The new One Big Beautiful Bill Act (OBBBA) has made one of the biggest changes to federal estate and gift tax rules in decades.
For Boca Raton residents, it’s a game-changer because it provides a level of certainty that didn’t exist before—and it dramatically changes the numbers families use to plan for the future.
Think of the OBBBA as a tax shield. It determines how much money you can give away—either while you are alive or after you pass—before the federal government takes a 40% cut in estate taxes.
Before this law, the exemption was set to “sunset” at the end of 2025, cutting in half from its 2025 levels. That meant Boca families with high-value homes, investment accounts, or business interests were facing a sharp cliff in their estate planning.
Here’s the simple breakdown:
- Individual Limit: $15 million (up from roughly $13.99 million in 2025)
- Married Couple Limit: $30 million
- Permanency: This law is intended to be permanent, with inflation adjustments starting in 2027, giving families confidence to plan long-term without worrying that rules will change next year.
Who does this impact in Florida?
- High-Net-Worth Families: If your total assets (including your Boca home, investment accounts, business interests, and life insurance) exceed $15 million (or $30 million for a couple), this law is your primary concern. Anything over those amounts is generally taxed at 40%.
- Business Owners and Real Estate Investors: Property values in Boca have skyrocketed. Many people who didn’t consider themselves ultra-wealthy a decade ago now have estates approaching these limits. The OBBBA helps you keep these assets in the family rather than selling them to pay taxes.
- Portability Seekers: If one spouse passes away, the surviving spouse can “pick up” the deceased spouse’s unused $15 million exemption.
- Grandparents (Generation-Skipping): The law also increases the Generation-Skipping Transfer (GST) tax exemption to $15 million. This makes it easier to leave money to grandchildren through Dynasty Trusts tax-free.
While $15 million sounds like a lot, a luxury home in Royal Palm or The Sanctuary, combined with a business and retirement accounts, can reach that threshold faster than most expect. The OBBBA essentially gives families a green light to move large amounts of wealth into trusts while the exemption is at an all-time high.
Why the 2025 Numbers Still Matter (Even With a Higher Exemption)
We’ve seen one of the biggest points of confusion for Boca families right now be “If the exemption is higher in 2026, does anything estate planning-related I did in 2024 or 2025 still matter?”
Before the OBBBA, the federal estate and gift tax exemption was:
- $13.61 million per person in 2024
- $13.99 million per person in 2025
Those numbers applied to lifetime gifts and estates during those years. If you made large gifts in 2024 or 2025 (to children, trusts, or other beneficiaries), those gifts used part of your exemption at the time they were made. They do not reset simply because the exemption increased in 2026.
For Boca Raton residents who transferred appreciating assets such as real estate, investment properties, or business interests—being aware of how much exemption has already been used is important when updating a plan going forward.
Why Estate Plans Written in 2024–2025 May Need Updates
Many estate plans created in the last two years were built around the belief that exemptions were about to be cut in half.
As a result, some plans:
- Pushed aggressive gifting strategies that may no longer be necessary
- Used trust structures designed solely to “lock in” the exemption before it disappeared
- Assumed the exemption would drop to nearly $7 million per person
Now that the exemption is higher and permanent, those plans may still work—but they may not be optimized.
For example, a Boca family that rushed to move assets into irrevocable trusts to avoid a feared tax increase might now find that a simpler structure would have achieved the same tax protection with more flexibility.
This doesn’t mean prior planning was wrong. It means the assumptions behind that planning have changed.
Portability: Why This Matters More Than Ever for Boca Families
One of the most important (and most overlooked) estate tax tools is portability.
Portability allows a surviving spouse to use any unused estate tax exemption from their deceased spouse. Under the OBBBA, that unused amount could be up to $15 million.
But, there’s a detail everyone should know:
Portability is not automatic.
To preserve it, the estate of the first spouse to die must file a federal estate tax return (Form 706) — even if:
- No estate tax is owed
- The estate is well below the exemption
- No tax payment is due
For widows and widowers in Florida, this is especially important because Florida has no state estate tax. That means the federal exemption and portability are often the only tax issues standing between a surviving spouse and a future tax bill.
Failing to file this return can permanently eliminate millions of dollars in future tax protection.
Real Estate and Business Owners: The Boca Raton Effect
Many residents purchased homes or investment properties decades ago at prices that now seem unimaginable. Add in retirement accounts, brokerage accounts, business equity, and life insurance, and an estate can quietly approach or exceed the new exemption limits.
The OBBBA helps by giving families more room before taxes apply, but it doesn’t eliminate the need for planning:
- Property values may continue to rise
- Businesses may increase in value
- Estates can grow beyond $15 million over time
For these families, the new law creates an opportunity to plan deliberately instead of reactively, deciding when and how assets should pass—rather than being forced to sell property or businesses to cover estate taxes.
Grandparents and the Generation-Skipping Tax (GST)
The Generation-Skipping Transfer (GST) tax is an extra federal tax that applies when money is passed directly to grandchildren or later generations, instead of going first to children. Under the OBBBA, the GST tax exemption increased to $15 million per person, which means grandparents can now move up to that amount directly to grandchildren — often through long-term or “dynasty” trusts, without triggering this additional tax.
This matters because GST exemption is not portable. If one spouse dies without using or properly administering their GST exemption, it cannot be transferred to the surviving spouse and is permanently lost. For Boca Raton families who want to protect wealth across multiple generations, especially where real estate and investments may continue to grow, the expanded GST exemption creates a valuable opportunity, but only if it’s used carefully and on purpose.
Florida’s Unique Advantage Under the OBBBA
Florida residents have a significant advantage under the new law:
- No Florida estate tax
- No Florida inheritance tax
That means the OBBBA is often the only estate tax law that applies.
But with that opportunity comes responsibility. Plans created under old assumptions should be reviewed to ensure they still reflect current law, current asset values, and long-term family goals.
FAQ: Common Questions Boca Families Are Asking
Do I need to change my estate plan just because of the OBBBA?
Not necessarily. But plans written in 2024 or 2025 may rely on assumptions that are no longer true. A review helps ensure the plan still makes sense under the new rules.
What happens if I already made large gifts in 2025?
Those gifts used part of your exemption at the time they were made. The exemption increase in 2026 does not undo or reset prior gifts.
What is portability, and why is it so important now?
Portability allows a surviving spouse to use a deceased spouse’s unused exemption. Under the OBBBA, that could be up to $15 million—but only if a federal estate tax return is filed on time.
Does this affect people who don’t consider themselves “ultra-wealthy”?
Yes. In Boca Raton, rising home values and business appreciation mean many families reach these thresholds faster than expected.
Is the new exemption really permanent?
The law is written to be permanent, with inflation adjustments beginning in 2027. While no tax law is ever completely immune to future changes, this provides far more certainty than families had before.
We hope this article was helpful. If you have further questions, feel free to contact us for more information.
