On July 4, 2025, a sweeping new law went into effect – the “One Big Beautiful Bill” (OBBB). With nearly 900 pages of new tax provisions, benefit changes, and healthcare reforms, this legislation touches nearly every American household. While the headlines have focused on the politics, what really matters is what this law means for you and your family – and how you can take steps now to protect what matters most.
As an estate planning attorney, I want to make sure you understand the practical impact of this law, and more importantly, what it means for your Life & Legacy Plan.
Major Changes That Could Affect Your Family’s Finances
OBBB brings with it a host of temporary and permanent provisions – some that may help you today, and others that require careful planning for tomorrow. These include:
Expanded Family Benefits
- Child Tax Credit: Increases to $2,200 per child starting in 2026.
- New “Trump Accounts”: For children born between 2025–2028, families can contribute up to $5,000 per year with a $1,000 government match, to be used for future education or a first home.
- Student Loans: Parent PLUS loans are now capped at $65,000 per student, which could affect college planning.
Worker Incentives (Expiring 2028)
- Tip Income: Up to $25,000 deductible from federal taxes.
- Overtime Income: Deductions of up to $12,500 per person or $25,000 per couple.
- Car Loan Interest: Now deductible up to $10,000 annually for U.S.-made vehicles.
Expanded Deductions (But Only Temporarily)
- State and Local Tax Deduction (SALT): Raised from $10,000 to $40,000, but phases out at higher incomes.
- Senior Deduction: A new $6,000 deduction for those over 65 with qualifying income.
All of these sound great on paper – but many of them expire in just a few short years. Without the right planning, these changes could leave families facing sudden tax burdens or loss of benefits in 2028.
Healthcare and Benefit Program Shifts
Some of the most impactful changes affect healthcare and social support programs:
- Medicaid Work Requirements: Starting in late 2026, adults ages 19–64 must meet 80+ monthly hours of work, volunteering, or education to stay eligible. Even eligible individuals risk losing coverage due to increased paperwork requirements.
- SNAP Adjustments: Work requirements now apply to recipients up to age 64. States must begin contributing to benefits, which could lead to restricted eligibility.
- ACA Marketplace Credits: Enhanced tax credits will phase out, with some families potentially facing 75% premium increases.
If you or your loved ones rely on these programs – or might in the future – it’s time to consider how your estate plan accounts for healthcare needs and benefit eligibility.
Estate Tax and Planning Opportunities
One of the more permanent changes in OBBB is the increase in the federal estate tax exemption to $15 million per person, or $30 million for married couples. While that means fewer families will face estate tax, it doesn’t mean estate planning is less important.
In fact, with all the temporary benefits and uncertain future of tax policies, estate planning is more essential than ever.
You need a plan that not only transfers your assets, but that also helps your family manage shifting tax rules, benefit requirements, and financial pressures.
Why You Need a Life & Legacy Plan, Not Just a Stack of Documents
If there’s one thing the “One Big Beautiful Bill” makes clear, it’s that laws can change overnight – and your plan needs to be ready.
As your attorney, I don’t just create documents. I help you build a Life & Legacy Plan that:
- Gives your loved ones immediate access to important documents and accounts.
- Provides clear instructions for handling emergencies, incapacity, and your wishes after death.
- Helps your family adapt to financial transitions when tax credits and deductions expire.
- Includes regular reviews to keep your plan up-to-date with changing laws and life changes.
With a Life & Legacy Plan in place, your loved ones won’t be left scrambling or wondering what to do. They’ll have a guide – and a trusted advisor – to walk alongside them when they need it most.
Your Next Steps
While OBBB creates some exciting tax opportunities, it also introduces new risks. Your best defense is a comprehensive, customized plan that’s built for your family’s real-life needs – not just for today, but for whatever tomorrow may bring.
Let’s take this opportunity to sit down together and review your current plan – or create one if you’ve been putting it off. During your Life & Legacy Planning Session, we’ll talk through how the new law impacts you and what steps you can take now to secure your family’s future.
At Cheever Law, we don’t just draft documents; we ensure you make informed and empowered decisions about life and death for yourself and the people you love, starting with a valuable and educational Life & Legacy Planning Session. This will allow you to get more financially organized and make the best choices for the people you love. If you have already completed your estate plan, we will review that plan at your Life & Legacy Planning Session to ensure that it will work the way you intend and address any holes or gaps that may be present if circumstances have changed since you executed your plan.
To learn more about our one-of-a-kind systems and services, contact us or schedule a no-obligation 15-minute introductory phone call today.