The short answer is: it depends on what you mean by “permanent.”
The One Big Beautiful Bill, signed by President Trump, extended the elevated federal estate tax exemption established under the Tax Cuts and Jobs Act and removed the built-in sunset provision. That is why commentators — and many attorneys — are calling it “permanent.”
But “permanent” in legislative terms simply means there is no automatic expiration date written into the law. It does not mean Congress cannot change or repeal it. It does not mean a future administration cannot run on a platform of reducing it. And it does not mean that a well-timed amendment to must-pass legislation couldn’t alter it before the next election cycle.
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Permanent in Washington means until the political calculus changes. That’s not cynicism — it’s how legislation actually works. |
What Would Have to Happen for the Exemption to Change?
Congress would need to pass new legislation and a president would need to sign it. That’s the same process that created the current exemption. There is nothing structurally different about a “permanent” provision versus a “sunset” provision — both can be amended or repealed by a simple majority in both chambers and a presidential signature.
In March 2026, Senator Chris Van Hollen introduced a bill that would reduce the individual exemption from $15 million to $3.5 million and raise the top rate to 45%. The bill is tied to Social Security solvency, which gives it a political pathway that a standalone estate tax bill would not have.
Why This Matters for Your Planning
If your estate is above $3.5 million individually, or above $7 million as a married couple, the current exemption is protecting you from a federal estate tax liability. If that exemption were lowered, you could face a significant tax bill — potentially on assets you’ve already built, already paid taxes on, and intend to leave to your family.
The families who are best protected are those who build flexibility into their estate plan before a change occurs — not those who wait to react after the fact.
Call us today to schedule a consultation to discuss your own planning at (941) 909-4644 for our Florida office or at (763) 420-5087 for our Minnetonka, Minnesota office. Or you can fill out the contact form on this page and a member of our team will reach out to you.
➞ Related reading: Is the Federal Estate Tax Exemption Really “Permanent”? What Every Family with $3.5 Million or More Needs to Know
