Thanksgiving is more than a holiday; it’s a time for family gatherings, reflection, and gratitude. As loved ones come together, it creates the perfect setting to discuss one of the most important aspects of securing your family’s future: estate planning. While often overlooked, this vital process ensures your assets are protected, your values are honored, and your legacy is preserved for generations to come.

Beyond its festive traditions, Thanksgiving offers a rare opportunity for meaningful conversations about wealth preservation, financial planning, and legacy goals. These discussions can help align family priorities and pave the way for proactive decision-making. With shifting tax landscapes and evolving financial needs, taking the time now to review or create an estate plan is not only practical but essential.

This season, make estate planning part of your Thanksgiving reflection—ensuring your family’s security and values endure.

1. Why Thanksgiving is the Ideal Time for Estate Planning

Thanksgiving is more than a celebration—it’s a time for reflection and connection. Thus, it offers high-net-worth families a unique opportunity to align financial priorities with family values. With loved ones gathered together, discussions about legacy planning and estate preservation become both natural and timely.

Aligning Legacy with Values

Thanksgiving brings families together, creating the perfect backdrop to evaluate how your wealth can support the people and causes you care about most. It’s a chance to ensure that your estate plan reflects the values and priorities you want to pass on to future generations. This can include safeguarding family businesses, supporting charitable causes, or securing your loved ones’ financial futures.

The Timing Advantage

Estate planning during Thanksgiving makes sense from both a practical and emotional perspective. Family gathering provides an opportunity for open conversations about long-term goals, addressing concerns, and fostering transparency about wealth transfer plans. While often sensitive, these discussions can prevent misunderstandings and ensure alignment on shared objectives.

Take Action During the Season of Gratitude

Use this season to focus on what matters most: your family’s well-being and security. Starting or revisiting your estate plan ensures that the values and priorities you hold dear are protected for years to come.

2. Key Elements of Effective Estate Planning

Building a Comprehensive Strategy for Wealth Preservation

An effective estate plan does more than distribute assets; it protects wealth, supports family harmony, and aligns with long-term goals. By incorporating the following key elements, families can ensure financial security and peace of mind:

Wealth Preservation

• Use Trusts Wisely: Trusts are a cornerstone of wealth preservation, minimizing taxes and shielding assets from legal disputes. Structures like irrevocable trusts can help transfer wealth efficiently while maintaining control over its use.
• Safeguard Against Risks: Estate plans must account for potential liabilities, from lawsuits to unexpected expenses, ensuring your wealth remains intact.

Succession Planning

• Transitioning Leadership: For families with businesses, succession planning is critical. Clearly defined leadership transitions prevent disruptions and protect the company’s future.
• Business Continuity: A formal succession plan ensures the family business thrives, supporting employees, clients, and stakeholders during generational changes.

Philanthropic Giving

• Charitable Trusts and Funds: Tools like donor-advised funds enable families to leave a legacy while benefiting from tax deductions. Strategic philanthropy supports meaningful causes and enhances family unity around shared values.
• Tax Advantages: Charitable giving can offset estate taxes, providing financial benefits while making a positive societal impact.

3. Current Trends and Tax Implications

Navigating the 2024 Estate Tax Landscape

The current tax environment offers high-net-worth individuals a unique window of opportunity for estate planning. However, changes on the horizon make proactive planning more urgent than ever.

Estate Tax Overview

• Federal Exemption Levels: In 2024, the federal estate tax exemption stands at $13.61 million per individual, doubling for married couples. This allows substantial tax-free wealth transfers to heirs.
• Upcoming Changes: The exemption is set to revert to approximately $6 million in 2026, potentially exposing more estates to taxation. Families who fail to act now may face significantly higher tax liabilities in just a few years.

Tax-Saving Strategies

• Gifting During the High Exemption Period: High-net-worth individuals should take advantage of the current exemption to transfer wealth now, reducing the taxable value of their estates.
• Charitable Contributions: Establishing donor-advised funds or charitable trusts can lower estate tax burdens while supporting meaningful causes. These tools align with both financial planning and philanthropic goals.
• Family-Owned Business Strategies: Business owners should consider transferring ownership shares to heirs or trusts to minimize estate taxes and ensure a smooth succession process.

The current tax landscape underscores the importance of acting swiftly to preserve wealth and protect future generations.

4. Actionable Steps for Estate Planning This Thanksgiving

Transforming Reflection Into Action

Thanksgiving is an ideal time to transition from reflection to action in your estate planning journey. By following these actionable steps, you can safeguard your family’s financial future while fostering alignment and clarity.

Step 1: Initiate Family Discussions

• Use family gatherings to have open conversations about shared values, legacy goals, and succession planning. Establishing clarity among stakeholders reduces the risk of future misunderstandings.

Step 2: Review and Update Estate Plans

• Assess existing wills, trusts, and other estate planning documents to ensure they reflect current assets, family dynamics, and regulatory changes. Involve legal and financial advisors in the process to address gaps.

Step 3: Incorporate Philanthropic Goals

• Evaluate charitable giving strategies, such as donor-advised funds, to align estate plans with family values. These tools can leave a lasting legacy while offering significant tax advantages.

Step 4: Schedule Professional Consultations

• Meet with estate planning professionals before the year ends to finalize strategies. Proactive planning ensures you can act within the current tax framework while avoiding last-minute decision-making.

Conclusion

Estate planning is more than a financial exercise—it’s a way to protect your family, preserve wealth, and ensure your legacy endures. Thanksgiving provides a unique opportunity to reflect on these priorities and initiate meaningful conversations about securing your loved ones’ future. With the current tax landscape set to change in the coming years, proactive planning now can safeguard your assets and align your financial strategy with your values.

This Thanksgiving, take control of your legacy. Tiempo Capital’s Family Office experts help you build a customized estate plan rooted in legacy planning and philanthropic values — ensuring your wealth is preserved and your impact lasts for generations. Schedule your consultation today.

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This material is for informational purposes only and does not constitute financial, legal, tax, or investment advice. All opinions, analyses, or strategies discussed are general in nature and may not be appropriate for all individuals or situations. Readers are encouraged to consult their own advisors regarding their specific circumstances. Investments involve risk, including the potential loss of principal, and past performance is not indicative of future results.