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President Trump’s “One Big Beautiful Bill,” recently signed into law, overhauls the federal tax code and reshapes how high earners manage wealth, investments, and estate planning.
Read More: Here’s How Much Every Tax Bracket Would Gain — or Lose — Under Trump’s ‘Big, Beautiful Bill’
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“At the end of the day, this kind of overhaul doesn’t just impact income,” said Kevin Knull, a certified financial planner and CEO of TaxStatus. “It affects legacy, liquidity and charitable goals. High-net-worth families are going to want to take a look at their financial picture in totality and consider how each piece of their plan interacts in a more integrated way.”
Here are five things the wealthy should do to prepare for Trump’s income tax plan.
Max Out Retirement Contributions and Consider Roth Conversions
The law extends key provisions of the Tax Cuts and Jobs Act into 2025 and beyond, preserving favorable tax brackets for now. That makes it an opportune time for wealthy individuals to reassess Roth conversions while higher-rate brackets are still in play.
“Some strategies to consider would be Roth conversions of pre-tax qualified retirement assets, taking additional distributions from their IRAs, and harvesting capital gains from their portfolio,” said Matt Mancini, Wilmington Trust Wealth Planning Team Leader.
He added, “However, wealthy taxpayers will need to remain aware of their income, as some important deductions could potentially phase out for them if they have too much income,” he said. “Tax projections with their accountants will be vital in planning.”
Optimize Business Structures for Flexibility
The “One Big Beautiful Bill” left pass-through taxation intact and expanded the state and local tax SALT deduction for businesses, making entity structure relevant again. Business owners should review their S-Corp or limited liability company (LLC) classifications to take advantage of evolving federal and state tax regulations.
“If income taxes drop, it may make sense to take more compensation as salary now, and later shift toward capital gains, dividends, or equity-based pay if those become more favorable,” said Elina Linderman, founder of La Rusa Financial. “Business owners should also re-evaluate how they pay themselves — W-2 wages versus distributions versus retained earnings.”
Update Estate and Trust Plans
The new law raised the individual estate tax exemption to $15 million under the 2025 policy, creating a limited opportunity for wealth transfers free of federal estate tax. Families should act now to restructure or gift accordingly before future adjustments reverse these benefits.
“These changes could have sweeping implications for estate and philanthropic strategies,” Knull said. “If the estate tax exemption is reduced as expected after 2025, wealthy individuals might consider making larger lifetime gifts earlier.”
He added that trust structures, such as intentionally defective grantor trusts (IDGTs) or generation-skipping trusts (GSTs), could still be viable but would need to be carefully tailored to the new law.
Manage Capital Gains and Investment Timing
While income tax has been reduced for many Americans, high earners are still subject to income taxes, though at lower rates. Capital gains taxes remain in effect, making it critical for wealthy investors to review how and when they realize investment returns.
“For those subject to income tax, strategies that involve deferring income are not going to be nearly as interesting,” said Ari Greenman, partner at Lenox Advisors. “Most strategies around qualified plans, like 401(k)s, aim to lower taxable income today, deferring taxes into the future, and then taking income when you remove the assets later on.”
Consider the Bigger Picture
From charitable planning to liquidity and legacy, this tax overhaul touches every part of a high-net-worth financial strategy.
“The key is scenario planning: families should work with advisors to model a few credible legislative paths and build adaptable frameworks, especially when it comes to timing asset sales, option exercises, or distributions,” said Jean-Baptiste Wautier, private equity CIO and World Economic Forum speaker.