Maximize estate planning strategies amid new tax legislation
Vanguard Perspective
|October 26, 2023
Vanguard Perspective
|October 26, 2023
Estate planning is a crucial component to helping establish a client’s legacy. Not only does it allow clients to safeguard their assets, but it also allows them to support their cherished causes while benefitting their loved ones. Recent tax legislation, including the tax sunset, has brought about significant changes that will affect the future of clients’ estate planning strategies, particularly for higher net worth clients.
As your clients approach tax planning and estate planning decisions, it’s imperative to discuss the implications of current tax laws, potential changes on the horizon, and how you can help them make informed decisions that will impact their financial legacy.
In December 2017, the Tax Cuts and Jobs Act (TCJA) lowered individual federal tax rates and raised the lifetime estate and gift tax exemption. However, these changes are only temporary and are set to expire at the end of 2025. Unless new legislation is passed, we can expect several significant changes in 2026:
With the upcoming tax sunset, keep in mind these key considerations when guiding client conversations about their estate planning and gifting strategies:
Learn more about common charitable giving strategies and the advantages and disadvantages of each with examples to illustrate the potential impact.
For more details on the array of strategies for estate planning and gifting, download this client-approved guide.
The decisions your clients make today can significantly impact their taxable estate in the future. As their advisor, you can bring peace of mind by helping them navigate the changes in legislation and determine the best gifting strategy to align with their goals and values.
As clients’ wealth grows, so does the complexity of their financial situations and needs. As an effective wealth manager, you bring to bear the full scope of your advice toolkit, from financial planning and portfolio management to behavioral coaching.
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