The One Big Beautiful Bill – What Does it Mean for Texas Estate Planning?

The One Big Beautiful Bill passed into law on July 4, 2025, creating changes to the tax code and impacting estate, gift, and income tax planning.

The OBBB impacts estate planning by increasing the federal lifetime gift, estate, and generation-skipping transfer tax exemption amounts.

The Current Exemption Amounts

The federal lifetime gift, estate and generation-skipping transfer tax exemption is currently (and through the end of 2025) $13.99 million for individuals and $27.98 million for married couples.

The OBBB Exemption Amounts (Starting Jan. 1, 2026)

The OBBB has increased the lifetime gift, estate, and generation-skipping transfer tax exemptions Beginning January 1, 2026, the federal exemption amounts will rise to $15 million for individuals and $30 million for married couples.

Notably, the OBBB does not contain a sunset provision. In other words, the exemption amounts detailed above ($15 million for individuals and $30 million for married couples) are permanent (unless and until the OBBB is repealed or amended).

What Does this Mean for Texas Families?

Texas operates as a community-property state, which means assets acquired during marriage are owned by both spouses.

Couples will be able to transfer up to $30 million federally tax-free under the OBBB. And couples will have choices when allocating this $30 million amount.

For instance:

• Couples can structure their respective estates so that each spouse can use the individual $15 million exemption;
• The surviving spouse can benefit from portability, which allows any unused exemption amount to carry over, but portability requires the timely filing of a federal estate-tax return—even when no estate tax is owed;
• In some cases, relying solely on portability may limit post-death planning flexibility compared to the use of properly structured trusts;
• Revising marital-property agreements can maximize exemptions and preserve flexibility for future tax changes.

Does the OBBB Mean Estate Planning is No Longer Necessary?

No. While the increased exemption amounts mean that fewer Texans will be subject to federal estate tax, tax exposure is only one component of a comprehensive estate plan. Estate planning remains essential for addressing non-tax considerations such as asset control, creditor protection, blended-family planning, fiduciary oversight, and minimizing the risk of future disputes among heirs.

What We Are Seeing in Practice

Some assume that the higher exemption amounts eliminate the need for careful estate planning. That assumption is often incorrect. Larger exemptions can encourage aggressive lifetime gifting or uneven dispositive schemes, which—if not carefully documented—may increase the likelihood of will contests, fiduciary-duty claims, or family litigation.

What Texas Families Should Do Next

This altered federal estate tax exemption landscape under the OBAA means that fewer Texans will owe federal estate tax. Still, comprehensive estate planning remains the key to protecting your assets and property. Texans should revisit their wills, trusts, and gifting strategies to ensure they reflect the new exemption amounts and their personal goals. For tailored guidance under the OBBB, contact Romano & Sumner to review and update your estate plan.