What The Big Beautiful Bill Means For Estate Tax Exemptions

On July 4, 2025, the “One Big Beautiful Bill Act” was signed into law. The Bill covers a variety of issues related to taxes, federal program spending, and government agencies, among other issues. However, one notable part of the Bill is its extension and enhancement of increased estate and gift tax exemption amounts. Our East Greenwich, RI probate lawyer is here to help you understand how this new law may apply to your and your estate.

Attorney Geoffrey M. Aptt has a decade of legal experience and has advised clients with assets over $300 million. For assistance with your estate plan, contact Aptt Law LLC today.

The Language Of The Bill

Under § 70106, the One Big Beautiful Bill Act makes amendments to previous legislation, 26 U.S.C. § 2010.

First, the Bill increases the basic exclusion amount. Under the original statute, the basic exclusion amount was $5,000,000 per person. In 2017 legislation, 115 P.L. 97 § 11061, the basic exclusion amount was raised from $5,000,000 to $10,000,000. However, under the One Big Beautiful Bill Act, the basic exclusion amount is now raised to $15,000,000.

Further, the new Bill also accounts for future inflation adjustments. In the case of persons who die after 2026, the basic exclusion amount will be raised proportionately with the cost-of-living adjustment determined for 2025.

Additionally, the new Bill removes the expiration or end date for the basic exclusion amount increase. Previously, the increase in the basic exclusion amount applied only between December 31, 2017, and January 1, 2026, meaning that the increased basic exclusion amount would, after its January 1 sunset date, revert back to the original $5,000,000 amount, adjusted for inflation. Notably, the One Big Beautiful Bill Act removes this expiration clause, meaning that the new $15,000,000 basic exclusion amount is permanent.

Finally, the Bill notes that these amendments shall become effective and apply to estates of decedents dying and gifts made after December 31, 2025.

Effects Of The Bill On Estate Planning

The IRS collects federal taxes both on gifts made during a person’s life and on a person’s estate that leaves gifts to heirs after his or her death, if the monetary value of the gift or the inheritance is above a certain amount.

Under the new Bill, an individual can either gift or devise in a will up to $15,000,000 before incurring the federal tax. In the future, this amount will continue to increase in proportion with the rate of inflation.

Further, because of the Bill’s removal of the sunset provision, individuals considering making a gift or devising a portion of his or her estate no longer need to worry about doing so before the reversion date in order to avoid additional federal gift and estate taxes.

Contact Our East Greenwich Probate Lawyer Today

In conclusion, under the One Big Beautiful Bill Act, giftors, testators, and testatrixes will now only be taxed for gifts or estates made in excess of $15,000,000, and the expiration date for the increased basic exclusion amount is now permanently removed. Individuals and families with high net worth can take advantage of this exemption to limit their federal gift and estate tax liability. Our team at Aptt Law LLC is here to help you navigate the new law, minimize your federal estate and gift tax liability, and protect your assets and your future.

Disclaimer:

The Rhode Island Supreme Court licenses all lawyers in the general practice of law, but does not license or certify any lawyer as an expert or specialist in any field of practice. This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice, nor the formation of a lawyer client relationship.
No Attorney-Client Relationship Created by Use of this Website. Neither your receipt of information from this website, nor your use of this website to contact Aptt Law LLC (hereinafter “the Firm”) or one of its lawyers creates an attorney-client relationship between you and the Firm. You will become a client of the Firm only if and when you sign an engagement agreement setting forth the scope of the Firm’s engagement, the fee arrangement and other relevant matters.
Disclosure Under IRS Circular 230: Any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any tax-related transaction or matter.

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  I’ve had the privilege of knowing Geoff on a professional level for the past four years. We have cross multiple times because we travel in circles of like-minded entrepreneurs dedicated to seizing the incredible opportunities available to us in this amazing country. Equally important, we share a commitment to taking the right steps to protect our assets and achievements.

Within this circle, we’ve exchanged invaluable insights and expertise, helping one another grow as professionals and individuals. This collaborative environment is what gave me the confidence and assurance that Geoff is the correct professional to guide me when I needed a comprehensive strategy to safeguard my hard-earned assets and ensure my loved ones avoid unnecessary probate complications.

While many can set up a trust, Geoff goes beyond the basics. He obviously takes the time to understand your perspective, values, and vision for the future. I highly recommend Geoff not only for his exceptional knowledge and service but also for his firsthand experience as an active investor and his connection to a high-quality network of professionals focused on building generational wealth.
  
 
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  I have know Geoff Aptt now for over a decade and collaborated with him on a number of legal manners on behalf of myself and my clients. He’s honest, hardworking, smart, and willing to bring in experts when needed, which isn’t often. He is certainly one of the first people that come to mind when I need legal assistance of any sort, especially in business, trusts, and estate matters. Top notch and a down to earth straight shooter. I highly recommend.
  
 
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  I recently worked with Aptt Law on my estate planning, and I couldn't be more pleased with the experience. Geoff’s expertise in wills and estates was evident, and he guided me through every step with patience and clarity. I highly recommend this firm for anyone looking for professional and compassionate legal assistance in this area!
  
 
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  Geoffrey is extremely professional and accommodating. He stated a price within the first 15 minutes of meeting us to ensure that we were aware of what to expect and explained all aspects of our paperwork clearly. Geoffrey also made arrangements to work around our schedule. I would gladly recommend him to anyone seeking an estate lawyer.
  
 
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Very informative and takes the time to make sure that you are comfortable and understand everything. Everything done with a Will, Trust, Power of Attorney and more! Would recommend and work with again!
  
 
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  Geoff and his paralegal were both amazing in guiding my wife and I through our trust journey. I feel they truly cared about our children's future as they laid out our options in great detail, and they made sure the things we decided on paper met our fullest intent. Even as we made changes right upto signing the final product.
  
 
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