Published October 28, 2025
On July 4, 2025, the One Big Beautiful Bill Act became law, and one of its key changes affects federal estate and gift taxes. For 2025, the exemption sits at approximately $13.99 million per individual. Without congressional action, it was scheduled to drop to around $7 million in 2026.
Instead of the expected drop, beginning January 1, 2026, the exemption will be raised to $15 million per person — or $30 million for married couples — and indexed for inflation going forward. The 40% top tax rate remains unchanged.
Moreover, the new exemption is now permanent, meaning it will not automatically expire in the future and revert back to a lower threshold. This provides long-term certainty for estate planning that families and advisors have been seeking for years.
With the exemption at $15 million per individual, the vast majority of North Carolina families will not owe any federal estate tax. However, this does not mean estate planning is unnecessary. Whether your net worth is $15 million or $500,000, estate planning addresses critical concerns that have nothing to do with taxes.
These documents name who makes medical and financial decisions if you cannot. Without them, your family may face a costly and time-consuming guardianship proceeding.
Probate is public, slow, and costly. Even moderate estates can be tied up for months, with legal fees eating into what heirs receive. A properly funded trust can help your family avoid this process entirely.
A will allows you to name guardians for minor children, specify how assets are distributed, and ensure that your wishes — not state law — determine what happens to your estate.
While the new legislation ensures that the federal estate tax exemption is generous and long-term, for most folks planning remains invaluable. It is not about saving taxes — it is about clarity and protection. Contact HBHK Law at (919) 735-6420 to review how these changes may affect your estate plan.
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