7 Questions to Ask About Your Wealth Plan Before 2027

• Use year-end planning to align your estate documents, trusts, retirement accounts, investments, and borrowing strategy with your current circumstances
• Evaluate tax-sensitive decisions in coordination with your broader liquidity, charitable giving, and multigenerational goals
• Bring advisors and family members into the conversation early so responsibilities, expectations, and next steps are clear before 2027

Year-end decisions can shape your taxes, your family’s financial future, and the direction of your wealth. Recent federal tax-law changes, shifting markets, and changes in your own circumstances make this an important time to identify planning gaps, preserve flexibility, and prepare for 2027 and beyond.

An estate plan should evolve with changes in your family, assets, business interests, residency, and the law. Review wills, revocable trusts, powers of attorney, health care directives, beneficiary designations, and asset titling together so they work as a coordinated plan. State estate tax thresholds may also differ substantially federal estate, gift, and generational-transfer skipping tax exemption.

Irrevocable trusts and family entities, such as spousal lifetime access trusts and family limited partnerships, may support transfer tax, asset protection, and multigenerational objectives, but they require ongoing review. Confirm that each structure still reflects its purpose and that its investments, liquidity, administration, and asset cost basis support current family and tax planning goals.

Individual retirement accounts (IRAs) and workplace retirement plans should be reviewed alongside taxable investments and the estate plan. Note that the rules relating to required minimum distributions (RMDs) have changed significantly over the last few years. Consider current RMDs, beneficiary designations, Roth IRA conversion opportunities, and portfolio concentrations. If charitable giving is a priority, eligible IRA owners may also wish to discuss qualified charitable distributions with their advisors.

Upcoming taxes, real estate purchases, private investments, philanthropy, or family support may create substantial cash needs. Before selling appreciated investments, compare available cash, existing debt, and borrowing options, including securities-based or other asset-backed credit. Also review whether refinancing existing debt, such as existing mortgages or home equity lines of credit (HELOCs), could improve liquidity or reduce interest expense.

A portfolio can drift from its intended purpose even when performance appears strong. Review investments account by account and across the full balance sheet to identify concentrated positions, embedded gains, tax-loss harvesting opportunities, and liquidity needs. Also consider differences in the time horizons of personal, retirement, trust, and entity assets.

A coordinated charitable plan connects the causes you value with the most appropriate assets, timing, and giving structure to support them. There have been recent changes in income tax planning with respect to charitable deductions, and strategies such as bunching donations may be appropriate. Confirm that you have an effective combination of giving strategies to help maximize both charitable impact and tax planning.

Clear communication can help family members understand the intent behind your plan and prepare for future responsibilities. At a minimum, consider informing people who may serve in health care, financial, or fiduciary roles. Families may also benefit from age-appropriate conversations about expected inheritance, philanthropy, investing, and the future tax implications of current estate-planning decisions.

Bringing your wealth, legal, tax, and investment advisors together before December 31 can help turn these seven questions into a coordinated course of action for the year ahead.

Contact us to review your plan, identify potential gaps, and explore tax-aware strategies as you prepare for the coming year.

Bring the pieces of your financial life together with a thoughtful, coordinated approach. Explore our wealth planning capabilities to help create a strategy for preserving, growing, and transferring wealth with confidence.

Definitions and Disclosures

Cost basis is the original value of an asset for tax purposes, generally its purchase price adjusted for certain costs or changes over time.

Fiduciary describes someone who manages property or money on behalf of someone else and is required by law to manage and prioritize the client's assets over the own. 

This article is for educational purposes only and is not intended as an offer or solicitation for the sale of any tax, estate planning, or financial product or service.

This publication is not designed or intended to provide financial, tax, legal, accounting, or other professional advice since such advice always requires consideration of individual circumstances. If professional advice is needed, the services of your professional advisor should be sought. There is no assurance that any investment, financial, or estate planning strategy will be successful.

Wilmington Trust is not authorized to and does not provide legal, accounting, or tax advice. Our advice and recommendations provided to you are illustrative only and subject to the opinions and advice of your own attorney, tax advisor, or other professional advisor.

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