Planning Through Change: Sunset, Tariffs, and Strategic Wealth Moves

by Maria Tipton, J.D.

As we continue through 2025, the pace of change in tax policy and the global economy is accelerating—and with that comes a critical planning opportunity. At the center of the conversation is the scheduled sunset of the Tax Cuts and Jobs Act (TCJA), set to take effect on January 1, 2026.
Under current law, each individual may transfer up to $13.99 million ($27.98 million per married couple) during life or at death without incurring federal gift or estate tax. Unless Congress intervenes, those exemption amounts will revert to pre-2017 levels—estimated to be roughly $7 million per individual and $14 million per couple, adjusted for inflation. At a 40% estate tax rate, the reduction in exemption could translate into a meaningful tax liability for families who have not yet acted.

Planning Against the Backdrop of Tariffs and Volatility

While the sunset of TCJA may be the most visible factor, it’s not the only one shaping planning conversations this year. Market volatility driven by global tariffs and trade policy is creating ripple effects across equity markets, valuations, and investor sentiment.

The effects of tariff uncertainty can feel like a rollercoaster—but from a planning standpoint, moments of market disruption can create real opportunity. Gifting assets while they are temporarily depressed in value allows you to transfer more future growth out of your estate using less of your lifetime exemption. This is particularly effective when paired with trust planning strategies or valuation-sensitive assets such as closely held business interests.

Think of it this way: volatility may compress asset values today, but when the market rebounds, those assets appreciate outside your taxable estate—preserving more wealth for the next generation.

Looking Beyond the Estate Tax

In addition to estate and gift tax planning, the TCJA sunset will also impact income taxes. The top marginal income tax rate is scheduled to increase from 37% to 39.6%, and the standard deduction is expected to shrink, potentially affecting many households’ annual tax obligations.

Strategically accelerating income or completing Roth IRA conversions while rates remain lower could reduce lifetime tax burdens. And if you’re considering converting a Traditional IRA or 401(k) to a Roth IRA, doing so in a down market means the taxable amount of the conversion may be significantly lower—yet future growth would remain tax-free.

Where to Go From Here

If you’ve already put a plan in place, now is the time to revisit it and confirm it still reflects your goals and today’s realities. If you haven’t yet taken steps, there is still time—but the window is closing.

Our role is to bring clarity and confidence to moments like this. We’re here to walk you through the opportunities available, tailor a strategy that fits your family’s objectives, and execute that plan with precision.

Please don’t hesitate to reach out—we’re ready to help you move forward with purpose and peace of mind.

We provide the information in this newsletter for general guidance only. It does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, investment, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, expressed or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

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