Core Points - The "One Big Beautiful Bill Act" aims to reduce taxes by $4 trillion over the next decade and cut at least $1.5 trillion in spending, marking a significant legislative shift for wealthy Americans [1][2] - The act extends and upgrades the 2017 Tax Cuts and Jobs Act, making most of Trump's tax cuts permanent, which is expected to significantly benefit wealthy families and small business investors [2][3] Tax Reforms - The estate tax exemption will permanently increase to $15 million for individuals and $30 million for couples starting January 1, 2026, effectively doubling the current threshold [4] - This change is expected to fundamentally reshape wealth transfer strategies for ultra-wealthy families, allowing for more stable long-term planning [5][6] Capital Gains Tax - The act does not adjust capital gains tax rates, allowing family offices to maintain existing investment strategies without concerns of unexpected tax increases [7] Small Business Incentives - The threshold for qualifying small businesses has been raised from $5 million to $7.5 million, with the capital gains tax exemption increased from $1 million to $1.5 million, creating a new tiered tax relief system [9] - Investors can now invest up to $74.9 million in small businesses and potentially receive up to $749 million in capital gains tax exemptions upon sale [10] Agricultural Assets - The act enhances tax benefits for agricultural assets, increasing the qualified business income deduction from 20% to 23%, allowing agricultural operators to exempt nearly a quarter of their income from taxes [12] - The new estate tax exemption significantly alters agricultural inheritance planning, enabling families to retain their land without the need to sell to pay taxes [13] Corporate Tax Measures - The act makes permanent several corporate tax cuts from Trump's first term, including a reduction in the corporate tax rate from 35% to 21% [15] - Additional tax incentives for business investments, such as full immediate expensing for qualifying assets, are also extended [15][16] Strategic Implications - The act eliminates uncertainties that have plagued family office planning since 2017, allowing for confident multi-generational wealth planning [17][18] - The permanent rules provide family offices with tools to achieve wealth building and transfer that were previously difficult to attain [18][19] Wealth Management Landscape - The U.S. remains a leading center for private wealth, with over 6 million high-net-worth individuals controlling 34% of global liquid wealth [20][21] - The growth of millionaires in the U.S. is projected to continue, with a 78% increase from 2014 to 2024, outpacing other countries [22]