Imagine you've built a successful Florida business worth millions, raised a family, and accumulated substantial wealth over decades of hard work. Then, U.S. Congress threatens to slash the estate tax exemption in half. If you're like most affluent families, you probably started looking into how to restructure your estate plan before the deadline hit.
Now, it’s time to update your plan again. On July 4, 2025, President Donald Trump signed the One Big Beautiful Bill Act (OBBBA). It permanently boosts the federal estate and gift tax exemption to $15 million per person, or $30 million for married couples, effective January 1, 2026. Our Stuart estate planning lawyers explain how this may affect your ability to pass wealth onto your heirs without Uncle Sam taking a bite.
The One Big Beautiful Bill Act's Key Provisions
The One Big Beautiful Bill Act touches several key areas of federal tax law, but the estate and gift tax provisions represent the most significant changes for wealthy families. Let's break down exactly what's different and why it matters for your planning.
New Federal Estate and Gift Tax Exemption
The new federal estate and gift tax exemption jumped from $13.99 million in 2025 to $15 million, taking effect as of January 1, 2026. More importantly, Congress made it permanent with no more sunset clauses. The exemption stays put and gets inflation adjustments every year starting in 2027.
Without this legislation, families would've watched their exemption drop to roughly $7 million per person in 2026 due to the sunset provisions in the Tax Cuts and Jobs Act.
For a Miami Beach family that owns three restaurants worth a total of $20 million, they would’ve faced hefty estate taxes under the old rules. Now, they can comfortably transfer everything to their kids tax-free.
Generation-Skipping Gets the Same Treatment
The Generation-Skipping Transfer (GST) tax exemption also increased to $15 million per person. This alignment with the estate and gift tax exemption creates more opportunities for multi-generational wealth transfer strategies.
The GST tax typically applies to transfers that skip a generation, such as gifts from grandparents directly to grandchildren. Before, wealthy families had to get creative with trust structures to avoid this tax. Now they've got more room to work with to avoid this additional tax burden.
Annual Gift Tax Exclusion Remains Unchanged
The annual gift tax exclusion remains at $19,000 per recipient for 2025, with future adjustments for inflation. This provision continues to allow individuals to make unlimited gifts up to this annual amount without affecting their lifetime exemption.
Smart Moves for Florida Estate Planning Strategies
The higher exemptions create new opportunities for wealth transfer strategies that weren't practical under the old rules. Florida's tax-friendly environment makes these strategies even more attractive for Sunshine State residents looking to maximize their family's financial legacy.
Lifetime Giving Opportunities
The higher exemptions open up bigger opportunities for lifetime gifts. You can hand over more assets while you're alive, which removes all future growth from your taxable estate.
Consider a hypothetical family from Jacksonville. They own a tech startup currently valued at $8 million but expect it to dramatically increase in value. By gifting half the company to their children now, they remove not just the current $4 million value but all future appreciation from their estate. This still leaves them with $11 million of exemption still available.
Attractive Trust Strategies
Dynasty trusts become much more appealing with the higher GST exemption. These trusts can last for generations and protect assets from estate taxes, creditors, and even spendthrift beneficiaries. Florida's trust laws make it an ideal state for these structures.
Irrevocable life insurance trusts (ILITs) also benefit from the higher exemptions. Families can fund larger policies outside their taxable estate, providing liquidity for estate settlement while maximizing wealth transfer to beneficiaries.
Business Succession Planning
Florida business owners can now transfer larger portions of their companies to the next generation. Combined with valuation discounts for minority interests, the new exemptions make business succession planning much more flexible.
Review Your Existing Estate Plans for New Opportunities
Many estate plans created under the old exemption amounts may no longer serve their intended purpose under the new One Big Beautiful Bill Act. A thorough review can identify opportunities to optimize your planning and avoid potential pitfalls.
Many Current Plans Need Updates
If your Florida estate plan was designed around the old exemption amounts, it would likely benefit from a refresh. Credit shelter trusts that were designed to max out the exemption might now be underfunded. Some irrevocable trusts might need restructuring.
Formula clauses in wills and trusts should get special attention. These provisions automatically adjust based on exemption amounts, but they might not produce the results you want under the new law.
Revisit Your Legal Documents Too
Powers of attorney, healthcare directives, and beneficiary designations all need regular reviews. The new exemptions might affect decisions about who should handle your affairs and how assets should be distributed.
Florida-Specific Advantages Now Available
Florida residents enjoy unique benefits regarding estate planning, and the new federal exemptions amplify these advantages. The state's favorable tax and legal environment creates opportunities not available elsewhere.
No State Estate Tax
Florida's lack of a state estate tax makes the higher federal exemptions even more valuable. While residents of states like New York still face state estate taxes with much lower exemptions, Floridians can take full advantage of the federal increases.
Homestead Laws
Florida's homestead exemption provides unlimited creditor protection for your primary residence. Combined with the higher estate tax exemptions, this creates powerful opportunities for asset protection and wealth transfer.
Trust-Friendly State Laws
Florida's trust statutes offer strong asset protection features and favorable rules for trust duration. The state's directed trust laws allow for sophisticated planning structures that can maximize the benefits of the higher exemptions.
Optimize Your Estate Plan With Professional Help
Estate planning with the new exemption levels requires professional guidance. The stakes are too high for do-it-yourself approaches. Experienced attorneys understand both federal tax law and Florida's unique legal environment.
Regular reviews with your estate planning team help make sure your plan stays current and effective. Valuation is equally crucial for gift and estate tax purposes. Professional appraisals can help maximize the benefits of the higher exemptions while minimizing tax liability.
The One Big Beautiful Bill Act offers many advantages for wealthy Florida families. The permanent nature of the higher exemptions provides stability for long-term planning, but realizing these benefits requires smart action with sound legal advice.