A vital solution for your loved ones without jeopardizing their public benefits

A Special Needs Trust (“SNT”) is a crucial financial tool designed to benefit individuals who rely on needs-based public assistance. These trusts enable beneficiaries to maintain their eligibility for public benefits while receiving additional financial support from an inheritance.

For clients with dependents or loved ones who receive public benefits, an SNT can offer peace of mind and financial security.

Let’s explore the key advantages and functions of Special Needs Trusts.

Benefits of a Special Needs Trust

1. Preserving Public Benefits

One of the primary advantages of an SNT is its ability to preserve the beneficiary's eligibility for needs-based public benefits such as Supplemental Security Income (SSI) and Medicaid. Receiving an inheritance directly can disqualify individuals from these crucial benefits due to asset limits.

However, by placing the inheritance in an SNT, the beneficiary can continue to receive public assistance. Importantly, the funds in the SNT are used to supplement, not replace, the benefits provided by public programs.

2. Controlled Access to Inherited Funds

An SNT does not provide the beneficiary with direct access to the inheritance. Instead, the funds are managed by a trustee, who oversees the trust and disburses funds according to the trust's terms. This arrangement ensures that the client maintains control over the distribution and use of the funds, both during their lifetime and after their death. It also protects the assets from being misused or squandered by the beneficiary.

3. Appointment of a Trusted Trustee

Clients can appoint a trusted individual or a professional fiduciary to manage the SNT. The trustee is responsible for ensuring that the funds are used for the beneficiary's benefit and according to the trust's terms. This can include paying for medical expenses, education, personal care, and other needs not covered by public benefits. By appointing a reliable trustee, clients can ensure that their loved ones are well cared for and that the funds are managed prudently.

4. Protection of Trust Assets

Upon the beneficiary's death, the assets remaining in the SNT are not subject to reimbursement claims from state or federal agencies. Since the assets in the SNT never legally belonged to the beneficiary, they are protected from being used to repay benefits received. Instead, these assets can be directed to other beneficiaries designated by the client. This feature allows clients to ensure that their estate is distributed according to their personal wishes, even after the death of the SNT beneficiary.

Estate Planning Matters

In summary, Special Needs Trusts offer a vital solution for clients who want to provide for loved ones without jeopardizing their public benefits, as well as ensuring controlled access to inherited funds, and protecting the trust assets from reimbursement claims.

For investors and clients seeking to safeguard their family's financial future, an SNT can be an essential component of their estate planning strategy.

Final Thoughts

As you consider the financial planning needs of your family, it's crucial to understand the benefits and intricacies of Special Needs Trusts. Consulting with a financial advisor or an estate planning attorney can provide personalized guidance and help you establish an SNT that meets your specific requirements and goals.

With the right planning, you can ensure that your loved ones receive the support they need while preserving access to essential public benefits.

Why Estate Planning Matters

There is a common misconception that estate planning is something that only the affluent need to do before they die. However, estate planning is important for everyone, regardless of income level or net worth. Planning for the disposition of assets upon your death can provide benefits to all the parties involved.

Estate planning provides clarity and peace of mind. By naming heirs in advance and clearly outlining how assets should be distributed, individuals can prevent unnecessary stress, expenses, and even legal battles for their families. Without a plan, these decisions may be left up to the courts.

Beyond designating heirs, the process can also involve strategies to safeguard assets. For example, establishing a trust ensures that wealth passes to the right people, while potentially reducing taxes. Estate planning can also prepare for life events—such as incapacity—through tools like a durable power of attorney, which authorizes someone to handle legal and financial decisions, or a health care proxy, which designates someone to make medical decisions. A living will can further express preferences about life-sustaining medical treatment.

Put It in Writing

At the foundation of any estate plan is a will or trust. Creating one with the guidance of a qualified attorney helps avoid costly oversights. An experienced professional will ask questions that might otherwise go unconsidered—such as whether minor children could manage an inheritance, or how a divorce or death in the family might affect asset distribution.

Name Names

Choosing the right people is central to effective estate planning. First is the executor, who will be responsible for carrying out the plan. Then come beneficiaries, who should be carefully designated on insurance policies and retirement accounts such as 401(k)s, IRAs, or pensions. It’s important to note that these beneficiary designations override instructions in a will or trust, meaning that assets pass directly to the named individuals.

What About Estate Taxes?

While assets transferred to a spouse are not subject to estate taxes, transfers to children or other beneficiaries may, depending on the size of the estate. Federal exclusions apply, but some states impose their own estate taxes as well.

To manage these costs, individuals may use tools such as life insurance policies, trusts, or gifting programs designed to reduce the taxable value of the estate. Since the rules can be complex, professional tax and legal guidance is essential.

No matter the size of your estate, take steps now to ensure your wishes are honored and your loved ones are protected. Estate planning isn’t about how much you have—it’s about leaving behind clarity, care, and peace of mind.

There are several kinds of trusts and wills to help pass down your legacy or care for you in the case you are incapacitated. Many people already have estate documents, probably executed many years ago. With laws constantly changing, and personal circumstances too, an estate planning attorney should review the documents every few years, as they can guide you to the right tools for your unique situation. Here are a few points to consider.

1. Health Care: Powers of attorney for health care and property are part of every complete estate plan. With a health-care power, a chosen agent acts on your behalf if you become unable to make decisions. With durable power for property, the chosen agent acts if you are incapacitated and can’t sign a tax return, make investment decisions, make gifts or handle other financial matters. Additionally, make sure the health-care power addresses the Health Insurance Portability and Accountability Act. This governs what medical information doctors can release to someone other than the patient.

2. Beneficiaries: Are beneficiaries, executors, trustees and guardians named in the wills or trust documents still current? Are all still living? Can someone new fill a role better?

3. Addendums and Schedules: What about any updates needed to addendums or schedules that specify disbursement of personal property? Make sure the schedules are current and attached.

4. Decanting: Are all existing trust documents needed? Some states allow for decanting, which means emptying the contents of an irrevocable trust into another one newly created, if the irrevocable trust becomes unworkable or outdated. Not all states allow decanting.

5. Children: What about children, have they passed the ages specified in a children’s trust (in which money is designated for such specific purposes, like education, for instance)? If that’s the case, then the trust may need to be updated.

6. Special Needs: Another consideration are heirs with disabilities or special needs. Don’t assume typical estate documents automatically help in those situations. Seek out a financial advisor and attorney who specialize in this planning.

7. Financial Accounts & Beneficiaries: Check beneficiary designations on brokerage accounts, insurance policies and retirement accounts. Ensure that all beneficiaries are current. Be sure to understand the firm’s policy when one beneficiary dies before the others. If you want the share of the assets to pass by blood line - to the deceased’s children, for example - you may need to put in language specifying that distribution. Otherwise, the remaining listed beneficiaries may simply divide the assets.

8. Shared Accounts: Sometimes a parent names a child on a bank account so the child can access or use the money if the parent can’t act. Understand that if the child is a joint owner on an account, the money passes to the child no matter what the will dictates.

9. If You've Moved: If you’ve moved to another state since executing the estate documents, then you should find a local estate attorney to check any legal differences for planning between the old and new states.

10. Life Insurance Expiration: Another item to check is life insurance expiration. Consider how long to keep it if it looks like you may outlive it.

These items can help ensure your wishes are carried out if you are incapacitated or once you are gone. Planning is essential and there are professionals that can help guide you through the process.

International Stocks Still Lead in 2025

You can enhance after-tax returns and achieve greater financial efficiency

Market volatility, like we had earlier this year, can understandably spark anxiety among investors. However, seasoned investors and financial professionals recognize these moments as opportunities to strategically manage taxes.

One such strategy is tax-loss harvesting – a tactic designed to reduce your taxable income by selling investments at a loss, offsetting capital gains, and potentially generating tax savings.

Understanding Tax-Loss Harvesting

Tax-loss harvesting involves selling securities that have declined in value to realize a capital loss, which can then offset capital gains from other investments. If the investor’s losses exceed gains in any given year, it can be used to offset ordinary income, and depending on the amount, it may be carried forward and applied to future tax years.

Timing is Key

Market downturns often present prime opportunities for tax-loss harvesting. In volatile markets, stocks or mutual funds may dip below the purchase price. Selling these underperformers allows investors to realize losses that can be strategically used to offset gains realized elsewhere in the portfolio.

The Wash-Sale Rule

An essential consideration in tax-loss harvesting is the IRS’s “wash-sale” rule, which prevents investors from claiming a loss if they purchase the same, or substantially identical security, within 30 days of the sale.

To maintain market exposure while avoiding the wash-sale rule, the recommendation is to buy a different, yet similar, security to replace the one sold.

Integrating into Your Financial Plan

Tax-loss harvesting isn't just a year-end strategy; it can be integrated throughout the year, particularly during volatile periods. Collaborate with your financial advisor to regularly monitor your portfolio for opportunities. By methodically employing tax-loss harvesting, investors can enhance after-tax returns and achieve greater financial efficiency. Financial professionals can provide critical guidance in navigating complex financial landscapes, helping investors make informed decisions that support long-term goals. By identifying opportunities such as tax-loss harvesting and timing them effectively, investors can strengthen overall portfolio performance, turning market downturns into strategic advantages.

High Rates Don't Have to Mean High Stress

With mortgage rates hovering around 7%, many people are reassessing their housing and financial decisions. After a decade of historically low borrowing costs, today’s environment presents new challenges. For prospective buyers, current homeowners, and empty-nesters alike, understanding how to navigate these changes is key. Fortunately, there are strategies to help move forward with clarity and confidence.

For Buyers: Marry the House, Date the Rate

For those looking to purchase a home, a 7% interest rate can feel discouraging. However, it’s important to remember that the mortgage rate selected today doesn’t have to be permanent.

Strategies to consider:

• Negotiate with Sellers: Slower buyer activity in today’s market creates room for price reductions, seller credits, or a temporary interest rate buydown.
• Consider an ARM (Adjustable-Rate Mortgage): Buyers not planning to stay in a home long-term might benefit from lower initial payments offered by ARMs.
• Refinance Later: Many are approaching their mortgage decision as a temporary step, with the intent to refinance if rates decline in the future.

The key is purchasing a home that fits within they buyer’s current budget and long-term financial stability, regardless of the prevailing interest rate.

For Current Homeowners: The Golden Handcuff Effect

Homeowners who secured a 2–4% mortgage find themselves in an enviable position—one often described as wearing “golden handcuffs.” These low monthly payments are a significant asset, yet they may limit flexibility.

Strategic moves to evaluate:

• Home Equity Utilization: Instead of selling and forfeiting a favorable rate, homeowners might consider a home equity line of credit (HELOC) to fund projects, education, or investments.
• Renting Out Instead of Selling: For those needing to relocate, converting a home into a rental can generate income while preserving a valued mortgage.
• Revisit the Broader Financial Plan: A low mortgage rate should not overshadow larger retirement or lifestyle priorities. A Strong Valley advisor can help weigh available options in the context of overall goals.

For Empty-Nesters: Freedom May Be Worth More Than a Low Rate

Many retirees or near-retirees are living in homes that have appreciated significantly—and carry very low mortgage rates. Yet remaining in place purely for financial reasons may delay important lifestyle transitions.

Options to consider:

• Downsize Strategically: While a new mortgage may come with a higher rate, some downsizers may be able to buy a new home outright, or take on a modest loan. In many cases, the financial trade-off is well worth the lifestyle improvement.
• Prioritize Lifestyle Goals: Questions such as proximity to family, lower maintenance responsibilities, and freedom to travel often outweigh the benefit of a low mortgage payment.
• Tax & Estate Planning: Selling a home can unlock opportunities in charitable giving, tax planning, or simplifying estate considerations—all of which can have long-lasting impact.

Key Takeaways:

• A 7% mortgage rate should not paralyze decision-making—strategic options exist at every stage of life.
• Buyers may benefit from negotiating terms now or planning to refinance later.
• Homeowners can explore home equity strategies to avoid giving up favorable rates.
• Empty-nesters should weigh the benefits of mobility and planning opportunities against the comfort of staying put.

What the 2025 Bill Could Mean for You

The “One Big Beautiful Bill” (OBBB), signed into law on July 4, 2025, has officially redrawn the tax landscape for American retirees. While the headlines have focused on big-ticket spending and political posturing, the real impact will be felt in how retirement income is taxed, claimable deductions, and how your estate is handled in the future.

For people who are already retired or who are preparing to make the leap, now is the time to understand what this bill means for retirement savings—and how to adjust the strategy.

What’s in the Law?

The OBBB makes the individual tax cuts permanent (first introduced in 2017), and adds a series of new deductions aimed at seniors, workers, and families. It also raises the standard deduction significantly, alters estate tax rules, and tweaks business and investment-related provisions. Let’s break down what matters most for retirees.

Wins for Retirees

1. Lower Tax Brackets—Now Permanent

The law locks in lower marginal tax rates, a move that benefits retirees taking income from traditional IRAs, pensions, annuities, or part-time work. This means paying less tax on the same income than you would under pre-2017 rates.

2. Larger Standard Deduction

Starting in 2025, the standard deduction rises to $15,750 for single filers and $31,500 for joint filers, indexed to inflation. This helps retirees with modest expenses to avoid itemizing—and simplifies tax prep for many households.

3. New Senior Deduction (Temporary)

Seniors aged 65 and older now receive an extra $6,000 deduction (phasing-out at incomes of $75,000 (single) / $150,000 (joint).). This provision, available through 2028, offers additional relief to those living on fixed incomes.

4. Increased SALT Cap (Temporary)

For those in high-tax states, the State and Local Tax (SALT) deduction cap increases from $10,000 to $40,000 through 2029, for households less than $500,000 in income. This may reduce tax liability for retirees with property tax and state income tax burdens.

5. Permanent Estate Tax Relief

The estate and gift tax exemptions have been permanently raised. This means fewer families will face federal estate taxes, and more wealth can be passed to the next generation without triggering federal levies.

Potential Drawbacks on the Horizon

1. Expiration of Senior Benefits

The enhanced senior deduction ends in 2028, meaning future retirees may not enjoy the same tax break unless the provision is extended. Planning around this expiration date will be key.

2. Impact on Medicaid and Healthcare Access

The OBBB includes cuts to Medicaid and stricter eligibility requirements. This could affect lower-income retirees or those in rural areas who rely on Medicaid-supported healthcare facilities, particularly long-term care services.

3. National Debt and Inflation Risks

While the bill reduces individual tax burdens, it increases federal spending and adds to the national debt. Some economists warn this could contribute to future inflation or rising interest rates—both of which can erode purchasing power in retirement.

4. Investment Strategy May Need Updating

Tax law changes may alter the appeal of Roth vs. traditional IRA contributions, especially for those still working or delaying retirement. Asset location and withdrawal sequencing strategies should be reviewed to optimize them under the new structure.

What Should Retirees Do Now?

This is a rare opportunity to lock in some long-term tax advantages—but it requires action. Here are a few timely strategies:

• Review your 2025 tax liability under the new deductions and brackets.
• Reassess Roth conversions while marginal rates remain favorable.
• Reevaluate your estate plan in light of new exemption thresholds.
• Review healthcare planning especially for those on Medicaid or considering long-term care.

Final Thoughts

The OBBB delivers meaningful benefits to retirees, but those benefits won’t automatically reach your bottom line. A thoughtful strategy, grounded in updated law and built around your specific goals, can help make the most of the opportunities and avoid potential pitfalls. At Strong Valley, we view your retirement through both a personal and policy lens—helping to ensure you aren’t just reacting to change but preparing for it with clarity and confidence. Please let us know if you would like to review your plan.

U.S. Stocks Bounce Back

It used to be a rite of passage to buy a starter home by your late 20s. Today, many young adults wonder whether that milestone is slipping out of reach. Rising prices, higher borrowing costs, and a limited supply of entry‑level properties have created the most challenging landscape for first‑time buyers in decades. But with the right strategy, the dream of owning a home can still move from uncertainty to peace of mind.

The Roadblocks Facing Young Buyers

Sticker shock is only part of the story. After a pandemic‑era boom, median home prices are roughly 40 % higher than five years ago, while wages have grown less than half that pace. At the same time, 30‑year mortgage rates that once hovered near 3% have doubled, slashing the amount a buyer can finance on the same monthly payment.

Student debt and lifestyle inflation complicate saving. A 20% down payment on a $450,000 starter home is $90,000—tough to accumulate while carrying student loans and paying record‑high rents. It’s no surprise that nearly 60% of millennials who hope to buy in the next five years expect to receive family help.

Supply is historically tight. Baby boomers are aging in place, and institutional buyers continue to purchase single‑family rentals. With fewer existing homes hitting the market and new‑construction costs elevated, competition pushes prices even higher.

These hurdles are real, but they’re not immovable. Big goals are achieved by breaking them into a series of smaller, controllable steps.

Creative Paths to the Front Door

• Think beyond the classic 20 % down. Federal Housing Administration (FHA) loans require as little as 3.5 % down, while many state housing agencies offer zero‑interest silent seconds to first‑time buyers. Just remember that a lower down payment means a higher monthly obligation, so run the numbers with a fiduciary.

• House hacking turns a liability into an asset. Buying a duplex and renting the other unit—or even taking on a roommate—can offset the mortgage and help you qualify for a larger loan.

• Shared‑equity arrangements trade future appreciation for help today. Several fintech firms will contribute part of your down payment in exchange for a slice of the home’s price appreciation at sale. This option can bridge the gap for savers who are close, but not quite there.

• Tap retirement savings cautiously. First‑time buyers can withdraw up to $10,000 of IRA funds penalty‑free, and some employer plans allow loans against 401(k)s. These moves carry opportunity cost, so coordinate them within a broader financial‑planning framework and consult your financial advisor first.

With each of these strategies, the buyer must weigh taxes, cash‑flow risk, and long‑term goals.

Action Plan: Turning Dreams into Deeds

• Know your credit profile. Aim for a FICO score of 740+ to unlock the best rates, but don’t be discouraged if you’re lower—an advisor can map out incremental improvements.

• Set a realistic price range. Housing payments (principal, interest, taxes, insurance, HOA) should generally stay below 30 % of gross income after factoring in other debts.

• Automate a future mortgage savings plan. Treat an online, high‑yield savings account like a monthly bill; even $300 a month grows to nearly $19,000 in five years at 4% interest.

• Stress‑test the budget. Model scenarios for rate increases, job changes, or unexpected repairs so you enter the market with eyes wide open.

• Leverage professional guidance early. A financial advisor can coordinate lender pre‑approval, down‑payment assistance, and tax strategies while ensuring homeownership fits within your broader retirement and investment plan.

• Set aside an emergency fund. This will help to care for unexpected expenses quickly.

Key Takeaways

Homeownership is tougher for first-time buyers today, but it’s not impossible. Success hinges on diligent planning. Consider all financing options, including FHA loans and shared equity; one just might be right for you. Be sure to protect long-term wealth by fitting a purchase into an overall financial journey. Partnering with a financial professional can help translate today’s dream into tomorrow’s equity.

Understanding the "OBBB"

We keep an eye out for rules and regulations that could impact you and your family. In President Trump’s "One Big Beautiful Bill," signed into law on July 4th, there is a significant shift in U.S. fiscal policy. Understanding the provisions is crucial for making informed financial decisions both now and for years to come.

Here’s What You Need to Know

The OBBB is a comprehensive budget reconciliation law that encompasses a range of tax and spending policies.

Who May Be Impacted

• Most Taxpayers: The permanence of the 2017 tax cuts and the increased standard deduction will likely benefit most individuals and families.
• Hourly Wage Earners/Service Industry Workers: Those who receive tips and/or overtime pay may see specific temporary tax benefits.
• Seniors: Will benefit from a temporary additional deduction.
• Small Business Owners: Expected to see significant tax relief and incentives for growth, including changes to the QBI deduction and bonus depreciation.
• Families with Children: Will see an increased Child Tax Credit.
• High-Income Earners: Will continue to benefit from the lower individual tax rates and changes to estate tax exemptions.
• Homeowners (in high-tax states): May benefit from the temporary increase in the SALT cap.
• Lower-Income Individuals/Families: Those who rely on Medicaid or SNAP may face significant changes to their benefits and eligibility due to program cuts and expanded work requirements, potentially leading to a loss of coverage or reduced assistance.
• Defense Industry: Stands to gain from increased funding.
• Fossil Fuel Industry: Benefits from policies promoting oil and gas development and phasing out clean energy incentives.
• Healthcare Providers: Hospitals and healthcare systems that serve a large number of Medicaid recipients, particularly rural hospitals, may face financial strain due to the cuts.

Core Components

Tax Policy:

• Permanent Tax Cuts: Makes most of the individual tax cuts from the 2017 Tax Cuts and Jobs Act permanent, including lower rates and reformed brackets.
• Increased Standard Deduction: Includes a permanent boost to the standard deduction (e.g., $15,750 (single) and $31,500 (joint), indexed for inflation after 2025).
• New Deductions (temporary, expiring 2028):
  • Tipped Income: Deduction for tipped income up to $25,000 for workers earning under $150,000 (single) / $300,000 (joint).
  • Overtime Pay: Deduction for overtime pay up to $12,500 (single) / $25,000 (joint) for workers earning under $150,000 (single) / $300,000 (joint).
  • Auto Loan Interest: Deduction up to $10,000 per year for interest on auto loans for U.S.-assembled cars purchased between 2025-2028, phasing out for higher earners.
• Senior Deduction (temporary, expiring 2028): An additional tax deduction of up to $6,000 for seniors (age 65 and older), phasing out at incomes of $75,000 (single) / $150,000 (joint).
• Child Tax Credit: Permanently increases the maximum Child Tax Credit from $2,000 to $2,200 per child, indexed for inflation. The refundable portion is also indexed but not increased.
• SALT Cap Adjustment (temporary, expiring 2029): Increases the State and Local Tax (SALT) deduction cap from $10,000 to $40,000. This increased cap applies to taxpayers with modified adjusted gross income (MAGI) under $500,000 (applies to all filing statuses, including single and joint filers). For those with MAGI above $500,000, the $40,000 cap is phased down (but not below $10,000). These provisions are in effect for five years (2025-2029), after which the limitation reverts to $10,000 permanently.
• Business Tax Relief: Enhances flexibility for domestic R&D costs (allowing immediate deduction or amortization), reinstates 100% first-year "bonus depreciation" permanently, increases the Section 179 deduction cap to $2.5 million, and makes the 20% Section 199A (Qualified Business Income) deduction permanent. It also permanently increases the small business estate tax exemption and introduces changes to the Qualified Small Business Stock (QSBS) exclusion.
• International Tax: Modifies rules for Foreign Tax Credits (FTCs), Global Intangible Low-Tax Income (GILTI), Foreign Derived Intangible Income (FDII), and Base Erosion and Anti-Abuse Tax (BEAT), generally aiming to make them more favorable for U.S. companies. Imposes a 1% tax on remittances.
• Trump Accounts: Allows parents to create tax-deferred accounts for their children, with contributions up to $5,000 a year growing tax-free until withdrawal at age 18 or older (subject to capital gains tax).

Spending and Programs:

• Defense & Border Security: Significantly boosts defense spending (including a "Golden Dome" missile defense system and shipbuilding) and allocates substantial funds to immigration enforcement, including increased funding for ICE and Customs and Border Protection (CBP) and for finishing the border wall.
• Medicaid: Imposes a significant 12% cut to Medicaid spending over ten years and expands work requirements for some recipients, making states responsible for some costs. This is projected to increase the number of uninsured people. Rural hospitals are at particular risk.
• SNAP (Food Stamps): Proposes cuts for the Supplemental Nutrition Assistance Program ($186 billion over 10 years) and imposes stricter work requirements on more recipients, including able-bodied adults aged 55-64, veterans, people experiencing homelessness, and former foster youth. States will also take on more responsibility for costs.
• Energy Policy: Phases out clean energy tax credits from the Inflation Reduction Act, modifies some existing credits, and generally promotes fossil fuels over renewable energy, including unlocking oil and gas development on federal lands.
• Debt Ceiling: Raises the U.S. debt ceiling by $5 trillion.
• Medicare: Reverses aspects of Medicare's drug price negotiation program, particularly by expanding orphan drug exemptions, which could lead to increased costs for consumers.

What it Means

The OBBB represents a significant shift towards a supply-side economic approach, prioritizing tax cuts and deregulation to stimulate economic growth.

• For Individuals: Many individuals will see a reduction in their federal income tax liability due to the permanence of the 2017 tax cuts, increased standard deductions, and new specific temporary deductions for tipped income, overtime income, and for seniors. However, those relying on Medicaid or SNAP may experience reduced benefits or stricter eligibility, potentially leading to increased out-of-pocket costs or loss of coverage.
• For Businesses: The bill is largely seen as pro-business, particularly for small businesses, with permanent and enhanced deductions for qualified business income, increased expensing for equipment, and R&D tax benefits. These changes aim to incentivize investment, innovation, and job creation within the U.S.
• Federal Debt: The Congressional Budget Office (CBO) estimates that the bill will add a substantial amount to the national debt, projected to be around $2.8 trillion to $3.4 trillion over the next decade.

What Should You Do?

Given these changes, here are some actions to consider:

Review Your Tax Situation:

• Talk to us about how the permanent tax cuts, new temporary deductions, and changes to the SALT deduction specifically impact your personal or business tax liability.
• Understand your 2025 potential tax obligations or savings sooner rather than later, since some provisions take effect this year.

Evaluate Business Strategies (for business owners):

• Capital Expenditure Planning: With enhanced permanent bonus depreciation and Section 179 expensing, consider accelerating or re-evaluating plans for business equipment purchases.
  • R&D Investments: If your business conducts research and development, explore how the revised R&D tax benefits can be leveraged.
  • Succession Planning: For family-owned businesses, the increased estate tax exemption could significantly impact long-term planning. Review your estate plan with your legal and financial advisors.

• Assess Retirement and Investment Strategies:
  • While the core of retirement savings vehicles (401(k)s, IRAs) remains, changes in overall tax rates could influence decisions about pre-tax vs. Roth contributions, especially if you expect to be in a lower tax bracket now due to the new cuts.
  • Consider the long-term economic implications of increased national debt on inflation, interest rates, and overall market stability.

• Healthcare and Social Safety Net Planning:
  • For those on Medicaid or SNAP: Stay informed about specific state-level implementations of the new work requirements and eligibility changes. Reach out to government agencies or social service organizations for guidance.
  • Healthcare Coverage Review: If you're concerned about potential impacts on healthcare access or costs due to Medicare or Medicaid changes, review your health insurance options and financial preparedness for healthcare expenses.

Estate Planning:

The permanent increase in the unified credit and GSTT exemption threshold for estate and gift taxes means many more individuals and families will be exempt from federal estate taxes. Let’s review your estate plan to ensure it reflects these new thresholds and your current wishes.