For high-net-worth (HNW) households, taxes are rarely just an annual compliance issue. They influence investment decisions, liquidity planning, estate structures, charitable strategies, and long-term wealth transfer goals.
As a result, tax planning is now a primary way for wealth managers and fiduciaries to demonstrate measurable value. Cerulli research found that 7 out of 10 affluent investors prioritize providers who help reduce their tax bill, while approximately three-quarters of HNW-focused advisory practices identify tax minimization as a key investment objective.
Simply put, tax strategy is becoming a key differentiator in attracting and retaining HNW clients. Client expectations are rising, and firms that fail to translate tax changes into a proactive strategy risk falling behind more sophisticated competitors.
Recent legislative changes have further elevated this dynamic. Few have influenced planning conversations as much as Public Law No. 119-21, known as the One Big Beautiful Bill Act (OBBBA). Our whitepaper, Turning Tax Reform Into Client Strategy, frames the impact clearly:
While much of the discussion surrounding this legislation has focused on “permanence,” the practical impact for affluent families is more nuanced. Some provisions reduce urgency, others create new planning tradeoffs, and several set thresholds that may affect after-tax outcomes if not addressed.
Permanence Changes the Planning Conversation
One of the OBBBA’s most significant impacts is the extension and permanence of several key provisions from the Tax Cuts and Jobs Act (TCJA). By locking in existing personal income tax rates and certain pass-through deductions, the legislation introduces greater certainty for affluent households.
Removing the scheduled 2026 sunset for estate and gift tax exemptions, for example, gives HNW families more flexibility in how and when they transfer wealth. With less deadline-driven urgency, client conversations shift from “when do I act?” to “what is the optimal strategy?”
This evolution requires deeper modeling, coordination, and planning across tax, investment, and estate decisions. In response, leading wealth management firms and trust companies are moving toward:
More frequent scenario modeling across planning cycles
Deeper collaboration with CPAs and estate attorneys
Tax planning integrated into ongoing client strategy discussions rather than annual reviews
It’s important to remember that current permanent provisions may change with future legislation, making ongoing, adaptive planning essential.
Where Wealth Managers Can Add the Most Value
Not every permanent provision necessarily benefits affluent households. Charitable planning, for example, may require closer attention under the new rules. Beginning in 2026, taxpayers can claim an itemized deduction for charitable contributions only if they exceed 0.5% of adjusted gross income (AGI). For a household with $5 million in AGI, that means the first $25,000 of charitable donations would no longer be deductible.
While the change may seem modest, it could meaningfully affect the economics of routine giving and widen the gap between philanthropic intent and tax efficiency. This opens the door to reframing planning conversations beyond deductions toward coordinated wealth, tax, and giving strategies.
The Shift from Compliance to Continuous Planning
Beyond changes to the tax code, the cadence of planning itself is evolving. For HNW clients, tax strategy is moving from an annual exercise to a continuous approach embedded across portfolios, estate structures, and philanthropy.
Wealth managers and fiduciaries who operationalize tax-aware planning across data, reporting, and engagement will have a clear advantage. Those who do not risk falling behind in both client retention and growth.
Download the full whitepaper, Turning Tax Reform Into Client Strategy, to learn more about the bill's impact. Then, to learn how SS&C Black Diamond® Wealth Solutions can help you create, communicate, and implement effective client strategies during policy changes, request a personalized demo, call 1-800-727-0605, or email info@sscblackdiamond.com.
