You may have heard a lot of buzz on the internet about President Donald Trump’s “One Big Bill Act” (OBBBA). The bill officially comes into effect this month, which will affect more Americans. Some key regulations will directly affect how much you can give to your loved ones or tax exemptions. You might think you have a reasonable real estate plan, but the latest changes in OBBBA may affect your strategy. Here is a snapshot of changes that could affect your real estate plan and what you can do to better protect your assets (and avoid any surprises).
Always richer: Legacy and gifts tax-free jump
A major change is that federal estate and gift tax exemptions have become permanent, rising to $15 million per person, and $30 million per year for married couples in 2026. This means you can pay or leave more to your heirs before any taxes. Previously, the exemption was originally scheduled to drop to around $7 million in 2026 unless Congress takes action.. Now, the higher threshold stays where it is and rises every year with inflation. This provides certainty in your real estate plan and reduces speculation about future tax exposures.
Don’t delay the giveaway – Have time to use it
Because the new law resets the exemption base year to 2026, you can now have the flexibility to make lifelong gifts. This eliminates the battle for many, many people to face gifts before sunset in 2025. Nevertheless, some advisers recommend using at least a portion of the exemption as early as possible, as future lawmakers can still change the rules even if the law calls themselves “permanent.” Transfers to trusts or heirs remain a powerful tool for traditional planning. Bottom line: You can plan calmly, but faster behavior can still pay off.
Generate Sliding Transfer (GST) Plan Unlocked
The remodeled exemption also applies to an onset transfer tax (GST), which covers transfers to grandchildren or great-grandchildren. This means you can allocate big gifts across descendants without triggering taxes. If you used to sell for $14 million, the new $15 million limit could provide more headroom. You will need to formally allocate exemptions in the trust to lock in those tax savings. If you don’t do this, you may leave unused tax shelter opportunities on the table.
Real estate and gift planning strategy transfer
With a $15 million exemption as a benchmark, real estate planning strategies are shifting from avoiding tax emergencies to legacy optimization. High net worth individuals can now focus on dynasty or flexible trusts, charitable donations and asset protection without rushing. Medium-care households can delay expensive reorganization and review will and trust the Flex clause. Everyone benefits from reviewing the name and portability clauses of beneficiaries. Even if you don’t owe taxes, the plan ensures that your intentions are respected.
But the national inheritance rules still bite
Don’t forget that federal changes will not affect state taxes. States such as Massachusetts, Nebraska and Kentucky impose lower estate or inheritance taxes. If you live or plan to move, you may still face state liabilities. This means families in these states may need supplemental strategies such as ILIT, Dynasty Trust, and even residency plans. Active coordination with your consultant can save your heirs thousands.
Digital assets and retirement accounts need to be updated
OBBBA reminds: Real estate planning is more than just exemptions. Your plan should address digital assets, retirement accounts, healthcare directives and powerless decisions. Federal laws won’t touch on these, but failing to update them will cause your family to rush. Check out the beneficiary form, confirm the successor trustee, and ensure your digital estate is accessible. A comprehensive real estate plan covers tax, legal and practical issues.
Professional consultants are still essential
Even if the exemption is higher, real estate planning is complicated and errors occur. A simple will leaves a gap in probate, incapacity or asset distribution. Trust must be funded and designed to address changing tax or household dynamics. Privacy, asset protection and Medicaid eligibility remain issues, especially as OBBBA cuts Medicaid funding. Professionals can tailor strategies or trust protectors for your situation. Regardless of the size of your portfolio, real estate planning remains crucial.
What this means for your family legacy
New legislation provides historic federal protections, but also requires thoughtful implementation. Real estate planning is not just about maximizing exemptions, it also involves ensuring your willingness guide how assets are used and cared for. Now it’s time to review your trust documents, giveaway strategies, state exposure and non-tax issues. Annual check-in with a qualified consultant ensures you and your estate are ready, no matter what the future holds.
Will the new laws change your real estate planning strategy? Or confirm that you are on the right path? Share your next step or your question in the comments below!
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Amanda Blankenship is a full-time living mom. Her family recently welcomed their second child, a baby boy, into the world. She likes to write about various topics, including politics and personal finance. In his spare time, Amanda enjoys playing with her kids, cooking from scratch, crocheting and reading.
