What the proposed 2025 Tax Law Means for Your Wealth: A Client’s Guide to Financial Readiness

The proposed 2025 Senate tax legislation introduces some of the most sweeping changes to tax policy since 2017—bringing fresh opportunities, potential pitfalls, and new strategies for preserving and growing wealth. Whether you're preparing for retirement, running a successful business, or managing generational wealth, staying informed and agile is key.

In this guide, we break down the most important tax changes—and what they mean for you.

Highlights of the proposed 2025 Tax Law (Effective After 2025)

• Extension of lower income tax brackets and a larger standard deduction—keeping more of your income in your hands.

• Permanent increase in estate and gift tax exemption—now $15 million (single) or $30 million (joint), adjusted for inflation.

• Continued benefits for business owners, including 100% bonus depreciation and a permanent Section 199A pass-through deduction.

• New deductions for seniors, tipped workers, and those earning overtime—available through 2028.

• Phaseout or repeal of many green energy tax credits, including for electric vehicles and residential energy upgrades.

  
  

What This Means for You—and How to Respond

Estate & Legacy Planning: Now’s the Time

If you’ve been putting off estate planning, the clock is ticking. With higher exemption amounts made permanent, this is a golden window to transfer wealth efficiently—especially through gifting strategies and trust vehicles.

Strategic tip: Consider setting up a Spousal Lifetime Access Trust (SLAT) or making use of your full gift tax exemption before state laws or future federal legislation changes the landscape again.

Business Owners: Keep More, Invest More

The return of full expensing for R&D and 100% depreciation for short-lived assets makes this an ideal time to reinvest in your business. If you operate as an LLC, S Corp, or sole proprietorship, the Section 199A deduction just became permanent, giving you a long-term tax advantage.

Ask us about optimizing your entity structure or setting up a retirement plan that compounds those benefits. More about the 2025 tax law.

Charitable Giving: Plan with Precision

The new law places minimum floors and caps on charitable deductions—especially for high earners and corporations. That makes it more important than ever to align your giving with financial strategy.

Tools we can explore together:

• Donor-Advised Funds (DAFs)

• Charitable Remainder Trusts (CRTs)

• Private Foundations

Personal Deductions: What's In, What's Out

Deductions for state and local taxes (SALT) remain capped, but new temporary deductions—including for tip income, overtime pay, and auto loan interest—may apply to your situation.

We’ll help you assess:

• Whether to itemize or take the standard deduction

• How to structure your compensation for maximum tax efficiency

• Whether you're eligible for new or expiring deductions

  
  

Positioning Your Portfolio for What’s Ahead

The Senate’s bill projects an estimated 1.1% increase in long-run GDP—a sign of stronger economic growth ahead. However, the repeal of green credits and new energy infrastructure incentives may shift sector performance.

Now is the time to review:

• Municipal bond allocations

• Real estate and infrastructure investments

• Exposure to domestic industrials and utilities

• Tax-sensitive repositioning strategies

Our Commitment: Personal Guidance in a Changing Landscape

At Rigden Capital Strategies, our mission is to turn complexity into clarity. We combine deep financial knowledge with smart technology to deliver strategies that are proactive, personalized, and data-driven.

We’re here to:

• Model how this tax law will impact your unique financial picture

• Propose actionable strategies to reduce liabilities and grow wealth

• Keep you informed as new CBO and Treasury guidance becomes available

Don’t wait until 2026. Start planning now. Schedule a conversation with your advisor to ensure your wealth plan evolves with the tax code—not after it. Learn more here https://taxfoundation.org/research/all/federal/big-beautiful-bill-senate-gop-tax-plan/.

Your goals, our strategies. Together, let’s make your goals happen.

Rigden Capital Strategies is a trusted partner for individuals seeking wealth management and financial planning. Our fee-only fiduciary approach ensures that every recommendation is made with our clients' best interests in mind. We develop customized financial plans, combining strategic investment management with proactive tax and retirement planning to help clients achieve their long-term financial goals.

Disclosure: This content is for informational and educational purposes only and should not be interpreted as financial, legal, or tax advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information provided. Investment decisions should be based on individual circumstances, and we recommend consulting a qualified professional before implementing any financial, legal, or tax strategies. Past performance is not indicative of future results, and all investments carry risks, including potential loss of principal. No investment strategy can guarantee success or protect against loss in all market conditions. Investors should carefully consider their risk tolerance, investment objectives, and financial circumstances before making investment decisions.

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