Thank You For Your Trust In Us! (Round 3) As you know, we are a referral-based practice, so we want to acknowledge and express our deep gratitude to everyone who has referred loved ones and friends to us. It is not something we take for granted or lightly, and we strive to earn your trust every day. We know we would not exist nor have the privilege of being of service but for you, our Valued Client. To acknowledge you, we will list everyone who has referred someone over the last few years here. The list is long, so it will require multiple newsletters to get the job done. And we know we are not perfect, so if you have referred someone and your name does not appear, our sincere apologies for the oversight. So… THANK YOU from the bottom of our hearts for Your trust and confidence in us. ~Your Parman & Easterday Family Rob & Colleen J.; Gerald & Shirley P.; Rob & Linda R.; Darlene S.; Elizabeth J-R.; David & Melanie L.; Frank & Dawn C.; John M.; Jeff H.; Janice A.; Brad & Laurie E.; Norman & Marilyn B.; Elgin S.; David & Carol B.; Mayra I.; Marcia & Clayton H.; Stephen H.; Laci J.; Craig & Verna S.; David & Rebekah M.; Dylan & Kelsey L-H.; Lori C.; Maxine B.; Charlie R.; Adrienne T.; Frederick & Joann M.; Lloyd K.; David & Donna T.; Doye & Mavis B.; William & Elizabeth C.; Drew & Richard G.; Tom & Janice C.; Philip S. & Barbara S.; Nilo F.; Dalene B.; Shirley K.; Richard & Sherron K.; Don R. & Savada M. What The Big Beautiful Bill (OBBBA) Means for Your Financial, Tax, and Estate Plan The newly enacted OBBBA introduces sweeping tax changes with far-reaching implications for estate planning, income taxes, and family financial strategies. Here are a few important Key Highlights . Estate Planning • Gift and Estate Tax: Now everyone has a $15 million exemption. You can use the exemption during your lifetime if you make gifts exceeding the annual gift exclusion. Whatever you have left at your death is applied to your estate tax liability. Even though the
new exemption is now “permanent” and indexed for inflation, future political shifts could reverse this. • No changes to annual gifting limits, already indexed for inflation. Currently, $19,000 in 2025. • The generous exemption may lull some into complacency, but the bill’s unpredictability and the potential for future tax hikes make it essential to review and update your estate plan now. Planning Tools • New options like Trump Accounts, enhanced 529 Plans, ABLE Accounts, and Irrevocable Trusts offer strategic opportunities for families and those with special needs. Income Tax Complexity • Temporary Provisions: Many deductions and credits (e.g., for tip income, overtime, car loan interest) are only available from 2025 to 2028. • Inconsistent Phase-Outs: Different benefits phase out at different income levels, complicating planning. • Complex Deduction Formulas: Itemized deductions are reduced using obscure formulas tied to income brackets. Even more people will likely use the standard deduction. • Social Security & Tip Income: Tip income and overtime pay receive favorable treatment, while Social Security income remains taxable for many. Education & Family Support • Enhancements to 529 plans call for a significant expansion of 529 plan benefits and include a brand- new Kids' Savings Program called the MAGA account, withdrawal limit increases, and the expansion of qualified expenses. • 529 Plans: Expanded limits to cover elementary and secondary education from $10,000 per year to $20,000 per year. • Covers post-secondary credentialing and now allows rollovers to ABLE accounts. • Pell Grants: Adjusted eligibility and expanded use for vocational and credentialing programs (details vary by income and institution). • Trump MAGA Accounts: New savings vehicles for children under 18, with tax-free distributions for qualified expenses like education, first homes, and small business investments. Business & Investment Incentives • Sec. 179 Expensing: Made permanent, allowing full expensing of up to $2.5 million in business property annually.
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