The Burling Brief:
Six Big and Beautiful Planning Moves to Consider
July 25, 2025
Earlier this month, the One Big Beautiful Bill Act (OBBBA) introduced significant changes to the tax code, impacting high earners, business owners, and families. Burling Wealth Partners highlights six planning moves to help you navigate and capitalize on these new opportunities.
1. Top Tax Brackets Remain in Place
Why It Matters: The top income tax rate remains at 37% and eliminates a significant piece of tax uncertainty, offering high-income earners a clearer, more predictable tax landscape.
2. Federal Estate Tax Exemption Extended
Why It Matters: The federal estate tax exemption is permanently extended starting in 2026 to $15 million per person (adjusted annually for inflation). This is a key opportunity to review trusts, gifting strategies, and multigenerational wealth planning.
3. Higher SALT Deduction
Why It Matters: SALT cap increases from $10K to $40K before phasing down. This may open short-term itemization opportunities for high-income earners through 2029.
4. Expanded 529 Plan Uses for K-12 Eduation
Why It Matters: OBBBA increases the annual limit for K-12 expenses to $20K/year per beneficiary from 529 plans and expands qualified expenses. This creates new planning opportunities for families focused on education and career development.
5. QBI Deduction Made Permanent
Why It Matters: The 20% qualified business income deduction was made permanent. For many pass-through business owners, this permanence removes a looming source of tax uncertainty and can offer long-term planning strategies for certain high earners, though some high earners may still face limitations depending on business type and income level.
6. Charitable Deduction Opportunities for Standard Filers
Why It Matters: Standard deductions filers can now deduct $2,000 (MFJ) or $1,000 (single) for cash gifts to charities. Review gifting strategy and consider donor-advised funds or bunching strategies.
Policy and tax rules will continue to evolve. Working with Burling Wealth Partners gives you a structured, proactive plan that keeps pace with change—so you can focus on your goals with greater simplicity, flexibility, and confidence.
About Burling Wealth Partners
Burling Wealth Partners is a Chicago based, independent, fee-only fiduciary serving high-net-worth individuals and families from coast to coast. We provide comprehensive wealth management services designed to protect and preserve your wealth today, foster sustainable growth for the future, and instill the confidence to focus on what matters most to you and your family. Our client-centric approach ensures tailored strategies that align with your financial goals, offering clarity, simplicity, and long-term security.
Disclosures
The information, analysis, and opinions expressed herein are for general and educational purposes only. Nothing contained in this commentary is intended to constitute legal, tax, accounting, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type.
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