By Raymond Nash
Section 70106 of H.R. 1 Tax Law
Comparison to TCJA
On July 4, 2025, Section 70106 of H.R. 1 was signed into law, creating a blueprint for future estate planning. Starting January 1, 2026, the federal estate and gift tax exemption has been established at $15 million for individuals and $30 million for married couples. These limits do not have an impending sunset and are indexed for inflation, so affluent households can make plans around these amounts. Those who discover that their heirs will incur a large federal estate tax can use discounted dollars to pay premiums on life insurance, earmarking the death benefit to offset the tax burden.
While the federal estate tax exemption is the piece of the new tax law that most directly affects the life insurance industry for ultra wealthy clients, there are several other components that affect financial planning in various ways and to various degrees. Our partner, Pacific Life, has put together a review of several similarities and differences of the Tax Cuts and Jobs Act when compared to the new tax bill. This handy guide broadly outlines some nuances of the new tax bill in a concise and clear manner that might be helpful to you or your clients. Feel free to share this report with your clients or colleagues.
Contact us with any questions or opportunities to help you or your clients achieve identified goals. This is what we enjoy doing for only a select number of families, businesses, and charitable institutions each year, and we look forward to hearing from you.