Estate Planning for Uncertain Times

This article summarizes insights from Kiplinger’s “Eight Ways to Financially Plan Your Way Through Challenging Times” and shows how these strategies support estate planning for uncertain times. Whether you’re concerned about market swings, upcoming changes to the tax code, or simply protecting your legacy, these tips can help you act with clarity and purpose.

The economic landscape in 2025 is anything but predictable. Tax laws are in flux, investment markets are volatile, and inflation remains a concern. The good news? With the right planning, you can turn instability into opportunity—especially when it comes to preserving and transferring wealth.

Gift depreciated assets to shrink taxable estate

One smart move during uncertain markets is to gift or donate assets that have temporarily lost value. As Kiplinger points out, this can allow appreciation to happen outside your estate and maximize use of your gift tax exemption. This article on the 2025 gift tax exclusion explains how you can give up to $19,000 per person this year without tapping your lifetime exemption. Larger gifts can also be placed into trusts for added control and protection.

Lock in today’s estate and gift tax exemption

The federal exemption is still historically high—$13.99 million per person in 2025—but it’s expected to shrink dramatically in 2026. That’s why it’s smart to act now. Forbes’ 2025 estate planning strategies emphasize the urgency of using irrevocable trusts and discounted asset transfers before the exemption drops.

Use Roth conversions and trusts while valuations are low

Market downturns present excellent opportunities to shift future growth out of your estate. Roth conversions of traditional IRAs—when account values are temporarily lower—can set your heirs up with tax-free income. Trusts like GRATs and charitable remainder trusts can also freeze low values for estate tax purposes. This guide to estate tax exemptions in 2025 highlights why acting in a low-valuation environment makes financial and estate planning sense.

Why estate planning for uncertain times requires flexibility

Unpredictable markets and tax law changes reveal just how important flexibility is in your estate plan. You may need to:

  • Reallocate assets or update valuations

  • Revisit trust provisions and gifting strategies

  • Protect heirs from reassessment or tax liability

  • Ensure your plan still meets your financial and legacy goals

In short, estate planning for uncertain times means building a structure that can pivot as needed—without triggering unintended taxes or delays.

In summary

Kiplinger’s timely financial advice—paired with strategic estate planning—can help you turn economic uncertainty into long-term security. Gifting undervalued assets, locking in high exemptions, and converting to Roth IRAs are just a few tools you can use in 2025.

The Law Offices of David Knecht can help you implement these strategies in a customized estate plan. Whether you’re planning for growth, protection, or transfer, we’re here to guide you through every twist and turn of the financial landscape. Contact us today at (707) 451-4502.

Filed Under: California Estate Plan, Digital Estate Plan, Estate Planning, Estates, Fairfield Attorney, Fairfield Lawyer, Living Trust , Living Will, Power of Attorney, Probate Lawyer, Taxes, Trust Administration Attorney , Vacaville Attorney, Vacaville Lawyer

New Higher Estate and Gift Tax Limits for 2022

A new year brings with it new federal tax exemption numbers.  For 2022 deaths, the estate and gift tax  jumps from  $11.7 million in 2021 for an individual to $12.06 million per individual.  The gift tax annual exclusion climbs from $15,000 from previous years to $16,000 for 2022.  This article will summarize changes in federal gift and estate tax law with content from an article from Forbes.com, which can be found here:  

What do these new numbers mean?

These numbers mean that wealthy tax payers can transfer more to heirs during their lifetime and upon death. 

 

  • How are gifts used as a strategy for transferring wealth?

 

One strategy that is commonly used is to transfer gifts to heirs every year to the max allowable, which will be $16,000 per individual in 2022.  Spouses can each make a $16,000 gift, which doubles the impact. 

 

  • Is there a limit on how many can receive gifts from you? 

 

You can transfer $16,000 to as many individuals as you like, so children, grandchildren, etc. can each receive that amount without a federal tax consequence to the giver. 

 

  •  What about appreciation with the gifts?

 

Another advantage of transferring wealth through gifts during your lifetime is that the appreciation that would result from any investments that those gifts were used to purchase would go to the new generation and therefore not be in your taxable estate. 

 How are tuition payments and medical expenses a wealth transfer strategy ?

You can make unlimited direct payments for medical expenses or tuition for an many individuals as you like.   These can add up and be very powerful to help the next generation create a better situation.  

Where can I find an attorney who can help me with estate planning in California?

An experienced attorney can help you make advantageous estate planning decisions for the benefit of you and your loved ones.  At the Law Office of David Knecht, at 707-451-4502, we have extensive experience in estate planning in California and can help you create the right plan for you. 

 

Filed Under: Taxes