Estate planning has always been about protecting what you’ve worked hard for. Thanks to the One Big Beautiful Bill Act signed into law on July 4th, 2025, there are even more reasons why estate planning is essential to reduce taxes, protect wealth, and pass more of your hard-earned assets on to your loved ones. But you must act now. Waiting too long could mean missing out on deductions, exemptions and tax strategies that may never come again.
What the New Law Means for Families
This new legislation provides changes that estate planners are calling “once in a generation” opportunity. Here are some examples.
- Higher Tax Exemptions for Gifts and Estates – Starting in 2026, estate, lifetime gift, and generation-skipping transfer tax exemptions jump to $15 million for individuals and $30 million for married couples. That means most families will avoid estate taxes altogether, if they plan ahead.
- New Senior Deduction – From now through 2028, Americans age 65 and older qualify for a $6,000 additional exemption on top of the standard deduction. However, this is phased out for higher income households.
- Larger SALT Deduction – The deduction for state and local taxes (SALT) rises from $10,000 to $40,000 through 2029, but only with proper planning, and often through non-grantor trusts.
- Extended Lower Income Tax Rates – The law makes permanent many of the reduced ta rates first introduced in 2017, helping both families and trustees plan with more confidence.
Why Timing Matters
Laws can change with the next election cycle. As tax strategist Robert Keebler warns, “To lock in the benefit of these new exemptions before the political wind changes, planners should not delay”.
A Real-Life Example
Imagine this:
- A couple with $12 million estate waits after 2028 to begin planning. By then, exemptions could be rolled back, and their heirs may face millions in estate taxes.
- Another couple acts now, creating a spousal lifetime access trust (SLAT). Not only do they lock in today’s higher exemptions, but they also create a tax-free way to benefit each other and pass on wealth to their children and grandchildren.
Which couple would you rather be? The couple that missed out on valuable exemptions where less will pass to the surviving spouse and heirs, or the couple who planned and locked in maximum exemptions to their surviving spouse and heirs?
Trust Tools to Take Advantage Of
- SLATS (Spousal Lifetime Access Trusts) – Providing financial security for a spouse while protecting wealth for the next generation.
- GRATS (Grantor Retained Annuity Trust) – Allowing growth of assets outside the taxable estate.
- Dynasty Trusts – Protecting family wealth for multiple generations, free from transfer taxes.
- Non-Grantor Trusts – Helping high net worth families maximize the new SALT deduction.
What Brightside Financial Can Do
While Brightside Financial is not a law firm and cannot draft the legal instruments listed in this article, we do specialize in financial solutions that take advantage of the same principals driving these changes.
One of the most powerful tools available today is permanent life insurance.
- When properly structured, it can create a tax-free inheritance for your children and grandchildren.
- It helps to replace estate tax burdens if future laws roll back exemptions.
- It provides immediate liquidity for heirs without forcing the sale of property, businesses, or investments.
- And unlike trusts that may require complex drafting, life insurance is straightforward, flexible, and fully under your control.
Simply stated, while Washing debates tax laws, you can lock in certainty today with permanent life insurance designed for generational wealth transfer.
A Real-World Example
A family with $5 million estate decides to fund a permanent life insurance policy that grows cash value over time with a $2 million dollar death benefit. When they pass, their children receive the benefit without income taxes or probate delays. Even if estate exemptions change in the future, this money passes directly and efficiently to the next generation.
This is how everyday families can achieve what ultra-wealthy families seek to do with trusts and other strategies, without needing a team of attorneys or steep legal fees.
At Brightside Financial, we guide family’s step by step to design life insurance plans that build certainty, flexibility, and lasting financial security.
👉 Schedule your free consultation with Brightside Financial today. Let us show you how a properly structured life insurance strategy can shift wealth to the next generation—completely tax free.
Disclaimer: Brightside Financial does not provide legal or tax advice. The information provided is for educational purposes only and should not be construed as legal or tax guidance. Clients should consult with their attorney and/or tax advisor for advice regarding their specific situation. Brightside Financial offers financial products such as life insurance, which may be used as part of a broader estate or financial plan.
