How The One Big Beautiful Bill Affects Seniors And Inheritance Planning

By Andrew Bosshard, Estate Planning Attorney

The One Big Beautiful Bill Act, signed into law on July 4, 2025, brought sweeping updates to federal tax and estate laws—many of which directly affects seniors, retirees, and those focused on inheritance planning and passing assets to the next generation. Two key changes stand out for inheritance planning: the permanent increase to the federal estate tax exemption and a new charitable giving deduction available to non-itemizers.

Understanding these changes now can help you take advantage of new opportunities and avoid surprises when planning your estate.

Estate Tax Exemption Permanently Increased

Beginning in 2026, the federal estate and gift tax exemption will rise to $15 million per person (or $30 million for married couples), with automatic adjustments for inflation in future years.

This is a significant increase from the previous exemption amount and means:

• Fewer estates will be subject to federal estate taxes.
• High-net-worth individuals have more flexibility to transfer wealth during their lifetime or at death without triggering federal estate tax.
• Married couples can combine their exemptions for up to $30 million in tax-free transfers.

For families with substantial assets—such as real estate holdings, family farms, or business interests—this expanded exemption opens the door to passing more wealth directly to heirs without tax erosion.

Step-Up In Basis Remains Intact

Alongside the increased exemption, the bill preserves the step-up in basis rule. This means heirs will continue to inherit property at its fair market value at the time of death, minimizing potential capital gains taxes if they later sell the asset.

For example, if your children inherit a home that has appreciated significantly over the years, they won’t pay capital gains tax on the increase in value that occurred during your ownership.

New Charitable Giving Deduction For Non-Itemizers

The One Big Beautiful Bill also introduced a charitable deduction for non-itemizers—a provision especially beneficial for seniors who take the standard deduction rather than itemizing.

Here’s what’s new:

• Individuals can deduct up to $1,000 in charitable donations per year without itemizing.
• Married couples filing jointly can deduct up to $2,000.
• The deduction applies to qualified charitable organizations and can be claimed annually.

This change encourages more Americans, including retirees on fixed incomes, to give to causes they care about while receiving a direct tax benefit.

What This Means For Your Inheritance Planning

For seniors and those nearing retirement, these changes may influence key estate planning decisions, such as:

• Whether to adjust your will or trust to take advantage of the higher exemption.
• How to incorporate charitable giving into your estate plan for both personal fulfillment and tax efficiency.
• When to transfer assets to family members—now or in the future.

Even if your estate falls well below the new $15 million threshold, these updates may provide opportunities to simplify your planning and increase the value passed on to heirs.

Take Action Now

The One Big Beautiful Bill creates new opportunities for seniors to preserve wealth and leave a lasting legacy. By reviewing your estate plan now, you can:

• Ensure your documents reflect the current exemption limits.
• Incorporate charitable gifts in a way that maximizes your tax benefits.
• Prepare your family for a smooth transfer of assets when the time comes.

At Bosshard Parke, we help individuals and families across La Crosse, Sparta, and western Wisconsin create estate plans that are as straightforward and efficient as possible. If you have questions about how the One Big Beautiful Bill affects your inheritance planning, our estate planning attorneys are here to help guide you.

Disclaimer: This blog post is for informational purposes only and does not constitute legal or tax advice. For personalized guidance, please consult an attorney or tax professional at Bosshard Parke.