Tax reconciliation bill and its effect on high-net-worth individuals

In this webcast, EY panelists discuss tax changes under the One Big Beautiful Bill affecting high-net-worth individuals, highlighting adjustments in tax rates, deductions and the importance of flexible tax approaches.

The One Big Beautiful Bill (OB3) tax legislation (HR 1) represents a pivotal shift in the tax landscape, particularly for high-net-worth individuals. This webcast, led by Dianne Mehany, Private National Tax Leader, Ernst & Young LLP (EY), and panelists Sean Aylward, EY Private National Tax Managing Director; Nick Davidson, Senior Manager, EY Private Tax; Damian Martin, Partner, EY Private Tax, Financial Services Organization; and Tony Nitti, Partner, EY Private Tax, National Tax Department; discusses the implications of these significant changes. They explore retention of the top marginal tax rate at 37%, standard deduction adjustments and elimination of personal exemptions. The discussion underscores the importance of reassessing tax-related financial decisions and emphasizes the necessity for flexibility and proactive planning to navigate the evolving tax environment.

Key takeaways include the following:

• The retention of the top marginal tax rate for individuals at 37% provides a more stable tax environment compared with that under previous legislation.
• Standard deductions will rise to $15,750 for single filers and $31,500 for married couples, with additional benefits for seniors, enhancing tax relief.
• The elimination of personal exemptions and changes to itemized deductions necessitate a thorough re-evaluation of tax approaches for high-net-worth individuals.
• Stricter loss limitations and revised charitable contribution deduction calculations will affect trusts and estates, requiring careful consideration.
• Flexibility and proactive management of tax obligations are crucial as the landscape evolves, particularly with anticipated changes in estate and gift tax exemptions.

Presenters:

• Dianne C. Mehany – EY Private National Tax Leader, Ernst & Young LLP
• Sean Aylward – EY US Private National Tax Managing Director, Ernst & Young LLP
• Damien Martin – Partner, EY Private Tax and Financial Services Organization, Ernst & Young LLP
• Tony Nitti – Partner, EY Private Tax, National Tax Department, Ernst & Young LLP  

This webcast was recorded August 4, 2025.