Advisors getting to work now that Trump's OBBBA is finally on the books

It may have taken longer than expected, but President Donald Trump finally got his One Big Beautiful Bill Act (OBBBA) through Congress earlier this month.

Now it’s time for financial advisors to get to work helping clients take advantage of all the tax benefits and deductions buried inside it.

For example, that might mean adjusting client plans in response to the new $15M estate tax exemption, according to Samuel Diarbakerly, founder and private wealth advisor at Generation Capital Advisors.

“The increase in the estate tax exemption to $15M has given us something rare in wealth transfer planning - time. Time to think more strategically, coordinate more precisely, and act with intention. We’re using this window to stress test estate and financial plans, refine legacy goals, and open SLATs where appropriate,” Diarbakerly said, adding that his focus is on forecasting outcomes under multiple growth and tax scenarios so he can “measure twice and contribute once.”

Thus far, he said clients taking the fastest action are those with upcoming liquidity events or multigenerational legacy objectives, because they understand this is a chance to optimize, not just react.

“We’re building structures that not only preserve wealth, but position it for growth and impact across generations,” Diarbakerly said.

Chris Cooke, founder of Cooke Financial Group, a partner firm of Sanctuary Wealth, meanwhile, said he was always prepared for more dramatic gifting by clients and establishing of trusts before the end of 2025, even if the OBBBA was not going to pass. Once it did, however, the urgency for the year-end deadline slipped, and his discussions with clients slowed to a "more reasonable pacing without the gun to our head feeling." 

“Large irrevocable estate gifts are challenging, and a longer lead time for decision making feels very good. Gifting strategies for many clients are still in place, but rapid acceleration of these strategies, including larger than usual sums, is no longer contemplated,” Cooke said.

Elsewhere, Clint Costa, senior wealth strategist at Choreo, believes the OBBBA’s increased exemptions have also changed things for clients who are not engaging in lifetime wealth transfer, but instead focused on how their estate plans operate at death. 

“Many client wills and revocable living trusts were conceived pre-TCJA when exemptions were at or below $5M.  With exemptions now at $15M, many will need to shift from estate tax planning to income tax planning with a focus on maximizing basis step up.  We continue to help clients address this issue in their estate plans by interfacing with their attorneys to update the documents,” Costa said.

Optimize the small business deduction

Now that the 20% small business deduction has been made permanent and expensing limits have been increased, wealth managers with business-owner clients will have additional cash flow free and ready for reinvestment.

Diarbakerly, for one, said he is already busy helping clients reframe the freed up cash flow - not as a windfall, but as long term opportunity capital.

“The permanence of the 20% QBI deduction and the doubling of Section 179 expensing - now up to $2.7M annually - has created real planning leverage. For many founders, that means expanding capacity without deferring profitability. For others, it’s the green light to invest in high-ROI intangibles like leadership talent, IP development, and tech infrastructure,” Diarbakerly said.

Cooke said business owners have expressed some excitement about the expensing limits in particular. 

“I think there will be a burst of pent-up business investment in the next four to six quarters. The offsetting factor may be some hesitance about whether the economy is accelerating or decelerating, as caution seems to have been rising in recent months,” Cooke said.

Choreo’s Costa, however, believes it’s still “too early to tell” how the business tax features of the OBBA will affect business owners since so many decisions, like significant capital expenditures, are dependent on business, industry, and larger economic issues. In addition, he said many business owner clients might not “feel” the benefits of some of the changes so acutely. 

“The 20% qualified business deduction for businesses structured as pass-thru like S corporations and partnerships was already more or less viewed as permanent,” Costa said. 

He added that other changes, like more beneficial cost recovery and depreciation rules, might “move the needle” but will take time to become business investment decisions. 

Same old 'beautiful' model

Despite all the changes set forth in the OBBBA, financial advisors say they are not radically changing their service models to meet them. In most cases, they already have evolved their practices to offer more integrated tax and wealth planning, as opposed to acting purely as asset managers.

“No substantial changes in our service model are required,” Cooke said. “We maintain our normal cadence of meetings with clients, addressing the needs that arise, and identifying new opportunities, such as those created by the OBBBA.” 

Cooke emphasized the biggest addition to his toolkit will be explaining to clients the 100% business expensing opportunities, SALT increases, and additional use of Qualified Opportunity Zones, which are now perpetual rather than expiring and other tools to further defer and defray gains. 

Similarly, Choreo’s Costa called occasional changes in tax law “important” as they help drive home why an integrated tax and wealth approach is so important to helping clients meet their objectives. But given his firm’s already “tax-centric” wealth management model, he does not see the OBBBA as a reason to evolve his model.