Investors are facing an uncertain future in terms of tax liabilities, with the upcoming 2024 election poised to bring potential changes to fiscal policy. However, regardless of who takes the White House, UBS has identified four key strategies that individuals can implement now to navigate the evolving tax landscape.
Diversifying tax treatments is a crucial first step, allowing investors to spread their wealth across different accounts subject to varying tax rules. By deferring capital gains, individuals can delay taxation on their investments, potentially benefiting from a lower capital gains tax rate in the future. Accelerating lifetime gifting is another recommended tactic, as the lifetime gift and estate tax exemption may see reductions post-election.
Moreover, proactive estate planning is essential, with trust and estate lawyers set to be inundated with inquiries following the election. By seeking advice and setting up key resources early on, investors can ensure they are prepared for any changes in tax policy, regardless of the election outcome.
UBS’s insights highlight the importance of forward-thinking and strategic financial planning in an ever-changing economic landscape, offering a roadmap for individuals to proactively manage their tax liabilities and secure their financial future.
