Hammond Law Group urges estate plan updates after OBBBA lifts exemption to $15 million

Hammond Law Group PC is telling Colorado families and high-net-worth residents to review estate plans after the One Big Beautiful Bill Act took effect Jan. 1, 2026, permanently raising the federal estate tax exemption to $15 million per person. The firm says older plans may now miss opportunities to reduce capital gains taxes and strengthen asset protection.

Why it matters: - The new federal estate tax exemption reduces pressure to rush gifts out of estates, but it also makes older estate plans potentially outdated. - Families with appreciated assets may now face a bigger focus on capital gains taxes and basis step-up planning for heirs. - Colorado residents with trusts or other legacy documents may need updates to keep those plans aligned with current tax law.

What happened: - Hammond Law Group PC urged Colorado families and high-net-worth individuals to review their estate plans after the One Big Beautiful Bill Act took effect on Jan. 1, 2026. - The law permanently increases the federal estate tax exemption to $15 million per individual. - The firm said the change ends the expected “sunset” drop in the exemption that many planners had been preparing for.

The details: - The firm said many financial professionals, business owners and retirees had focused on “rushed gifting” before the expected exemption cut. - Hammond Law Group PC said planning priorities should now shift toward basis step-up strategies, income tax minimization and long-term asset protection. - The firm warned that trusts and legal documents written for the older exemption level may no longer fit current goals. - Catherine Hammond, founder of Hammond Law Group, said the higher exemption changes the planning focus from avoiding estate taxes to preserving wealth and helping heirs receive a smoother basis step-up. - The firm said failing to update existing plans could cause families to miss capital gains tax savings for heirs. - The new law affects Colorado families and business owners in three main ways: less need for rapid gifting, greater attention to income tax exposure, and more emphasis on shielding assets from creditors, predators and lawsuits. - Hammond Law Group PC said its approach is relationship-centered and holistic, with a mission to help families solve problems before they happen.

Between the lines: - The tax-law shift appears to reward more measured planning instead of reflexive asset transfers made under uncertainty. - For many families, the main risk may now be less about estate tax exposure and more about how assets are held, taxed and protected across generations. - The emphasis on basis step-up suggests estate planning is becoming as much an income-tax strategy as a transfer-tax strategy.

What's next: - Hammond Law Group PC is encouraging families to align assets and trust structures with the new law. - The firm said trust-based estate planning can help mitigate risk and make final wishes easier to carry out. - More information is available in the firm’s announcement and at ColoradoEstatePlan.com.