OBBBA 101: Quick Guide for Advisors Supporting Clients

The One Big Beautiful Bill Act (OBBBA) is one of the most significant pieces of tax and benefit legislation in recent years. While its details can feel overwhelming, advisors don’t need to memorize every subsection to make a meaningful impact for their clients. This quick guide highlights the key changes and action steps every trusted advisor should know now that the law is in effect.

Quick Guide Overview

Effective Date:
July 4, 2025 — Advisors should be actively helping clients adapt their strategies to the new rules.

Bonus Depreciation:
100% through 2026 — A powerful opportunity for business owners to accelerate deductions and reinvest in growth.

Estate Tax Exemption:
$15 million per person, with no sunset — This creates new planning strategies for high-net-worth families and removes the previous uncertainty tied to the 2026 sunset.

SALT Deduction:
Raised to $40,000 — A significant change for many California families and business owners who were previously capped under lower limits.

Income Tax Hike:
Canceled — A relief for many taxpayers who were anticipating increases.

Medi-Cal:
Tightened asset limits and funding cuts in California — A critical area for elder law and benefits planning. Seniors and disabled clients may be especially vulnerable under these new rules.

Advisor Action Items

1. Educate Clients Early
Even though the law has gone into effect, many clients remain unaware of its implications. Advisors should proactively share updates to ensure clients can take advantage of opportunities and avoid unintended consequences.

2. Coordinate Planning
This is not the time for siloed advice. Work closely with estate planning attorneys, CPAs, and financial planners to craft cohesive strategies that maximize the benefits of OBBBA while mitigating risks.

3. Flag Vulnerable Clients
Pay particular attention to seniors, Medi-Cal recipients, and families with aging parents who may be impacted by asset limit changes. Proactive planning can help protect their benefits and financial security.

Collaborate with Our Team

OBBBA brings both significant opportunities and critical risks. By working together, we can help clients navigate these changes with clarity and confidence.