Why the One Big Beautiful Bill Matters to You
On July 4, the One Big Beautiful Bill Act (OBBBA) was signed into law by President Trump. There was a lot of talk about this bill before it was passed, and even more since. The main point is that it lets people leave more money to their loved ones without paying as much in federal estate tax.
This has made a lot of people talk about “estate planning”—the process of making sure your family is taken care of and that your assets (like money and property) go where you want them to go.
Here’s the problem: 76% of Americans don’t have a will. While the OBBBA increases the amount that people with a lot of money can pass down without paying taxes, estate planning isn’t just for the wealthy—it’s for everyone.
43% of Americans don’t have a will because they put it off. 40% say they don’t think they have enough money to need one, while others find writing a will too complicated or expensive.
Only 24% of Americans have a will. This is down from 33% in 2022
Do You Need an Estate Plan? Absolutely.
Think about the things you own: bank accounts, cars, houses, retirement accounts, and life insurance. A comprehensive estate plan makes sure that the people you care about get what you want them to have—no matter how much it’s worth.
If planning for the future is so important, why do only 24% of Americans have a will? Well, 43% say they just put it off. But if you wait too long, “later” can turn into never. Without an estate plan, the courts will decide what happens to your assets, which could create extra stress for your family during an already difficult time.
Others feel they don’t have enough money to need an estate plan. But estate planning is about making sure your things—bank accounts, homes, retirement savings, life insurance—go to the right people, at the right time, and in the right way.
When Should You Start Creating an Estate Plan for Your Assets? Now.
If you don’t have a will, your state’s laws—not your wishes—will decide who gets your things when you’re gone. The laws might be different depending on where you live, but usually, your closest family members will get your assets.
Are these the people you want to receive what you’ve worked hard for? And do they have the skills to manage your money wisely?
Even if you’re not wealthy or don’t have complicated finances, now’s the time to stop procrastinating and start thinking about your future. Estate planning can help make sure your things go to the right people—no matter how much you have.
What Should Be in a Solid Estate Plan?
A solid estate plan includes a few essential documents:
- Will
- Healthcare Power of Attorney
- Financial Power of Attorney
- Advance Directive
- Revocable Trust
These are the documents everyone should have prepared.
However, a comprehensive estate plan may also need to include life insurance. Life insurance can give your family financial security, help with final expenses, and leave a legacy for future generations. Click here to learn more.
But life insurance isn’t just for after you’re gone. It can also help you before death. For example, when life throws you a curveball, life insurance may also offer you living benefits, which are the financial support you may need if you experience a qualifying terminal, chronic, or critical illness. And that’s not all, life insurance has the potential to provide you with supplemental retirement income, helping you to enjoy the lifestyle you want.
49% of Americans have medical debt or still owe money from medical bills.
(Source: Debt.com, August 2023)
Almost half of Americans say their biggest worry about retirement is running out of money.
(Source: Transamerica Center for Retirement Studies, 2023)
You Can Do This
Start today. Meet with a financial professional or ask for a recommendation from a friend or colleague. You’ll also want to talk to an estate planning lawyer. Together, you’ll be able to create the right documents, make sure your wishes are clear, and give your family the peace of mind they deserve.
Margaret A. Muldoon, J.D., LL.M.
Margaret (Meg) Muldoon is an attorney with the Advanced Sales Team. Meg has spent her career guiding individuals and financial service professionals through asset distribution and estate planning process.
In her position at NLG, she offers comprehensive case design, technical, marketing, and educational support to National Life Group’s field partners, agents, and associates on matters pertaining to estate, charitable, executive benefit, and business planning.
Meg possesses a J.D., an LL.M. in taxation, and a B.S. in Business Administration and related experience as an attorney in the financial services industry and in private practice. She was also an adjunct professor at Suffolk University Law School. She is a member of the State Bar of Massachusetts and is admitted to practice before the United States Supreme Court.
Frequently Asked Questions (FAQs)
What is the One Big Beautiful Bill Act (OBBBA)?
The One Big Beautiful Bill Act (OBBBA) is a new law that increases the amount you can pass down to your loved ones without paying federal estate tax. Even with this higher limit, it’s still important for everyone to have an estate plan in place to ensure your wishes are carried out and your family is protected.
Do I still need an estate plan if my assets are below the federal estate tax exemption?
Yes. Planning ahead is important no matter how much money or property you have. Without a will or trust, state laws will decide who gets your assets, and it may not be what you would want. Key documents like wills, powers of attorney, and advance directives help you stay in control and avoid delays.
Why is having a will important?
A will lets you decide who will inherit your belongings, who will take care of your minor children, and who will carry out your wishes. Without a will, the courts will use state laws to make these decisions, which might not match what you wanted.
What happens if I die without a will?
If you die without a will, your property and money will be divided according to your state’s laws, usually among your closest family members. This can lead to confusion, delays, and even disputes among your loved ones. Having a will makes sure things go the way you want.
Is estate planning only for wealthy people?
No, estate planning is important for everyone, no matter how much you have. Whether it’s your bank accounts, personal property, retirement savings, or life insurance, it’s important to have a clear plan for who gets these things when you’re gone.
What documents are important for a solid plan?
An estate plan will generally include these key documents:
- Will
- Healthcare Power of Attorney
- Financial Power of Attorney
- Advance Directive (Living Will)
- Revocable Trust (if needed)
For more information, check out National Life Group’s Estate Planning Guide.
How can life insurance help me with estate planning?
Life insurance can be a key part of your estate plan. It can help provide financial support for your family after you’re gone, covering things like final expenses, debts, and daily living costs. Modern life insurance policies may also offer living benefits, which can help you if you face a serious illness. Plus, life insurance can supplement your retirement income.
What are living benefits in a life insurance policy?
Living benefits are features of certain permanent life insurance policies that allow you to access part of your policy’s death benefit if you experience a qualifying terminal, chronic, or critical illness, providing crucial financial support when you need it most.
What should I do to get started with estate planning?
- Make a list of your property and decide who should get it.
- Talk to a financial professional and a legal professional who specializes in estate planning.
- Prepare the necessary documents and check your life insurance coverage.
- Update your plan as your life situation changes.
Who can help me with estate planning?
A qualified legal professional can help you create or update your estate plan. A financial professional can help you coordinate your assets, including life insurance, with your estate plan They’ll help you make sure your documents are in place and that your loved ones are taken care of the way you want.
Please note all estate planning statistical information in this blog are from the 2024 and 2025 Wills and Estate Planning Studies (https://www.caring.com/resources/wills-survey and https://www.caring.com/resources/2024-wills-survey)