ADVERTISING: Advertorial - What the One Big Beautiful Bill means for your Idaho estate plan

If you've been paying attention to the news, you've probably heard about the One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025. It's the most significant piece of estate planning legislation since the 2017 Tax Cuts and Jobs Act — and for some Idaho families, it changes the calculus on how to protect and pass on what you've built.

Here's what you need to know.

The Headline: A Bigger, Permanent Exemption

The OBBBA permanently raises the federal estate, gift, and generation-skipping transfer (GST) tax exemption to $15 million per individual — or $30 million for married couples — effective January 1, 2026, with inflation adjustments starting in 2027.

This is a big deal. Under the old law, the enhanced exemption from the 2017 Tax Cuts and Jobs Act was set to sunset at the end of 2025, which would have cut the exemption roughly in half to around $7 million per person.

The top federal estate and gift tax rate remains at 40%, and critically, the step-up in basis at death is preserved. Your heirs will continue to receive inherited assets at their fair market value on the date of death, which can dramatically reduce capital gains tax when those assets are eventually sold.

What This Means for Idaho Families

Idaho residents already enjoy a favorable position: Idaho has no state estate tax, no inheritance tax, and no gift tax. That means the only transfer tax most Idaho families need to worry about is the federal estate tax.

With the new $15 million per-person exemption (and portability between spouses), the federal estate tax is now a non-issue for the vast majority of Idaho families. If you're a married couple with a combined estate under $30 million, your estate tax exposure has effectively dropped to zero.

But that doesn't mean estate planning no longer matters. Far from it.

Why You Should Still Review Your Plan

Even if you're now comfortably under the exemption threshold, the OBBBA may have created unintended consequences in your existing documents. Here are a few things to look at:

Formula clauses may produce surprising results. Many older estate plans include provisions that automatically fund credit shelter trusts or bypass trusts based on the available exemption amount. With the exemption jumping to $15 million, those formulas could now direct far more assets into trust than you intended — potentially leaving a surviving spouse with less than expected.

Income tax planning may now matter more than estate tax planning. For estates well below the exemption, the focus should shift to maximizing the step-up in basis and considering whether existing irrevocable trusts — particularly grantor trusts — still serve your goals. In some cases, keeping assets in your estate (rather than gifting them away during your lifetime) may produce a better tax result for your heirs.

The exemption is "permanent" — until it isn't. While there's no built-in sunset this time, a future Congress could absolutely change the law. High-net-worth individuals and families can use this window to implement thoughtful gift and trust strategies while the exemption is at historic highs.

What Should You Do Now?

If your estate plan was drafted before July 2025, it's worth a review. Even plans that were recently updated to beat the old sunset deadline should be re-examined in light of the new law.

The bottom line: the OBBBA gives Idaho families more room to breathe, but it also rewards those who plan proactively. Don't assume the higher exemption means you can set your plan on autopilot.

My law firm is currently offering free telephonic, electronic, or in-person consultations concerning creating or reviewing estate planning documents, probates and probate alternatives, and guardianship/conservatorship procedures for incapacitated adults.

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Robert J. Green is an Elder Law, Trust, Estate, & Guardianship Attorney and the owner of Kootenai Law Group, PLLC in Coeur d’Alene. If you have questions about estate planning, probates, wills, trusts, powers of attorney, guardianships, Medicaid planning, or VA Benefit planning, contact Kootenai Law at 208-765-6555, [email protected], or visit www.KootenaiLaw.com.

This has been presented as general information and not as legal advice. Do not engage in legal decision-making without the advice of a competent attorney after discussion of your specific circumstances.