Episode 203: OBBBA and You, Part 3: Building, Passing, and Protecting Wealth Under OBBBA

This is the third and final installment of our discussion with Brett Layton, which explores key updates to tax laws, including estate tax limits, the alternative minimum tax, expanded uses of 529 plans, new “Trump accounts” for children’s savings, and changes to clean energy credits and business taxes. It emphasizes the importance of understanding these updates for effective financial and tax planning.

 

Takeaways

• Estate tax limits are increasing, providing more leeway for wealth transfer.
• Paying income taxes can strategically reduce your taxable estate.
• The estate planning community has been advocating for higher exemptions.
• 529 plans are evolving to cover a broader range of educational expenses.
• Trump accounts allow children to start saving without needing earned income.
• The government will contribute to Trump accounts for eligible children.
• Bonus depreciation for businesses has returned to 100%.
• The first $15 million of capital gains from qualified small business stock is tax-free.
• Understanding these tax changes is crucial for effective financial planning.
• The complexity of tax laws continues to increase, necessitating careful planning.

Chapters

00:00 Estate Tax Changes and Implications
07:08 Alternative Minimum Tax and Its Impact
11:25 Expanded 529 Plan Eligibility
17:19 Introduction of Trump Accounts
29:42 Clean Energy Credits and Business Tax Changes

 

Links

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This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”