UBCNews - Business - Estate Planning And The OBBBA Impact: How To Protect Your Oklahoma Assets

Episode Date: February 10, 2026

You know, there's a new law that just changed the entire world of estate planning, and honestly, if you're nearing retirement, you need to know about it. Have you heard of the One Big Beautiful Bill Act, or OBBBA? Melia Advisory Group City: Tulsa Address: 5424 S Memorial Dr Website: https://www.meliagroup.com/

You know, there's a new law that just changed the entire world of estate planning, and honestly, if you're nearing retirement, you need to know about it. Have you heard of the One Big Beautiful Bill Act, or OBBA? I have, and it's definitely making waves. Signed into law on July 4, 2025, OBBBA introduced sweeping changes to federal estate and income tax laws. For folks in or approaching retirement, especially here in the Tulsa area, this is a big deal. What does it actually mean for estate planning?

I mean, we've all heard bits and pieces, but what's the real impact? Great question. The most significant change is that OBBBA permanently increases the lifetime exemption for federal estate, gift, and generation skipping transfer taxes to $15 million per individual. That's $30 million for married couples, effective January 1, 2026, with future adjustments for inflation. Wow, that's a huge number. So, does this mean people don't need to worry about estate planning anymore? Not at all.

Even with the higher exemption, strategic planning is still critical. You see, OBBBA also made many provisions from the 2017 tax cuts and jobs act permanent, which were set to expire at the end of 2025. Plus, there are new rules around charitable giving and state and local tax deductions that affect how we structure estates. Right. So the exemption amount is only one part of it. What about the charitable giving piece? Exactly.

OBBBA introduces a new $1,000 charitable deduction for standard deduction filers, $2,000 for joint filers, and it adds a 0.5% adjusted gross income floor for itemized deductions. These changes create opportunities but also add layers of detail to consider. I see. And I'm guessing the acronym ABA doesn't exactly roll off. the tongue, does it? It definitely doesn't. But once you understand what it means for your assets, the name sticks pretty quickly. There's also the salt deduction cap, right? Yes, the salt deduction cap is temporarily increased to $40,000 per household from 2025 through 2029. This opens the door for

trust stacking strategies, which can be really beneficial for asset protection. That point about trust stacking strategies sets up our next piece, how to actually use trust for protection. But first, a quick word from our sponsor. If you're in or approaching retirement in the Tulsa area, Malia Advisory Group can help you work through these complex estate planning changes. With over 50 years of combined experience, they specialize in retirement planning, IRA management, estate planning, and social security analysis. They work alongside your attorneys and CPAs, to ensure your estate documents align with your overall financial plan.

Schedule a free consultation today to see how they can help protect your assets. Learn more at www.mileg Group.com. Picking up on trust stacking strategies, how do you actually implement trusts in light of these new tax changes? Well, trusts are really powerful tools, and there are two main types to consider revocable and irrevocable. Each serves a different purpose. Revocable trusts, also called living trusts,

offer flexibility because you can change or revoke them at any time during your lifetime. So they're flexible? What are the main benefits? Three big ones. First, they bypass the probate process, which means faster and more private distribution of assets to beneficiaries. Second, unlike wills, they maintain privacy. Your financial affairs stay confidential. And third, they provide continuous asset management during incapacity. If something happens to you, a named successor trustee can step in, without court intervention. Makes sense.

And what about irrevocable trusts? I've heard they're more, um, rigid? That's true. Once you establish an irrevocable trust, it's set in stone. You relinquish control and ownership of the assets you transfer into it. But that's actually where their power comes from. How sell? Because the assets are effectively removed from your estate, they're shielded from creditors and

litigation. This makes irrevocable trusts instrumental in strategic estate tax planning. They help reduce your taxable estate and minimize estate tax burdens. Plus, they can be used for Medicaid asset protection planning. Mm-hmm, I understand. I had a client once who was worried about qualifying for Medicaid down the road. By transferring excess assets into an irrevocable trust well in advance, we were able to position them to meet eligibility requirements, while still preserving wealth for their family. It was one of those moments where planning ahead really paid off. That's a great example. So, to everyone listening, have you thought about how changes like the Obaba might affect your own estate plan? Exactly. And here's something people often overlook.

OBBBA also includes nearly $1 trillion in Medicaid cuts over the next decade. That means asset protection strategies are going to be even more important moving forward. Put another way, protecting your assets today prepares you for a future with fewer safety nets. Right. So this goes beyond taking advantage of higher exemptions. You need to plan for potential cuts to safety nets too. Definitely. And there are other provisions in OBBBA that affect families, like expanded uses for 529 education savings plans and new Trump accounts for children under 18. These are tax-deferred investment accounts with annual contribution caps of $5,000 and a one-time government contribution for children born between 2025 and 2028. So the law really touches on multiple generations. This applies to more than retirees.

Absolutely. Estate planning needs to be coordinated with your overall financial and retirement goals. You want to ensure that beneficiary designations, account titling, and estate documents all work together. Right, exactly. Whether you choose a revocable trust for flexibility or an irrevocable trust for strong protection, the important thing is tailoring your estate plan to your individual needs. And with the new legislation, now is the time to review and adjust. I mean, it's one of those situations where doing nothing can cost you more than taking action, right? That's a perfect way to put it.

Things have changed, and staying informed is the first step to protecting what you've worked so hard to build. Well said. Thanks so much for breaking this down today. It's clear that estate planning in the Obiba era requires a thoughtful, proactive approach.