The estate tax rules just changed. They changed permanently. And most business owners haven't updated their plans to take advantage.
What the OBBBA Actually Did
In 2025, Congress passed the*One Big Beautiful Bill Act (OBBBA). It raised the federal estate and gift tax exemption to$15 million per person*. For married couples, that's $30 million. And unlike past changes, this one has no expiration date.
The old exemption was going to drop to roughly $7 million in 2026. That didn't happen. The OBBBA locked in a higher number, and indexed it for inflation going forward. This is the biggest estate planning shift in decades.
Why This Isn't "Case Closed"
Many advisors are telling clients to relax.That's the wrong call.A higher exemption isn't the end of planning. It's the start of a new phase.
Most estate plans were built around the old, lower limits. Those plans are now outdated. They need to be rebuilt to capture what's available under the new law.
What Business Owners Are Missing
Here's where the real opportunity sits right now:
- Dynasty trustscan shelter more wealth across multiple generations than ever before.
- Lifetime giftingremoves future appreciation from your taxable estate today, not at death.
- QSBS (Qualified Small Business Stock)exclusions were expanded. Up to 100% of gains can be excluded after five years of ownership.
- The*generation-skipping transfer exemption*also rose to $15 million. This opens powerful multi-generational planning strategies. Most business owners aren't using any of these tools. Their advisors haven't had the conversation yet.
What Austin Business Owners Should Do Now
Austin recorded a*record $7.94 billion in venture capital funding in 2025*, up 116% from the year before. More local founders are heading toward liquidity events. Without an updated estate plan, a large portion of that wealth goes to the IRS instead of the next generation.
Congress can change tax law at any time. Families who act now, while exemptions are high and planning tools are broad, will be far better off than those who wait.
Three Things to Review Today
If your estate plan was written before 2025, it was built around different rules. Start here:
- Review your trust structures.Older irrevocable trusts may be set up for limits that no longer apply. A reset can unlock big new opportunities.
- Make a large lifetime gift.Removing high-growth assets from your estate today locks in today's values. It shields future gains from tax.
- Connect your estate plan to your exit plan.If you plan to sell your business, timing your sale alongside your gifting strategy can make a seven-figure difference in what your heirs receive.
FAQ
How do I know when it's time to sell?The right time depends on your goals, the market, and your tax picture. A good advisor helps you see the full picture, not just the sale price, but what your family keeps after taxes and fees.How do I minimize taxes on a sale?Installment sales, Charitable Remainder Trusts, and qualified opportunity zone investments can all reduce your bill. QSBS treatment can wipe out federal capital gains entirely on qualifying stock.When should I start planning my exit?Most business owners wait too long. The best time to start is three to five years before you want to sell. That gives you time to restructure, gift, and build value on purpose.
If your estate plan hasn't been updated since 2024, it may already be out of date.Schedule a review with Douglas Greenberg at Pinnacle Wealth Advisoryto see where you stand.
Douglas Greenberg is a wealth advisor at Pinnacle Wealth Advisory with over 35 years of experience helping business owners build, protect, and transfer wealth. All investments carry risk. Consult with a financial advisor before making any financial decisions. Past performance is not indicative of future results.
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