Estate planning has always been shaped by changes in tax law, but the most meaningful shift for high‑net‑worth (HNW) and ultra‑high‑net‑worth (UHNW) families is the permanent increase in the federal estate, gift, and generation‑skipping transfer (GST) tax exemptions under the One Big Beautiful Bill Act (OBBBA).
Beginning January 1, 2026, the exemption rose to $15 million per individual (or $30 million for married couples), indexed annually for inflation. This new framework replaced the previously expected reduction in exemption amounts and provides a more stable foundation for long‑term wealth‑transfer planning. For many affluent families, this higher exemption may reduce immediate estate‑tax exposure and expand the range of planning strategies available.
Note: While the exemption is described as permanent under current law, it is important to note that Congress can amend or repeal OBBBA provisions in future legislation.
Why Ongoing Planning Still Matters
However, even with a higher and permanent exemption, estate planning remains a dynamic process. Tax laws evolve, planning tools shift, and family circumstances change. A plan that is effective today may not remain optimal over time.
The permanence of the OBBBA exemption does not eliminate the need for proactive planning. It simply changes the planning landscape. Instead of preparing for a sharp reduction in exemption amounts, families can now focus on optimizing long‑term strategies, managing future appreciation, and strengthening governance and control structures.
Planning Opportunities Under the Expanded Exemption
Since the passage of earlier tax reforms, HNW and UHNW individuals have been encouraged to use available exemptions to transfer assets out of their taxable estates. That guidance remains relevant, but the expanded exemption could allow for even greater opportunities to shift future growth into trusts and other structures designed to preserve wealth across generations.
It also remains important to monitor legislative developments. Planning tools such as grantor trusts, valuation discounts, and advanced partnership structures continue to be discussed, making ongoing review essential for families with significant wealth.
Investment and Portfolio Considerations
Portfolio decisions can also be influenced by the current environment. For example, an investor holding a concentrated position in highly appreciated stock must weigh the benefits of diversification against the capital‑gains tax triggered by selling. In some cases, realizing gains during life may reduce future estate‑tax exposure if the resulting portfolio shift lowers the value of the taxable estate or supports strategies such as funding irrevocable trusts. Similar considerations can apply to real estate and other appreciated assets. Charitable remainder trusts, donor‑advised funds, and other philanthropic vehicles may also play a role in managing both income‑tax and estate‑tax outcomes.
Key Considerations for UHNW Families
- For UHNW families, the expanded exemption may create meaningful opportunities:
- Irrevocable and dynasty trusts may remain essential for shifting future appreciation out of the taxable estate.
- Strategic lifetime gifting can now occur at higher thresholds, enabling larger tax‑free transfers.
- A more deliberate “wait‑and‑see” approach is possible, though early planning still maximizes long‑term benefits.
- Individuals with estates near $15 million and married couples with estates near $30 million may find their planning priorities shifting from tax‑avoidance strategies toward control, governance, and asset protection, since they are now closer to the exemption threshold under current law.
Conclusion
Estate planning is most effective when it evolves alongside your life, your goals, and the broader tax landscape. The recent increase in federal exemptions creates new opportunities, but it also underscores the importance of keeping your plan current, flexible, and aligned with what matters most to you.
If you’re unsure whether your existing plan reflects today’s rules or your long‑term intentions, consider reviewing it with your estate attorney or speaking with your Modera advisor. A thoughtful review can help identify opportunities, clarify decisions, and help keep your plan aligned with the outcomes you want for yourself and the people you care about.
