While headlines focus on AI earnings and Fed policy, a landmark U.S. tax reform has quietly reshaped the future of generational wealth. The “One Big Beautiful Bill” introduces sweeping, permanent changes that will redefine how family offices manage succession, structure estates, and invest for the long term.
Death and Taxes: No Longer the Threat They Once Were
Starting January 1, 2026, estate, gift, and generation-skipping tax exemptions will permanently rise to $15 million per individual—double the previous amount. This not only averts the planned sunset of lower thresholds but enables families to engage in long-term legacy planning without political whiplash. It’s a structural shift that puts the U.S. more in line with Europe’s low-inheritance tax approach and removes the risk of forced asset sales to cover tax bills.
Capital Gains: Stability Holds
Unlike past proposals, this legislation leaves capital gains taxes unchanged. No increase to rates, no changes to carried interest or corporate taxes. For family offices, that means continued certainty in portfolio planning and the ability to stay the course with current investment strategies.
One notable addition: gains from Qualified Opportunity Funds held for 10 to 30 years will now be entirely tax-free—a powerful boost for those balancing financial return with impact objectives.
A Golden Window for Agricultural Wealth
The legislation introduces significant advantages for family offices with agricultural holdings. The Section 199A deduction expands from 20% to 23% and is now permanent, allowing farming and ranching operations to shield a larger share of income. The income thresholds for full deduction eligibility also increase—$75,000 for single filers and $175,000 for joint filers.
Crucially, the higher estate tax exemption means large agricultural estates can now be passed down without being broken up to meet tax obligations. Add in $56.6 billion in new farm safety net funding through 2031, and rural assets become even more attractive from a risk and income perspective.
Business Investment: Full Steam Ahead
The bill keeps unlimited bonus depreciation, enabling immediate expensing of equipment and land improvements. Combined with expanded business interest deductions and modified loss limitations, this unlocks more aggressive investment strategies—especially for capital-intensive ventures like farming, infrastructure, and emerging private markets.
Strategic Takeaways for Family Offices
With temporary tax rules finally made permanent, family offices can move forward confidently. The environment is now far more conducive to multi-decade planning, efficient estate structuring, and diversified investing across sectors like agriculture and impact.
The Takeaway
The “One Big Beautiful Bill” isn’t just tax reform—it’s a generational reset. By locking in higher exemptions and expanding investment advantages, the U.S. has delivered a new toolkit for wealth preservation. For family offices, the fear of death and taxes no longer dictates strategy. The focus can return to what matters most: sustaining legacy, investing with intention, and shaping the future for generations to come.
