July 12, 2025

The Fourth of July weekend brought more than just fireworks this year. On July 4, 2025, the administration signed into law the One Big, Beautiful Bill Act, a comprehensive piece of legislation that’s already reshaping the tax and estate planning landscape. With many provisions taking effect immediately, now is the time to understand how these changes could impact your financial future.

The new law introduces both opportunities and complexities that require careful consideration and strategic planning. Let’s walk through some of the key provisions and explore what each might mean for your financial strategy.

A New Era of Estate Planning

Perhaps the most significant change is within estate planning. Beginning in 2026, individuals will be able to pass up to $15 million without triggering estate or Generation-Skipping Transfer taxes, with married couples enjoying a combined $30 million exemption. The high exemption makes early gifting strategies not just attractive but potentially essential for maximizing wealth transfer opportunities.

Families considering significant wealth transfers should revisit their estate plans to implement sophisticated strategies that take advantage of the exemption increase.

Tax Relief with a Twist

The legislation also brings welcome relief to taxpayers in high-tax states, though with important caveats. For 2025, the state and local tax deduction limit jumps to $40,000 for filers earning under $500,000, providing meaningful relief for middle and upper-middle-class families. But this benefit phases down over time, returning to the familiar $10,000 limit by 2030.

This temporary relief creates a planning opportunity that requires careful navigation. Taxpayers near or over the income threshold will need to model various scenarios to understand how this change affects their overall tax strategy, particularly when combined with other deductions and credits.

Business Owners See Permanent Benefits

For entrepreneurs and business owners, the news is particularly encouraging. The 20% qualified business income deduction for pass-through entities has been made permanent, providing long-term planning certainty that’s been missing for years. This stability allows business owners to make more confident decisions about entity structure, compensation strategies, and long-term business planning.

The enhanced benefits for Qualified Small Business Stockholders are equally compelling. With the exclusion increasing to $15 million and new tiered holding periods introducing partial exclusions after three and four years, the timing of stock sales becomes more nuanced and potentially more profitable. Smart planning around which shares to sell and when could save business owners millions in taxes.

Opportunities for Every Generation

The legislation doesn’t forget about older Americans or families planning for the future. Adults 65 and older can now claim an additional $6,000 standard deduction from 2025 through 2028, creating opportunities for both tax savings and retirement income strategy optimization.

For families with children, the expansion of 529 plan uses is a game-changer. These accounts can now fund K-12 education, homeschooling expenses, and even special education therapy, making them more versatile tools for education planning. The introduction of “Trump Accounts”—new tax-advantaged savings vehicles offering $1,000 per child born between 2025 and 2028—adds another layer of planning complexity and opportunity.

The Charitable Giving Revolution

Even charitable giving gets a boost under the new law. Beginning in 2025, all taxpayers can claim up to $2,000 in above-the-line charitable deductions, regardless of whether they itemize. This change democratizes charitable giving benefits and creates new opportunities for tax-efficient philanthropy across all income levels.

Unexpected Incentives

Some provisions in the legislation might surprise you. The new $10,000 annual deduction for auto loan interest on U.S.-assembled vehicles purchased through 2028 creates an interesting intersection between tax planning and major purchase decisions. Combined with existing electric vehicle credits that expire September 30, there’s a narrow window for maximizing these benefits.

Planning Starts Today

While 2026 might seem distant, the most successful wealth planning strategies require time to develop and implement. The changes in this legislation create opportunities that won’t last forever, and the families and business owners who act decisively in the coming months will be best positioned to benefit.

Whether you’re reassessing your estate plan, exploring new business structures, or simply trying to understand how these changes affect your annual tax strategy, the complexity of these new rules makes professional guidance more valuable than ever. Each family’s situation is unique, and the optimal strategy depends on a careful analysis of your specific circumstances, goals, and timeline.

The “One Big, Beautiful Bill Act” represents the most significant tax reform in recent memory, but its true impact will be determined by how well individuals and families adapt their planning strategies to these new realities. The opportunities are substantial, but they require thoughtful action and expert guidance to fully realize.

At AlphaCore, we’re here to help you navigate these changes and position your wealth plan for potential success in this new environment. The landscape has shifted dramatically, let’s make sure you’re ready to take advantage of every opportunity that might be presented.

References:

• https://www.whitehouse.gov/articles/2025/07/president-trumps-one-big-beautiful-bill-is-now-the-law/
• https://www.congress.gov/bill/119th-congress/house-bill/1/text

Disclosure: This material is intended for informational purposes only and should not be construed as legal or tax advice, nor is it intended to replace the advice of a qualified attorney or tax advisor.