The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025, and introduces both opportunities and challenges, especially for high-net-worth families, Texas senior citizens, and parents. As trusted Estate Planning and Elder Law Attorneys serving Texas, we at Ross & Shoalmire understand that federal legislation of this magnitude demands careful, individualized planning. Here’s what you need to know about how the new law may affect your future goals and legacy.
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Estate and Gift Tax Changes Under the New Act
One of the most significant aspects of the One Big Beautiful Bill Act is the expansion of federal estate, gift, and generation-skipping transfer (GST) tax exemptions. Many key provisions of the 2017 Tax Cuts and Jobs Act (TCJA) that were originally set to expire at the end of 2025 have since been made permanent by the OBBBA.
Effective immediately, the individual exemption has increased to $15 million, adjusted annually for inflation. For married couples, the combined exemption now totals $30 million. This is a notable increase from the $13.99 million individual exemption in place earlier in 2025. According to the Tax Policy Center, the Tax Cuts and Jobs Act already raised the exemption to $11.18 million back in 2018, doubling the previous amount on federal record.
This means that within the past six years, federal tax law has undergone several seismic shifts, especially in the realm of estate planning. Many people find that these changes can benefit them. However, you may also need the help of one of our seasoned Elder Law Attorneys more than ever to ensure your plan both takes full advantage of these changes as well as sets you up for long-term success.
What Does the One Big Beautiful Bill Act Mean for Texas Families?
For residents with sizable estates, the risk of federal estate tax exposure has significantly decreased. This makes room for more flexible and less urgent estate planning. Multi-generational wealth transfer strategies also become more viable. Grandparents, for example, may now pass greater assets to grandchildren under expansions made to the GST tax exemption.
Families with the following net worth in Texas will be especially impacted by the OBBBA:
- Single parents or individuals between $7 million and $15 million individually.
- Families filing worth $14 million to $30 million jointly.
However, even with these favorable changes, planning shouldn't be delayed. Tax laws can change again, and state-specific issues still require proactive legal guidance. While we don't have a state inheritance or estate tax, other factors—such as health care directives, capital gains taxes, and property taxes—all remain relevant.
New Federal Tax Provisions: Targeted Relief for Seniors and Parents
Several provisions in the OBBBA are specifically aimed towards older Americans and high-net-worth individuals:
- Temporary tax break for filers ages 65+. A temporary deduction in the amount of $6,000 will be available for taxpayers ages 65 or older for the 2025-2028 tax years. This “special personal exemption” reaches $12,000 for married taxpayers if both spouses are ages 65+ and filing jointly. This temporary tax break begins to phase out for individuals with modified adjusted growth incomes of more than $75,000, or $150,000 for joint filers. The change is available to all older taxpayers, regardless of whether they itemize deductions or use the standard.
- Charitable deductions for non-itemizers. A new permanent above-the-line deduction allows $1,000 (single) or $2,000 (joint) for cash contributions to qualifying charities, even for people who don't itemize. This could benefit seniors using charitable trusts or donor-advised funds.
- Charitable giving limit for high-income donors. Deductions for taxpayers in the top 37% bracket are now capped at 35% of the gift amount, slightly reducing the incentive for high-net-worth families to use charitable giving as a tax-reduction strategy.
Other elements of the One Big Beautiful Bill Act are aimed at assisting parents, such as:
- Increased and extended child tax credit. Both the child tax credit of $2,000 per child and the refundable portion (adjusted for inflation, $1,700 in 2025) are permanently extended. Additionally, the non-refundable portion of the child tax credit is permanently increased to $2,200 per child starting in tax year 2025, with inflation adjustments thereafter.
- “Starter IRA” for children. At age 18, an account holder can access funds held in these new “starter IRA” accounts, subject to the same rules that apply to traditional IRAs. They might also be able to transfer the account to another eligible plan, and receive future employer contributions up to $5,000 annually in after-tax dollars, with the limit adjusted annually for inflation. Additionally, a federal pilot program may provide a one-time $1,000 contribution for each U.S. citizen born after 2024 and before 2029.
- More flexibility in 529 plan funds. 529 plans help many families meet educational expenses. The OBBBA may allow families to withdraw up to $20,000 per year for K-12 education, beginning in 2026. Additionally, 529 plans can be used to cover costs associated with certifications, licensing programs, postsecondary education, and educational therapies for students with disabilities.
All of these changes greatly impact your overall financial picture, and should be accounted for in your estate plan. These tax provisions underscore the importance of aligning charitable giving, saving goals, and estate plans under a unified strategy.
Furthermore, there may be situations that don't allow you to benefit from these specific changes, as well as common misunderstandings that have arisen from the changes to the law. For instance, the $6,000 additional tax deduction for seniors doesn't mean Social Security benefits are untaxed now. Wait until you have consulted with our Estate Planning Attorneys before you make significant changes to your accounts or spending habits.
Health Care and Insurance Impacts: A Closer Look
One crucial element of estate planning is setting up a strategy for aging on your terms. Preparing for aging expenses and health care is one of the most important reasons to work with Elder Care Law professionals like Ross & Shoalmire, regardless of your net worth, to factor long-term care into your estate plan. The OBBBA presents notable changes to several health care programs, including:
- Changing healthcare coverage enrollment. The Congressional Budget Office projects 11.8 million people may lose health coverage over the next decade due to the OBBBA’s approximately 15% cut to federal health care spending. Additionally, pre-retirees and family caregivers could face increased premiums in the future.
- Older immigrants and Medicare. Some immigrants with lawful status who paid into Medicare may be denied future eligibility under the OBBBA. This change might affect multigenerational households with aging parents or in-laws who have worked and contributed for years.
- Cuts to skilled nursing facilities. Nursing homes won't be held to higher federal staffing standards until the mid-2030s. With no immediate improvement in oversight, families must take greater care in selecting and monitoring long-term care facilities.
Strategic OBBBA Considerations for Your Estate Planning
The passage of this new legislation presents a different legal and financial landscape for Texas families. While some provisions may provide welcome relief—such as increased estate tax exemptions—any large change to federal tax law is sure to introduce some uncertainty. These developments require a strategic, individualized approach to Estate and Elder Law Planning.
Wealth Transfer Options
For high-net-worth families, the expanded and permanent estate and gift tax exemptions offer a valuable opportunity to implement long-term transfer strategies. However, this isn't a signal to delay establishing the future. Shifting family dynamics, future legislative changes, and the risk of asset mismanagement still require comprehensive and well-documented estate plans and Asset Protection strategies.
Tax Considerations
The state and local tax (SALT) deduction cap is also set to temporarily rise from just $10,000 up to $40,000 for the 2025-2029 tax years, with a 1% increase per year. It's important to note that this change isn't permanent and has restrictions for high earners. In 2030, the deduction is set to expire and revert back to $10,000 without future action from Congress. These temporary changes to SALT may lead to timely shifts in estate planning, ROTH IRA investment, as well as other financial structures for you and your family.
Long-Term Care
Also, prepare for the real possibility that home- and community-based care services will be scaled back in Texas due to changes in federal funding with the OBBBA. Medicaid funding has been significantly reduced by the bill. Because of this, staying at home while aging may become more expensive and less accessible for many Texans and immigrant families. Meanwhile, some skilled nursing facilities might have budget cuts and reduced oversight. Our Medicaid Planning Attorneys can help you incorporate private funding strategies, such as hybrid long-term care insurance or family care agreements, into your estate plan to account for these changes.
Trust Ross & Shoalmire's Professional Guidance for Your Estate Planning Needs
The One Big Beautiful Bill Act is a sweeping piece of legislation with wide-ranging implications for estate planning, taxation, Medicaid eligibility, and long-term care. Not every provision applies uniformly to every family, and the stakes are high. While some families may benefit from the increased estate tax exemptions, others may face new challenges due to loss of healthcare coverage or quality-of-care concerns in Texas nursing homes. Additional state tax provisions are also expected.
At Ross & Shoalmire, we work closely with individuals and families to understand how changes in federal law impact your current life as well as your future financial planning. We've combined our extensive legal education and decades of training into building the largest Elder Law firm in Texas and Arkansas. Our primary goal is to help you protect not only your assets but also ensure access to the care, structure, and support you and your family need to thrive.
