A Much Bigger Exemption — And What It Means for You

The One Big Beautiful Bill Act just raised the lifetime gift and estate tax exemption to $15 million per person — or $30 million for married couples — with built-in inflation adjustments. For real estate owners, this opens a major window for tax-free wealth transfer.

What changed? Before this increase, estates in the $13–14 million range faced real tax exposure. Now, that same estate passes to heirs completely tax-free. That extra room means you can plan thoughtfully instead of rushing transfers to beat a sunset deadline.

Why Real Estate Is Built for This

Real property is one of the most tax-efficient assets to transfer — and here’s why.

When you gift a fractional interest in real estate (say, through a limited partnership), you can apply valuation discounts for lack of marketability and lack of control. That means a $5 million property interest might only count as $3.5–4 million against your exemption.

Now pair those discounts with the new $30 million exemption for couples. The math gets powerful fast. A married couple could potentially move $40 million or more in real estate value while staying within the exemption limit.

The Best Assets to Gift Right Now

Not all properties are equal when it comes to gifting. Long-term lease assets stand out as ideal candidates — especially NNN properties with credit tenants.

Here’s why they work so well:

• Predictable income streams make valuation straightforward.
• That income funds trust operations without additional contributions.
• All future appreciation grows outside your taxable estate.

Think of a retail center with a 15-year Walgreens lease. Stable tenant, long-term income, clean valuation. That’s the sweet spot.

Don’t Wait — Early Transfers Compound

Estate planning is easy to put off. There’s always next quarter, next year. But here’s what most people miss: every dollar of appreciation after the transfer stays out of your estate. The sooner you act, the more value you protect.

Your Next Steps

1. Review your estate plan against the new $15M / $30M thresholds.

2. Identify real estate holdings that are strong candidates for gifting — look for stable income and minority interest potential.

3. Connect with estate planning specialists in our network who focus on real estate wealth transfer.

Williams Capital Advisors

(213) 880-8107 | francisco.williams@williamscap.ai | williamscapitaladvisors.com