Wealth transfer ideas to consider this year

The One Big Beautiful Bill Act’s permanent increase of the lifetime gift and estate exclusion to $15 million reshapes the planning landscape, but it does not remove the need for thoughtful estate design. Many families under the federal threshold may still face meaningful risks, including state-level estate taxes, poorly coordinated documents, and inefficient transfers of low cost-basis assets.

Advisors can add value by revisiting wills, trusts, beneficiary designations, and powers of attorney to reflect new tax rules while preparing for incapacity and intergenerational wealth transfers. Planning around the 10-year rule for inherited IRAs and considering strategies such as Roth conversions or targeted beneficiary choices can also help manage future income tax burdens on heirs.

Given wide variation in personal circumstances and state laws, collaboration with qualified tax and legal professionals remains essential to align wealth transfer goals with evolving tax realities.