It’s hard to believe year-end is quickly approaching. This has been a year marked by change and uncertainty, with geopolitical volatility, tariffs reshaping trade, persistent inflation, and high interest rates. A new administration ushered in fresh priorities, culminating in the passage of a sweeping tax bill, The One Big Beautiful Bill Act (OBBBA), signed into law in July. The OBBBA provides long-awaited clarity on issues like the lifetime exemption, which, for the first time in decades, is not set to sunset and will be set at an all-time high of $15 million per person (indexed for inflation) in 2026.
The Final Quarter Isn't Just About Wrapping Up — It’s About Ramping Up
With this clarity in place, financial professionals can shift focus from uncertainty to opportunity —helping clients make confident, timely moves as the year closes. With summer vacations in the rearview, children back to school, and the holiday season fast approaching, this is the time of year when clients are most receptive to financial planning conversations. The urgency of year-end creates energy that financial professionals can harness.
Leverage the Calendar with Tax Planning
The final months of 2025 present a pivotal window for tax planning. With the OBBBA locking in top income tax rates at 37% and making the lifetime exemption permanent, clients have more confidence to act — but timing matters.
Here are a few ways to leverage the calendar for efficient tax planning:
- Bracket management: Estimating a client’s marginal tax bracket is essential. Those in lower brackets may want to accelerate income before year-end, while high earners may benefit from deferring income to 2026.
Talking point: Ask clients whether they expect taxes to rise in the future. Even with lower rates post-OBBBA, rising deficits and competing government priorities may result in higher taxes in the future. Implementing a permanent life insurance plan now for income tax diversification can diversify income sources and create flexibility later.
- Retirement contributions: Encourage clients to maximize contributions to retirement accounts and health savings accounts (HSAs) before year-end to build long-term wealth in a tax-efficient way.
Talking point: For clients who are maxing out these accounts, ask whether they need additional tax-advantaged vehicles. Life insurance can serve as a retirement backstop, offering access to cash value tax-free for supplemental retirement income if primary assets are depleted.
Our Year-End Planning Checklist provides a tactical framework for these conversations as well as strategies such as maximizing deductions, accelerating charitable gifts, and evaluating unrealized gains or losses before December 31.
Charitable Giving
Philanthropy reaches its height during the holiday season — 30% of annual charitable giving happens in December, and 10% is made in the final three days of the year.¹ Beyond supporting meaningful causes, charitable giving can yield significant tax advantages. To claim deductions for 2025, clients must make contributions by December 31.
Consider:
- Donor Advised Funds (DAFs): Gifts to DAFs before year-end allow clients to claim deductions now and decide later which charities to support, offering flexibility across tax years.
- Qualified Charitable Distributions (QCDs): Clients age 70½ or older can donate up to $100,000 directly from IRAs to qualified charities. This satisfies required minimum distributions (RMDs) while avoiding taxable income.
- Wealth Replacement: Large charitable gifts can be paired with life insurance to replace donated wealth, preserving legacy goals while maximizing charitable impact.
Encourage clients to align charitable giving with broader financial and legacy goals. For a deeper dive, see our Year-End Gifting flyer.
Estate and Legacy Planning
The OBBBA’s permanent $15 million lifetime exemption has accelerated estate planning activity. Clients who were waiting for clarity are now taking action — eager to revisit estate plans and explore tax strategies that support retirement, legacy, and philanthropic goals. Financial professionals can guide this momentum by highlighting:
- Annual Exclusion Gifts: The 2025 gift tax annual exclusion is $19,000 per recipient. Making these gifts before year-end can reduce taxable estates and fund education or other goals. See our Year-End Gifting flyer for key considerations.
- Unified Exemption Gifts: Clients ready for larger transfers can leverage the $13.99 million lifetime exemption (indexed annually) to lock in tax-free wealth transfers. Pairing those gifts with life insurance can optimize a client's legacy plan.
The Cost of Waiting
Estate documents should never be rushed, but insurability can change unexpectedly. Clients delaying insurance purchases while finalizing documents may benefit from interim strategies — such as purchasing individually with the option to later transfer the policy to an irrevocable life insurance trust (ILIT). Acting now helps protect insurability and preserve options.
The Bottom Line
Be sure to review our Year-End Planning Checklist, which covers these and other strategies in detail. Use it not just as a task list, but as a catalyst for meaningful discussions. Clients are more engaged now than they’ve been in years, and financial professionals have a unique opportunity to guide them through complexity with clarity.
This is the season to ask deeper questions:
- What legacy do you want to leave?
- How do your charitable goals align with your financial plan?
- Are you confident your retirement strategy reflects today’s realities?
By combining technical expertise with empathetic listening — and with the OBBBA providing long-awaited clarity and historically favorable provisions — financial professionals can turn year-end urgency into meaningful client action. Crump’s resources and support will equip you for year-end meetings that bring clients closer to their goals.
Contributor
Carly Brooks, J.D., CFP®, CLU®, is Senior Vice President of Advanced Sales at Crump. She leads the team of advanced sales specialists who assist with competitive scenarios, case design ideas, sales strategies, and technical questions within estate, wealth, and retirement planning. Carly is an accomplished public speaker, frequently speaking at industry events and conferences, and is an experienced legal writer. She served on the Editorial Advisory Board for Tax Facts, a publication of The National Underwriter Company, coauthored the 19th Edition of the Tools and Techniques of Estate Planning, and edited the 2nd edition of the Tools and Techniques of Trust Planning. She has been published in leading industry outlets, including Broker World, Financial Planning, and ThinkAdvisor.