Atlanta, Georgia – The One Big Beautiful Bill Act, signed into law this Summer, permanently raises the federal estate and gift tax exemption to $15 million per individual beginning January 1, 2026. According to estate planning attorneys at Slowik Estate Planning, Atlanta-area families should understand how these changes may affect their existing plans and future wealth transfer strategies.

The new law eliminates a scheduled reduction that would have cut the exemption roughly in half to approximately $7 million per person in 2026. For married couples who plan together, the combined exemption now stands at $30 million.

“Many families created estate plans specifically designed around the expected 2026 exemption reduction,” said Jake Slowik, estate planning attorney and owner of Slowik Estate Planning. “Now that the rules have changed, those plans may contain provisions that no longer make sense. This is a good time for families to revisit their documents and make sure everything still aligns with their goals.”

Key Provisions of the Act

Under the new law, the federal estate, gift, and generation-skipping transfer (GST) tax exemptions increase to $15 million per taxpayer, with annual inflation adjustments beginning in 2027. The top marginal tax rate for amounts exceeding the exemption remains at 40 percent.

The step-up in basis at death remains intact under the Act. This provision allows heirs to receive inherited assets with a cost basis equal to fair market value at the date of death, which can reduce capital gains taxes when those assets are later sold.

The annual gift tax exclusion—the amount that can be transferred to any individual each year without using lifetime exemption—continues at $19,000 per recipient for 2025 and 2026 under existing inflation adjustment rules.

Implications for Georgia Residents

Georgia does not impose a state-level estate tax or inheritance tax. As a result, Georgia residents are subject only to federal estate taxes, and the higher exemption means fewer families will face federal estate tax liability.

However, estate planning attorneys note that the tax law changes may require families to review existing documents. Plans created in anticipation of the 2026 exemption reduction may contain strategies or formula clauses that no longer serve their intended purpose under the new rules.

Considerations for Existing Estate Plans

According to Slowik Estate Planning, families who implemented aggressive gifting strategies to use their exemption before the anticipated reduction should evaluate whether those transfers still align with their overall financial goals.

Estate plans containing formula clauses, particularly those directing assets to credit shelter trusts or GST trusts based on the exemption amount,may produce unintended results under the higher thresholds. In some cases, these formulas could direct more assets to trusts than intended or result in missed opportunities for basis adjustments at the surviving spouse’s death.

For individuals who previously used most of their lifetime exemption through taxable gifts, the increase to $15 million provides additional exemption capacity for future wealth transfers.

Planning Beyond Tax Considerations

Estate planning addresses matters beyond federal taxes. Proper planning can help families avoid probate costs and delays, establish incapacity protections, minimize potential disputes among beneficiaries, and ensure assets pass according to the individual’s wishes.

Families with estates below the federal threshold may still benefit from reviewing their plans to confirm that documents reflect current circumstances and goals.