The Big Beautiful Bill and What It Means for Your Estate Plan

Change is a constant in the world of law—and when it comes to estate planning, even a single piece of federal legislation can reshape the way families prepare for the future. That’s exactly what’s happening with the recent passage of the One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025.

At first glance, the name might sound playful but make no mistake: this law brings serious and permanent changes to how estates are taxed and how wealth can be passed from one generation to the next. For families in Rocklin, Roseville, Lincoln, and across California, it’s the perfect moment to revisit your estate plan—or finally create one if you haven’t yet.

Let’s walk through what changed, what it means for you and your loved ones, and how tools like a living trust can help you protect your legacy.

The Big Change: A New Estate Tax Exemption

For years, estate planners and clients alike have had their eyes on a looming deadline. Under the prior tax law, the generous estate tax exemption—about $13.99 million per person in 2025—was set to sunset at the end of the year, cutting in half for 2026. That would have brought the exemption back down to somewhere in the $6–7 million range per person, potentially subjecting many more estates to federal estate tax.

The One Big Beautiful Bill Act eliminates that sunset.

Starting in January 2026, the federal estate, gift, and generation-skipping transfer tax exemption will permanently increase to $15 million per person, or $30 million for married couples. This new threshold will also be indexed for inflation, meaning it will gradually rise over time.

What does that mean in practical terms?

For many families in our region—including Placer County, where real estate values have grown significantly over the past decade—this increased exemption provides peace of mind. Estates that may have previously fallen into taxable territory may now remain tax-free. But that doesn’t mean planning is any less important. On the contrary, this is a crucial moment to ensure your plan is structured for flexibility, protection, and control.

More Than Taxes: Why Estate Planning Still Matters

It’s tempting to think that if your estate won’t be subject to tax, you don’t need a plan. But estate planning isn’t just about tax avoidance—it’s about preserving your wishes, avoiding conflict, and keeping your family out of probate court.

Here in Rocklin and surrounding communities like Roseville and Lincoln, we often see situations where families could have avoided months (or years) of stress and confusion if only they had a well-thought-out plan in place.

Here’s what estate planning still accomplishes—regardless of how much the federal exemption is:

• Avoiding Probate: A properly drafted living trust allows your estate to avoid the long, expensive, and public process of probate. This is especially important in California, where probate costs can quickly eat into your estate’s value.
• Maintaining Control: With a living trust, you stay in control of your assets during your lifetime—and can appoint someone you trust to take over only if needed. That includes not just death, but incapacity as well.
• Distributing Assets Thoughtfully: A trust allows you to specify exactly how, when, and to whom your assets are distributed. Whether you want to delay distributions to younger beneficiaries or make special provisions for a child with disabilities, a trust provides the flexibility a simple will cannot.
• Protecting Privacy: Unlike a will, a trust is private. Your family avoids the public scrutiny that can come with probate proceedings.
• Planning for Incapacity: Powers of attorney, advance health care directives, and trust-based planning ensure that if something happens to you, the right people can step in and manage your affairs without court intervention.

What Should You Do Now?

If you already have an estate plan, now is a good time to review it. Ask yourself:

• Does my plan take advantage of the new federal exemption?
• Have my assets changed significantly since I created my plan?
• Are my successor trustees, beneficiaries, and agents still the right choices?
• Does my trust include flexibility to adjust for future legal changes?

If you haven’t yet created a plan, now is an ideal moment to start. With the increased federal exemption locked in, your estate planner can focus on preserving control, avoiding probate, and aligning your plan with your goals—rather than rushing to “beat the clock” on changing tax law.

For business owners, blended families, or those with significant real estate holdings (including family cabins, investment properties, or farms), customized planning is even more important. The law may have changed, but the complexity of life hasn’t.

Let’s Talk About Your Legacy

At Filippi Law Firm, P.C., we help families across Rocklin, Roseville, Lincoln, and the greater Sacramento area create meaningful estate plans that reflect their values, protect their assets, and provide peace of mind. We believe estate planning shouldn’t be intimidating—it should be empowering.

Whether you need to update your existing living trust, explore gifting opportunities under the new exemption, or simply want to ensure your plan still works the way you intended, we’re here to help.

Let’s make sure your legacy is protected—beautifully.