Protect, preserve, and plan with confidence.
(Part 2 of the OBBB Planning Series)
Four months after the OBBB became law, the new definition of estate planning is becoming clear. For many Naples families, the question has shifted from “How much tax will I owe?” to “How do I make the most of what I’ve built?”
In Part 1, we looked at how the One Big Beautiful Bill reshaped estate planning with a paradigm shift from estate tax to income tax planning. Now, we’re sharing five practical steps we strongly encourage our clients to consider under the new guidelines.
Each of these steps requires careful coordination between your entire advisory team, including your CPA, financial advisor, insurance agent, and estate-planning attorney.
1. The Power of Portability
Even if your estate is well below the $30 million estate tax exemption ($15 million for a single person), we always recommend filing a portability election after a spouse’s passing. This can preserve the unused exemption, potentially protecting millions for future generations if your estate continues to grow or if the estate tax exemption is lowered in their lifetime.
Imagine a couple with a combined estate of $8 million. When the husband passes away, his surviving spouse assumes there’s no need to file a federal estate tax return because their estate is well below the current $30 million exemption.
What they don’t realize is that filing a portability election would have permanently preserved the husband’s unused exemption based on the law in effect at his date of death. If Congress later reduces the exemption — for example, to $5 million per person — that higher preserved amount ($15 million per person) would still apply.
At WGA, we coordinate directly with our clients’ CPAs to ensure a Form 706 is completed accurately and on time so that this opportunity is never lost. The IRS currently allows up to five years from the date of death to file, but completing it within the first year is far simpler and more reliable.
2. Step-Up in Basis & General Powers of Appointment
When an asset passes at death, its tax basis “steps up” to fair-market value, eliminating built-up capital gains. For estates below the federal exemption, this is often the single most valuable advantage in the tax code.
One technique we use frequently to capture this benefit is referred to as General Powers of Appointment. These flexible provisions added to a trust preserve basis adjustments and reduce future tax exposure.
If you are not sure that your plan is locking in these benefits, it is important to conduct a basis review with your estate planning attorney. This simple review can uncover opportunities that simple balance-sheet numbers might overlook.
3. Alternatives to the “Stretch IRA”
The SECURE Act requires most inherited IRAs to be distributed within 10 years, shortening a tool once used for multi-generational deferral. The OBBB doesn’t rewrite the 10-year rule, but it gives families new ways to organize their plans so retirement assets can be managed more efficiently and passed down with less tax impact.
A particularly effective option is a “see-through” trust, which lets an IRA look through to its individual beneficiaries. This structure helps preserve key tax benefits and provides ongoing income and creditor protection for a spouse or children. Charitable Remainder Trusts (CRTs) can offer a similar outcome, providing lifetime or term income to loved ones while the “remainder” ultimately benefits charity.
Reviewing IRA beneficiaries is one of the simplest and most impactful steps you can take to ensure a healthy estate plan.
4. Charitable Giving That Lasts for Generations to Come
Beginning in 2026, the OBBB introduces new rules that change how certain charitable deductions work for taxpayers who choose to itemize. As a result, 2025 may be an especially important year to review and, in some cases, accelerate planned charitable gifts.
Two alternatives to simple, outright giving are Charitable Remainder Trusts (CRTs) and Donor-Advised Funds (DAFs). These structures can provide meaningful income, tax deductions, and legacy benefits when they are carefully coordinated with your estate plan.
There is a powerful opportunity when charitable giving reflects personal values while also creating tax efficiency. These gifts can support the causes you care about most while keeping your overall strategy balanced and effective. It is a a true win-win.
5. Asset Protection and Modern Trust Design
One approach we often implement for clients is including a trust protector. This is an independent party empowered to adjust trust terms as laws or family circumstances evolve.
Adding safeguards like trust protectors preserves flexibility without sacrificing control.
Beyond trusts, Florida’s homestead protection is another important shield for families. While it’s one of the strongest in the country, it also imposes restrictions on how property can be left to a surviving spouse or minor child.
In order to take advantage of Florida’s exceptional protection for families, your documents must be properly drafted and your assets correctly titled. In many cases, small adjustments to your trust or titling can ensure you receive the full benefit of Florida’s asset-protection laws while avoiding unintended conflicts.
6. Insurance Planning
Under the OBBB, the role of life insurance has changed, but it remains a powerful and versatile tool. The right insurance policy can provide immediate access to cash when other assets may be tied up or difficult to access. This is a benefit that is often overlooked until it’s needed most.
One planning structure that remains effective in today’s high-exemption environment is the Irrevocable Life Insurance Trust (ILIT). This trust owns the life insurance policy, keeping the death benefit outside the taxable estate while allowing the proceeds to pass to heirs’ income-tax-free.
For example, a Naples couple in their 70s may hold a $2 million life-insurance policy in an ILIT. When one spouse passes, the trust receives the benefit outside the estate. This benefit provides tax-free liquidity to cover expenses or supplement family income without the need to sell investments or assets. Having access to cash rather than illiquid assets also makes it easier to distribute inheritances fairly among heirs.
Closing Thought
The OBBB has reshaped estate planning, shifting the focus from estate tax to income tax, liquidity, and long-term flexibility. For many families, that means older plans may no longer take full advantage of today’s opportunities.
Laws like the One Big Beautiful Bill (OBBB) remind us that planning is constantly evolving. The best protection comes from revisiting your plan, asking questions, and communicating between your trusted advisors.
If it’s been more than two years since your last estate-plan review, or if your family’s circumstances have changed, this is the right time to act. A calm, early review helps prevent rushed decisions later and keeps your plan working exactly as intended.