In a move that highlights growing concerns about economic inequality, the House recently passed the so-called “One Big, Beautiful Bill,” which includes a major shift in federal estate tax policy. Among its key provisions is a proposal to raise the estate tax exemption to $15 million per person in 2026—a change that would primarily benefit the top fraction of the wealthiest Americans. For the vast majority of families, this change offers no tangible relief, yet it further insulates large fortunes from taxation. It’s a development any estate tax planning lawyer is watching closely, not because it helps the average client, but because it helps preserve generational wealth for a small elite.
Who Actually Benefits From The Proposed Change?
Under current law, the federal estate and gift tax exemption sits at $13.99 million per individual. That’s already high enough to exclude more than 99.9% of estates from any federal estate tax liability. This proposed increase to $15 million is not a broad middle-class tax break—it’s a targeted benefit for the ultra-wealthy.
Most working families, even those with significant retirement savings and home equity, will never come close to breaching the current exemption threshold. Instead, this change makes it easier for multimillionaires and billionaires to pass vast sums of money to heirs without paying any estate tax, potentially avoiding billions in federal revenue that could otherwise support public services or infrastructure.
A Missed Opportunity For Broader Reform
While many Americans continue to struggle with housing costs, medical debt, and financial insecurity, Congress is debating legislation that further reduces the tax burden on estates worth tens of millions. Raising the exemption to $15 million means that a married couple could pass nearly $30 million to their children without paying a dollar in estate taxes.
This shift comes at a time when wealth inequality is at historic highs. According to the Federal Reserve, the top 1% of households now own more than 30% of the nation’s wealth. Yet tax policy like this continues to reduce their obligations, even as ordinary families face mounting financial pressure and stagnant wages.
The Possible Implications For Estate Planning
For estate tax planning lawyers, this change does shift strategic considerations, though largely for an exclusive segment of clients. Those managing large estates may now have even more room to delay gifting or restructure trusts, without concern for looming tax deadlines. Trusts such as SLATs, GRATs, and Dynasty Trusts are likely to continue playing a role in preserving multigenerational wealth, though the urgency to “use it or lose it” may subside. However, for the 99% of Americans who won’t face estate tax under current law or any version of this proposed change, the conversation remains more about probate, long-term care, and avoiding family disputes, not federal tax avoidance.
If your law firm focuses on sophisticated estate planning for high-net-worth families, this shift may offer new opportunities to expand your services. By listing with Estate Planning Pros, you can connect with clients looking for targeted support in trust design, wealth transfer, and advanced tax mitigation strategies.