Section 70106 of H.R. 1 Tax Law

Planning Ideas

On July 4, 2025, Section 70106 of H.R. 1 was signed into law, creating a blueprint for future estate planning.  The 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 estate tax can use discounted dollars to pay premiums on life insurance, earmarking the death benefit to offset the tax burden. 

The SALT deduction might be enhanced through multiple non-grantor trusts.  The increased standard deduction creates an opportunity for charitable giving, which can be enhanced further if the charity uses the donations to pay premiums on life insurance.  A few new planning ideas are outlined below.

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.