Winners and Losers Under the Big Beautiful Bill

The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, has been called “beautiful” by some and “ugly” by others. Why? Because its sweeping reforms bring significant advantages for certain families while creating new challenges for others.

Here’s what you need to know.

The Winners

High-Net-Worth Families

The federal estate tax exemption is now $15 million per person ($30 million for couples)—and it’s permanent. Families no longer have to worry about the 2026 sunset that was expected to cut the exemption in half. This change provides more breathing room when transferring wealth and allows for long-term planning with greater confidence.

Property Owners in High-Tax States

The SALT deduction cap has been raised from $10,000 to $40,000. For homeowners in states like California and New York, this restores a meaningful tax benefit that had been limited for years.

General Taxpayers

The OBBBA also canceled the scheduled 2026 income tax bracket increase and raised the standard deduction. This means more income stays shielded from taxes, and fewer families will be pushed into higher brackets simply because of inflation.

The Losers

Seniors Relying on Medi-Cal

California has reinstated strict asset tests for Medi-Cal eligibility. Even modest retirement accounts or ownership of a second property could now block access to long-term care coverage.

Disabled Individuals

Reduced federal Medicaid funding means fewer resources for those who rely on Medi-Cal to cover essential health services.

Adults Under 65 on Medicaid

New work requirements may complicate eligibility and put coverage at risk for those unable to meet them.

What This Means for You

The OBBBA doesn’t create a single outcome for everyone—it creates both opportunities and risks, depending on your circumstances. For some families, it’s an opening to simplify trusts, reassess gifting strategies, or maximize deductions. For others, it’s a warning to take proactive steps to protect assets and preserve access to long-term care benefits.

The Takeaway

The Big Beautiful Bill is reshaping tax and estate planning in ways that will affect nearly every household. The best way to protect your family’s financial future is to make sure your plan reflects these new rules.

Action Step: Don’t wait to find out whether you’re a “winner” or “loser” under this law. Schedule a review with your estate planning attorney or financial advisor to ensure your plan is aligned with today’s realities—and tomorrow’s goals.