The One Big Beautiful Bill: What It Means for Your Family's Financial Future
The massive tax legislation known as the "One Big Beautiful Bill" (“OBBB”) became law on July 4, 2025, bringing changes that will affect nearly every American family. While much of the media attention has focused on the political drama surrounding its passage, what really matters is how these changes impact your family's financial security and estate planning needs.
With nearly 900 pages of complex provisions, the new law extends many tax cuts, creates new and beneficial deductions, and makes changes to healthcare and benefit programs. Understanding these changes isn't just about saving money on your taxes—it's about ensuring your loved ones’ long-term security and making sure your estate plan works when you and your loved ones need it most.
The Big Changes That Affect Your Daily Life
The new law brings several immediate changes that could impact your family's finances. Unfortunately, many of these provisions are temporary, which creates both opportunities and planning challenges that require careful attention. The new law creates several categories of benefits:
Family Benefits:
Child tax credit increases to $2,200 per child starting in 2026
New "Trump Accounts" for children born 2025-2028 with $1,000 government contribution and up to $5,000 annual family contributions for future education or home purchases
Parent Plus student loan limits are now capped at $65,000 per student
Worker Categories with Special Treatment:
Tip earners can deduct up to $25,000 of tip income from federal taxes through 2028
Overtime workers get deductions up to $12,500 for individuals or $25,000 for married couples through 2028
For now, both benefits phase out at higher income levels and expire after 2028
Temporary Expense Relief:
Car loan interest becomes deductible up to $10,000 annually for U.S.-made vehicles (2025-2028)
State and local tax deduction increases from $10,000 to $40,000. For now, this benefit phases out for higher earners and expires after five years
Seniors receive a new $6,000 deduction if they're 65 or older and meet income requirements, but this benefit only lasts through 2028.
Healthcare and Benefits: What's Changing
Beyond tax changes, the new law alters healthcare coverage and benefit programs. These changes may impact older Americans as we live longer and longer. Asset protection for those who will need Medicaid in the future necessitates planning sooner rather than later.
Estate Planning Best Practices for the Future
The most significant estate planning change in the new law is the permanent increase of the federal estate tax exemption to $15 million per person, or $30 million for married couples. The good news is this means only about 350,000 American families—roughly one in every 400 households—will face federal estate taxes. Having an estate plan is still necessary and important. In fact, the complexity and temporary nature of many provisions in the new law make comprehensive planning more crucial than ever.
The law's many temporary provisions create planning challenges that traditional estate planning simply can't address. When tax benefits expire in 2028, families may face sudden changes in their financial situations. Without proper planning, these transitions could create unnecessary stress and financial hardship for your loved ones.
Moreover, the law's focus on specific categories of workers and temporary benefits creates artificial incentives that may not reflect your family's long-term needs. A comprehensive Estate Plan helps you navigate these complexities while ensuring your fundamental goals—protecting your family and preserving your legacy—remain the priority.
Building Security for the Future
Real protection for your family goes far beyond having a set of documents in place. Your loved ones need a comprehensive plan that considers both the legal aspects of transferring assets and the practical realities of daily life after you're gone. The new law makes this even more important.
At Simpson Law Firm, we are your planning partner. Our attorneys don’t create a traditional estate plan because we’ve seen how traditional, documents-focused planning fails families time and time again. Our process is so much more than creating documents. It's estate planning done the right way so that it will work for the people you love most when they need it to. Once you create a plan with us, your loved ones will know where to find important documents, how to access accounts, and what steps to take first. Our Partner Planning process addresses critical areas that traditional estate planning often overlooks:
Immediate Access and Instructions:
Clear guidance on where to find important documents and how to access accounts
Instructions for loved ones about what to do if you become incapacitated and when you die
Ongoing Adaptability:
We offer regular plan reviews to address changing laws and life circumstances, so your plan works over time
Systems to update your asset inventory and beneficiary designations as your situation evolves
Ongoing relationship with us, where we understand both your family dynamics and the legal landscape
Your Next Steps
The One Big Beautiful Bill may create both opportunities and challenges for American families. While some provisions offer immediate tax savings, the temporary nature of many benefits will require careful planning to protect your loved ones’ long-term security.
At Simpson Law Firm, we will partner with you to create an estate plan that works for you and your loved ones. Our estate planning process starts with a complimentary estate planning session, where we'll discuss your specific situation and the steps you can take to protect your family's future. The families who plan and work with a trusted advisor who understands both the opportunities and the risks, and is there to provide personal guidance and support for you and your loved ones.
Click here to schedule a complimentary partner planning session today!
This article is a service of Simpson Law Firm. We do not just draft documents; we ensure you make informed and empowered decisions about life and death for yourself and the people you love. We offer an Estate Planning session, during which you will get more financially organized than you’ve ever been before and we will assist you in making all the best choices for the people you love. You can begin by contacting us here, https://simpsonestatelaw.com/contact-us or calling us at 803-764-9555, and one of our friendly client service assistants will help you set up your consultation.
The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.