Contributed by: Timothy Smith, CFP®
In the world of wealth planning, quiet legislative changes often have an outsized impact on how families and business owners structure their estates, minimize taxes, and leave a legacy. The “Big Beautiful Bill” is a prime example. Though its title may sound casual, the potential implications for charitable legacy planning are anything but.
Designed to modernize and expand opportunities for charitable giving, this bill—officially titled the Charitable Act Modernization and Legacy Enhancement Bill (CAMLEB)—is garnering increasing attention among advisors, philanthropists, and tax policy analysts. For those with significant wealth, this moment represents more than a tax adjustment. It presents a unique opportunity to rethink how charitable intent is expressed through estate plans, trust structures, and multi-generational legacy strategies.
This article explores how the Big Beautiful Bill could alter the philanthropic landscape for high-net-worth families, why the changes matter, and how thoughtful planning today can turn legislative uncertainty into long-term opportunity.
A Shift Toward Incentivizing Generosity
At its core, the Big Beautiful Bill aims to incentivize greater charitable giving by making several key changes to existing tax law:
- An increase in the adjusted gross income (AGI) limits for charitable deductions, especially for gifts of appreciated non-cash assets.
- Expansion of donor-advised fund (DAF) flexibility, with provisions that allow for longer grant timelines and expanded eligibility for complex asset contributions.
- Enhancements to charitable remainder trusts (CRTs), including more favorable actuarial assumptions and deduction treatment.
- Potential estate tax incentives for lifetime charitable commitments, encouraging donors to integrate giving into their lifetime planning rather than relying solely on post-mortem bequests.
While each of these changes is significant on its own, their combined effect could be transformative. For families already committed to philanthropy—or those considering how to elevate their impact—these changes open the door to new strategies that are both more flexible and more tax-efficient.
Why This Matters for High-Net-Worth Families
For affluent families and business owners, charitable giving is rarely just about altruism. It is deeply intertwined with family values, tax strategy, and legacy-building. And while the IRS has long supported giving through deductions and estate tax relief, the complexity of the rules has often discouraged meaningful engagement.
The Big Beautiful Bill addresses several common pain points:
1. More Room to Give Without Penalty
Raising AGI limits means families can give more in a given year without hitting deductibility ceilings. This is particularly relevant for executives with concentrated stock positions or those experiencing a liquidity event—such as the sale of a business—who wish to offset income while supporting causes they care about.
2. DAFs Become More Strategic
The bill’s expansion of DAF rules may allow families to better align their philanthropic timelines with major life events. Currently, stringent distribution requirements limit the strategic use of DAFs for long-term initiatives. With more flexibility, DAFs could become powerful vehicles for both intergenerational family engagement and mission-driven impact.
3. CRTs Regain Relevance
Historically, charitable remainder trusts were considered technical and occasionally outdated. However, with updated assumptions and improved tax treatment, CRTs could reemerge as effective tools for donors seeking both income and impact—particularly in a rising interest rate environment where the actuarial calculations begin to favor donors.
4. Legacy Planning Becomes a Living Process
Perhaps most significantly, the bill encourages families to engage in giving during life, not just in death. This shift aligns closely with a growing preference among affluent families to see the fruits of their generosity take shape during their lifetime, while also mentoring younger generations in philanthropic stewardship.
Reframing the Conversation Around Legacy
At Granite Harbor Advisors, we work with families who view wealth not just as a means to security, but as a mechanism for stewardship. The Big Beautiful Bill gives us an opportunity to revisit conversations around charitable intent with fresh perspective.
For instance, instead of seeing giving as a final act of estate planning, families might now view it as a dynamic part of an ongoing strategy—one that evolves alongside their values, family structure, and financial goals.
This approach also allows for greater transparency and family alignment. Parents and grandparents can model generosity, set expectations, and bring adult children into strategic discussions around shared missions. In our experience, this transparency not only enhances the impact of giving but also strengthens family cohesion across generations.
Balancing Opportunity With Caution
While the bill has passed, history tells us nothing is truly permanent. That means any planning today must be flexible and conservative enough to withstand revisions or delays.
This is where comprehensive financial planning becomes critical. A well-crafted plan can identify where philanthropic intentions align with available tools today, while also keeping optionality open for future enhancements. In this context, strategies like:
- Creating flexible testamentary charitable trusts,
- Building “placeholder” DAF structures with conservative funding levels,
- Or exploring pilot giving programs through family foundations,
can all serve as scaffolding for more ambitious legacy goals.
The GHA Difference: Planning With Purpose
Navigating new legislation often requires more than just tax calculations—it demands a strategic partner who understands your broader goals. At Granite Harbor Advisors, we believe in planning that honors both your financial objectives and your values.
Our collaborative team approach ensures you’re not dependent on a single advisor but instead benefit from our full bench of expertise. Whether it’s integrating private market strategies with philanthropic planning, designing estate plans that prioritize both heirs and causes, or exploring life insurance structures to amplify giving, we work to deliver solutions that are not just technically sound but deeply aligned with your purpose.
We remain committed to helping our clients turn complexity into clarity. For those who see philanthropy not as an obligation but as a privilege, this new legislation could mark a new chapter in legacy planning—one that’s more intentional, more impactful, and more rewarding than ever before.