Year-End Wealth Planning 2025

A few well-timed moves can lower lifetime taxes, strengthen cash-flow resilience, and bring family alignment into sharper focus. For high-net-worth families and business owners, the approach is straightforward: prioritize the items that compound—tax efficiency, portfolio positioning, and charitable timing—coordinate with your CPA and attorney, and document decisions so your 2026 plan begins a step ahead.

In this article, we highlight the year-end strategies that our team is most focused on for clients as we close out 2025. And to support these discussions, we’ve also created our 2025 Year-End Planning Checklist, a resource to guide your review and year-end conversations with your wealth management team at Badgley Phelps.

Portfolio and Tax Positioning

We start with your taxable picture, and we want to review realized gains and losses for 2025, harvest losses where appropriate, and avoid wash-sale issues. We then rebalance to target allocations and confirm cash reserves for January tax payments and first-quarter liquidity needs.

For residents of Washington State, be mindful of recognizing capital gains over $278,000. Gains above this threshold are subject to an additional 7 percent state capital gains tax, unless they fall within an exempt category such as real estate. Gains over $1,000,000 are subject to an additional 2.9 percent tax.

Consider whether a Roth conversion or the timing of business deductions could improve your long-term after-tax results.

Charitable Giving 

Clarify what to give—cash or appreciated securities—and where: a donor-advised fund, private foundation, or direct charitable gift. Gifts of appreciated securities can reduce future capital gains while supporting causes that matter to the family.

For individuals over age 70½, a qualified charitable distribution (QCD) of up to $108,000 directly from an IRA can satisfy part or all of a required minimum distribution. QCDs must be made from IRAs (not workplace plans) and cannot fund donor-advised funds.

For families, use this season to reinforce shared values. Establishing a giving mission or purpose can turn generosity into a lasting family tradition and help pass along the values that built your family’s wealth.

Retirement Income and RMDs

Confirm required minimum distributions (RMDs)—including from inherited IRAs. For accounts inherited before 2020, annual RMDs still apply; for those inherited later, we can help you check with your tax professional about year-end requirements.

Evaluate partial Roth conversions to manage future RMDs and limit tax bracket creep. Maximize 401(k) and IRA contributions, including catch-up limits for individuals over fifty; age-60–63 catch-up rules may allow higher limits—confirm your plan’s current-year limits.

Review HSA contributions—this year it is up to $4,300 for individuals and $8,550 for families—and confirm FSA carryover options before year-end.

Cash Flow and Business Planning

Confirm required minimum distributions (RMDs)—including from inherited IRAs. For accounts inherited before 2020, annual RMDs still apply; for those inherited later, we can help you check with your tax professional about year-end requirements.

Evaluate partial Roth conversions to manage future RMDs and limit tax bracket creep. Maximize 401(k) and IRA contributions, including catch-up limits for individuals over fifty; age-60–63 catch-up rules may allow higher limits—confirm your plan’s current-year limits.

Review HSA contributions—this year it is up to $4,300 for individuals and $8,550 for families—and confirm FSA carryover options before year-end.

Estate, Gifting, and Family Governance

Complete annual exclusion gifts—up to $19,000 per individual or $38,000 per couple in 2025—and consider using those gifts to fund 529 plans or other education accounts.

Washington’s estate tax exemption remains $3.0 million per person, with brackets up to 35 percent and no portability between spouses. Review credit-shelter and AB trust structures, titling, and beneficiary designations to ensure alignment with your estate plan.

Confirm that estate documents—wills, trusts, and powers of attorney—reflect current intent, and that fiduciary roles and contact information are up to date.

Insurance and Risk Management

Review homeowners, auto, and umbrella insurance coverage, especially after renovations or large purchases. Request updated illustrations for cash value life insurance and verify that long-term care and disability coverage continue to meet your needs.

During open enrollment, review health coverage options and contribution limits. And every year we see clients benefit from periodic comparison shopping that helps ensure benefits remain competitive and aligned with family needs.

Family Administration and Organization

Check your credit profile and enable monitoring for identity protection. Use year-end as a standing time to review finances with the next generation and revisit investment and charitable goals.

Update your secure document vault—financial statements, estate instruments, tax returns, and trusted contacts—so information is complete and accessible. If anything has changed, please reach out to your wealth manager and we will ensure your document vault is complete.

Closing Thoughts 

Looking for a concise list of year-end “to-do”s? Our 2025 Year-End Planning Checklist provides a simple guide to structure your review and next steps.

If you are already a Badgley Phelps client, your wealth management team can help tailor these considerations to your broader plan and coordinate with your CPA and attorney. If you are not yet a client, now is an ideal time to connect—and we welcome the opportunity to begin the conversation.