Life is full of significant transitions. From getting married to retiring from a successful career, each milestone brings new decisions and tax implications that are often more complex than they first appear. At TandemGrowth Financial Advisors, we help high-net-worth individuals and families prepare for these financial transitions with foresight, strategy, and a commitment to preserving long-term wealth.
Whether you’re restructuring a business, buying property, or planning your estate, proactive tax planning considerations can reduce future liabilities and align your financial decisions with your overall goals. Here’s a closer look at how a thoughtful tax strategy plays a vital role in life events.
Marriage: More Than Just a Legal Union
Marriage can significantly change your entire tax picture. For high-income earners, filing jointly can trigger the so-called “marriage penalty” by pushing combined income into a higher tax bracket.
Here are some important tax planning considerations:
- Evaluating whether to file jointly or separately
- Managing exposure to the Net Investment Income Tax (NIIT)
- Reviewing estate plans and gifting strategies
- Coordinating charitable contributions to maximize deductions
Blending households may also mean combining investment accounts, retirement assets, and liabilities. A coordinated strategy can help couples take advantage of timing opportunities and avoid costly surprises.
Business Changes: Ownership, Exit, and Beyond
Selling, expanding, or transferring a business comes with a number of financial transitions. The tax implications of these events can be significant—and the earlier you plan, the more flexibility you maintain.
Some strategies to explore include:
- Structuring the sale: Asset vs. stock sale impacts capital gains, ordinary income, and depreciation recapture.
- Installment sales: Spread gains over several years to help manage tax brackets.
- Entity restructuring: Adjust ownership or entity classification to reflect your goals.
- Succession planning: Transferring ownership to children or employees can involve valuation discounts, gifting strategies, and trust coordination.
In many cases, coordinating with estate and financial plans allows for smoother transitions and better outcomes.
Retirement: Tax Diversification Matters
For high earners approaching retirement, life events taxes become increasingly important to monitor. Retirement distributions can dramatically impact your tax bracket and Medicare premiums.
At TandemGrowth, we focus on managing withdrawals across multiple account types, including traditional IRAs, Roth IRAs, and taxable brokerage accounts, to control taxable income. Other important strategies include:
- Roth conversions during lower-income years
- Timing Social Security benefits with other income
- Charitable giving strategies like Qualified Charitable Distributions (QCDs)
- Planning for Required Minimum Distributions (RMDs)
Retirement is more than just an exit from work. It’s a shift in how you draw income, and how you manage your tax liability over time.
Property Transactions: More Than Buying and Selling
High-value real estate transactions often carry hidden tax complexities. Whether you’re purchasing a second home, selling investment property, or transitioning to a lower-tax state, every move can impact your financial picture.
Here are some tax planning considerations:
- Capital gains exclusions for primary residences
- 1031 exchanges to defer taxes on investment property sales
- Cost segregation studies for depreciation optimization
- State and local tax implications
Real estate is often both a lifestyle and an investment choice. Aligning your property decisions with long-term tax strategy can result in significant savings and better portfolio balance.
Philanthropy, Legacy, and Multigenerational Planning
High-net-worth families often approach life events through the lens of legacy. Events like the birth of a grandchild, the sale of a family business, or the death of a spouse can trigger the need for deeper planning.
Strategic planning can support:
- Establishing or updating family trusts
- Creating Donor-Advised Funds or charitable remainder trusts
- Gifting strategies to reduce estate size and utilize lifetime exemptions
- Coordinating tax-efficient wealth transfers across generations
These decisions benefit from careful timing and legal collaboration, especially as tax laws and estate exemptions shift.
Partnering with TandemGrowth for Forward-Thinking Advice
Financial transitions don’t have to be overwhelming. With the right strategy and expert guidance, they become opportunities for clarity, control, and long-term alignment. At TandemGrowth, we help clients integrate tax planning with their broader goals, so every milestone contributes to the bigger picture.
Whether you’re anticipating a major life shift or want to revisit your existing strategy, our team is here to support you. Reach out to TandemGrowth Financial Advisors to schedule a personalized review of your financial transitions, life events taxes, and tax planning considerations.
Disclosure: TandemGrowth Financial Advisors, LLC is an SEC-registered investment advisor. This content is for informational purposes only and should not be construed as tax, investment, or legal advice. Please consult with your tax professional about your specific situation.
About the Author: Jeff Bernier
