2022 year-end planning guide

For many people, planning is an ongoing process. Many aspects of their lives change and evolve with little or no regard for the calendar. Births, deaths, marriages, and divorces (usually) don’t follow the rhythm of time. And yet some aspects of life are connected to the calendar. So, as the end of another year approaches, it’s a good time for people to take stock of their situation. And ask questions. Is their current planning accomplishing or furthering their goals? Are there things they could be doing or could be doing better? Maybe it’s saving taxes or improving their financial security. Maybe it’s helping others.

In this guide, we explore an array of planning ideas, arranged thematically. We start with a foray into income tax planning, which often tops people’s minds when thinking about year-end planning. The calendar year defines many aspects of tax liability, often presenting opportunities to reduce the amounts that may be owed through thoughtful planning.

We then turn to investment-related planning, retirement planning, and charitable giving. In these chapters, we consider some topics that are timely as year-end approaches—such as maximizing contributions to retirement accounts and making charitable contributions that are deductible on this year’s taxes—as well as topics whose relevance persists year-round—such as ways to manage concentrated stock positions.

Shifting to state tax planning, we discuss some ways to minimize or avoid state income and death taxes. From there, we turn our focus to wealth transfer planning. We explore gifting strategies, the importance of properly reporting gifts, and the benefits of reviewing the estate plan and the way in which assets are owned. We also highlight the value of a family meeting.