Coined the "OBBB" (One Big Beautiful Bill), Congress passed sweeping legislation on July 4, 2025, that addresses everything from individual tax rates and business depreciation to international tax rules and clean energy incentives.
While the bill contains hundreds of provisions affecting all taxpayers, this Special Report will focus on the estate planning and wealth transfer changes that matter most to Florida residents.
Key Takeaway: Estate tax planning takes a back seat to income tax optimization and wealth transfer efficiency.
This is a preliminary overview intended for informational purposes only. Please consult with your tax advisor, CPA, or estate planning professional before making any financial or legal decisions.
Estate Tax Changes
$15 Million Exemption: The federal estate, gift and generation skipping transfer tax exemptions increase to $15 million per person ($30 million for married couples), effective 2026, with annual inflation adjustments thereafter.Florida Advantage: Florida has no income, state, gift or GST taxes, making our state increasingly attractive for many families.
Permanent Changes (For Now): Although labeled as "permanent," these changes may be subject to modification by future administrations. High-net-worth families should consider planning opportunities to capitalize on the favorable tax environment currently in place.
New Individual Benefits
2017 Tax Cuts Made Permanent: The individual tax rates and deductions from the 2017 Tax Cuts and Jobs Act are now permanent (meaning they will not expire as previously scheduled). However, future administrations could still modify these provisions.Senior Deduction: New additional $6,000 deduction for taxpayers over 65 with income under $75,000 (phases out completely above this threshold).
Standard Deduction: Permanently increased starting in 2025 to $15,750 (single), $23,625 (head of household), and $31,500 (married filing jointly), with annual inflation adjustments thereafter.
SALT Deduction: The state and local tax deduction cap increases from $10,000 to $40,000 (with 1% annual increases through 2029, then reverting to $10,000 in 2030), though it phases out for incomes over $500,000. This has less impact on Florida residents due to our lack of state income tax.
Trust Planning Opportunities
Income Tax Focus: With higher estate tax exemptions, income tax planning through trusts becomes more important than pure estate tax avoidance for most taxpayers. Note: The lack of a limitation on gifting allows for creative advanced income tax shifting.Multiple Trust Strategy: Families can create separate trusts for different beneficiaries to multiply certain tax benefits. For example, using multiple trusts can greatly increase the SALT deduction compared to the $40,000 limit for a single trust.
Nongrantor Trusts: Now that the exemption is “permanently” higher, these structures offer opportunities for income shifting, enhanced deductions, and tax-efficient wealth transfer. Essentially, we will establish irrevocable trusts, where the beneficiaries will pay income tax in a lower tax bracket. Previously, grantor trusts were favored because they allowed the grantor to pay the income tax instead of the trust beneficiaries, reducing their total gross estate.
Charitable Planning Opportunities
QCD Strategy: Qualified Charitable Distributions remain excellent for those over 70½—direct IRA-to-charity transfers up to $100,000 annually avoid income tax entirely (Currently indexed to $108,000 for 2025).Charitable Lead Trusts: These offer significant hidden income tax benefits, especially for families who do not itemize deductions every year.
Charitable Remainder Trusts (CRTs): These strategies are increasingly attractive and will only improve over time. Consider starting with a small contribution. The CRT benefits can extend to both you and your heirs.
Bunching Strategy: For taxpayers who do not itemize annually, bunching charitable contributions every few years continues to make sense. Additionally, non-itemizers can now deduct up to $1,000 (single) or $2,000 (married) in charitable contributions annually.
Roth Conversions Gain Popularity: Based on the continued lower income tax rates, the higher estate tax exemption, and the lack of certainty of future administration changes, the Roth conversion has renewed benefits.
Business Owner Changes
Enhanced QSBS Benefits: Qualified Small Business Stock exemption increases from $10 million to $15 million per person. The required holding period for partial benefits is reduced from 5 years to 3-4 years.
Permanent §199A Deduction: The 20% pass-through deduction for business owners (LLCs, S-corps, partnerships) is now permanent rather than expiring in 2025.
Entity Structure Impact: These changes may make C corporations more attractive than S corporations for certain business planning situations.
What This Means for Florida Estate Planning
The focus has moved from minimizing estate taxes (due to higher exemptions) to maximizing income tax benefits and creating meaningful wealth transfer, including the pure joy of giving to causes you care about. Trust structures, business entity selection, timing strategies, and charitable planning all require fresh analysis and consideration.
Florida residents have particular advantages due to our favorable state tax environment, which amplifies the benefits of these federal changes.
Next Steps
We recommend reviewing your current estate plan and business structures in light of these changes. The strategies that made sense under prior law may not be optimal going forward, and new opportunities may be available.If you would like to discuss how these changes affect your estate plan, please get in touch with our office to schedule a consultation.