How a Financial Advisor in Iowa City Helps Affluent Families Navigate Tax Law Changes

Tax law rarely stands still. For high-net-worth families in Iowa City, understanding and adapting to federal and state tax changes is essential for preserving wealth and pursuing long-term goals. New legislation, sunset provisions, and IRS rule adjustments can all affect how income is taxed, how estates are structured, and how charitable giving is treated. 

A fiduciary financial advisor in Iowa City may help families stay proactive. Through integrated planning, tax-loss harvesting, coordinating estate strategy, and regular reviews, a financial advisor can help provide clarity and continuity, even when the tax code evolves. 

Why Families in Iowa City Must Watch for Tax Changes 

Affluent households often face tax issues beyond basic filing. Income from investments, real estate, a family business, or equity compensation can make changes in law particularly impactful. Updates may alter how gains are taxed or may change thresholds for deductions or exemptions. 

Recent years illustrate how quickly the landscape can shift. Proposed changes to capital gains rates, estate tax exemptions, and grantor trust rules have all made headlines. Even when legislation is delayed or altered in the legislative process, staying informed and responsive remains crucial. 

Tax planning should be viewed as an ongoing process that reflects current law and your evolving financial picture. 

Responding to Tax Law Shifts with Proactive Planning 

Having a strategy already in place may allow you to respond more effectively when laws change. A financial advisor can help assess how new rules affect your investment accounts, estate plan, and income sources. Proactive strategies might include: 

• Accelerating or deferring income based on changing brackets or tax rates 

• Reviewing trust structures affected by legislative updates 

• Adjusting charitable giving in response to deduction thresholds 

• Evaluating Roth conversions when marginal rates are favorable 

A proactive approach may help reduce outdated strategies and unnecessary tax liability. 

Using Tax-Loss Harvesting as a Tactical Advantage 

Market volatility can create opportunity for tax-aware investors. Tax-loss harvesting involves selling investments at a loss to offset gains elsewhere in the portfolio or to reduce ordinary income. 

This approach can benefit high-income investors who realize gains from stock sales, real estate, or business interests. A financial advisor can help identify losses worth harvesting, monitor compliance with wash-sale rules, and assist with reinvestment strategies. 

In years with tax law changes, strategic harvesting may provide flexibility and help manage tax exposure across multiple years. 

Reevaluating Estate Planning as Laws Evolve 

Estate planning remains especially sensitive to tax law changes. On July 4,2025, the One Big Beautiful Bill Act permanently increased the federal estate tax exemption to $15 million per individual (and $30 million for married couples). This begins January 1, 2026. 

A financial advisor can coordinate with your estate attorney to explore options such as: 

• Making lifetime gifts to take advantage of the current higher exemption 

• Using irrevocable trusts to remove assets from the taxable estate 

• Creating charitable structures to support your legacy and reduce estate exposure 

• Reviewing ownership of life insurance, real estate, or business interests 

Estate planning involves more than documents. Regular reviews may help ensure your strategy aligns with current and anticipated tax conditions. 

Annual Tax Planning Check-Ins with a Fiduciary Advisor 

Regular tax planning reviews can help you stay informed about changes. These meetings monitor previous strategies, identify emerging issues, and adjust your plan as needed. Topics often include: 

• Capital gains and investment tax exposure 

• Annual gift limits and gifting strategies 

• Required minimum distributions (RMDs) and retirement income timing 

• Income shifts from bonuses, restricted stock units, or other compensation 

• Legislative developments affecting your plan 

A fiduciary advisor can help align your plan with current law and suggest adjustments when necessary. 

Why Working with a Local Financial Advisor in Iowa City Matters 

Tax law may be federal, but planning is personal. Local financial advisors understand how national changes interact with Iowa-specific laws. Iowa has unique inheritance tax rules and does not tax retirement income (including pensions, IRA distributions, and Social Security) for those age 55 and older, which influence planning decisions. 

An Iowa City-based financial advisor also understands the local economic climate, property considerations, and professional networks. This knowledge may enable more coordinated planning, especially when collaborating with your CPA or estate attorney. 

When laws change, having a financial advisor who understands your community, financial picture, and goals can be beneficial. 

Start Building Your Tax Strategy with a Fiduciary Advisor in Iowa City 

At Savant Wealth Management, we strive to help high-net-worth families in Iowa City build financial strategies that adapt to changing laws. Our fee-only fiduciary advisors receive compensation only from clients and must act in your best interests. 

We monitor state and federal tax legislation and communicate how changes may affect your plan. Through integrated tax, investment, and estate planning services, we aim to keep your strategy aligned, efficient, and compliant as conditions evolve. 

Whether you are planning for retirement, managing a family business, or preserving generational wealth, we work to provide clarity and consistency to help guide your decisions. 

Take the Next Step Toward Tax-Smart Planning in Iowa City 

Tax law will continue to evolve, but your financial plan should adapt accordingly. We can help you evaluate strategies and explore opportunities as they arise. 

Savant Wealth Management offers Iowa City families proactive, tax-aware financial planning. Schedule an introductory call with our team to discuss building a strategy that responds to change while focusing on long-term goals. 

This is intended for informational purposes only. You should not assume that any discussion or information contained in this document serves as the receipt of, or as a substitute for, personalized investment advice from Savant. Please consult your investment professional regarding your unique situation.