The One Big Beautiful Bill Act (OBBA), extends and expand several provisions from the 2017 Tax Cuts and Jobs Act, removing uncertainty around income tax brackets, the standard deduction, and lifetime gift and estate tax exclusions. For high-net-worth clients, this opens the door to proactive, tax-smart planning, including charitable bunching strategies clients may want to act on before new deduction limits take effect in 2026.
Here’s what matters most to your practice:
1. Bigger lifetime gifting window
What changed:
The lifetime gift and estate tax exemption will increase to $15M (single) / $30M (joint) in 2026 and will be indexed for inflation.
Why it matters:
This is a powerful time for clients to transfer wealth efficiently. Donor-advised funds (DAFs) can play a key role in reducing taxable estates while aligning legacy and philanthropic goals.
Ren’s advantage:
We work with you to integrate DAFs alongside trusts and other vehicles—supporting thoughtful legacy strategies for even your most complex clients.
2. Smart timing with charitable bunching
What changed:
Under the new OBBBA, the standard deduction is rising again in 2025: $15,750 (single) / $31,500 (joint). At the same time, OBBBA introduces a new charitable “floor”, eliminating deductions for gifts under 0.5% of income for itemizers.
Why it matters:
OBBBA’s changes could significantly limit charitable deductions in 2026 and beyond. Many clients, especially those on the edge of itemizing, may lose the ability to deduct their gifts at all. Bunching multiple years of charitable giving into 2025, often through a DAF, can help preserve the full deduction before these restrictions take hold. It also allows clients to sidestep the charitable floor and maximize their tax benefit while continuing to support nonprofits over time.
Ren’s advantage:
We give you the tools and resources to guide these conversations. Our DAF platform supports flexible giving, complex asset contributions, and successor planning for long-term impact.
3. Revisit estate plans with more certainty
What changed:
Many 2017 tax provisions are now effectively permanent—making this an ideal time to review estate documents and charitable vehicles.
Why it matters:
Clients may be ready to act now that uncertainty is removed. This is a moment to realign giving tools with financial plans and explore DAFs, charitable trusts, and foundations.
Ren’s advantage:
We bring more to the table than other DAF sponsors: expert guidance, trust capabilities, flexible investment options, and support for advisors and their clients.
Why choose Ren?
- Purpose-built to support financial advisors
- Deep expertise in charitable planning and complex assets
- Full suite of tools: DAFs, CRTs, CLTs, CGAs, and more
- Support for clients with unique goals
Let’s talk strategy.
Need help navigating this with your clients?
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