INSIGHTS FROM THE PRIVATE BANK
Estate Planning in the Age of Permanence
Carly Doshi
EVP, Head of Flagstar Family Advisory and Trust
FDIC-Insured—Backed by the full faith and credit of the U.S. Government
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Before you go
For years, estate planning has been dominated by uncertainty—temporary exemptions, shifting tax rules, and political volatility. That uncertainty ended last year with the One Big Beautiful Bill Act (OBBBA), which made permanent, sweeping changes to the US wealth transfer tax system.
With the OBBBA in effect, as of January 2026 we now have clarity: the rules are set, and the window for strategic planning is wide open. To clients who have questions and concerns about wealth transfer planning, this is not a time to wait. It is a moment to act decisively and align your wealth plan with your long-term vision. For individuals with significant wealth—particularly owners of privately-held businesses—the decisions made now will shape family legacies for decades.
The new landscape: a $15 million exemption
The unified estate, gift, and generation-skipping transfer (GST) tax exemption is now permanently set at $15 million per person ($30 million for married couples), indexed for inflation. This permanence eliminates the looming sunset that once drove reactive planning, and it creates an opportunity for thoughtful, proactive strategies
What this means today:
- If you have already used part of your exemption under prior law, consider additional transfers to reach the new limit.
- Establish dynasty trusts to move future appreciation outside your taxable estate.
- Review existing plans to ensure they reflect current law and your objectives. For wealth exceeding the exemption, engage in advanced planning strategies.
Beyond taxes: why formalizing your plan matters
Tax efficiency is important, but the most compelling reasons to codify your wealth plan are often not tax driven. A well-structured plan provides clarity, minimizes family conflict, and ensures that wealth reflects your values.
Consider implementing family governance frameworks— such as constitutions or advisory councils—to define roles and decision-making protocols. Charitable structures, including donor-advised funds or private foundations, can embed your philanthropic vision into your legacy. These steps create continuity and purpose, not just compliance.
Privately-held businesses: planning for transition and growth
For business owners, permanence brings both opportunity and responsibility. Succession planning is essential to preserve enterprise value and family harmony.
Start by reviewing buy-sell agreements, ensuring they are properly funded—often with life insurance—to provide liquidity when needed. Explore family limited partnerships to facilitate ownership transfers and valuation discounts. Formalize leadership roles and governance to avoid uncertainty during transitions.
The OBBBA also clarifies key tax provisions for business owners:
- Bonus depreciation and Section 179 deductions remain powerful tools for capital investment.
- Research and experimentation deductions have been restored for domestic innovation.
- Interest expense limitations and the Qualified Business Income (QBI) deduction offer planning flexibility but require careful modeling.
- Expanded QSBS provisions provide opportunities for founders, entrepreneurs, and small business owners who may one day sell.
January 2026 Flagstar Family Advisory Action Plan
| Area | Immediate Steps |
|---|---|
| Exemption use | Maximize lifetime gifts; establish dynasty trusts |
| Business tax planning | Review capital expenditure, R&E deductions, interest limits, QBI strategies |
| Succession planning | Update buy-sell agreements; map leadership transitions |
| Governance | Create family charters and advisory councils |
| Charitable intent | Fund donor-advised funds; define philanthropic mission |
The bottom line
The OBBBA has ushered in an era of certainty. Use it wisely. While tax rules may now be stable, your family, business, and objectives will continue to evolve. A comprehensive, values-driven plan ensures that your wealth does more than endure—it thrives with purpose.
Now is the time to act
Engage your advisors, review your existing strategies, and take steps that align your financial resources with your long-term vision. Permanence is not a reason to wait—it is an opportunity to build with confidence and take action to grow, protect, and pass on your wealth. Our Flagstar Family Advisory team can help
At Flagstar Private Bank, we provide holistic advice for your personal finances, including your family’s long term wealth planning needs. Our team of highly credentialed, experienced Wealth Planners develop comprehensive planning strategies for business owners and individual investors. Our services include estate and income tax planning, charitable planning, business succession and pre-liquidity planning, and family dynamics. As always, contact your legal and tax advisor before undertaking any tax planning strategy.
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These materials are intended for distribution to Flagstar Private Bank clients, and do not constitute the provision of investment, legal, accounting, or tax advice to any person. This material presented is for informational purposes only and is not intended to be an offer, recommendation, or solicitation to purchase or sell any security or product, or to employ a specific investment or tax planning strategy. Forward looking projections are based on historical trends, actual results will differ. Past performance is no guarantee of future results.
The information contained herein was obtained from sources deemed reliable. Such information is not guaranteed as to its accuracy, timeliness, or completeness. The information contained and the opinions expressed herein are subject to change without notice, are those of the individual author(s), and may not necessarily represent the views of Flagstar Bank or any of its subsidiaries.
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