Fact check: Can children still inherit their parents' house through trusts under Trump's law?

1. Summary of the results

Based on the analyses provided, children can still inherit their parents' house through trusts under Trump's proposed tax legislation, though the landscape is becoming more complex. The analyses reveal that Trump's "One, Big, Beautiful Bill" focuses primarily on extending the Tax Cuts and Jobs Act's estate tax provisions ^[1]. Most significantly, the Senate bill permanently increases estate and gift tax exemption amounts to $15 million for single filers and $30 million for married couples filing jointly starting in 2026, with inflation indexing thereafter ^[2].

However, a new IRS ruling has tightened regulations surrounding irrevocable trusts and the step-up basis, which could affect how houses and other assets are inherited through trusts ^[3]. This ruling means that assets held within certain irrevocable trusts may no longer receive the benefit of a step-up in basis upon the grantor's death ^[3].

2. Missing context/alternative viewpoints

The original question lacks several crucial pieces of context that significantly impact the answer:

• The distinction between different types of trusts - The analyses indicate that new IRS rulings specifically affect irrevocable trusts and step-up basis rules, but the original question doesn't specify which type of trust arrangement is being considered ^[3].
• The massive increase in estate tax exemptions - The question fails to mention that Trump's legislation dramatically raises the threshold at which estate taxes apply, making trust arrangements less necessary for tax avoidance purposes for many families ^[2].
• Recent IRS regulatory changes - The question doesn't acknowledge that separate from Trump's legislation, the IRS has independently modified trust regulations that could affect inheritance strategies ^[3].

Wealthy estate planning attorneys and financial advisors would benefit from the complexity and uncertainty created by these overlapping changes, as families will need professional guidance to navigate the new landscape. Conversely, middle-class families may find that the higher exemption thresholds reduce their need for complex trust structures entirely.

3. Potential misinformation/bias in the original statement

The original question contains an implicit assumption that Trump's law might prohibit children from inheriting their parents' house through trusts, which is not supported by the analyses. The question appears to conflate or confuse Trump's estate tax legislation with separate IRS regulatory changes affecting trust structures ^[3].

The framing suggests potential fear-mongering about inheritance rights, when the actual legislative changes appear to make inheritance easier and less tax-burdensome for most families through dramatically increased exemption thresholds ^[2]. The question may reflect confusion between different policy changes occurring simultaneously rather than a single "Trump law" that restricts inheritance through trusts.