What the One Big Beautiful Bill Act Means for Estate Planning

By Mark Moss | August 11, 2025

On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, ushering in a wave of sweeping changes to estate, tax, and Medicaid planning. While headlines are focused on the politics and fireworks, the fine print reveals something else: opportunity for some.

This new legislation increases the estate tax exemption, changes how families plan for long-term care, and introduces new financial vehicles for gifting and saving. But these changes don’t just benefit the wealthy. If you have a family, own a home, or expect to rely on government benefits later in life, the OBBBA affects you, too.

Let’s break it down and talk strategy.

A Historic Estate Tax Shift

Before the OBBBA, the estate tax exemption was set to decrease dramatically at the end of 2025. Instead, the Act increases the exemption to $15 million per person ($30 million per married couple), indexed for inflation starting in 2026. This means that most estates will now fall well below the taxable threshold, but that doesn’t mean you can skip planning.

Why this matters: Estate planning is more than tax planning. It’s about protecting what you’ve built, passing it down efficiently, and avoiding costly probate, unnecessary and avoidable taxable events, or family disputes. This is why we refer to ‘estate planning’ as ‘life planning’, because it’s about protecting the people and things you love the most.

Medicaid Cuts and a Cap on Home Equity

One of the most controversial parts of the Act is the estimated $1 trillion in cuts to Medicaid over the next decade. These reductions will likely affect long-term care benefits, especially for seniors and those with chronic conditions.

Additionally, beginning in 2028, there will be a $1 million cap on home equity for Medicaid long-term care eligibility. If your home’s equity exceeds that amount, you may not qualify for Medicaid assistance, unless you’ve planned ahead. Medicaid is run state-by-state, and we do not yet have guidance on whether Florida will follow this cap or apply a lower cap.

What to consider now:

Look into Medicaid asset protection strategies
Consider using irrevocable trusts or life estate deeds
Talk with a professional about long-term care insurance and planning tools

Charitable Giving & New Accounts

For those charitably inclined, the Act offers a new $1,000 charitable deduction for non-itemizers and increases the limits for cash gifts. It also introduces “Trump accounts”—a new type of savings vehicle for minors born between January 1, 2025 and December 31, 2028, that includes a $1,000 government contribution and allows up to $5,000 in additional contributions.

These accounts can support generational wealth building, especially when paired with smart gifting strategies and existing tools like 529 plans.

Small Business Boost: QSBS Changes

The OBBBA also improves incentives for entrepreneurs by expanding Qualified Small Business Stock (QSBS) benefits:

Shorter holding periods (3 years instead of 5)
Higher gain exclusion ($15M up from $10M)
Larger gross asset thresholds for companies to qualify

This opens up new estate planning opportunities for small business owners who want to pass their company down to the next generation without triggering massive capital gains.

Let’s Talk Strategy

Laws change, families grow, and assets shift, but a solid estate plan adjusts with you. Now is the time to revisit your strategy. Whether you’re concerned about the Medicaid cap, want to take advantage of higher exemptions, or need help managing your small business legacy, we’re here to guide you. Book a consultation today online or by calling (904) 329-7242.