds were untouched by OBBBA.  

• Planning tip: If philanthropy is part of your legacy, the landscape is largely unchanged – which is a victory in itself given some proposed restrictions that didn’t happen. Continue to work your charitable giving into your annual tax plan (we’ll help determine the optimal assets to give – appreciated stock gifts remain incredibly efficient). For very large gifts relative to your income, remember the 60% (cash) and 30% (stock) of AGI limits; anything “extra” can carry forward five years. The new 0.5% floor may encourage even more bundling of gifts: instead of giving smaller amounts annually, it might be beneficial to concentrate donations in alternate years to clear the floor and maximize deductions in those years, while taking the standard deduction in off years. We can run projections on various giving strategies to ensure you get the most tax leverage from your generosity.

Trusts and Other Estate Tools: Not directly addressed by OBBBA were some estate planning techniques that had been under scrutiny in recent years – for example, grantor trusts (like GRATs or IDGTs), valuation discounts for family business interests, and carried interest loopholes. The new law didn’t touch these, meaning GRATs, FLPs, and other advanced strategies remain viable. For clients who use trusts to transfer wealth, that’s good news. One indirect effect of the high exemption is that techniques designed to hedge against a low exemption (like making large SLAT gifts before 2026 to lock in the higher amount) are no longer urgently needed – but they can still be useful if your estate will exceed $15M/person.  

• Planning tip: It may be time to refocus estate planning away from just “beating the deadline” and more toward long-term trusts for asset protection, dynasty planning, and state estate tax avoidance (if you live in a state with its own estate tax, since OBBBA doesn’t affect those). The expanded federal exemption gives breathing room to shift strategies. We’ll work with your estate attorney to adjust trust funding and ensure you’re taking full advantage of the generous tax landscape while it lasts.

Conclusion: Your Plan, Your Story – Optimized

Tax laws will continue to evolve, but your goals – providing for family, preserving wealth, and living life to the fullest – remain the central storyline. Think of OBBBA 2025 as a new chapter in that story. The One Big Beautiful Bill Act brings a mix of tax cuts, new savings options, and rule tweaks that we’ve detailed above. The next step is making these provisions work for you.

Ready to act? Now is the time to revisit and refine your financial plan. Schedule a review with LoVasco Wealth Management to ensure your estate documents reflect the new $15M exemption, your tax strategy captures available deductions and credits, and your retirement and health plans leverage every advantage. We’re proactive and passionate about keeping you informed and prepared – consider us your financial co-pilot through this changing landscape. Together, we’ll implement the right moves so you can move forward with clarity, confidence, and the comfort of knowing your wealth is structured for whatever comes next.

Your financial journey is unique – and legislation like OBBBA is just one more twist in the plot. By planning ahead and working with the right advisors, you’ll continue to thrive as the hero of your own story. Let’s write that next chapter together. Contact LoVasco today to get started on your post-OBBBA game plan.