Estate Planning Ideas for South Carolina Families in Light of the One Big Beautiful Bill

With the sunset of the Estate tax exemption looming at the end of 2025 and potential new legislation being debated, there was a great deal of uncertainty and uneasiness around estate planning – even for families who thought they were well prepared. When the One Big Beautiful Bill was signed on July 4, 2025, the commotion subsided. In 2017, the TCJA nearly doubled the estate exemption, but families across the country were concerned about what was on the horizon after December 31, 2025, when the exemption would drop back down. With the estate exemption made permanent and additional reforms, the OBBBA solidifies and reshapes  the estate planning landscape. For families, this type of sweeping federal tax law creates both planning opportunities and important considerations for preserving wealth, protecting family assets, and passing on a legacy. 

Estate planning is not always an easy topic for families to discuss, but it is a crucial piece of financial and legacy planning. Below are a few ideas that should be considered in light of the significant tax law changes. 

1. Reevaluate Estate and Gift Tax Exemptions

With the passing of the OBBBA, the increase to estate and gift tax exemptions was made permanent for federal tax purposes. The lifetime exemption is permanently set at $15 million per person ($30 million per couple) and indexed for inflation. While the federal estate tax remains at 40%, the higher exemption allows for expanded planning opportunities and strategies such as GRATs, SLATs, and sales to intentionally defective grantor trusts. While South Carolina does not impose a state estate or inheritance tax, federal estate tax can significantly impact higher-net-worth families. 

Ideas for Utilizing the Increased Exemption:

• Use increased federal exemptions to make lifetimes gifts to children, grandchildren and beneficiaries with some annual gifts being tax-free

• Consider gifting appreciating assets to remove future growth from your taxable estate

• Use trusts to gift assets while maintaining structure and long-term control 

   

2. Build Flexibility into Your Estate Plan

While the OBBBA made the estate tax exemption permanent, it does not mean that families should stop planning. As different parties take control in our legislature over time, there is always potential for new legislation in years to come. A strong estate plan anticipates future shifts rather than locking families into rigid strategies. Flexibility is especially important for multigenerational South Carolina families with long‑term goals for land, businesses, or investment portfolios.

Ideas for making your estate plan flexible:

• Include flexible trust provisions such as powers of appointment or trust decanting

• Use disclaimer planning so beneficiaries can adapt to the law in effect at the time of death

• Avoid plans that rely entirely on today’s tax environment remaining unchanged

3. Use Trusts to Preserve Family Wealth

Trust planning remains a cornerstone of estate planning for South Carolina families, particularly during favorable tax periods. Older generations have built wealth and accumulated assets with legacy goals in mind. It is important that clients know their wishes for their legacy are respected, their hard-earned assets are protected, and their families are taken care of for generations to come. Trusts can be tools that are especially helpful for families with closely held businesses, real estate, or significant investment assets. 

Ideas for use of trusts:

• Spousal Lifetime Access Trusts (SLATs) may allow married couples to use exemptions while maintaining indirect access to assets

• Dynasty trusts can help preserve wealth for children and grandchildren, particularly when generation‑skipping transfer tax exemptions are favorable

• Grantor trusts may be used to shift future asset growth out of the estate while the grantor pays income taxes, effectively making additional tax‑free gifts

   

4. Coordinate Income Tax and Estate Planning

Estate planning is not just about transfer taxes. Federal income tax changes can significantly affect heirs, especially when it comes to capital gains, step‑up in basis rules, and retirement accounts. Coordinating income tax and estate strategies can help maximize after-tax wealth for heirs. 

Ideas for minimizing taxes:

• Reevaluate whether gifting assets during life or holding them until death makes more sense under current rules

• Review beneficiary designations on IRAs and retirement plans in light of distribution rules and family needs

• Consider charitable giving strategies that may provide income tax benefits while supporting causes important to South Carolina communities

   

5. Review and Update Core Estate Documents

Major tax law changes are a good reminder that estate plans should be reviewed regularly—even if no major life event has occurred. For South Carolina residents, it is also important that documents comply with state‑specific laws governing probate, trusts, and property.

Ideas for checking documentation:

• Review wills and trust formulas tied to federal exemptions to ensure they still operate as intended

• Confirm beneficiary designations on life insurance and retirement accounts align with your overall estate plan

• Revisit fiduciary selections, such as trustees and personal representatives, to ensure they remain appropriate

6. Communicate the Plan with Family and Advisors

Changes in tax law can create confusion for heirs if the estate plan includes advanced strategies or trusts. Clear communication can help avoid misunderstandings and ensure your wishes are carried out as intended and planned for. 

Ideas for family communication:

• Discuss the intent behind your estate plan with family members when appropriate

• Prepare a written summary explaining how current tax law influenced planning decisions

• Ensure your financial advisor, estate planning attorney, and tax professional are working together and your family is aware of these individuals you have trusted as your advisors

   

The One Big Beautiful Bill may be today’s headline, but tax laws will continue to evolve. Thoughtful estate planning for South Carolina families is not about chasing every new law—it’s about creating a flexible, well‑coordinated plan that can adapt over time.

If you have not reviewed your estate plan since the passage of major tax legislation, now is an ideal time to do so. Proactive planning can help protect your family, preserve wealth, and provide peace of mind—no matter how the tax landscape changes. 

Disclosure: The information provided in this blog post is for educational and informational purposes only and should not be construed as financial advice. While we strive to present accurate and up-to-date information, the financial, tax, and legal landscape is subject to change, and individual circumstances vary. Readers are encouraged to consult with a qualified financial advisor or professional before making any financial decisions or implementing strategies discussed in this post. Our firm does not guarantee the accuracy, completeness, or suitability of the information provided, and we disclaim any liability for any direct or indirect damages arising from the use of this information. Artificial Intelligence was used to assist in the writing of this article. Past performance is not indicative of future results. Any investment involves risk, and individuals should carefully consider their financial situation and risk tolerance before making any investment decisions.