5 Planning Priorities We’re Tackling First with the New Tax Law
On July 4, 2025, the “One Big Beautiful Bill Act” (OBBB) became law. Many of its 300-plus pages make the 2017 Tax Cuts and Jobs Act rules permanent; others create brand-new breaks that last only a few years. Below are the five opportunities our team at Sevey Wealth is moving on right away to keep clients ahead of the curve.
1. Lock in the $15 Million Estate-Tax Exemption — Before Washington Changes Its Mind
OBBB makes the federal estate-tax exemption permanent at $15 million per person ($30 million for a couple), up from the scheduled $7 million level in 2026. That removes roughly 99 percent of households from the estate-tax net, yet history shows “permanent” can be temporary once Congress needs revenue. We’re accelerating lifetime-gift strategies—such as Spousal Lifetime Access Trusts (SLATs)—to move appreciating assets out of estate reach while the larger shield is certain.
2. Make the Higher SALT Cap Work Hard While It Lasts
Starting with 2025 returns, the cap on state-and-local-tax (SALT) deductions rises from $10,000 to $40,000, but only for incomes below about $500,000 and only through 2029. It then slides back to today’s levels. For many high-income clients who pay sizeable property taxes, that bigger cap can swing the decision to itemize. One option: bunching deductible expenses—pre-paying 2026 property taxes in December 2025, for example—to grab the full $40,000 before phaseouts kick in.
3. Use the New $6,000 “Senior Bonus” to Smooth Roth Conversions
Taxpayers age 65+ get an extra $6,000 deduction ($12,000 for qualifying couples) from 2025-2028. The break phases out above $75,000 single/$150,000 joint MAGI, so timing matters. We’re pairing the bonus with partial Roth conversions: claim the senior deduction to lower taxable income, then fill up the 24 percent bracket with converted dollars while rates stay relatively low. The move shrinks future required minimum distributions and curbs the widow’s penalty if one spouse passes first.
4. Capture a Bigger, Now-Permanent QBI Deduction
Business-owner clients worried about the sun-setting of the 20 percent Qualified Business Income (QBI) deduction can relax—OBBB makes it permanent and raises the income threshold where limits begin. We’re revisiting entity choice (S-corp vs. C-corp), salary-vs-distribution mixes, and retirement plan funding to squeeze every dollar out of the expanded rules. A fixed QBI landscape also lets us build multi-year income-smoothing plans without the “cliff” that was coming in 2026.
5. Jump-Start “Trump Accounts” for Kids and Grandkids
Beginning in 2026, every child born between 2025-2028 can receive a $1,000 government seed deposit in a new tax-deferred “Trump Account.” Families may add up to $5,000 per year, and some employers can chip in another $2,500. Funds must stay until age 18, after which withdrawals for education or a first home face only regular income tax on growth. We’re mapping how these accounts fit beside 529 plans: use the free $1,000, then decide whether additional gifts belong here, in a 529, or in a custodial Roth IRA, depending on each family’s goals.
The Bottom Line
OBBB delivers both lasting and fleeting advantages. Our philosophy is simple: act early, stay flexible, and document everything. Wondering how any of these wins could improve your personal plan? Let’s schedule a strategy call before the year-end rush.
