By Laura Walker, JD
In July 2025, the” One Big Beautiful Bill Act” was signed into law, and in a previous blog my fellow team member, Robert Lange, shared a summary breakdown of the tax changes that may be relevant to you. I will now share with you highlights and planning opportunities as they relate to your estate planning and charitable giving.
The federal estate and gift tax (non-charitable, to individuals) exemption has been increased to $15 million for the 2026 tax year, with future adjustments for inflation. This means the majority of estates (more than 99%) will not be subject to federal estate taxes, making income tax planning, rather than estate tax planning, the priority for most taxpayers.
Effective in the 2026 tax year, a reinstated deduction allows non-itemizers to deduct cash donations to charity—up to $1,000 for single filers or $2,000 for married couples filing jointly. This provision is not indexed for future inflation, and some types of donations are ineligible for the deduction, but all taxpayers are now eligible to receive a tax deduction for qualified charitable contributions.
Also beginning in the 2026 tax year, for taxpayers in the top tax brackets, the new limit to charitable deductions for itemizers is capped at 35%, meaning taxpayers in the 37% bracket will not receive the full deduction. As well, itemizers who make charitable contributions will only be able to claim a tax deduction to the extent that their qualified contributions exceed 0.5% of their adjusted gross income (AGI). With these limits to deductions in mind, you may consider accelerating or bunching future annual giving in 2025 to maximize your deductions under the current marginal rate before the new cap goes into effect.
Despite all the changes, lifetime charitable giving may still be the most beneficial way to “disinherit the IRS” and still provide for your spouse, family and causes and organizations you care the most about. You can maximize the impact of your giving and reduce your taxable income with gifts of Stock, Real Estate, Business Interests and other non-cash assets, including “qualified charitable distributions” from your IRA.
Changes in the tax laws and personal life events are opportunities to review your estate plan and consider lifetime and legacy giving. How do these changes impact your personal estate and charitable planning? What are the best solutions and strategies for your desired outcomes and circumstances? We invite you to contact us to have a conversation.
Would you like to be a part of a gathering to be inspired and encouraged in your generosity journey? If you would like to learn more about a “Journey of Generosity” (JOG) gathering, click on the link below: https://vimeo.com/1069334206?fl=pl&fe=sh
Our next “Journey of Generosity” (JOG) gathering will be:
Friday, October 17, 2025 at 2PM – Saturday, October 18, 2025 at 12PM
at The Mill House Bed & Breakfast in Grand Rapids, Ohio. The gathering, overnight accommodations and meals will be provided at no cost to participants.
Space is limited and RSVP need to be received by Wednesday, October 8th, 2025.
For more information, please contact Laura Walker, at Munn Wealth, 419-794-0536, ext. 131 or laurawalker@munnwealth.com
This material is intended to be educational in nature, and not as a recommendation of any particular strategy, approach, product or concept for any particular advisor or client. These materials are not intended as any form of substitute for individualized investment advice. The discussion is general in nature, and therefore not intended to recommend or endorse any asset class, security, or technical aspect of any security for the purpose of allowing a reader to use the approach on their own. Before participating in any investment program or making any investment, clients as well as all other readers are encouraged to consult with their own professional advisers, including investment advisers and tax advisors. Munn Wealth Management, LLC, is registered as an investment adviser with the United States Securities and Exchange Commission. 1323GTF