How Advisors Should Talk to Clients About the New Estate Exemption

The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, permanently reshaped the estate planning landscape. By raising the estate tax exemption to $15 million per person ($30 million per couple) and eliminating the previously scheduled 2026 sunset, the OBBBA removed one of the largest sources of uncertainty for high-net-worth families.

For advisors, this change offers an opportunity to reframe client conversations—shifting the focus from deadline-driven urgency to thoughtful, strategic planning.

A Shift in Planning Dynamics

Prior to the OBBBA, many clients felt pressured to complete large gifts or establish complex trust structures before the exemption was cut in half. With that risk now eliminated, advisors can help clients take a more deliberate approach, aligning tax planning with personal, family, and philanthropic goals.

Key Considerations for Client Discussions

• Reassess Gifting Strategies: Determine whether prior gifting decisions were driven primarily by tax deadlines, and whether current strategies still align with the client’s long-term objectives.
  
• Evaluate Existing Trusts: Many trusts designed solely to mitigate estate taxes may no longer be necessary or may benefit from simplification, easing the administrative burden for future trustees and beneficiaries.
  
• Balance Planning with Lifestyle Needs: Clients can now make decisions without artificial time constraints, allowing greater consideration of retirement security, business growth, and legacy aspirations.
  

The Advisor’s Role in a New Era

The removal of the sunset shifts the advisor’s role from urgent tax avoidance to holistic, future-focused planning. Advisors are uniquely positioned to ensure that financial strategies and estate plans remain coordinated, tax-efficient, and flexible in light of evolving family circumstances.

Collaboration Creates Confidence

The most effective outcomes arise when financial advisors and estate planning attorneys work in tandem. By reviewing existing estate documents and updating strategies where necessary, advisors can help ensure their clients’ plans are both legally sound and financially optimized.

The Takeaway

The OBBBA’s higher, permanent exemption provides relief from immediate estate tax concerns, but it does not eliminate the need for proactive planning. Clients still benefit from revisiting their estate plans to confirm they reflect today’s legal framework and tomorrow’s aspirations.

Insight for Advisors: Position the exemption change as an opportunity—not just to reassure clients, but to re-engage them in meaningful planning conversations. By partnering with estate planning counsel, you can guide clients toward confident, informed decisions about protecting and transferring their wealth.