The One Big Beautiful Bill: What You Need to Know

The One Big Beautiful Bill Act (“OBBBA”) is the most comprehensive tax and fiscal overhaul in recent times. Signed into law by President Trump on July 4, 2025, this sweeping piece of legislation spans to nearly 900 pages and enacts trillions of dollars in tax cuts alongside major changes to government spending, estate taxes, and federal incentives.

The scope is enormous: nearly every area of personal, business, and family wealth planning is affected. While there are dozens of provisions—some highly technical and others still being interpreted—this blog pinpoints several of the most impactful changes for affluent families. Please note, there are many more nuances and planning opportunities beyond what’s summarized here.

Long-Term Tax Certainty for High Earners

The OBBBA makes the lower, post-2017 federal income tax brackets permanent, with the top rate fixed at 37%. The standard deduction has also increased—$15,750 for individuals and $31,500 for married couples in 2025, adjusted for inflation. This means you can plan around stable tax brackets for years to come, removing much of the uncertainty that has hovered over personal and investment decisions. With tax rates locked in, it’s now possible to schedule income, capital gains, or conversions with greater confidence and efficiency.

Big Relief for High-Tax State Residents

One of the most welcome changes is the temporary boost in the State and Local Tax (SALT) deduction cap—from $10,000 to $40,000 per year through 2029. This is especially meaningful for families in high-tax states like New York, New Jersey, and California, where property and income taxes quickly add up. High earners in these states stand to reclaim significant federal deductions that were previously capped, potentially resulting in substantial annual savings.

The Most Generous Estate & Gift Tax Exemption Ever

The federal estate and gift tax exemption is now increased to $15 million per individual and $30 million per couple, indexed for inflation, and set to remain permanent. This is a dramatic expansion compared to previous limits, opening the door for large, tax-free transfers of wealth to children, grandchildren, or trusts. There is now a unique opportunity for large-scale, tax-efficient wealth transfer—whether through direct gifts, irrevocable trusts, or funding family foundations.

Expanded Opportunities for Family Support (Trump Accounts)

The child tax credit has been raised to $2,200 per child, with inflation indexing, offering modest extra relief for families. Of greater interest for affluent families is the new “Trump Account” for every newborn between 2025 and 2028: a $1,000 government deposit and the ability for parents to contribute up to $5,000 per year, tax-deferred, for education or a first home purchase.

Enhanced Business and Investment Incentives

The bill makes permanent the 100% bonus depreciation for new capital investments and retains key deductions for research, development, and pass-through business income. These incentives are especially valuable for business owners and investors seeking to accelerate growth or optimize their tax situation. There’s now more flexibility to invest in and grow private businesses, while reducing current tax burdens through immediate expensing.

Fiscal Trade-Offs and Broader Context

To finance these tax benefits, the OBBBA brings significant spending cuts to Medicaid, nutrition assistance, and green energy programs, while increasing federal debt and deficits sharply over the coming decade (see The Economist’s chart below). The result is a likely near-term boost to economic growth, but also potentially long-term risks related to interest rates, credit conditions, and market volatility. It’s wise to keep an eye on the broader economic picture, as higher deficits and policy changes may eventually influence the investment environments.

Source: The Economist

Final Thoughts

The One Big Beautiful Bill is a significant piece of legislation for high-net-worth families. It delivers major tax relief, enhances opportunities for family wealth transfer, and provides new tools for supporting future generations. With the rules now clear, this is the time to review your plans and make the most of the new environment.

If you’d like to discuss how these changes could affect your financial life, estate plans, or investment strategies, don’t hesitate to reach out for a personalized conversation.