If your baby was born on or after January 1, 2025, the federal government has set aside $1,000 for your child. The account is available now. Contributions opened on July 4, 2026. And most families have not yet taken the step to claim it. The account is called a Trump Account. It was created by the One Big Beautiful Bill Act, signed into law in 2025, and it is one of the most significant new financial tools for young families in years. A seed investment that grows tax-advantaged for up to 18 years can become something meaningful by the time your child is ready to use it. Here is what you need to know, and what you should do next. What Is a Trump Account? A Trump Account is a tax-advantaged investment account created for a child. For every U.S. citizen born between January 1, 2025 and December 31, 2028, the federal government has committed to making a one-time $1,000 deposit, provided the child has a valid Social Security number. Beyond that government seed contribution, parents, grandparents, and other family members can contribute up to $5,000 per year. Before making personal contributions beyond claiming the $1,000 deposit, it's worth a call with your attorney first. There are unsettled regulatory questions about the gift tax treatment of family contributions that are still being worked out, and the right answer for your family depends on your specific situation. Employers can contribute up to $2,500 per year through a qualified written plan. If you own your own business, that means you could potentially contribute both as a parent and as an employer, for a combined $7,500 per year in additions to the account. The government's $1,000 does not count against either limit. The account is structured as a type of individual retirement account for the child. The account grows through stock market returns on a tax-deferred basis, meaning no taxes on the growth while the funds are invested, but ordinary income tax applies when distributions are eventually taken. The funds cannot be withdrawn before the child turns 18. At 18, the account converts to an IRA the young adult controls directly, though distributions before age 59½ are subject to income tax and a 10% early withdrawal penalty. That 18-year window is significant: a $1,000 deposit growing at a modest 7 percent average annual return becomes roughly $3,400 at maturity, without any additional contributions. Add even moderate contributions from family members over those years and the account can represent a meaningful head start. How the account is invested matters, and that is an active decision you make when you open it. Trump Accounts are not limited to babies born in the 2025 to 2028 window. Any child age 17 or younger with a valid Social Security number can have an account opened on their behalf. The free $1,000 pilot contribution, however, is only available for children born in that four-year window. The bottom line: A Trump Account is a federally seeded, tax-advantaged investment account for your child. The $1,000 is yours to claim. The contributions you add on top grow alongside it for up to 18 years. How to Open One To open a Trump Account, families can file a one-page Form 4547 with the IRS or use the online portal at TrumpAccounts.gov. Contributions may begin as of July 4, 2026. The form walks through basic information about the child, including their Social Security number. If your child does not yet have a Social Security number, you will need to obtain one before completing the filing. To claim the government's $1,000 pilot contribution, you must make an affirmative election on the form: check the box in Part III, line 7. That election is what triggers the deposit. The account can be open and active without it, but without that election, no pilot contribution follows even though the account is up and running. Once the account is open, you will need to make an investment selection. If you do not actively choose how the funds are invested, they default into a government-managed option. Most families will want to review the available investment choices and make an active decision rather than accepting the default. The bottom line: The process takes minutes either way. Start at TrumpAccounts.gov or ask your tax preparer about Form 4547. Do not stop at opening the account: elect the $1,000 in Part III and make an investment selection. What This Has to Do with Your Family's Plan Here is where most of the coverage on Trump Accounts stops, and where the real planning conversation begins. A Trump Account is a new asset in your child's name. Like every asset your family holds, it needs to fit into a coordinated plan. Several questions matter from an estate planning perspective. What happens to this account if something happens to you before your child turns 18? The account needs a successor custodian, the person who takes over management of the funds if you are no longer able to do so. That person needs to be named intentionally, not left to chance or a court's discretion. Without a named successor custodian, a court may be the one deciding who manages the account on your child's behalf. Courts do not know your family the way you do, and the process takes time that your child's finances should not have to wait on. How does this account interact with the rest of your estate plan? If you have a will or trust, your child's Trump Account may not be covered the way you think. Investment accounts with designated custodians operate outside a will. The account also does not automatically flow into a trust you have set up for your child's benefit. If you want the account managed according to the terms of a trust you have established, that needs to be specifically coordinated with your attorney. It does not happen by default. Does this account change how you are thinking about what you will leave your child? For many families, the Trump Account is the first real conversation starter about building generational wealth. It does not replace a complete plan, but it can begin one. If grandparents or other family members are already contributing to 529 accounts or other savings vehicles for your child, the Trump Account adds another layer. The question of how all of it fits together, what each account is for, who contributes to which one, and what happens to each if circumstances change, belongs in a complete family financial and estate plan. And for families with more than one child, or children from a previous relationship: whose money is this, legally? Who manages it? What happens if you and your co-parent separate? These are questions worth answering now, not later. If you do not have a complete plan in place yet, you are not alone. Many young families encounter the Trump Account before they have a will, a named guardian, or a trust. That is not a problem. It is a useful entry point. The account gives you a concrete reason to put the full structure in place now. The bottom line: A $1,000 account for your child is a starting point, not a plan. The question is what you build around it, and whether the people you trust know exactly what to do if something happens to you. What You Can Do Right Now As your Personal Family Lawyer® firm, I help young families build a Life & Legacy Plan that is designed for where your life actually is, not just what the default legal rules would produce. The Trump Account is a good reason to start that conversation now. Schedule a complimentary 15-minute discovery call and let's make sure your family's plan is in place: calendar.trustamdlaw.com/widget/booking/JDAbqicl45eEE3dRRmpb This article is a service of AMD LAW, a Personal Family Lawyer Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life & Legacy PlanningⓇ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session. The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own, separate from this educational material. © 2026 

That gap, between knowing the rules changed and adjusting how you operate, is where the opportunity lives right now. The law made four significant changes to the tax code that affect how business owners invest, borrow, structure their entities, and plan for the future. Each one has implications that run across your full business picture. Here is what changed and what it means across all four LIFT systems: Legal, Insurance, Financial, and Tax. What Changed Before getting into what to do, it helps to understand exactly what the law did. Bonus depreciation is now permanent at 100 percent. Before the One Big Beautiful Bill, bonus depreciation had been phasing down and was set to expire. The new law restores full, immediate expensing for qualifying business assets and makes it permanent. If you purchase equipment, machinery, or other qualifying assets for your business, you can deduct the full cost in the year of purchase rather than depreciating it over several years. The Section 199A pass-through deduction is now permanent. This provision allows owners of pass-through entities, including S corporations, partnerships, LLCs taxed as partnerships, and sole proprietors, to deduct 20 percent of qualified business income from their taxable income. It was set to expire at the end of 2025. The new law makes it permanent, and it also expanded the income thresholds at which phaseout rules begin to apply. Domestic R&D expenses can be immediately deducted again. A 2017 rule had required businesses to amortize research and development costs over five years rather than deducting them in full in the year they were incurred. The new law reverses that, restoring immediate expensing for domestic R&D costs. Business interest deductibility improved. The law restores the ability to add back depreciation, depletion, and amortization when calculating adjusted taxable income, which effectively raises the ceiling on how much business interest can be deducted. Legal: Does Your Entity Structure Still Make Sense? The permanent 199A deduction is one of the most valuable provisions in the new law for small and mid-size business owners. But it does not apply equally to all entity types, and the benefit it produces depends heavily on how your business is structured. S corporations, partnerships, and sole proprietors all potentially qualify. C corporations do not benefit from 199A because their income is taxed at the entity level, not passed through to the owner. Service businesses face additional limitations based on income levels. If you formed your entity years ago, or if your income or business structure has changed significantly, the entity structure you have may not be the one that makes the most sense today. The 199A deduction being permanent means this is not a one-year optimization. It is a long-term planning decision. Your operating agreement or shareholder agreement may also need to be reviewed. If your business has grown, taken on partners, or changed in how it distributes income, the governing documents need to reflect the current reality. The bottom line: A permanent 199A deduction is valuable, but only if your entity structure is positioned to use it. The time to review that structure is now, not at year-end. Insurance: Did Your Assets Change When You Weren't Looking? Full bonus depreciation is a tax benefit. It is also a signal that something changed in your business: you acquired assets. And when you acquire assets, the coverage those assets need changes too. Business owners who take advantage of bonus depreciation to make significant equipment or asset purchases often do so without updating their property or liability coverage. An asset that is fully expensed for tax purposes is still a physical asset that can be lost, damaged, or involved in a claim. There is also an opposite scenario worth watching. If you are expensing assets immediately rather than depreciating them, the book value of your business looks different to underwriters than it did before. That can affect how your coverage is written and what limits are appropriate. The bottom line: Every significant asset purchase that takes advantage of bonus depreciation should trigger a coverage review. The tax benefit and the insurance gap can appear in the same year if you are not coordinating both. Financial: The Investment and Capital Decisions Look Different Now 100 percent bonus depreciation changes the after-tax cost of capital expenditures. An equipment purchase that would have produced a deduction spread over seven years now produces a full deduction this year. That changes the math on whether to buy now, lease, or wait. For businesses with available capital or access to credit, the current environment is worth a conversation with your financial advisor about whether purchases you have been deferring make more sense to accelerate. The timing of when you buy matters in a way that it did not when depreciation was being phased down. The improved business interest deductibility also affects borrowing decisions. For businesses that carry debt, the after-tax cost of that interest is now lower than it was under the prior rules. That changes the calculus on financing growth. For businesses that invest in innovation, the restoration of immediate R&D expensing means research dollars go further on an after-tax basis. If you have been holding back on product development, technology investment, or process improvement because the tax treatment was unfavorable, that constraint is now removed. The bottom line: The law changed the economics of capital decisions, borrowing, and R&D investment. Those decisions should be revisited with your financial advisor in light of the new rules, not made the same way they were made before. Tax: This Is the Year to Coordinate, Not Just Comply Each of these provisions creates a benefit. What most business owners miss is that the provisions interact with each other, and uncoordinated decisions can leave money on the table or create unexpected consequences. Bonus depreciation reduces taxable income in the year of purchase. That reduction affects how the 199A deduction is calculated, because 199A is based on qualified business income. More depreciation in one year can reduce the 199A benefit in that same year. The right answer depends on your full income picture, your entity structure, your W-2 wages, and your qualified property basis. These are not afterthoughts. They are the design of the plan. The business owners who benefit most from the new law are the ones who let the Tax system inform the Financial system and the Legal system simultaneously, rather than treating each as a separate conversation. The bottom line: This is not the year to let your accountant file and your attorney and financial advisor wonder what happened. The law changed in your favor. Getting the full benefit requires a coordinated review across all four systems. What You Can Do Right Now The One Big Beautiful Bill passed in 2025. If you have not yet reviewed your entity structure, your insurance coverage, your capital expenditure plans, and your tax strategy in light of the new rules, you are operating under a law that has not fully been applied to your situation. As a Personal Family Lawyer® firm and LIFTed Advisors™ attorney, I look at your full business and personal picture through the LIFT - Legal, Insurance, Financial, &Tax® systems , identify where the gaps are, and map out what needs to happen and in what order. The new law creates real opportunities for business owners who act. It also creates new planning traps for those who do not. Schedule a complimentary, one-hour LIFT Business Breakthrough™ Session and let's find out what the new rules actually mean for your business: calendar.trustamdlaw.com/widget/booking/JDAbqicl45eEE3dRRmpb This article is a service of AMD LAW, a Personal Family Lawyer Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life & Legacy PlanningⓇ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session. The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own, separate from this educational material. © 2026

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