Who wants to pay more taxes than they need to? No one. And year’s end is a good time to look for opportunities that might reduce what you owe on April 15.
It can help to get organized first — gathering essential financial paperwork and reviewing last year’s return. Then consider changes in your life that might impact taxes, such as relocating, retiring, starting a business or funding an endowment. Next, you may want to review this checklist of five important income and estate tax topics with your financial and tax professionals.
If you’re thinking about transferring wealth or providing financial assistance to loved ones before the year ends, the annual gift tax exclusion may let you do so without paying a gift tax. For 2025, the annual gift tax exclusion allows you to give tax-free gifts of up to $19,000 per person to as many people as you want. This is one way to gradually transfer wealth to heirs.
Some people take advantage of a special 529 plan strategy, which allows you to contribute five years’ worth of annual exclusions in a single year to the education savings plan for a child or grandchild. Some states may also offer a tax deduction on the contributions.
Note that both you and your spouse can give tax-free gifts up to the exclusion limit. For instance, you could each give $19,000 to the same individual without triggering a gift tax. In addition, you can give any amount to your spouse free of the gift tax.
If you're considering boosting your charitable impact before year-end, now may be the time to act. One strategy to consider is charitable bunching — consolidating multiple years’ worth of donations into a single tax year to exceed the standard deduction and maximize the benefit. Pairing this with a donor-advised fund or charitable trust may allow you to take the deduction now while granting funds to charities over time. For those over age 70½ with an IRA, qualified charitable distributions (QCDs) remain a powerful tool — allowing you to transfer up to $108,000 directly to a qualified charity, satisfying your RMD while excluding the amount from your taxable income. Whether giving cash, appreciated assets, or through more advanced vehicles like charitable trusts, acting now can provide greater tax efficiency and support causes you care about. As always, consult your tax advisor to determine what’s right for your situation.
Reaping gains is a benefit of having a good investment plan, but those gains can create a tax burden. Besides donating appreciated assets, you might talk to your portfolio manager about tax loss harvesting. Realizing capital losses by selling certain taxable investments may help offset taxes on gains made in 2025.
Keep the wash sale rules in mind and avoid repurchasing the same or substantially similar security within 30 days of the sale.
With year end approaching, now is a good time to review your retirement savings strategy. You can contribute up to $23,500 in pre-tax dollars to a 401(k), with an additional $7,500 catch-up contribution allowed if you’re age 50 or older — helping reduce your taxable income ahead of filing deadlines. For those with earned income, the annual traditional IRA contribution limit is now $7,000, plus a $1,000 catch-up if you're 50 or older. If your spouse doesn’t work, you may also contribute to a spousal IRA on their behalf.
Under current rules, full deductibility of traditional IRA contributions still depends on your income and whether you or your spouse are covered by a retirement plan at work. Most high-net-worth individuals will exceed these thresholds and may instead consider non-deductible IRA contributions or backdoor Roth strategies.
In addition, a one-time Qualified Charitable Distribution (QCD) election allows up to $54,000 in 2025 (adjusted) to be transferred to a charitable remainder trust or charitable gift annuity, expanding planning options for those with philanthropic goals. As always, consult your tax advisor to ensure your strategy aligns with the latest rules and your long-term objectives.
Year-end is a great time to review your estate plans and collaborate with your financial professionals to identify tax-management opportunities and refine or implement your strategies. One key topic to consider is the lifetime gift and estate tax exclusion. For 2025, this exclusion is set at $13.99 million. Starting in 2026, the exclusion amount will increase to $15 million, with future adjustments made annually for inflation. Additionally, you may want to evaluate whether it makes sense to establish and fund trusts before year-end.
Move Forward
As year-end approaches it is also a good time to review the impacts of The One Big Beautiful Bill which was signed into law on July 4, 2025. The new legislation extends and solidifies many of the favorable provisions introduced in the 2017 TCJA. For individuals and families managing significant assets, these changes provide a more stable foundation for long-term planning. To learn more about the provisions of the One Big Beautiful Bill read Big Tax Changes Are Here — Here’s What You Need to Know.
Your financial professionals can assist you with year-end tax planning and help you prepare for the new year. Your Hancock Whitney team can work closely with your tax advisor and others to keep you informed of changes in tax laws, help simplify tax time and assist in reducing your tax burden for 2025.
The information, views, opinions, and positions expressed by the author(s), presenter(s), and/or presented in the article are those of the author or individual who made the statement and do not necessarily reflect the policies, views, opinions, and positions of Hancock Whitney Bank. Hancock Whitney makes no representations as to the accuracy, completeness, timeliness, suitability, or validity of any information presented.
This information is general in nature and is provided for educational purposes only. Information provided and statements made should not be relied on or interpreted as accounting, financial planning, investment, legal, or tax advice. Hancock Whitney Bank encourages you to consult a professional for advice applicable to your specific situation.
Hancock Whitney Bank offers investment products, which may include asset management accounts, as part of its Wealth Management Services. Hancock Whitney Bank is a wholly owned subsidiary of Hancock Whitney Corporation.
Investment and Insurance Products:
| NO BANK GUARANTEE | NOT A DEPOSIT | MAY LOSE VALUE | NOT FDIC INSURED |
| NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY | |||