On July 4, 2025, Congress enacted the One Big Beautiful Bill (OBBB), a landmark tax package that both cements many of the 2017 “Trump tax cuts” and introduces new, largely temporary breaks. As an investor, you may want to understand how these rules affect your wealth and which financial planning topics to raise with your Aurelius Family Office advisor.
We’re also hosting a live webinar on August 26 at 1pm EDT
to break it all down and answer your questions.
Estate & Gift‑Tax Strategies
OBBB raises the lifetime exclusion for estate, gift, and generation‑skipping transfers to $15 million per person (indexed for inflation) beginning in 2026. That means you can transfer more assets free of federal tax—but you’ll want to revisit your trust structures and gifting plan before sunsets or future legislative shifts.
Discussion Topics with Your Advisor
- How does the higher exclusion change your current trust or LLC ownership structure?
- Should you accelerate large gifts now or continue annual gifting?
- What steps can preserve “portability” of unused exclusions at a spouse’s death?
Income & Deduction Highlights
The OBBB locks in the 37% top rate and permanently raises the standard deduction (to $15,750 for singles and $31,500 for joint filers in 2025). Meanwhile, the state‑and‑local‑tax (SALT) cap jumps from $10,000 to $40,000 (2025–2029), then reverts. Clients who are subject to high property taxes will likely benefit from the SALT deduction spike – which may lead to advanced planning discussions with their financial professionals to further develop tax-efficient charitable giving strategies.
Discussion Topics with Your Advisor
- Is it advantageous to prepay state or property taxes while the SALT cap is elevated?
- Would bunching itemized deductions (charitable gifts, medical expenses) still yield greater benefit than the standard deduction?
- How might your bonus income, stock‑option exercises, or Roth conversions be timed to stay within lower brackets?
Charitable Giving Insights
Starting in 2026, non‑itemizers can claim an “above‑the‑line” charitable deduction, while itemizers face a 0.5% AGI (adjusted gross income) floor on donations. This dual approach rewards moderate donors but changes the calculus for large or multiyear gifts.
Discussion Topics with Your Advisor
- Would a donor‑advised fund such as the Fidelity or Vanguard Charitable Gift fund, help you bunch multiple years of giving into one tax‑efficient lump sum?
- Should you continue taking Qualified Charitable Distributions (QCDs) from your IRAs?
- How do the new AGI floor and above‑the‑line deduction affect your long‑term giving strategy?
Family & Education Advantages
OBBB seeds “Trump Accounts” with $1,000 for U.S.‑born children (2024–2028) and broadens 529‑plan uses for K‑12, apprenticeships, and student‑loan pay‑downs. Parents can contribute up to $5,000 per year until the child turns 18 but will not receive any tax deduction. The account will grow tax-deferred and is property of the child, held in a custodial trust
Also, Dependent‑care Flexible Care Accounts (FSAs) also see higher limits starting in 2026, from $5,000 to $7,500 (or from $2,500 to $3,750 for married individuals filing separately).
Discussion Topics with Your Advisor
- Which savings vehicle—Trump Account, 529 plan or custodial UTMA/UGMA—best aligns with your children’s education and future‑retirement goals?
- How do expanded 529 college saving account withdrawals affect your college‑funding projections?
- Can you integrate higher Dependent‑care FSA contributions into your household cash‑flow model?
Personal & Targeted Breaks
Between 2025 and 2028, you can exclude up to $25,000 of reported cash tips and $12,500 of overtime pay—while also writing off up to $10,000 of qualifying auto‑loan interest. Seniors age 65+ receive an extra $6,000 standard‑deduction boost in 2025.
Discussion Topics with Your Advisor
- If you earn eligible tip or overtime income, what record‑keeping practices ensure compliance?
- Does deducting auto‑loan interest meaningfully alter your cash‑flow or debt‑service planning?
- How might the senior standard‑deduction boost influence Roth conversions or charitable trust funding?
Business & Investment Opportunities
Permanent 100% bonus depreciation, a 20% pass‑through deduction (Section 199A), and an enhanced Qualified Small Business Stock (QSBS) exclusion invite you to accelerate capital investments and explore new ventures.
Discussion Topics with Your Advisor
- Is now the right time to deploy capital into equipment purchases or real‑estate improvements?
- How should you weigh C‑corporation vs. pass‑through entity structures given these permanent breaks?
- Could QSBS‑eligible startups fit your family‑office or venture‑capital allocation
Looking Ahead: Staying on Course
With a price tag of roughly $4.1 trillion through 2034—and many provisions sunsetted—OBBB’s rules may shift again. Remember, the OBBB was full of political promises, it’s a tax and spending bill that is not specifically designed to be true fiscal reform. Your most effective money management strategy is a disciplined, goal‑driven plan that leverages today’s permanent breaks while monitoring expiring incentives.
By understanding OBBB’s core provisions—and by raising these discussion topics—you’ll partner most effectively with your Aurelius Family Office team to help protect and grow your legacy.
Disclosure:
Aurelius Family Office, LLC (“AFO”) is an SEC registered investment adviser. Registration with the SEC does not imply a certain level of skill or expertise. This communication is for informational purposes only, and is not intended to provide specific investment, legal, tax, or other professional advice. Investments involve risk of loss. Information regarding AFO’s services, fees, conflicts of interest and related matters can be found by clicking the following link https://adviserinfo.sec.gov/firm/summary/323016 and viewing the latest Form ADV, Part 2 Brochure and Part 3 Relationship Summary. Please visit us at https://aurelius.net/.
