ACTEC Trust & Estate Talk Estate & Gift Tax and Charitable Contributions Under the OBBBA
Sep 2, 2025
Beth Shapiro-Kaufman, an esteemed ACTEC Fellow from D.C., dives into the transformative One Big Beautiful Bill Act (OBBBA) and its sweeping changes to estate and gift taxes. She reveals how the legislation increases tax exemptions and navigates the complex budget reconciliation process. The conversation also highlights new rules around charitable contributions and the impact of an excise tax on endowments, emphasizing the importance of adapting financial planning to these changes. It's a must-listen for anyone in the trust and estate profession!
AI Snips
Chapters
Transcript
Episode notes
$15M Exemption Goes Into Effect
- The One Big Beautiful Bill (OB3) raises the estate and gift tax exemption to $15M per person effective Jan 1, 2026 and indexes it thereafter.
- The exemption is permanent until Congress changes the law, so planners must still monitor future legislative shifts.
Reconciliation And The Byrd Rule Constrained The Bill
- OB3 passed as a budget reconciliation bill to avoid filibuster but faced Byrd Rule limits enforced by the Senate parliamentarian.
- Some provisions were struck as 'extraneous,' forcing edits or removal during Senate consideration.
Factor In Current Policy Baseline In Planning
- Understand the bill's $4.5 trillion ten-year budget framework and the use of a current policy baseline when advising clients.
- Recognize that treating TCJA as baseline allowed many extensions to appear to cost nothing in scoring.