Beyond investment discussions, client conversations usually fall into one of three categories: headlines, deadlines, and gossip. Successful advisors are prepared to discuss recent developments of interest to their investors.

In this quarterly article series, we’ll highlight recent headlines, timely deadlines, and relevant gossip to help you stay abreast of what’s new and trending in the wealth management/wealth transfer space.

Headlines: One Big Beautiful Bill Act now law

On July 4, President Trump signed into law the One Big Beautiful Bill Act (OBBBA). The law contains hundreds of provisions covering a myriad of income- and estate-tax related topics. Following are some of the highlights:

Individuals

1. Sunset eliminated: The Tax Cuts and Jobs Act (TCJA) of 2017 contained many provisions that were scheduled to end (“sunset”) on December 31, 2025. The TOBBBA removes the automatic sunset provisions.
2. Standard income tax deduction increased: In an effort to simplify income tax filing, starting in the 2026 income tax year, the OBBBA increases the standard deduction by $750 per taxpayer and will be adjusted for inflation, which reduces the number of itemizers.
3. State and local tax (SALT) deduction limit increased: The cap on state and local income tax deductions has been increased to $40,000 for taxpayers earning less than $500,000. The cap increases by $1,000 annually until 2030, when it reverts to a $10,000 cap.
4. Estate/Gift tax exemption increased: For transfers from decedents dying after December 31, 2025, the exemption from tax is increased to $15,000,000 and the sunset provisions are eliminated.
5. Tax on tips and overtime reduced: For the tax years 2025-2028, taxpayers in occupations that customarily receive tips can exclude up to $25,000 from the tips they earn. A phaseout of this benefit begins when taxpayers’ modified adjusted gross income (MAGI) exceeds $150,000. Furthermore, for the tax years 2025-2028, taxpayers can exclude up to $12,500 of overtime pay. A phaseout of this benefit begins when taxpayer’s MAGI exceeds $150,000.  Overtime wages are still subject to Social Security and Medicare taxes.

Businesses

1. Qualified business income (QBI): OBBBA eliminates the sunset of the pass-through business deduction (Section 199A of the TCJA) , which allows households with income from sole proprietorships, partnerships, and S corporations to exclude up to 20% of their business income.
2. Qualified Small Business Stock (QSBS): Designed to incentivize investment in startups, the OBBBA increases the threshold to qualify as a “small business” from $50 million to $75 million in assets and increases the minimum exclusion amount from $10 million to $15 million. The law also shortens the holdings period for owners of QSBS to reduce their capital gains when they sell. For tax years 2025-2028, OBBBA makes auto loan interest deductible up to $10,000, but only for new automobiles with final assembly completed in the U.S. A phaseout of this benefit begins when taxpayer’s income exceeds $100,000.
3. Qualified property: The law restores the 100% bonus depreciation introduced under the 2017 TCJA for “qualified property” placed into service after January 19, 2025. It also introduces a 100% bonus depreciation for “qualified production property” that is placed in service before Jan. 1, 2034. In general, qualified property is defined as tangible personal property with a recovery period of 20 years or less, while qualified production property is nonresidential real property used in the manufacturing, production, or refining of tangible personal property.

For the next several months, lawyers, accountants, and taxpayers will be poring over the provisions of and language used in the OBBBA. It is essential for taxpayers to seek professional counsel to determine how best to accomplish their tax and investment goals under this new law.

Deadlines

Estimated tax payments: For individuals required to make quarterly estimated income tax payments, the third installment is due September 15, 2025. If the due date for making an estimated tax payment falls on a Saturday, Sunday, or legal holiday, the payment will be on time if you make it on the next day that’s not a Saturday, Sunday, or legal holiday.

Gossip

Passings

April: Val Kilmer, Jay North, Pope Francis
May: Ruth Buzzi, George Wendt, Rick Derringer, Loretta Swit
June: Sly Stone, Brian Wilson, Bobby Sherman, Jimmy Swaggart

Interesting cases and rulings: SAM v. SEL

The SAM v. SEL case involved two sisters whose mother suffered from Alzheimer’s and dementia. The sisters (SAM and SEL) were not on good terms, but both siblings provided care for their mother. While on a mutual visit, the sisters argued about the presence of a Nanny Cam SAM had installed. Just before leaving, when SAM leaned over to kiss their mother goodbye, SEL grabbed SAM’s hair, pulled her head back and forth, and hit SAM in the head with her hand. SEL also threatened to have their mother change her estate plan to disinherit SAM.

Following the incident, SAM filed a police report and asked a court to issue a personal protection order (PPO) against her sister. Initially, the court declined her request.

At a hearing, SAM testified that the parties verbally argued before the physical altercation occurred. She admitted that she had used expletives and that the two sisters had not previously engaged in any physical altercations before the July 2023 incident at their mother’s apartment, although the parties had a long history of arguing and name-calling. SAM testified about SEL’s threat to contact an attorney to have SAM removed from their mother’s trust.

The court granted SAM’s request for a PPO, but on appeal, the trial court’s order was reversed because all the acts occurred during a single episode of contact, and a PPO requires a course of conduct or repeated unconsented contact.

Advisor/client takeaway:

Family tensions are not uncommon, ranging from occasional disagreements to ongoing quarrels and even physical altercations. Naming siblings to act together to make financial, medical, or daily care decisions can put added pressure on the sibling relationship and lead to painful and costly arguments. Investors should carefully consider their choice of executor, successor trustee, and attorney in fact to help avoid any unwanted conflicts.

If you have questions on any of the information covered here, or other wealth planning topics, feel free to reach out our Wealth Strategist Group or your Janus Henderson representative.

IMPORTANT INFORMATION

The information contained herein is for educational purposes only and should not be construed as financial, legal or tax advice. Circumstances may change over time so it may be appropriate to evaluate strategy with the assistance of a financial professional. Federal and state laws and regulations are complex and subject to change. Laws of a particular state or laws that may be applicable to a particular situation may have an impact on the applicability, accuracy, or completeness of the information provided. Janus Henderson does not have information related to and does not review or verify particular financial or tax situations, and is not liable for use of, or any position taken in reliance on, such information.