New Law Locks in $15 Million Estate, Gift & GST Tax Exemptions Permanently

We are monitoring a major development in federal tax policy: H.R. 1—nicknamed the “One Big Beautiful Bill Act”—has cleared both chambers of Congress and is headed to the White House for signature.

What It Does

  • Locks in current exemption levels: The Act makes permanent the exemption from estate, gift, and generation-skipping transfer (GST) taxes that would otherwise revert in 2026 from the current ~$14 million back to ~$6.3 million
  • Boosts exemption to $15 million: Beginning January 1, 2026, the federal exemptions permanently rise to $15 million per person ($30M per married couple), with automatic annual inflation adjustments. There is no sunset on this provision.

What It Does Not Change

  • It does not repeal the gift or estate tax entirely—it simply raises the exemption levels permanently.
  • It keeps all other existing rules for gift, estate, and GST taxation in place.

Why This Might Matter To You

  • Estate planning certainty: The guaranteed high exemption extends strategic flexibility for high-net-worth individuals and families.
  • Tax‑efficient wealth transfers remain viable: Time-tested planning mechanisms—including GRATs, GST allocation, qualified personal residence trusts, and other tools—remain available and beneficial under the new law.
  • Proactive planning still pays: With $15 million per person now locked in post-2026, clients should consider reviewing and adjusting their estate plans—whether accelerating gifts, optimizing trust structures, or locking in low valuation opportunities—before the new exemption level takes effect.

What You Should Do Now

  1. Review existing estate plans to reflect the increased exemption level starting in 2026.
  2. Consider front‑loading gifts or trust funding to take advantage of the current high threshold and gain valuation benefits.
  3. Stay in touch with your Lindberg & Ripple advisor—we are tracking additional potential changes, such as alterations to gift tax rates or trust-based planning, and will update you as new developments emerge.

Bottom line: If signed into law, this bill guarantees the continued availability of a $15 million exemption per individual—indexed for inflation—indefinitely. That is a powerful tool for long‑term wealth preservation and legacy planning. Please contact your Lindberg & Ripple advisor to explore how to integrate this into your estate plan.

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