Shifting Priorities After OBBBA
The One Big Beautiful Bill Act (OBBBA) has reshaped estate planning in ways that go far beyond raising the federal estate and gift tax exemption to $15 million per person. With estate tax exposure now eliminated for most families, the focus has shifted squarely to income tax efficiency, basis planning, and the strategic use of trusts.
In this two-hour webinar, Martin Shenkman, Jonathan Blattmachr, and Robert Keebler explore the key changes brought by OBBBA and how planners can transform them into opportunities. Their discussion highlights practical strategies for basis step-ups, charitable planning, and non-grantor trust structuring, all designed to maximize client outcomes in the new environment.
Why Basis Planning Matters More Than Ever
With fewer estates subject to federal estate tax, basis has become a central concern in planning. The panel reviewed step-up techniques, including the use of powers of appointment, qualified terminable interest property (QTIP) trusts, and community property trusts in opt-in jurisdictions such as Alaska and South Dakota. They also examined innovative but contested strategies like Joint Estate Step-Up Trusts (JESTs), underscoring the importance of weighing tax benefits against potential risks and drafting with care. .
Revisiting Existing Structures
Many long-standing estate plans, such as irrevocable trusts, SLATs, and bypass trusts, were created with different tax assumptions in mind. Under OBBBA, these structures may no longer achieve their intended goals and, in some cases, may reduce tax efficiency by preventing a basis step-up. The speakers emphasized the importance of reviewing old plans and considering modifications, decanting, or distributions that align better with today’s environment.
Non-Grantor Trusts and Income Tax Opportunities
The panel also highlighted how non-grantor trusts can be used to capture deductions, manage income across brackets, and optimize results under the new rules. These trusts offer flexibility in areas such as state income tax planning, charitable giving, and even qualified business income (QBI) planning for professional practices. When structured correctly, they can deliver significant advantages in an era where income tax efficiency is paramount.
Planning with Flexibility for the Future
While OBBBA has redefined the current planning landscape, the panelists agreed that future legislative changes remain inevitable. The best protection lies in drafting plans that are adaptable, incorporating powers of appointment, trust protector provisions, and modification mechanisms that allow clients to pivot as laws evolve.
As Jonathan Blattmachr noted, “OBBBA has shifted the focus, but it hasn’t made estate planning simpler. It has made it different. Our role is to anticipate, adapt, and ensure our clients are prepared for whatever comes next.”
Watch the full webinar above to gain practical insights on basis planning, non-grantor trusts, and the strategies advisors can use to help clients thrive in the post-OBBBA era.