Insights

While headlines in 2025 were dominated by varying uncertainties, the tax world was one of the few areas that demonstrated relative clarity, with the enactment of the One Big Beautiful Bill Act (“OBBBA”). While much of the public focus has been on the law’s macroeconomic implications, the legislation introduces several meaningful changes that will directly impact individual taxpayers starting in 2026. Understanding these provisions is key to tax strategy for the years ahead. 

Since September, the Federal Reserve has elected to cut rates three times, each by 25 basis points, bringing the federal funds target range down to 3.5% - 3.75%. The Federal Open Market Committee (FOMC) members continue to navigate a challenging environment characterized by elevated prices alongside a softening job market.

The upward trajectory of equity markets continued in the fourth quarter, with Santa delivering an all-time high for the S&P 500 Index to investors on Christmas Eve, only to be surpassed by New Year’s Eve! As the year comes to a close, the S&P has now closed higher for seven consecutive months and is closing in on the 7,000-point mark, nearly double the lows seen all the way back in… late 2022.

The fourth quarter kicked off with a prolonged government shutdown that caused widespread disruptions for many Americans.  But this came on the heels of strong economic growth in the third quarter, which saw GDP grow at an annualized rate of 4.3%, representing the fastest rate in two years.

As 2025 comes to a close, we're reflecting on the year with immense gratitude for our relationship with you. It is a privilege to serve as your wealth management partner, and we sincerely appreciate the confidence you place in us.

Trusts, both revocable and irrevocable, can be a great planning tool for all sorts of circumstances, particularly now with the ability to create very flexible trusts. One type of irrevocable trust is called a grantor trust - sometimes referred to as an intentionally defective grantor trust (IDGT) – and it offers potential tax-savings opportunities under the right circumstances.

We believe that a growing team enhances our ability to deliver the service our clients deserve. It is with great pleasure that we introduce the newest members who have joined us in recent months.

An executive order signed by President Trump will require all payments to and from the IRS to be made electronically beginning on September 30, 2025. The purpose of this change is to improve efficiency, increase security, reduce delays and the risk of fraud. According to the order, all payments to the IRS, including tax payments, penalties, and fees, must be made electronically. Similarly, any refunds from the IRS will be issued electronically. This mandate applies to all individuals, trusts, businesses, and tax-exempt organizations.

The Federal Reserve lowered interest rates by 25 basis points at the September meeting, which marked the first rate cut of 2025. If we look back earlier in the year, Federal Reserve Chair Jerome Powell elected to take a “wait and see” approach, keeping the policy rate steady for the first eight months of the year. Based on the rate cut and post-meeting press conference, Powell has now seen enough, citing signals of a slowing labor market as the primary reason for taking action.

Equity markets continued their multi-year march higher in the third quarter, with the S&P 500 finishing in positive territory for the seventh time in the past eight quarters (and ten of the past twelve). Market performance was driven by a mix of factors, but perhaps none more so than continued enthusiasm for artificial intelligence (AI) and infrastructure related to its buildout.