07/09/2025 – Tax law changes, even when they are “big and beautiful”, can create big opportunities for your clients’ financial plans. At over 900 pages, the recently passed 2025 Budget Reconciliation & Tax Bill (commonly referred to as the “One Big, Beautiful Bill”) contains a lot of changes, many of which are directed at individual taxpayers and households. While some of the biggest changes are permanent, others are in effect only for a few years. There are also limitations for some of the tax breaks, so the changes may impact different clients in different ways (or not apply at all.)
This summary offers a concise review of the 10 key changes in the tax bill that could affect clients. Keep in mind that every client has unique tax planning needs. They should review any changes to their financial plans with a tax professional to fully understand the implications to their tax liability.
See the full summary here.
“Permanent” tax cuts remove uncertainty from estate tax planning
The 2025 bill made the tax law changes passed in the 2017 Tax Cuts and Jobs Act permanent. (See points 1-3 in the summary.) These changes, which include lower income tax rates, higher standard deduction amounts and higher estate and gifting exemptions, were due to expire at the end of this year.
Now that the estate tax rules are more certain, it’s a good time for clients to review their existing estate plans and make legacy planning decisions with the new higher exemption limits in mind.
New & expanded deductions may alter income planning
Any changes to the taxation of income usually carries through to income planning decisions. For example, a series of new tax deductions for tips and overtime income may help some clients lower their overall tax liability. (See points 4-8 in the summary.)
An enhanced income deduction directed specifically for seniors (age 65+) can affect decisions for retirement income planning with clients, especially around Social Security. Unlike the other tax law changes, this deduction for seniors is set to expire in 2028, so the timing may come into play when deciding when to file for Social Security benefits.
Planning strategies for families with children
Parents and soon-to-be parents also enjoy some tax benefits from the bill that could introduce new financial planning decisions. (See points 9-10 in the summary.)
The bill allows the creation of “Trump accounts”, modeled after traditional IRAs, that allow parents to save money specifically for expenses for their children. These accounts may offer new opportunities for financial planning for higher education and college tuition expenses.
Ready to help with complex client needs
Changes to tax laws are always complex. Your clients tax planning needs can be complex, too.
The Advanced Consulting Group at Nationwide specializes in financial and tax-planning strategies for these kinds of challenging cases. Expertise includes trust and estate planning, employee benefits, advanced strategies using life insurance and annuities, and business succession planning.
Learn more about the scope of our expertise. Or talk to your Nationwide representative if you have a complex case you’d like to discuss with an Advanced Consulting Group specialist.
