The One Big Beautiful Bill Act (OBBBA), enacted earlier in 2025, introduced sweeping changes to federal estate, gift, and generation-skipping transfer (GST) tax laws. While many individuals and families welcomed the high exemption thresholds and expanded planning options, estate-planning experts have been working through a set of unanswered questions. In fact, the American College of Trust and Estate Counsel (ACTEC) formally submitted comments on December 3, 2025, urging federal authorities to clarify how several provisions will function in practice. Anyone working with an estate tax planning lawyer or considering changes to their estate documents should be aware of these concerns as the year closes.
Trump Accounts Raise Key Tax Questions
One of the most notable new tools created under OBBBA is the so-called “Trump Account,” a savings structure intended to support children’s long-term financial growth. While these accounts resemble custodial savings vehicles, they are not identical to 529 plans or other education-focused arrangements. This distinction has sparked debate among tax professionals and legal scholars.
ACTEC has emphasized that the law does not clearly define how contributions to Trump Accounts should be treated for both gift tax and GST planning purposes. Without clarification, families could unintentionally trigger taxable events by contributing to these accounts or fail to report a transfer that should be taxable. Experts are asking regulators whether a Trump Account contribution should count as a present-interest gift eligible for the annual exclusion, or as a transfer requiring use of lifetime exemption amounts. The answer impacts not just tax reporting, but also long-term multi-generational strategies.
GST Implications Could Affect Multi-Generational Planning
Beyond gift tax treatment, ACTEC’s comments focus heavily on how these accounts may impact generation-skipping transfer taxation. Because Trump Accounts can hold assets for minors and potentially grow for years or decades, they may function similarly to trusts designed to pass wealth across multiple generations. If the accounts receive special tax status or different GST treatment, this could significantly expand planning opportunities. Conversely, if the accounts are later subject to GST assessments, families who have contributed generously may face unexpected tax liabilities. Estate planners worry about the possibility of “retroactive tax impact,” a situation in which regulators alter the tax treatment years later, after families have already relied on the accounts. ACTEC’s commentary calls for clear, proactive regulation to avoid these risks.
Broader Concerns Extend Beyond One Account Type
Although Trump Accounts received the most attention, ACTEC’s filing also raised broader concerns about valuation reporting, itemized deduction impacts, and compliance requirements for trusts holding appreciated assets. The organization cautioned that the law’s rapid rollout could lead to inconsistent interpretations among tax professionals, financial institutions, and courts. This uncertainty highlights the importance of regularly reviewing estate documents and asset-ownership strategies. A plan that seemed compliant last year may require adjustments under OBBBA, particularly when assets are intended to benefit minors or future generations. Clear guidance will eventually arrive, but thoughtful planning today can prevent costly corrections later.
Now Is The Time To Review Your Estate Plan
Even without finalized regulations, individuals and families can update their estate strategies in ways that preserve flexibility and minimize exposure to future tax risk. This includes reviewing gifts to minors, analyzing potential GST consequences, and confirming how trusts or new savings vehicles align with OBBBA changes. Estate Planning Pros understands how new federal rules intersect with long-term legacy planning and can provide guidance tailored to your goals. Before the next tax year unfolds, connect with our professionals to learn more about protecting your family’s financial future and navigate these newly emerging considerations with confidence.