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Here’s Who Needs to Pay Attention Now
When the One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025, it introduced some of the most sweeping changes to federal estate, gift, and income tax planning in recent history. The headline? Starting in 2026, the federal estate tax exemption will be set at $15 million per person.
These changes open a window for many families to protect their legacy and reduce future tax exposure. The key is knowing whether you’re in that window and acting before it closes.
At Family Estate Planning Law Group, we help families plan proactively to stay ahead of both federal and state tax risk. Below are five types of individuals and families who should be paying attention now.
Individuals and Families With Growing Estates Over the Federal Exemption
Who this includes:
Individuals with estate values of over $15 million or married couples with estates over $30 million need to do estate tax planning immediately to see if planning can eliminate, reduce, and minimize federal estate taxes. Please note that once your assets exceed the exemption amount, the excess over the exemption amount will be taxed at 40%. For those whose estate consists of real estate, business interests, or sizable retirement and investment accounts planning is essential.
Example: Jack and Karen
Jack and Karen own a successful family business, a Massachusetts summer home, and several brokerage accounts. Today, their estate is worth $40 million. With the new $15 million per person federal exemption, up to $30 million will be protected from estate taxes in 2026. The amount in excess of the federal exemption amount ($10 million) will be subject to a federal estate tax of $4 million.
If they don’t plan:
Their estate continues to grow. If they both pass away ten years from now and their estate increases to $80 million, their heirs could face a federal estate tax bill in excess of $10-$15 million.
If they plan now:
Jack and Karen use gifting, estate freezing and discounting strategies, adjust outdated trusts, and shift future growth out of their taxable estate. With proper planning, they could preserve more wealth for the next generation and can reduce present and future tax risk. With proper planning now the family can save millions of dollars in federal estate taxes.
Individuals and Families with Growing Estate Not Yet Reaching the Federal Exemption Amount
Who this includes:
Individuals with estate values of over $8-15 million or married couples with estates over $15-25 million need to do estate tax planning immediately to eliminate and/or minimize federal estate taxes. For those whose estate consists of assets that will tend to appreciate, like real estate, business interests, or sizable retirement and investment accounts, planning before the estate exceeds to federal exemption amounts is critical.
Example: Harry
Harry is aged 75 and widowed. He has just sold his business, has three pieces of investment real estate in prime residential and commercial areas and has a sizable retirement account with a total estate valued at $13 million. Although he would not be subject to federal estate tax today, given the anticipated appreciation of his real estate and the growth of his other assets, he can reasonably be expected to exceed the exemption amount in the near future.
If Harry does not plan:
If, over the next seven years, Harry’s estate appreciates to $24 million and he dies in his early eighties, his estate could pay a federal estate tax in excess of $3 million.
If Harry plans now:
If Harry works with his strong team of advisors to create a gifting strategy, he can ensure he has the resources he needs while transferring assets in a way that protects them from federal estate taxes. By planning early, Harry maximized the wealth passed on to his family—and had the joy of watching them benefit during his lifetime.
Massachusetts Families With Estates Over $2 Million
Who this includes:
Families who may not owe federal estate tax, but exceed Massachusetts’ $2 million estate tax threshold—especially those with assets between $5 million and $13.9 million.
Example: Lisa and Bill
Lisa & Bill live on the North Shore. Between their home, pension and investment accounts, their assets total $5.5 million. They’ve never considered themselves “wealthy,” but their estate could face a Massachusetts estate tax bill well over $300,000.
If they don’t plan:
Their estate remains at $5.5 million—well above the $2 million exemption. Because they didn’t do even basic tax planning, when they pass, their children could face a Massachusetts estate tax that might have been avoided.
If they plan now:
Lisa and Bill work with FEPLG to take advantage of their $2 million per person Massachusetts exemption. They implement a Massachusetts Standby Gifting Trust and update their estate plan and asset ownership to fully leverage their exemptions. As a result, their estate falls below the taxable threshold—and their family avoids unnecessary taxes.
Families Looking to Leave a Legacy for Children and Grandchildren
Who this includes:
Families who want to build multigenerational wealth using advanced planning tools like dynasty trusts, generation-skipping transfer tax (GST) exemptions, or life insurance strategies.
Example: Albert and Monica
Albert and Monica have an estate valued at $30 million and want to leave lasting assets for their children and grandchildren.
If they don’t plan:
They leave their estate to their children directly. When their children pass, the estate has grown to $50 million—and their family wealth will be subject to estate tax again at the second generation upon their deaths.
If they plan now:
They move $30 million into trusts that benefits both children and grandchildren using the full $15M GST exemption per person. That trust grows tax-free and avoids federal estate and GST tax for generations to come.
Families With Young Children and an Estate Around $5 Million
Who this includes:
Families who may not see themselves as wealthy but want to protect their children and ensure smooth transitions if something unexpected happens.
Example: Carlos and Elena
Carlos and Elena are in their early 40s with two children under 10. They own a home, have strong retirement savings, and recently received an inheritance. Their estate totals $5.5 million.
If they don’t plan:
Their assets are not properly titled, guardianship decisions aren’t clear, and their children could face probate and unnecessary tax exposure if something happens.
If they plan now:
They put the right documents and trusts in place, align their assets, and appoint guardians. Their estate is protected, their wishes are clearly laid out, and their kids are cared for financially and emotionally. In addition, the assets the children receive will be protected from divorces, lawsuits bankruptcies and lawsuits.
One Critical Step That Can’t Be Overlooked: Asset Alignment
In every scenario above, planning only works if your assets are properly aligned with your estate plan. Too often, we see beautifully drafted trusts that fail in practice—not because of the legal language, but because the assets weren’t titled or designated correctly.
Here’s what that can look like in real life:
- A trust says your children should inherit everything at age 30, but your children are 17 and 19 now, and your $2 million life insurance policy names them directly as beneficiaries. If something happens tomorrow, they receive those funds outright—with no protections and no oversight.
- Your home is titled in your name individually, but your trust says everything should pass to your spouse and children. Without alignment, your estate could go through probate and trigger unnecessary taxes.
- Retirement accounts and investment accounts list outdated or conflicting beneficiaries—often leftover from years ago before a divorce, birth of a child, or business sale.
- Joint accounts, payable-on-death designations, or annuities could override your carefully designed plan simply because the financial institution holds different instructions than your estate documents.
When is the last time you reviewed your beneficiary designations? Have your institutions made changes that affected how your assets are titled?
At FEPLG, asset alignment is not an afterthought—it’s the foundation of every estate plan we create. Through our Generations Program, we work closely with families to ensure every asset is correctly aligned, reviewed regularly, and updated as life changes.
Not Sure Where You Stand? That’s Exactly Why We’re Here
At Family Estate Planning Law Group, we help families navigate changes in both the law and in life. Whether you’re planning ahead for the first time or fine-tuning a more complex estate, we’re actively preparing guidance tailored to a wide range of family and financial situations.
If you’re not sure how this law affects your plan, don’t worry. We’re already thinking ahead.
If you’re part of our Generations Program, you’re in great shape. We will be reaching out with next steps as we continue evaluating the law and developing strategies. And if you’re not part of the program yet, this may be the right time to explore it.
Let’s make sure your plan still protects the people and purpose that matter most.
