The Big Beautiful Bill has hundreds of provisions, including major wins and big risks.

 

In the latest episode of Lizzie’s Wealth Wisdoms, Lizzie breaks down everything high-net-worth families need to know:

📣 What is the Big Beautiful Bill?

📣 What it means for your wealth

📣 Smart moves to protect your wealth now

 

These changes are significant and timing matters. If you’d like to connect on how this bill impacts your financial plan, let us know!

 

Transcript:

Today, we are tackling the Big Beautiful Bill, which was signed into law on July 4th, 2025. It is a massive tax and spending package that has meaningful implications for high net worth families, both positive and cautionary.

So what is the Big Beautiful Bill?

The bill permanently extends the 2017 tax cuts. It locks in the current income tax brackets, raises the standard deduction, and it makes the qualified business income deduction permanent.

All of that effective in 2025. On the flip side, it phases out clean energy tax credits and it meaningfully cuts Medicaid and Snap benefits. There’s also hundreds of other provisions included within the package, such as the child tax credit, remittance taxes and the Trump accounts for newborns.

Wins for Wealthy Families

For high net worth families, there are some clear benefits.

1. Qualifying business income deduction being made permanent. This is a big deal for families with pass through entities LLCs, S-Corps. family offices.
2. Estate tax exemption has been indexed and inflated to roughly $15 million per person, or $30 million for a married couple.
3. SALT deduction cap is temporarily increased to $40,000 for those making less than $500,000 per year, which provides some welcome relief to those in high tax states.

Risks & Tradeoffs

But there are risks and trade offs.

1. Deficit explosion. We know that the national deficit is a huge issue. And this is estimated to add $2.8 to $3.4 trillion to our national deficit over the next ten years. It’s likely that future lawmakers will look to roll back estate tax exemptions or eliminate loopholes. So, timing is critical.
2. Energy incentives reversed. Battery electric vehicles, wind, solar incentives are all being phased out, which negatively impacts family owned businesses in these sectors or investment strategies that target these type of companies.

Planning Moves

For wealthy families, here are some immediate action items.

1. Review entity and QBI strategy. So, ensure that your passthrough entities optimize the permanent deduction.
2. Accelerate wealth transfers. Frontload gifts or GRATs while high exemptions remain.
3. Maximize SALT deductions. Prepay 2025 state and local taxes when possible.
4. Revisit energy and EV plans. With credits phasing out, review the cost benefit analysis now.

The bill’s sweeping debt implications mean that it’s more of a stopgap and a politically controversial one. Expect future rounds of reform possibly targeting upper end estate and pass through benefits, so flexibility is critical.

In short, the Big Beautiful Bill delivers permanent breaks on income, business and estate taxes, all benefits to high net worth families. But, it opens the door to fiscal backlash and tighter future policy. Now is the time to review, revise and act with your team of advisors.