Big Tax Law Changes for 2026: What It Means for Your Estate Plan
On July 4, 2025, Congress passed the One Big Beautiful Bill Act (OBBBA), a sweeping piece of legislation that permanently reshapes how much wealth you can pass on to your family without triggering federal estate taxes. The most significant change is the increase of the federal estate tax exemption to $15 million per person, or $30 million for married couples. This amount will now be adjusted annually for inflation, and—unlike prior temporary exemptions—it is designed to be permanent.
Without this change, the exemption was set to revert to roughly $7 million in 2026, a shift that would have exposed many Arizona and California families to unnecessary estate tax liability. Instead, OBBBA creates long-term clarity and new opportunities for proactive estate planning.
That said, this is not a “set it and forget it” moment. If you already have a trust or estate plan in place, now is the time to review it. Many existing estate plans—especially those drafted before 2020—were designed with much lower exemption amounts in mind. These plans may contain formula clauses or tax-saving structures that were appropriate when the exemption was lower but could now result in unintended delays or restrictions. For example, an older trust might automatically allocate a large portion of your estate to a bypass trust based on outdated limits, causing administrative complexity or cutting off a surviving spouse from direct access to assets.
The new law also opens the door to smart adjustments. With more available exemption, high-income professionals and business owners may want to revisit their gifting strategies, evaluate asset titling between spouses, or structure new trusts that better align with long-term goals. The larger exemption also gives flexibility for clients considering charitable giving or planning for state income tax exposure, especially those with ties to California.
If your total estate is over $1 million—or if it’s been more than three to five years since your last legal review—it’s time to revisit your documents. This isn’t just about avoiding taxes; it’s about ensuring your legacy is passed on cleanly, privately, and without costly surprises. Our Scottsdale-based firm works with professionals, families, retirees, and business owners to implement estate plans that protect wealth, preserve control, and honor your intentions across generations.
The passage of OBBBA is a rare window of opportunity. Smart families will use it to strengthen their estate plans now, while the full exemption is on the table and before future legislation shifts the landscape again. If you’re unsure how these changes impact your estate or want to make sure your plan still reflects your priorities, contact Ganser Law Offices for a complimentary 15-minute consultation. Call (480) 930-5859 or schedule online at ganserlaw.com.
Now is the time to ensure your plan is doing what it’s supposed to—while the law is on your side.