By Jeremy A. Wechsler, Esq.
Investment Advisor Representative
[email protected]
As we move into the second half of 2025, Congress is fiercely debating in the One Big Beautiful Bill Act — their latest sweeping tax proposal. One key provision? A permanent increase to the federal estate tax exemption.
Right now, very few of our readers need to worry about the federal estate tax. The current exemption sits at $13.99 million per person and $27.98 million per married couple, with a 40% tax applied to any amount above that. But these generous limits are set to expire after 2025, potentially dropping the exemption to around $7 million per person.
The new GOP proposal would increase the exemption to $15 million per individual ($30 million per couple) starting in 2026 — but here’s the catch: it wouldn’t be inflation-adjusted, and it’s unclear how long it would stay in place. In today’s tax landscape, “permanent” often just means “until the next election.”
Bottom line: No one knows where this bill will end up once it moves through Congress. The House may pass one version, the Senate may run it through the shredding machine, and by the time the political sausage making is complete, it could look very different.
Even if you’re not impacted by the estate tax, don’t ignore your estate plan. Smart planning around capital gains, IRA taxation, and Pennsylvania Inheritance Tax still matters. And Roth conversions? They’re one of the best tools we have for freezing future tax exposure.
I’ll keep watching what happens in Washington and will share updates as we get more clarity. In the meantime, it’s always a good time to make sure your estate plan still reflects your goals — tax law or not.