Unlocking Generational Wealth: Estate Planning After the Big Beautiful Bill
October 6, 2025
By Trevor Yuska, Financial Analyst
Trevor Yuska
Financial Analyst
With the passage of the One Big Beautiful Bill Act (“OBBBA”), estate planning has entered a new era, particularly for business owners. Beginning in 2026, the federal estate, gift, and generation-skipping transfer tax exemption will increase to $15 million per individual (or $30 million per married couple). This is more than double what the exemption would have been if the Tax Cuts and Jobs Act provisions expired as originally scheduled. Although the exemption no longer appears to be at risk of declining, business owners should still consider the benefit of enacting an estate plan sooner rather than later. The increased exemption allows families to transfer more wealth to the next generation without triggering estate tax, creating a unique opportunity for owners to begin or accelerate succession planning with far less tax exposure.
One of the most effective strategies of transferring wealth involves gifting minority interests in a business. Minority ownership interests are typically valued at a discount due to their lack of ability to control company decisions and the absence of a readily available market. These discounts allow business owners to transfer ownership at a lower appraised value than a proportional share of the company’s overall worth. Recapitalizing a business to create and gift non-voting shares enables an owner to transfer a larger percentage of the company’s value, while still qualifying for the same discounts. This allows more wealth to be shifted out of an estate without requiring the owner to relinquish control.
However, estate planning is not just about tax minimization; succession planning is essential to ensure the long-term continuity of a business. A thoughtful estate plan aligns tax-effective wealth transfer, ownership transition, and management continuity. These three components reduce future disruption of business operations, preserve the business’s value, and ultimately can align the business owner’s personal and business goals to secure the legacy of their business.
With changes resulting from the OBBBA, now is the time to review your estate and succession plans. By working with trusted advisors, business owners can take advantage of OBBBA to maximize financial outcomes and ensure business continuity, while cementing a lasting legacy.
Published in ABI Business Monthly (in Corridor Business Journal and Quad Cities Business Journal), October 6, 2025.