On May 21, 2025, the U.S. House passed the “One Big Beautiful Bill Act” by a 215-214 vote, a critical move to permanently set the estate tax exemption at $15 million for individuals and $30 million for couples, indexed for inflation. This is an increase from 2025’s exemptions levels of $13.99 million for individuals and $27.98 million for couples. Most crucially, it averts the 2026 exemption plunge to ~$7 million per person (post-TCJA sunset), which would double taxable estates for the wealthy. Current exemptions, rising 2-3% annually per IRS adjustments, would reach $15 million by 2028 anyway. In Palm Beach County, Florida, it is estimated that roughly 1% of households (roughly 6,000) exceed these levels, per 2023 Federal Reserve and Census Bureau data, leaving “death taxes” irrelevant for the other 99% or so below those levels.
Avoiding the 2026 cliff is paramount, sparing high-net-worth families, like Palm Beach’s elite, from a 40% tax hit on estates above the lower threshold. Senator Ron Johnson (R-WI) critiques the bill’s $4 trillion cost, wary of fiscal strain, while Senator Josh Hawley (R-MO) flags trade-offs like Medicaid cuts. Senator Elizabeth Warren (D-MA) decries the hike as a billionaire bailout. With a 53-47 Republican Senate majority and reconciliation needing 51 votes, the Act will likely pass, but likely with revisions. It seems unlikely though that any revisions will target estate tax exemptions and we will likely be heading into 2026 with a $15 million exemption per person.