“In this world nothing can be certain, except death and taxes.” Benjamin Franklin penned those famous words in a letter back in 1789. It is still one of the most recognizable quotes and more relevant today than ever. Not only are taxes inevitable but with the U.S. debt currently at 34.5 trillion and increasing by a trillion dollars every 100 days or so according to usdebtclock.org, taxes will most certainly increase. That’s why it is even more important to understand the constantly changing tax laws and to implement proper tax planning and estate planning strategies to maximize tax savings.
The good news is that we help you to stay on top of those changing tax laws to make sure that you are taking advantage of those changes. That is also why tax planning and estate planning are an important part of the discussion we have with you as we work together to minimize your tax burden, both now and for future generations. Making sure that your asset allocations are tax efficient, that you are funding your employer retirement accounts in the best way and benefiting from matching dollars, discussing Roth IRA conversions when it makes sense and while taxes are lower, taking advantage of certain types of trusts in your estate planning as well as implementing many other tax saving strategies.
As we work with you to take advantage of tax efficiencies, we are excited to utilize a new software solution that uses artificial intelligence to read the data within your tax return and create a customized report providing an analysis of your tax return to help us look for potential areas of tax savings. We have already run an analysis for many of you and will be talking to the rest of our clients about it soon. We can also run the analysis for prospective clients. Just reach out to us and let us know if you are interested.
Estate planning is another area that is often overlooked or not addressed properly by many people. According to Caring.com only about 32% of Americans even have a basic will. Everyone has heard of celebrities who didn’t have an estate plan in place at the time of their passing. When they died it turned into a very expensive and divisive battle for the assets. Unfortunately, a large percentage of their wealth gets consumed by taxes but, even worse, the remaining estate gets divided based on the laws of that state and may not have been what that person had wished or intended. Estate planning and having an updated will and/or trust, health care directive and power of attorney is not only important, but it could save a lot of future expensive problems and potential lifelong family disputes.
We recently hosted a webinar: “Top Tax Planning Ideas for 2024” (Code: ^aOW8LBD) which featured Tim Steffen, Director of Advanced Planning at Baird. We heard a lot of good feedback from those who were able to attend it. Please click on the blue text and use the code above to view the recording.
We hope that you and your family are enjoying the warmer winter and that you have a safe and healthy spring.
Jean, Kurt, Anders, & Molly
While Baird does not offer tax or legal advice, our Financial Advisors regularly work with clients’ attorneys and tax professionals to help ensure that all phases of wealth management are addressed. Please consult your legal or tax professional for specific information.