One Big Beautiful Bill Act — TOC-Talk | The Oglethorpe Collective

Welcome to 2026! The One Big Beautiful Bill Act (OBBBA) reshapes the estate and tax planning landscape for ultra-wealthy families. While the law's increased estate tax exemption has drawn attention, families with significant wealth should view this moment not as a reason to pause planning — but as an opportunity to strengthen it.

The OBBBA is a sweeping tax law that reshaped income, estate, & business tax rules. For families with $20 million or more in net worth, the current environment offers planning advantages that may not last. Acting now can protect future growth, preserve flexibility, and position wealth efficiently for the next generation.

Why Wealthy Families Must Act Now

Even though the exemption is high, families between $20 million and $30 million occupy an important "planning middle ground." You may not owe estate tax today — but you easily could tomorrow.

Investment growth can quickly push you into taxable territory

Investment growth, business appreciation, real estate expansion, or a liquidity event can quickly push a family from "safe" to "taxable." Once wealth surpasses the exemption — which will happen more easily than many expect — estate taxes of up to 40% may apply.

The exemption is "permanent," but politics are not

Historically, estate tax exemptions have been repeatedly lowered or adjusted, often dramatically. With rising national debt and political volatility, no family should assume the $15M exemption will last forever.

States may tax your estate even if the federal government doesn't

Several states impose estate or inheritance taxes at much lower thresholds, and the OBBBA does nothing to change this landscape. State-level exposure remains a critical planning consideration.

Asset protection may be more important than estate tax reduction

Wealthy families face significant risks from lawsuits, business liabilities, and family disputes — risks that can exceed the 40% estate tax exposure. Modern trust planning remains essential regardless of exemption levels.

Historical Estate Tax Exemption Levels

Source: IRS Revenue Procedures; One Big Beautiful Bill Act, January 2025

Trust Flexibility Is Essential

Modern estate planning is no longer about locking wealth away. It is about flexibility. Today's most effective trust structures are designed to adapt over time. They may allow:

Indirect access to assets if circumstances change
Adjustments if tax laws evolve
Protection from creditors and lawsuits
Long-term guidance for children and grandchildren

Trusts that include flexible access provisions, powers of appointment, and trust protector oversight help families plan confidently without sacrificing control or security.

Wealth Transfer Opportunities Unique to the Current Law

Although some wealthy families fall below the new $30 million married exemption, strategic transfers continue to deliver strong long-term benefits.

Use Today's Exemption to Move Appreciation Out of Your Estate

Even if you do not "need" to use the exemption today, shifting assets to trusts can:

Remove growth from the future taxable estate
Protect wealth from creditors
Provide long-term guidance for children and grandchildren
Protect against future reductions in the exemption

Freeze and Shift Techniques

These remain powerful for families with concentrated wealth:

Sales to grantor trusts
Discounted gifting or sales to a trust of closely held businesses
Intra-family loans

These strategies fix the taxable value of assets today and push future appreciation to heirs.

QSBS Planning: A Major Opportunity

The law significantly expands the Qualified Small Business Stock (QSBS) capital-gains exclusion. QSBS planning is one of the most impactful techniques available and is often overlooked or under-utilized.

Feature	Previous Limit	New Under OBBBA
Company Assets at Issuance	$50 million	$75 million
Maximum Gain Exclusion	$10 million	$15 million

Source: IRC §1202; One Big Beautiful Bill Act, January 2025

QSBS Gain Exclusion Timeline — Stock Acquired After July 4, 2025

After 3 Years

50%

Gain Exclusion — New flexibility for earlier exits

After 4 Years

75%

Gain Exclusion — Increased benefits with longer holding

After 5 Years

100%

Gain Exclusion — Maximum benefit achieved

Source: One Big Beautiful Bill Act, January 2025

Families can multiply this exclusion across multiple family members or trusts, making QSBS more valuable than ever using the stacking technique. For families with operating businesses, startup investments, or venture exposure, QSBS can provide one of the most powerful tax-planning opportunities available today.

Income Tax Changes and Opportunities

While much attention has focused on estate tax exemptions, several income-tax changes materially affect wealthy families and create meaningful planning opportunities when addressed proactively.

SALT Deduction: Temporary Increase With Income Phase-Outs

The cap on the federal deduction for state and local taxes (SALT) has been temporarily increased to $40,000, with annual inflation adjustments. However:

The increase is temporary and scheduled to revert in future years
The deduction phases out for higher-income taxpayers, starting at $500,000 — with a full phase-out at $600,000 MAGI
Many wealthy families will still receive limited benefit despite paying substantial state taxes

This reinforces the need for planning that does not rely on SALT deductions remaining available in the future.

SALT Deduction Phase-Out by Income Level (Married Filing Jointly)

Source: One Big Beautiful Bill Act, January 2025

Itemized Deductions Are Less Valuable for High Earners

For taxpayers in the highest income brackets, itemized deductions will be reduced by 2/37 of the lesser of the amount of deductions or the taxable income that exceeds where the 37% tax bracket begins. If your income does not surpass the 37% tax bracket, there is no reduction. This change reduces the effectiveness of traditional deduction strategies for high-income households. With the increase of the standard deduction, it may be more beneficial to take the standard deduction versus itemizing.

Charitable Deductions Get a Haircut

Charitable giving remains deductible — but with new limits:

Starting in 2026, those who itemize can only deduct charitable contributions that exceed 0.5% of their AGI
This effectively means that smaller donations may no longer generate a deduction
This could make "bunching" donations into one tax year more attractive

As a result, how charitable giving is structured now matters more than how much is given.

Using Non-Grantor Trusts to Optimize Income Taxes

A non-grantor trust is treated as a separate taxpayer. Because it files its own tax return, it can often access deductions and planning opportunities that are reduced or unavailable on an individual's return. Keep in mind, grantor trusts still provide incredible benefits for estate planning and wealth transfer.

Three Non-Grantor Trust Strategies

Restoring SALT Deductions: A family places income-producing real estate into multiple non-grantor trusts. Each trust may claim its own SALT deduction, allowing the family to capture significantly more deductible state and local taxes than they could personally.

Reducing Personal AGI: Investment assets are transferred to a non-grantor trust. The trust and/or beneficiary pays tax on the income, lowering the client's personal AGI and helping preserve other income-based tax benefits.

Charitable Giving Through a Trust: Instead of losing charitable deductions on their personal return, a family has a non-grantor trust make charitable gifts. The trust deducts the contributions while the client keeps the full standard deduction.

For wealthy families, non-grantor trusts can restore lost deductions, reduce taxable income, and improve overall tax efficiency, while also supporting long-term estate and legacy planning. It is vital to incorporate your long-term goals with current tax planning; in many instances, a grantor trust will be more advantageous.

Planning Priorities for Ultra-Wealthy Families

Families with significant and/or growing wealth should focus on five core priorities:

Flexibility

Plans must adapt to tax, family, and economic changes

Asset Protection

Shielding wealth from lawsuits and claims is critical

Growth Management

Removing future appreciation from the taxable estate

Income Tax Efficiency

Coordinating trusts, entities, and investments

Legacy Planning

Preparing heirs and structuring long-term guidance

Planning Priority Assessment — Current vs. Optimal

Recommended Actions

A terrific starting point would be reviewing your current estate documents to identify risks and areas of opportunity. Some recommended changes could include:

Review current asset titling
Update buy-sell agreements for business owners
Modernize your irrevocable trust(s): adding powers of appointment, adding trust protectors, potentially decanting into a more flexible trust structure
Incorporate income tax optimization features

Final Thoughts

The One Big Beautiful Bill creates opportunity — but only for families who act. For some, with the increased exemption amount, estate tax is not an immediate threat — but it could be soon. The combination of higher exemptions, expanded business incentives, and modern trust planning tools makes this a pivotal moment for wealthy families to revisit and strengthen their plans.

Additionally, with the changes to itemized/standard deductions, charitable contributions, and some increased phaseouts, combining income tax planning with trust/estate planning has never been more impactful.

It is paramount to incorporate your wealth advisor, trust & estate attorney, and CPA into these discussions. At TOC-23, we believe your family's wealth purpose should drive these decisions now and into the future. Thoughtful action today can preserve flexibility, reduce future risk, and protect family wealth for generations to come.

Jim Machinchick

CFP® · CPWA® · Chief Planning Officer

Jim Machinchick is the Chief Planning Officer at TOC-23, specializing in estate planning strategies for ultra-high-net-worth families.

Disclaimer: This article is for informational purposes only and does not constitute legal, tax, or investment advice. Investment advice and services are offered through Inflection Capital Management, LLC ("Inflection"), a registered investment adviser. The ideas and opinions expressed herein do not constitute a recommendation of any particular security or strategy. Before making any financial decision, please consult with qualified legal and tax counsel. Past performance is not indicative of future results.