Why Estate Planning Still Matters—even After the One Big Beautiful Bill Raised the Estate-Tax Exemption

Congress’s new One Big Beautiful Bill (“OBBB”) became law on July 4, 2025, locking the federal estate-, gift-, and generation-skipping-transfer-tax exemption in at $15 million per person, or $30 million for a married couple, and indexing it for inflation going forward [1][2]. For most families, that bigger number removes any realistic threat of federal estate tax. But the tax line is only one piece of the puzzle. A complete estate plan still protects your loved ones, saves time and money, and keeps your voice in the room when you can no longer speak for yourself.

Probate remains expensive and slow. In California, probate fees alone can run between four and seven percent of the gross estate, and the court process often drags on for a year or more [3]. Titling assets in a revocable living trust or adding transfer-on-death designations can bypass probate and put money in your heirs’ hands months sooner.

Incapacity can be just as costly as death. Roughly one-third of American adults have an advance health-care directive or durable power of attorney [4]. Without those documents, the family may need a public, court-supervised conservatorship before they can manage your finances or make medical decisions. Basic incapacity planning spares relatives from crisis-time guesswork.

State-level estate or inheritance taxes still lurk below the federal radar. States such as Massachusetts levy estate tax when assets top just $2 million, and several Midwestern states impose inheritance taxes on even modest bequests [1]. An up-to-date plan can flag these cross-border traps early.

Control is another payoff. A properly drafted trust can stagger distributions to young or spend-thrift beneficiaries, insulate assets from future divorces or creditors, and keep sensitive family information private. Business owners can weave in buy-sell instructions that prevent forced sales at fire-sale prices. Charitable families can blend donor-advised funds or charitable remainder trusts with appreciated stock to capture income-tax deductions while supporting causes they love.

Bottom Line

The OBBB may have pushed federal estate tax out of sight for most households, but the need for clear instructions—and the desire to avoid needless costs, delays, and disputes—has never been stronger. A thoughtful estate plan is still the best way to protect your family, preserve privacy, and cement your legacy.

Ready to craft or update your own plan? Westlight Wealth is here to guide you through every step. Schedule a complimentary consultation today and let’s align your estate plan with the new law—and with your goals.

• Gustaf Rounick, CFP®, ChFC®

Important Disclosures

The information herein is general and should not be construed as legal, tax, or investment advice. Westlight Wealth LLC is a Registered Investment Adviser in the State of California; registration does not imply a certain level of skill or training. Estate-planning strategies should be implemented in coordination with your attorney and tax professional. Past performance is no guarantee of future results.

Works Cited

[1] Kiplinger. “The 2025 Estate Tax Exemption.” https://www.kiplinger.com/taxes/whats-the-new-estate-tax-exemption

[2] Cummings & Lockwood LLC. “The One Big Beautiful Bill Act Sets Federal Estate, Gift and Generation-Skipping Tax Exemptions at $15,000,000 Indefinitely.” https://www.cl-law.com/news-events/the-one-big-beautiful-bill-act-sets-federal-estate-gift-and-generation-skipping-tax-exemptions-at-15-000-000-indefinitely

[3] SmartAsset. “How Much Probate Costs in California.” https://smartasset.com/estate-planning/probate-costs-in-california

[4] American Bar Association. “Everyone Deserves Autonomy: Making Advance Care Planning Accessible for All.” https://www.americanbar.org/groups/real_property_trust_estate/resources/journal/2024-summer/making-advanced-care-planning-accessible-for-all

Keywords: estate planning, OBBB, One Big Beautiful Bill, probate costs, incapacity planning, California financial advisor, Westlight Wealth