CHANCES ARE, YOU’VE READ about “The One Big Beautiful Bill Act” (or OBBBA), signed into law on July 4, 2025. But what aspects of the massive legislation might apply to your personal finances? As you plan for yourself and your family, consider these four areas and insights from the Chief Investment Office (CIO) National Wealth Strategies team.

1. Benefits for kids

• More uses for 529s. The list of “qualified higher education expenses” has expanded to include curriculum materials, books, test prep and other expenses for grades K-12. Starting in January 2026, the limit on distributions (i.e., expenses) for K-12 jumps from $10,000 to $20,000 per calendar year per beneficiary.
  
  
• Seeding future savers. Kids under 18 can get a head start on saving through a market-based “Trump Account,” which, like traditional IRAs, allows potential investment earnings to grow tax-deferred. Starting July 4, 2026, you may contribute—in cash only—up to $5,000 per child per year to a Trump Account. (The cap will be indexed for inflation starting in 2028.) Children who are born in 2025 through 2028, have a valid Social Security number (SSN), and have a parent with a valid SSN will be eligible to receive $1,000 from the government to seed their account. Only certain investments are allowed. Account holders must reach age 18 to withdraw funds. Consult your tax professional to learn more.
  
  
• CTC grows up. The maximum child tax credit (CTC) was increased permanently to $2,200 (from $2,000) in 2025, to be adjusted annually for inflation starting in 2026—potentially freeing up more money for childcare or other costs.
   

2. A boost in tax relief

• A generous pinch of SALT. If you itemize deductions or are considering it, the big news is a boost in the state and local tax (SALT) deduction. The deduction limit will increase from $10,000 to $40,000 for the 2025 tax year and will increase by 1% annually before returning to $10,000 in 2030. (The deduction phases down for taxpayers earning more than $500,000 and is $10,000 for taxpayers with income over $600,000 that are married filing jointly).
  
  
• Higher standards. The OBBBA also raises the standard deduction to $31,500 for married couples filing jointly (up from $30,000) and $15,750 for single filers (from $15,000), meaning that fewer people will benefit from itemizing. Ask your tax specialist for advice about your situation.
  
  
• A senior discount. If you’re 65 or older, a $6,000 annual tax deduction goes into effect immediately through 2028. It could help you meet expenses or stash additional savings. The deduction phases out for seniors with modified adjusted gross incomes above $150,000 for married couples filing jointly and $75,000 for single filers. Contrary to some reports, the deduction does not eliminate taxes on Social Security benefits; rather, the phase out takes into account your total income, which includes Social Security benefits. Note that eligible seniors may claim the tax deduction whether they itemize or not.
   

3. Energy tax credits to sunset

• For homes. Consider accelerating planned energy-efficient purchases to garner tax credits while they’re still available, the National Wealth Strategies team suggests. The legislation curtails a host of green incentives, including the energy-efficient home improvement (if placed in service after December 31, 2025) and residential clean energy tax credits (or expenditures made after December 31, 2025) and the new energy efficient home credit (for homes acquired after June 30, 2026).
  
  
• For EVs. The electric vehicle (EV) tax credit expires for vehicles acquired after September 30, 2025. Prior to that date, purchasing a new EV came with a $7,500 federal tax credit, while used EVs included up to $4,000. You may still be able to find some incentives at the local level, so be sure to research state and local benefits that may be available to you.
  
  

4. Tax impacts to wealth transfer and donations

• A boon for estate planning. Per the OBBBA, the estate and gift tax exemption and the generation-skipping tax exemption rise to $15 million for individuals and $30 million for couples in 2026, adjusted annually for inflation after 2026. These were otherwise scheduled to significantly decrease after 2025. Though not immune from future legislative change, the higher, non-sunsetting exemptions now in place should add long-term clarity for those planning their estates, the National Wealth Strategies team notes.
  
  
• Itemizing philanthropy. If charitable giving is important to you, the law contains good or bad news, depending on whether you itemize. Nonitemizers can declare charitable deductions up to $1,000 ($2,000 for joint filers) of cash to public charities starting in 2026. For itemizers, the OBBBA creates a new floor of 0.5% of the donor’s “contribution base” (generally, adjusted gross income) before you can claim a charitable contribution deduction.
   

Whether the subject is education, your home, or charitable giving, taxes are just one factor driving your decisions, the National Wealth Strategies team advises. Connect with your financial advisor and tax specialist for help navigating your personal situation.

Keep reading

The recent CIO Tax Alert, “President Signs Reconciliation Bill with Significant Tax Changes,” goes deeper into the effects of the OBBBA.