OBBB RECAP: NEW TAX LAW CHANGES OFFER POWERFUL PLANNING OPPORTUNITIES
consider planning opportunities to capitalize on the favorable tax environment currently in place.
Coined the “OBBB” (One Big Beautiful Bill), Congress passed sweeping legislation on July 4, 2025, that addresses everything from individual tax rates and business depreciation to international tax rules and clean energy incentives. While the bill contains hundreds of provisions affecting all taxpayers, this Special Report will focus on the estate planning and wealth transfer changes that matter most to Florida residents. Key Takeaway: Estate tax planning takes a back seat to income tax optimization and wealth transfer efficiency. This is a preliminary overview intended for informational purposes only. Please consult with your tax advisor, CPA, or estate planning professional before making any financial or legal decisions. ESTATE TAX CHANGES $15 Million Exemption: The federal estate, gift and generation skipping transfer tax exemptions increase to $15 million per person ($30 million for married couples), effective 2026, with annual inflation adjustments thereafter. Florida Advantage: Florida has no income, state, gift or GST taxes, making our state increasingly attractive for many families. Permanent Changes (For Now): Although labeled as “permanent,” these changes may be subject to modification by future administrations. High-net-worth families should
NEW INDIVIDUAL BENEFITS 2017 Tax Cuts Made Permanent: The individual tax rates and deductions from the 2017 Tax Cuts and Jobs Act are now permanent (meaning they will not expire as previously scheduled). However, future administrations could still modify these provisions. Senior Deduction: New additional $6,000 deduction for taxpayers over 65 with income under $75,000 (phases out completely above this threshold). Standard Deduction: Permanently increased starting in 2025 to $15,750 (single), $23,625 (head of household), and $31,500 (married filing jointly), with annual inflation adjustments thereafter. SALT Deduction: The state and local tax deduction cap increases from $10,000 to $40,000 (with 1% annual increases through 2029, then reverting to $10,000 in 2030), though it phases out for incomes over $500,000. This has less impact on Florida residents due to our lack of state income tax. TRUST PLANNING OPPORTUNITIES Income Tax Focus: With higher estate tax exemptions, income tax planning through trusts becomes more important than pure estate tax avoidance for most taxpayers. Note: The
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