If you’ve followed tax and estate law over the years, you know that changes come in waves. Some are tiny ripples that barely affect families. Others? They reshape the entire planning landscape. The 2025 legislation—dubbed the “One Big Beautiful Bill”—falls squarely in the second category.
It’s not often that Congress passes something that both simplifies and complicates planning at the same time, but here we are. While the name of the bill might sound like political marketing, the substance behind it opens a short but important window for families, business owners, and retirees to take stock of where they stand.
Why this moment matters
The bill makes adjustments to estate tax exemptions, gifting rules, and retirement account treatment. Some of these changes expand options, while others tighten long-standing loopholes. For Washington families, that means an unusual moment where current law and future law overlap in a way that can be used to your advantage—if you act before the window closes.
One example: the estate tax exemption is set to shrink in a few years, but until then, families can lock in today’s higher thresholds. If you’ve built wealth in real estate, a family-owned business, or long-held investments, this could be the time to shift assets in a way that protects what you’ve worked for. Once the exemption levels drop, the same move could cost significantly more in taxes.
How the bill intersects with real life
I sat down with a couple recently—both lifelong Tacoma residents—who had built a small rental portfolio. Nothing flashy, just a few properties they’d managed for decades. Their concern wasn’t just taxes, but whether their kids would end up fighting over decisions once they were gone. The “One Big Beautiful Bill” gave them an opportunity to restructure ownership, make use of the higher exemption, and put rules in place that reduced the chances of conflict.
That’s the human side of legislation. It’s not just numbers on a page; it’s about protecting family harmony and making sure hard work isn’t undone by future policy shifts.
Don’t wait for clarity that won’t come
Here’s the tricky part: most people want certainty before making big financial moves. The reality is, you won’t get it. Laws change, markets shift, and politics in Washington, D.C. rarely settles down for long. The beauty of this particular window is that it’s clear enough—there are tangible opportunities now that simply won’t exist after 2025. Waiting could mean watching doors close.
Questions worth asking yourself
- Have I reviewed my estate plan in light of the upcoming changes?
- Am I taking full advantage of the current gifting rules?
- Do I understand how retirement account tweaks affect my family’s long-term security?
Even if you’re not ready to make sweeping changes, these are conversations worth having sooner rather than later.
Why local guidance matters
It’s one thing to read about tax exemptions and legislative shifts online. It’s another to see how those changes intersect with Washington state law, family dynamics, and local property values. At Terry Law Firm, P.S., we’ve spent years helping families navigate these turning points. Every family’s situation is unique, but one common theme is clear: acting within this rare planning window can preserve options that won’t be available again for years—if ever.
A window that won’t stay open
Legislation like the 2025 “One Big Beautiful Bill” doesn’t come around often. It’s rare, messy, and oddly full of possibility. You don’t need to have every answer figured out to start the conversation. But if you wait until the window closes, the choices you wish you had may no longer be on the table.
For more information about how these changes might affect you, visit www.terrylawfirm.com.
