The recently passed federal budget bill, dubbed the “One Big Beautiful Bill,” includes major updates that will shape estate planning for years to come. Chief among them is a permanent increase in the federal estate and gift tax exemption, which rises to $15 million per person (or $30 million per married couple) starting in 2026.

For dental professionals building long-term wealth, this presents both opportunities and responsibilities. 

• Larger Exemption = More Tax-Free Wealth Transfer: The new exemption threshold allows dentists and other high earners to transfer significantly more assets –whether during their lifetime or after death – without triggering federal estate or gift tax. This opens the door for more impactful gifting strategies, especially when funding trusts or assisting family members with practice ownership transitions.
• Lifetime Gifting Just Got More Powerful: Making strategic gifts while alive is one of the most efficient ways to manage estate size. With the higher exemption, you can now gift larger amounts directly or through irrevocable trusts, helping secure generational wealth or support causes they care about.
• Plan for the Long Game But Be Flexible: While the bill makes these changes “permanent,” nothing in tax law is truly set in stone. Future administrations or Congresses could lower exemption amounts or shift tax strategies. Building flexibility into your estate plan is key.
• Dynasty and Multi-Generation Planning: The increase to the generation-skipping transfer (GST) exemption now aligns with the estate tax exemption, allowing high-net-worth families to build long-term legacy plans – such as dynasty trusts – without immediate tax hurdles.
• Trusts Still Matter: The new law didn’t change how trusts are taxed, but it does prompt a good reason to revisit them. Some older trust structures may no longer be optimal, while others could be updated to better align with today’s limits and tomorrow’s goals.
• Keep an Eye on State Laws and Income Taxes: While the federal exemptions are generous, your state may still impose estate taxes with much lower thresholds. And income tax strategies, including the use of non-grantor trusts, can help manage exposure on passive income or capitalize on deductions.
• Now’s the Time to Review Your Plan: Life changes such as getting married, having children, investing in a practice, should prompt a fresh look at your estate plan. But with these new federal changes in place, it’s more important than ever to ensure your strategies match your goals and take full advantage of available tax relief.

What Should You Do Next?

Whether you’re a dentist nearing retirement, early in your practice, or preparing to pass the reins to the next generation, now is the right time to talk to us about your financial and tax strategies. We can help you take full advantage of these changes and ensure your plan is aligned with your values, your family’s future, and your practice’s legacy.