The One Big Beautiful Bill Act increases the federal estate tax exemption from $13.99 million to $15 million per person, enabling tax-free transfers totaling up to $30 million for married couples. This change supports families with high-value real estate in markets such as California and New York, facilitating wealth transfer without incurring federal estate tax. Homeowners should consider using irrevocable trusts for their assets to enhance tax benefits. Despite this exemption, state estate taxes may still apply, requiring careful planning and awareness of local laws regarding wealth transfer.
The OBBBA permanently increases the federal estate tax exemption from $13.99 million to $15 million per person, offering long-term clarity and allowing married couples to transfer up to $30 million tax-free without an expiration date.
The higher exemption benefits families with high-value real estate in expensive markets like California, New York, Florida, and Illinois, enabling more property to be passed on to heirs without triggering the 40% federal estate tax.
Homeowners are advised to consider placing appreciating assets like real estate into irrevocable trusts to maximize wealth passed on to heirs and improve tax efficiency.
Despite the federal exemption increase, many states still impose estate taxes with lower thresholds; homeowners need to be aware of state-specific estate tax laws that could affect their estates.
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