Planning for the future doesn’t have to feel overwhelming—with the right strategies, you can protect your legacy and set your family up for success, no matter what comes next.
With the evolving tax landscape and changes to specific gifting laws coming in 2025, many of our clients feel the urgency to have a strategic plan for the transfer of their wealth. And we couldn't agree more as proactive planning helps protects your legacy and your family's financial future.
The following information is designed to introduce key strategies that our team regularly implements for clients. From gifting to trusts and making the most of existing tax laws, you too can create an optimized wealth transfer plan.
If you haven't read our article 'Wealth Transfer Strategies: Planning for Gifting and Inheritances in 2025', we highly recommend you do, so that you have a solid understanding of general strategies before diving into the more advanced concepts discussed below.
If you'd like to speak to a wealth transfer strategist directly, please click here to schedule a consultation with a knowledgeable, seasoned financial advisor.
5 Supplementary Considerations When Transferring Wealth
Let's explore five wealth transfer planning considerations going into the new tax year.
#1 Generation-Skipping Transfer Tax
As the name indicates, generation-skipping transfer (GST) tax is a way to minimize taxes paid on gifts to your grandchildren and future generations. While using GST exemptions is an effective way to leverage tax laws, it often involves setting up specialized trusts for the beneficiaries.
You'll want to speak with a financial or legal advisor as this tactic requires careful coordination with estate and gift planning.
#2 State-Level Estate & Inheritance Taxes
While Arizona doesn't impose estate or inheritance taxes at the state-level, many other states do and have their own rules for implementation.
For example, New York and Minnesota impose estate taxes below the federal level, making it more costly for gifting, while Illinois levies its own estate tax.
There may be a situation where relocating or restructuring asset holdings may be beneficial, if you live in a state that imposes estate taxes at a low asset value, like Massachusetts and Oregon do.
You also have to consider the state's inheritance taxes when planning for wealth transfer. Pennsylvania and Nebraska are two states that have significantly higher tax burdens on certain beneficiaries.
Finally, you have states like Maryland that have an estate tax and an inheritance tax, making things rather unfavorable for wealth transfers.
#3 Cross-Border & International Planning
As Arizona is a border state, we often help our clients plan for cross-border and international wealth transferring.
These situations can get tricky, to say the least, which is why we highly recommend consulting with a professional with a clear understanding of how differing gift, estate, and inheritance taxes are applied.
Depending on the extent of your international affairs, you may need a professional stateside and abroad to ensure all tax treaties and reporting requirements are met.
For the most accurate guidance, clients should consult financial, legal, and tax professionals familiar with taxation laws in the country their beneficiary resides or where their assets are held.
#4 Digital Assets & Cryptocurrency
The rise in cryptocurrency popularity has led to specialized estate planning in order to ensure secure and lawful transfers.
Because current tax laws treat digital currencies as property, transactions, like selling, gifting, and exchanges, are all taxable. Like other holdings, gains or losses are reported on and there are specific rules as they apply to cost basis, holding periods, and recordkeeping.
When it comes to transferring cryptocurrencies, it's important that the plan of action includes secure private keys, passwords, and access credentials for heirs.
If you hold a significant amount of cryptocurrency, you should seek guidance from a financial advisor versed in digital asset management and estate tax laws.
#5 Specialized Trusts for Unique Situations
Specialized trusts allow for customized distributions to ensure assets are used for intended purposes.
A specialized trust may be structured to meet the specific needs of a family member or beneficiary. For example, a special needs trust can be established to provide long-term financial support for an individual with a disability to avoid jeopardizing eligibility for government benefits.
Furthermore, unique situations may include the management of complex assets, such as real estate or business interests. One such example is a Qualified Personal Residence Trust (QPRT) where a home can be gifted at a reduced taxable value.
Get Financial Planning Advice From Benefit & Financial Strategies Today
Benefit & Financial Strategies wants to assist you with planning for the optimization of your assets upon your passing. Wealth transfer planning is vital to ensuring your beneficiaries get the most value from your liquidity or assets by strategizing tax-efficient, legally compliant solutions.
To discuss the specifics of your assets and who you wish to receive them, reach out and schedule a consultation.