Think You’re Safe from Estate Taxes? Think Again

When the One Big Beautiful Bill Act (OBBBA) became law on July 4, 2025, it set the federal estate tax exemption at $15 million per person (or $30 million for couples), indexed for inflation. On the surface, this number seems so high that most families assume estate taxes are no longer a concern. But here’s the reality: with rising property values, business growth, and decades of inflation ahead, more families may find themselves facing estate taxes than they realize.

Why $15 Million May Not Be Enough

• Real Estate Appreciation: In markets like California, property values can rise dramatically over time. A home worth $2 million today could easily double—or more—in the coming decades, quickly eating into the exemption.
  
• Business Growth: Small business owners and entrepreneurs often underestimate how much their companies are worth. With growth, acquisitions, or succession events, business values can soar past expectations.
  
• Inflation’s Slow Creep: The exemption adjusts for inflation, but history shows that assets—especially real estate and securities—often outpace standard inflation adjustments. That means your estate can grow faster than the exemption, pushing you into taxable territory.
  

The Cost of Waiting

Without proactive planning, families who assume they’re “safe” could end up with heirs facing significant estate tax liability. That could mean forced sales of family homes, liquidation of business interests, or reduced inheritances to cover unexpected tax bills.

Locking In Today’s Opportunities

The good news? There are strategies to secure today’s exemption amounts for tomorrow. Options may include:

• Making strategic lifetime gifts.
  
• Using trusts to move appreciating assets out of your estate.
  
• Coordinating business succession plans with tax-smart structures.
  

These tools don’t just minimize estate taxes—they also create clarity, protect family wealth, and allow your heirs to avoid stressful surprises.

The Takeaway

The OBBBA’s $15 million exemption may sound like a safety net, but it isn’t a guarantee. If you own a home, a business, or substantial investments, you could hit that number sooner than you think. The time to plan is now—before appreciation and inflation make the problem unavoidable.

Estate tax planning isn’t just for the ultra-wealthy anymore. If your estate could grow beyond the exemption—or if you simply want peace of mind—now is the time to sit down with a qualified estate planning attorney. Whether you choose to work with us or another trusted professional, don’t leave your family’s future to chance. Take the step today to lock in protections, secure your legacy, and keep more of what you’ve built in the hands of those you love.