Congress Proposes Major Expansion of Estate Tax Exemptions

WASHINGTON, D.C. — Congressional Republicans are advancing a plan to permanently raise the federal estate tax exemption, benefiting ultra-wealthy families. This initiative is embedded in the sweeping One Big Beautiful Bill Act, currently under consideration in Congress.

If passed, the measure would increase the estate tax exemption from its current levels of $13.99 million for individuals and $27.98 million for married couples to $15 million and $30 million, respectively, starting in 2026. Adjustments for inflation would follow in subsequent years.

The estate tax, which was initially doubled under the 2017 Tax Cuts and Jobs Act, is set to revert to its original limits unless Congress acts. This proposed change reflects a long-term trend towards maintaining rather than redistributing wealth in America.

Todd Villarubia, an attorney and owner of Wealth Planning Law Group, emphasized the implications: “Ultra-high-net-worth individuals gain the ability to transfer far more wealth without incurring estate or gift tax.” This shift primarily favors families with substantial assets, including businesses and real estate.

Supporters of the proposal argue it protects family businesses and simplifies wealth transition. Matthew Erskine, managing partner at an estate planning firm in Massachusetts, expressed that while it benefits the wealthy, it aids in preventing forced sales of businesses upon an owner’s death.

Critics, however, view the move as part of a broader federal agenda prioritizing the preservation of dynastic wealth. “The estate tax’s reach is shrinking,” Villarubia noted, highlighting that by 2019, only about 2,100 estates were taxable, a mere fraction of the population.

The final details of the bill are still being ironed out as Republicans hope to secure President Trump’s signature by Independence Day. Leading figures within the party have shown support for a complete repeal of the estate tax, although achieving this in the current legislative session appears unlikely.

The proposed changes are estimated to cost the federal government approximately $210 billion over the next decade, a figure Villarubia describes as modest compared to the overall federal budget. “It sends a clear message about policy priorities: preserving dynastic wealth over recouping revenue from the wealthiest estates,” he added.