Understanding Trump Accounts and the Updated Estate & Gift Exemption
12/05/2025
We’ll be honest: tax law doesn’t usually spark excitement. But every now and then, an update will come along that makes us think, Okay, that’s actually pretty great.
This year, two powerful changes stood out right away: one for anyone raising kids or grandkids, and one for families thinking about the future of their land, business, or legacy.
As our founder Scott Kaup likes to say: “Your money should always have a purpose. And when tax law gives you new opportunities, that purpose gets even clearer.”
Now, these new rules give families more room to define how they want to support their children and protect their legacy.
Let’s break it down.
The 2025 tax overhaul introduced a completely new type of savings vehicle for minors. Think of Trump Accounts as early-adulthood launchpads: simple, flexible, and designed to help kids step into life with a bit more financial breathing room. Available starting July 4, 2026, these accounts function as tax-advantaged savings tools for education and other early-life goals.
For each eligible child (defined as U.S. citizens born from January 1, 2025, to December 31, 2028,) the government will deposit a one-time $1,000 seed contribution into their account.
These accounts allow parents and grandparents to start saving for education, early adulthood needs, entrepreneurship, and other qualified goals. They offer:
It’s a small beginning with big potential, especially for families who want to give the next generation a solid head start.
The second major update affects affluent families and anyone with significant assets tied up in land, equipment, real estate, business interests, or investment portfolios.
Under current rules, the estate, gift, and GST (generation-skipping transfer) tax exemptions are $13,990,000 per person in 2025 ($27,980,000 for married couples). Beginning January 1, 2026, the exemption is scheduled to rise to approximately $15 million per person and $30 million for married couples, with ongoing inflation indexing.
With these levels, high-net-worth families gain:
This is especially meaningful for families in rural communities, where much of a family’s wealth is tied not to liquid assets but to farmland, equipment, or a multi-generation business. Estate taxes can force difficult choices, and these expanded limits help relieve that pressure.
Between the introduction of Trump Accounts and the expansion of the estate, gift, and GST exemption, several tax changes from the One Big Beautiful Bill created unique, workable opportunities to strengthen your family’s financial future.
But the real impact comes from choosing the right combination of tools and coordinating them with your tax, investment, and estate strategy. That’s where having a tax-forward advisory team matters most.
At Kaup’s Tax & Wealth Management, our in-house CPAs and experienced advisors work together under one roof to make sure what you build today directly supports what you value most tomorrow.
From early savings to legacy protection, our goal is simple: to help ensure the next generation is taken care of wisely, intentionally, and tax efficiently.
Ready to explore what these updates could mean for you? Call us today at 402-924-3607 or book your consultation here.
FAQ: Trump Accounts and Estate & Gift Exemptions
This year, two powerful changes stood out right away: one for anyone raising kids or grandkids, and one for families thinking about the future of their land, business, or legacy.
As our founder Scott Kaup likes to say: “Your money should always have a purpose. And when tax law gives you new opportunities, that purpose gets even clearer.”
Now, these new rules give families more room to define how they want to support their children and protect their legacy.
Let’s break it down.
Trump Accounts for Kids: A New Way to Help Jump Start Your Child’s Future
The 2025 tax overhaul introduced a completely new type of savings vehicle for minors. Think of Trump Accounts as early-adulthood launchpads: simple, flexible, and designed to help kids step into life with a bit more financial breathing room. Available starting July 4, 2026, these accounts function as tax-advantaged savings tools for education and other early-life goals.
For each eligible child (defined as U.S. citizens born from January 1, 2025, to December 31, 2028,) the government will deposit a one-time $1,000 seed contribution into their account.
These accounts allow parents and grandparents to start saving for education, early adulthood needs, entrepreneurship, and other qualified goals. They offer:
- Tax-advantaged growth
- Flexible qualified uses
- Contribution opportunities for parents, grandparents, and others, up to $5,000 per year
It’s a small beginning with big potential, especially for families who want to give the next generation a solid head start.
Estate & Gift Exemptions Rising to $15 Million Per Person in 2026
The second major update affects affluent families and anyone with significant assets tied up in land, equipment, real estate, business interests, or investment portfolios.
Under current rules, the estate, gift, and GST (generation-skipping transfer) tax exemptions are $13,990,000 per person in 2025 ($27,980,000 for married couples). Beginning January 1, 2026, the exemption is scheduled to rise to approximately $15 million per person and $30 million for married couples, with ongoing inflation indexing.
With these levels, high-net-worth families gain:
- Long-term certainty in estate planning
- More room for lifetime gifting
- Expanded opportunities for trust strategies
- Reduced risk of estate tax exposure on farms, ranches, businesses, and investment portfolios
This is especially meaningful for families in rural communities, where much of a family’s wealth is tied not to liquid assets but to farmland, equipment, or a multi-generation business. Estate taxes can force difficult choices, and these expanded limits help relieve that pressure.
Let’s Make These Changes Work for You
Between the introduction of Trump Accounts and the expansion of the estate, gift, and GST exemption, several tax changes from the One Big Beautiful Bill created unique, workable opportunities to strengthen your family’s financial future.
But the real impact comes from choosing the right combination of tools and coordinating them with your tax, investment, and estate strategy. That’s where having a tax-forward advisory team matters most.
At Kaup’s Tax & Wealth Management, our in-house CPAs and experienced advisors work together under one roof to make sure what you build today directly supports what you value most tomorrow.
From early savings to legacy protection, our goal is simple: to help ensure the next generation is taken care of wisely, intentionally, and tax efficiently.
Ready to explore what these updates could mean for you? Call us today at 402-924-3607 or book your consultation here.