What the OBBBA Means for Your Estate Planning in New Bedford, Massachusetts

Legislative changes can often create confusion, particularly when they impact sensitive and complex areas like estate planning. The One Big Beautiful Bill Act (OBBBA), signed into law this July, is a prime example. While it introduces sweeping reforms, understanding these changes now can strengthen your long-term planning.

 

At Logan A. Weinkauf, Attorney at Law, we help individuals and families in New Bedford and throughout Massachusetts navigate the ever-changing legal landscape. Here’s how the OBBBA may affect your estate, gift, and tax planning strategies.

 

For personalized advice, call us today at 774-205-1984 or visit weinkaufpc.com to schedule a consultation.

Estate and Gift Tax Exemption Increase

Starting January 1, 2026, individuals will be able to pass on up to $15 million —or $30 million for couples —without incurring federal estate tax. With annual inflation adjustments, this increase ends the uncertainty surrounding previous phased reductions.

 

For residents in New Bedford, Fairhaven, and the greater Bristol County area, this is an opportunity to revisit your estate planning strategies. Working with a Massachusetts estate planning attorney like Logan A. Weinkauf can help you take full advantage of this expanded exemption.

Social Security Tax Changes

The OBBBA introduces a new temporary deduction of up to $6,000(or $12,000 for couples over 65) for individuals below certain income thresholds. This could allow more seniors to receive untaxed Social Security benefits. However, this provision will expire in 2028 unless renewed.

If you’re a senior in New Bedford or nearby Dartmouth, now is the time to evaluate how this deduction impacts your retirement planning.

No Other Structural Estate Tax Changes

Beyond the higher exemption, the overall structure of federal estate, gift, and GST taxes remains unchanged. Provisions from the 2017 Tax Cuts and Jobs Act continue to be in effect. This stability makes planning more predictable, but it’s important to stay alert to future legislative updates.

Medicaid Reform and Long-Term Care Planning

The OBBBA includes $1 trillion in federal Medicaid cuts and tighter eligibility requirements. Qualifying for long-term care benefits may become more challenging. The new work or volunteer contribution requirements also add hurdles, making it critical for families to consider private long-term care insurance and asset protection strategies.

For families in Bristol County, Massachusetts, working with an attorney familiar with Medicaid planning can help secure access to care and preserve your assets.

Medicare Budget Impacts

Budget adjustments are expected to delay cost-sharing assistance rules until 2034, potentially cutting $490 billion in funding. These cuts could mean higher out-of-pocket costs and fewer provider options if PAYGO rules are activated. Reviewing your Medicare planning strategy now can help you prepare for possible changes.

Fewer Estates Will Owe Federal Estate Tax

Under the OBBBA, only about 0.25% of estates will be subject to federal estate tax. However, Massachusetts’ state-level estate taxes remain a concern for many residents. Each state’s regulations vary, making it crucial to review your estate with a local attorney.

Plan Ahead with Logan A. Weinkauf, Attorney at Law

The OBBBA presents both challenges and opportunities for individuals and families in New Bedford and across Massachusetts. Now is the time to:

• Revise your estate planning documents

• Reassess long-term care and Medicaid planning strategies

• Rethink tax planning for you and your family

At Logan A. Weinkauf, Attorney at Law, we provide tailored estate planning guidance that reflects your unique family and financial needs.

Call 774-205-1984 today or visit weinkaufpc.com to schedule a consultation and ensure your plan is fully up to date with the latest legislative changes.