How to Turn Today’s Volatile Markets to Your Advantage
In turbulent markets, it’s normal to feel concern and a higher level of anxiety. While the driving factors are beyond your control, focusing on what you can control may reveal unexpected opportunities.
Seize the day to gift in a down market
When markets decline, you can gift (transfer wealth) with unusual efficiency.
“Gifting on the dips” allows you to maximize the value you transfer while using less of your lifetime gift exclusion, currently $13.99 million for 2025. With the potential sunset of favorable tax laws in January 2026, this might be the last calendar year to take full advantage of the current exclusions and transfer more wealth tax-free.
Two trust types may be very appropriate
In today’s volatile markets, wealth transfer strategies can be particularly advantageous. Two types of irrevocable trusts—the grantor retained annuity trust (GRAT) and the spousal lifetime access trust (SLAT) – present ways to embed tax-efficient planning into your wealth management plan.
A GRAT allows you to transfer an asset’s future appreciation to beneficiaries with minimal gift tax implications. We think it’s a strategic move during market downturns, as gifting assets at lower values may provide for a much higher wealth transfer opportunity when markets rebound.
GRATs are especially effective with “beaten up” (significantly undervalued) assets that are likely to offer high appreciation potential.
It also helps to gift assets likely to appreciate to a SLAT to minimize future estate tax consequences.
For 2025, you can gift up to $13.99 million into a SLAT without paying the gift tax. Acting during market volatility could be extremely timely (this exclusion is scheduled to be cut in roughly half as of January 1, 2026).
Consider a traditional-to-Roth IRA conversion
In the current financial climate, converting a traditional IRA into a Roth IRA could be a strategic decision, especially if you have…
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