By Colleen Weber, CFP®, CPA

President Trump’s sweeping tax proposal, known as the “One Big Beautiful Bill,” has just passed in the House of Representatives and is now heading to the Senate for consideration. The bill (at over 1,100 pages) is designed to extend key provisions from the 2017 Tax Cuts and Jobs Act (TCJA), add new tax breaks for workers and families, and promote domestic investment. With an estimated price tag of $4.1 trillion over 10 years, it also includes several provisions that carry important implications for estate planning and generational wealth transfer.

We at Colleen Weber CPA, CFP^® have been helping individuals and families in the greater Minneapolis–Saint Paul area, throughout Minnesota, and the United States navigate tax law changes for over 20 years—always with an emphasis on integrating tax strategies, financial planning, and investment management into one seamless approach. Because we’re a fee-only fiduciary firm, our guidance is never influenced by commissions or product sales. Even when legislation like this adds new layers of complexity, our focus is on helping you simplify your financial life, minimize taxes, and create lasting financial peace and confidence.

Permanent Extension of Individual Tax Cuts

One of the core goals of the bill is to make the TCJA’s individual tax changes permanent. These include maintaining lower marginal tax rates, keeping the enhanced standard deduction ($32,000 for joint filers under the new bill), and continuing the repeal of personal exemptions. One of the thorniest issues is the state and local tax (SALT) deduction provision. It appears this figure should be a $40,000 cap up to $500,000 of AGI.

These provisions, while designed for income tax relief, indirectly impact estate planning by increasing after-tax cash flow and reducing the need for income-shifting strategies in the short term. The marriage penalty continues to be mitigated for most brackets, which is relevant for married couples structuring trusts or gifting strategies.

Increased Gift and Estate Tax Exemptions

Significantly, the proposal would make the higher estate and gift tax exemption amounts permanent, rather than allowing them to sunset in 2026. Under current law, the lifetime exemption is $13.61 million per person ($27.22 million per couple), but it’s scheduled to drop by about half when the TCJA provisions expire. Trump’s new bill would maintain the higher thresholds indefinitely, providing high-net-worth individuals with an extended window to transfer wealth without triggering federal estate or gift tax. For families with complex estate plans or large privately held assets (e.g., real estate, closely held businesses), this creates a valuable opportunity to revisit the benefits of trusts, such as Grantor Retained Annuity Trusts (GRATs), SLATs (see below), Irrevocable Life Insurance Trusts (ILITs), and other gifting vehicles.

Step-Up in Cost Basis and Capital Gains Treatment

Importantly, the bill retains the step-up in basis at death, meaning heirs would still inherit appreciated assets at their fair market value, eliminating built-in capital gains for income tax purposes. While there had been previous discussions about eliminating the step-up or taxing unrealized gains at death, this proposal takes no such step. This reinforces the value of holding appreciating assets through life and passing them on through the estate, especially for families with concentrated positions in real estate or closely held stock.

Implications for Trust Structures and Generational Planning

For those using irrevocable trusts to shield assets from estate taxes or control distributions over time, the permanence of the current exemption levels provides clarity and flexibility. It may also reduce the urgency of more aggressive estate freeze strategies, but it’s important not to become complacent; future political changes could reverse course. 

Additionally, if you’ve been considering the use of dynasty trusts or spousal lifetime access trusts (SLATs), this bill may extend the planning horizon, offering more time to fully fund these vehicles.

Tax Incentives for Multigenerational Goals

Some of the new provisions in the bill may be minor on their own but carry long-term planning implications. For example, the proposed “MAGA Savings Accounts” would allow tax-free savings of up to $1,000 annually per child born during Trump’s second term. While largely symbolic, these accounts could be leveraged as part of a broader multigenerational wealth strategy, especially if combined with 529 plans, Roth IRAs for teens, or custodial accounts for early investing.

Action Steps to Consider

Review gifting plans: Consider making additional lifetime gifts to family members or irrevocable trusts while the exemption is high.

Revisit trust strategies: With higher exemptions potentially locked in, now is the time to fine-tune SLATs, GRATs, and other irrevocable structures.

Reassess asset titling: Ensure taxable and non-taxable assets are titled optimally to take full advantage of step-up in basis rules.

Coordinate with legal counsel: Estate planning documents such as wills, trusts, and powers of attorney should be updated regularly to reflect current law and family dynamics.

What the Big Beautiful Bill Could Mean for You, and How We Can Help

At Colleen Weber CPA, CFP^®, we’re watching the progress of this legislation closely and helping clients proactively adjust their plans. Whether you’re considering making lifetime gifts, updating your estate documents, or wondering how the new exemptions might impact your generational planning, we’re here to help you make confident, informed decisions.

As a CPA and CFP® professional, I offer an integrated, conflict-free perspective that brings your tax, investment, and estate planning strategies into alignment. If you’d like to discuss how the Big Beautiful Bill could affect your financial picture, please reach out by booking a free introductory meeting online or calling (952) 470-0750.

About Colleen

Colleen Weber is a fee-only financial advisor, CERTIFIED FINANCIAL PLANNER® professional, and CPA based in Chanhassen, Minnesota. With more than 20 years of financial planning experience, Colleen provides comprehensive financial planning and wealth management. She specializes in serving clients nearing retirement, retirees, busy professionals, and women. She is passionate about developing financial plans that save clients on taxes and investment strategies that help them pursue their goals. Learn more about Colleen by connecting with her on LinkedIn or booking a complimentary phone call meeting.