From estate planning to QSBS strategies, wealthy families are making moves before Washington changes course on “permanent” tax cuts. Unsplash+
The One Big Beautiful Bill Act (OBBBA) may have cemented key provisions of the 2017 Tax Cuts and Jobs Act into law, but many high-net-worth investors are not treating the permanence of these provisions as policy. They have seen this before. The tax rules that appear untouchable can change quickly when deficits mount or political power shifts. For wealthy families and business owners, now is not a time to relax. It’s a critical window to move decisively before Washington’s fiscal mood turns again.
When “permanent” means political
According to the Congressional Budget Office, U.S. deficits are projected to reach roughly $20 trillion over the next decade, pushing federal debt to 116 percent of GDP by 2034. The Tax Foundation estimates that OBBBA’s provisions alone will reduce government revenue by roughly $5 trillion during this period, even after accounting for growth. With borrowing costs rising and growing public skepticism toward deficit-financed tax relief, the notion of permanence hinges strongly on the next election cycle.
This reality is reshaping how many wealth holders and their advisors are approaching the next few years. Rather than assume the tax code will remain steady, planning conversations are increasingly centered on how strategies might perform under different policy conditions.
The estate tax window is open
Starting in 2026, OBBBA lifts the unified estate and gift exemption to approximately $15 million per person, indexed for inflation. Many clients are using this window to transfer appreciating assets out of future taxable estates, often through tools like Spousal Lifetime Access Trusts or long-term dynasty trusts. These documents now include spring-back clauses that automatically resize transfers if the exemption falls mid-decade, preserving flexibility as laws change.
For many, the value of action now isn’t just financial. It’s also psychological. Knowing that wealth is already protected under current law provides clarity at a time when the tax landscape remains unpredictable.
QSBS and bonus depreciation drive timing strategies
Founders and early-stage investors are also adjusting their approach to liquidity events following the changes to qualified small business stock (QSBS) rules. For shares issued after July 4, capital gains exclusion phases in at 50 percent after three years, 75 percent after four and 100 percent after five, with the lifetime exclusion cap now $15 million. That means a founder selling at the new threshold could save as much as $3 million in federal tax. In response, some are rethinking their timing, often targeting four-year exits instead of holding out for five.
Bonus depreciation, another provision under OBBBA, was made permanent for assets placed in service after Jan. 19, 2025 and allows businesses to deduct the full cost upfront. A mid-sized manufacturer investing $300,000 in equipment, for example, can claim roughly $63,000 in immediate tax savings at the 21 percent corporate rate. Rather than treat these savings as permanent, many businesses are using them to build operational resilience or pay down debt while the incentives last.
R&D expensingwhich was also expanded under OBBBA, is emerging as another area of interest. Companies investing heavily in innovation can now deduct domestic research expenses immediately, instead of amortizing them over time, allowing for more flexible reinvestment strategies.
Planning for multiple futures
Flexibility is becoming a planning priority, particularly among those with multigenerational wealth or exposure to multiple state tax regimes. Trusts and structures that can adapt to new legislation, such as those with convertible provisions, are seeing renewed interest. These allow assets to be moved into new vehicles if needed, without triggering unintended tax or legal consequences.
Geography has also become part of the conversation. In states like California and New York, even the debate over wealth taxes is prompting some clients to relocate holding companies to states with constitutional protections against income or asset-based taxes. That way, at least part of their portfolio is shielded from sudden state-level changes.
Donor-advised funds are also being used more strategically. Families with recent liquidity events contribute appreciated stock or crypto to secure deductions at current rates, then plan their charitable distributions over time. It’s one way to act now while keeping long-term flexibility.
Acceleration, not preservation
Despite the noise surrounding tax changes, there’s been no noticeable pullback among high-net-worth investors. If anything, OBBBA’s confirmation of Tax Cuts and Jobs Act-era rules has reinforced a mindset of acceleration. Rather than waiting for 2026 and beyond, many are acting while the window is still open.
Families are now evaluating how their wealth plans might perform under different tax environments, including a continuation of current law, a rollback to pre-2017 rates or a hybrid framework with new surtaxes. While many planning strategies remain consistent with past TCJA successes, this kind of scenario modeling offers a way to stay responsive if the policy landscape shifts again.
In some cases, individuals seek outside briefings from policy analysts or former Treasury officials to better understand what legislative changes could look like in the next administration. The goal isn’t to predict the outcome, but to stay informed and adaptable.
The real expiration date is political
Just because Congress labels tax cuts as “permanent” doesn’t mean investors should count on them lasting. History is full of long-term laws repealed or reshaped. The households best positioned for 2027 and beyond are not the ones who guessed correctly. They’re the ones who made the most of the current rules and retained the flexibility to adapt as the landscape changes.
Tax policy will continue to evolve. The real question is: Can your strategy evolve with it?
