(Part One of the OBBB Planning Series)
On July 4, 2025, the One Big Beautiful Bill (OBBB) became law. Most people have heard about the record-high $15 million estate tax exemption, but that is only part of the story. The new law includes hundreds of changes that affect how income taxes, capital gains, charitable giving, and estate planning all work together.
At Wollman Gehrke & Associates, we view this moment as both an opportunity and a responsibility. The OBBB has created a planning environment that rewards foresight and coordination. Understanding how these changes connect to your family's goals is the key to protecting and preserving wealth for decades to come.
1. A Golden Opportunity
The OBBB raised the federal estate-tax exemption to $15 million per person ($30 million per couple) beginning January 1, 2026, dramatically changing the focus of planning for most families. This change is permanent and will be indexed for inflation, a welcome shift from the temporary increases we’ve seen in the past.
While this exemption is not scheduled to sunset, history reminds us that Congress can change tax laws at any time. Families who act now can take advantage of this favorable environment while decisions can still be made calmly and deliberately.
We recently met with a Naples family whose estate plan was drafted more than ten years ago. Their trusts were sound, but several provisions no longer fit under the current law. With a few careful updates, we reduced their future tax exposure and gave them peace of mind knowing their plan now reflects both today’s law and their current family situation.
Who should be thinking about updates?
Even well-crafted documents can produce unintended results when laws change, and a short review can confirm what still fits and what deserves adjustment. For larger estates, the goal may be to take advantage of new exemption amounts or gifting opportunities. For estates below the $15 million threshold, the focus is often on preserving step-up in basis, maintaining asset protection, and ensuring the plan still reflects family and financial goals.
For more specific information about when to see your estate planning attorney, read Part II of our series here.
2. The Big Shift: From Estate Tax to Income and Basis Planning
For decades, estate planning focused on minimizing federal estate tax. Under the OBBB, that focus has shifted. Most families will not face estate tax liability, but income tax, capital gains, and step-up-in-basis planning now play a much larger role in protecting wealth.
For example, a Naples couple who purchased property for $200,000 that is now worth $2 million could eliminate the $1.8 million capital gain at death through proper basis planning. Likewise, business owners preparing for a sale should review new capital-gains rules that expand opportunities for small-business stock and long-term holdings.
Each advisor—your CPA, financial planner, and insurance professional—sees part of the picture. Your estate planning attorney is the one who brings these perspectives together into a cohesive plan. That coordination ensures every recommendation works in harmony rather than in isolation.
Where do families begin?
Start by reviewing how assets are titled, confirming beneficiary designations, and ensuring your trusts reflect current law. In Part Two, we will explore these strategies in detail, including charitable planning opportunities before new limitations take effect.
3. Why Florida Families Have an Advantage
Florida continues to offer one of the most favorable tax environments for preserving wealth. The combination of the OBBB and Florida's protective statutes creates a unique opportunity for long-term security.
- Homestead protections safeguard primary residences (up to one-half acre in cities, 160 acres outside) from most creditors with unlimited value protection. To qualify, the homestead must be owned by you personally or in a revocable trust, not by an LLC or corporation.
- Dynasty trusts can now extend for up to 360 years (and possibly 1,000 years under recent proposals), allowing families to preserve assets for multiple generations. Combined with Florida's lack of state income tax on trusts, this offers multi-generational protection not common in other states.
- Strong asset protection statutes offer security for retirees, business owners, and professionals who face liability exposure.
For many Naples families, these tools are already in place but even small adjustments can make a big impact.
Florida's advantages only work if the details of your plan are properly aligned. Consider any legal, tax, and financial strategies that you have in place, and make sure that each of your advisors are aware. Even if you don’t see a connection, keeping your advisors on the same page can help you take full advantage of what Florida law provides.
4. Plan Early, Review Often
Tax laws evolve, and even “permanent” provisions can be rewritten. However, with the proper planning, you can “freeze” or “lock-in” these benefits. Families who plan early and review their options regularly often come out ahead.
Before year-end, consider:
- Have your trust provisions been updated for new basis rules?
- Are portability elections (allowing spouses to combine exemptions) filed with your CPA?
- Have your retirement accounts been reviewed for efficiency under the SECURE Act?
- Should major charitable gifts be completed in 2025 rather than 2026, before new deduction limitations begin?
In Part Three of this series, we will discuss advanced techniques for families seeking to strengthen their plans, including charitable strategies, trust flexibility, and ways to prepare for future changes calmly and strategically.
A Final Word
The OBBB did not end estate planning. In fact, it has opened up many new opportunities for a thoughtful and balanced approach. Planning today is less about avoiding tax and more about creating clarity, stability, and confidence for your family.
At Wollman Gehrke & Associates, we help families bring order to complexity. Our role is to ensure your plan remains current, coordinated, and designed for lasting protection.
Next Step: Contact our office to arrange a consultation and confirm that your plan reflects both your intentions and the opportunities available under the new law.