OBBBA Solidifies High Estate Tax Exemptions & Charitable Giving Changes

President Trump's July 4th signing of the Opportunity, Balance, and Better Budget Act sets an increased $15 million federal estate and gift tax exclusion and generation-skipping transfer tax exemption per individual, eliminating the uncertainty surrounding the previously scheduled reduction in 2026 under the TCJA. This landmark change provides high-net-worth individuals and families with greater clarity and flexibility for long-term wealth transfer strategies. The Act also introduces new limitations and incentives for charitable giving, including AGI floors for deductibility, a permanent 60% limit for cash gifts, a reinstated nonitemizer deduction, and a cap on itemized deductions for top earners.