2025 Tax Policy Outlook: A year for action
2025 marks the beginning of a year for action on a significant “must-pass” tax bill.
A must-have guide to making informed decisions for your financial future
Staying ahead in an ever-changing economic landscape is essential to wealth preservation. That's why we annually update this guide to help high net worth individuals and families navigate the complexities and make informed financial decisions. Whether you're looking to improve your tax situation, diversify your investments, or plan your estate, our guide offers practical steps and advice that may help you achieve your goals.
As the Trump administration's policies take shape, it's important to stay informed and adapt strategies accordingly. Working with trusted tax professionals and financial advisors may help you enhance your tax positions, protect your wealth, and identify new opportunities in this dynamic environment.
Key tax planning considerations for the 2025 tax season
Consult your financial and tax advisors to explore tax planning strategies based on your unique circumstances. Our guide can be used as a reference for these conversations.
- Intra-family loans and mortgages
- Intentionally defective grantor trust (IDGT)
- Grantor retained annuity trust (GRAT)
- Charitable lead trust (CLT)
- Sale of a private annuity
- Reinstated tax provisions for businesses
- Converting a traditional IRA to a Roth IRA
Intra-family loans and mortgages
In a high-interest-rate environment, intra-family loans and mortgages are worth considering. Rather than making gifts, loaning cash to family members can save on transfer taxes. Even with high rates, family loans at the minimum required rate may be cheaper than market rates.
IRS targets high-income, high-wealth individuals
The IRS is stepping up its game, focusing on high-income earners who haven't filed their taxes since 2017. This crackdown includes individuals with incomes ranging from $400,000 to over $1 million.
In February 2024, the IRS began investigating 125,000 high-income, high-wealth cases based on third-party information, such as W-2s and 1099s, indicating income but no tax return filed. They have also reached out to around 1,600 taxpayers with incomes exceeding $1 million who owe more than $250,000 in taxes. So far, they've collected an impressive $1.1 billion from 1,200 cases. Consider consulting a tax professional if you haven't filed your taxes in recent years, especially if your income falls within the IRS's current focus range.
Considerations for a family office
Thinking about setting up a family office? It could be a smart move for high net worth families looking to manage their wealth efficiently. A family office brings together estate and tax planning, investment management, legal services, and more under one roof. This setup aims to ensure your short-term needs are met while aligning with your long-term goals. Explore various family office structures, their capabilities, and potential solutions to common challenges in establishing a family office.
Setting up a family office
Start by defining your strategy and desired legacy. Then, align your family office's functions to support this vision.
Three-circle model of the family business system
Business continuity and succession planning for a family business
Planning for a smooth transition in a family business can feel overwhelming, but it’s key for long-term success. By aligning personal legacies with a shared vision, families can often make decisions that benefit everyone involved. Discover the three main types of succession—leadership, board, and ownership—and explore important planning considerations for each.
About PwC’s guide to tax and wealth planning
PwC's trusted guide to tax and wealth planning is regularly updated to provide tax planning insights that may help you secure your family's future and manage your wealth. The guide covers various tax-related topics and policies and offers information on setting up and maintaining a family office, along with strategies that could assist with business continuity and succession planning in family businesses.
Stay informed and ahead with our latest tax insights
We are committed to staying abreast of the dynamic tax policy changes in Washington, D.C., and we are dedicated to sharing timely updates as they transpire. For the latest insights on these pivotal matters, please visit PwC’s tax research and insights webpage for updates.
We invite you to engage with us when exploring the content presented in our guide. Our specialists are eager to discuss how these strategies can be customized to your specific needs and goals.
Sheryl Eighner, US Personal Financial Services Leader
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Impact Investing for Family Offices
By investing your wealth in ways aligned with your deeply-held values, you can lead the way in solving humanity’s biggest problems – and build your best possible legacy for the future while also generating returns. How to do this? Impact investing via your family office.
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Shared family wealth strategy
A holistic framework for sustaining multi-generational wealth.
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PwC wins ‘Solutions for International Americans’ award at Family Wealth Report Awards 2023
PwC is recognized for helping individuals and families to manage various complexities and country jurisdictions as cross-board liaisons, thanks to our global network of firms and experience covering 150+ jurisdictions.
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