Are your important documents secure and accessible?

Keep your financial life organized with a thoughtful combination of digital and physical storage solutions.

Pop quiz: In an emergency, could your loves ones find your current will and power of attorney? If you had to evacuate your home, could you quickly get your hands on your passport, deeds and keepsakes? Are your documents in a watertight, fireproof safe, or scattered around unprotected?

It’s not enough to have the right documents – it’s also crucial to have them updated, neatly stored and accessible. Read on for five tips that can help you keep important files safe and handy.

Equip yourself for digital success
If you’d like to have a secure and organized system for paper, a scanner and a shredder are a must. Think you might need that document, but you can’t fit another thing in your file cabinet? Scan and toss, or shred if it contains sensitive data like a Social Security number.

Digital storage has many upsides. You don’t have to pay much attention to space restrictions as you would with physical files. Also, it’s easier to securely share and keep items, and you can search for files by dates or keywords.

Some fancy scanners such as the ScanSnap automatically sort documents based on file type (photo versus receipt) and name files based on scanned content. If you don’t have the budget or room for another machine, a smartphone app is a handy alternative.

One last essential tool: a service for storing and syncing your digital data in the cloud, so you don’t lose everything if your computer is stolen or damaged. Which one you choose will depend on what features are most important to you, but popular services include Dropbox, Google Drive and iCloud.

It’s also smart to take advantage of any proprietary storage features your financial advisor may offer, which allow you to securely store and share financial data with each other, as well as trusted family members, and helps them coordinate with other professionals (such as your accountant at tax time).

Think like an executor
The most crucial papers to organize are the ones those closest to you will need when you’re no longer around. This includes your will, bank statements, insurance policies and birth certificate, for starters. So put yourself in your executor’s shoes when storing estate paperwork – this kind of planning is about helping others.

Online services that organize and store all your vital details in a single convenient place are the latest innovation on this front. Some, such as Everplans, will even walk you through making a plan for everything from funeral details to healthcare wishes, sort of like TurboTax for end-of-life planning. You could also use an off-the-shelf workbook such as “The LastingMatters Organizer” to document your wishes.

As for notarized physical documents, storing them in a fireproof safe makes sense for most. Be sure your family knows where the safe itself is, how to get into it and what they can expect to find inside. You can also keep an extra copy in a safe deposit box or with your estate attorney.

Know what to keep
Certain official records deserve physical safekeeping: passports, Social Security cards, birth certificates and adoption decrees, property and vehicle deeds, marriage certificates, divorce decrees, signed and notarized powers of attorney, a will and medical directive paperwork. While you can pay to get another copy of many of these, it’s better to have them and not need them than the opposite.

Design a breadcrumb trail
This tip is especially relevant for worst-case-scenario documents such as your medical directive. Experts recommend keeping a copy in your car’s glove box, as well as giving copies to your doctor and your preferred healthcare proxy. You can then list these as “in case of emergency” or ICE contacts on a card in your wallet and in your smartphone’s emergency call screen (for iPhone users, add this data in Apple Health; Android users can go to Settings > About phone > Emergency information).

Don’t forget about digital access that your loved ones will one day need, which means everything from email and bank accounts to photo and music sites. Few of us think to create a paper trail to help locate these accounts and login IDs because it might invite unauthorized access. However, there is a secure way to guide your heirs.

The first step is to make an inventory. Next, document the details in a safe place. You can use a secure spreadsheet template to get started at yourdigitalafterlife.com or you can use a service like LastPass, which has an emergency access feature that allows you to hand down passwords to heirs who can then securely maintain or close your accounts based on your wishes. If it’s your main household responsibility to pay the bills and keep tabs on financial accounts, we’re talking to you. You want to leave a legacy – not a logistical headache.

Create a command station
Productivity pros say every home office needs a central collection spot for notes, bills, reminders, paperwork and actionable items. To make this a working system, you’ll have to regularly plow through it all, whether daily or weekly. This will help free your mind to focus on the given task at hand, knowing your household has a system for tackling all the incoming paper.

Progress, not perfection
If your home office is a wreck right now, start small. Pick one tip that speaks to your specific situation and take action. What feels like a small win today could make a major, lasting difference for your loved ones.

If you’re still feeling overwhelmed, you can seek out a professional organizer or turn to your advisor. They know your financial situation and can help you focus on the record-keeping tasks that are important for your life.

Sources: Real Simple; pcmag.com; “Getting Things Done: The Art of Stress-Free Productivity;" LastPass; yourdigitalafterlife.com; Everplans; NPR’s Life Kit; keepitsafe.com

Raymond James is not affiliated with any of the organizations mentioned. Raymond James does not provide tax or legal advice. Please discuss these matters with the appropriate professional.

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional.

From the Desk of Dale Crossley and Evan Shear – Year End Checklist

We hope this Q4 edition of the Journey finds you and your loved ones well. As 2024 draws close, we have some year-end financial planning tips to ensure you take advantage of tax-efficient strategies.

But before we cover those tips, we have some exciting news to share! It’s hard to believe our 25th Anniversary Gala took place one year ago. The evening was truly memorable – we loved spending time with our amazing clients. To elevate the experience even further, we’ll be setting sail on the CrossleyShear Wealth Management Inaugural Cruise from August 8-11, 2025, aboard Utopia of the Seas. We invite you to join us on this getaway at exclusive group rates. For more details, please visit here.

Now, let’s explore year-end strategies to ensure you’re ready for 2024 taxes. You can also access our at-a-glance guide Tax rates, schedules, and contribution limits for quick reference.

Charitable Giving

In a recent poll, 79% of students whose families give charitably feel that it is important to continue the tradition in their generation. That’s a testament to the generosity of our country and, of course, it has the added advantage of providing a potential tax deduction.
For cash donations to an IRS-qualified 501(c)(3) public charity, you can generally deduct up to 60% of your adjusted gross income. Appreciated assets, including long-term appreciated stocks and property held more than a year are generally deductible at fair market value, up to 30% of your adjusted gross income. Combining more than one type of asset can also be a tax-efficient move by allowing you to maximize the amount that you can take as a charitable tax deduction.

IRA QCD’s: Tax-Free Charity from IRA Distributions

Drawing from an IRA, distributions are typically taxed as income after enjoying years of tax-deferred contributions. However, charitable giving offers you a tax-free alternative to IRA distributions. These are known as Qualified Charitable Distributions or QCD’s. When you choose qualified charitable donation routes, you can give up to $105,000 per year from your IRA distributions without incurring the usual income tax. IRA distributions are tax-free as long as they are paid directly to a qualified charitable organization, from the trustee to the charity.
Just be sure to report your charitable donations correctly when filing your tax returns.

Maximize IRA Year-End Contributions

As we approach the end of the year, it's important to ensure you are taking full advantage of your IRA. If you are still working, be sure you have reached the contribution limit to help build the foundation of your post-retirement finances. You can also continue to make contributions under your 2024 IRA limits up until April 2025. For a complete guide on contribution limits, please see our reference guide, Tax rates, schedules, and contribution limits. We also have a Roth IRA calculator available so you can ensure you are opting for the best retirement investment.

For those past the distribution age, be sure to use your required minimum distributions. If you've made excess contributions, there’s still time to withdraw the excess before the due date of your tax returns. Smart investing means making the most of these opportunities.

Tax-Loss Harvesting

It has been a chaotic year for investments. Those who have experienced a few losses are not alone. Fortunately, every cloud has a silver lining. While it may be tempting to minimize the appearance of your losses, those losses could be tax-deductible. Accurately reporting loss on your investments for a tax benefit is known as tax-loss harvesting. This practice can allow you to harvest losses in order to offset capital gains, deduct against earned income, and possibly even carry over the tax benefits into the next year if you still have some losses left over. We can help you with this strategy.

Direct Indexing

When looking for an investment strategy, index funds offer a sense of stability based on current high-performing indexes. While index funds provide indirect investment, you can apply the same strategy through direct indexing by buying your own shares of the stocks included in each index to directly mirror the index's performance. Direct indexing gives you greater access to the advantages of investing in these profitable stock groupings and allows for customization based on your personal interests, priorities, and values.

Please do not hesitate to reach out to plan your 2024 end-of-year financial strategy further. That’s what we’re here for.

Any opinions are those of CrossleyShear Wealth Management and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members.

There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. All opinions are as of this date and are subject to change without notice. Past performance is not a guarantee of future results.

4 priceless money lessons for kids

Financial literacy is a gift that lasts a lifetime.

Financial tradeoffs, interest rates and the importance of having an emergency fund: Our current economic circumstances are full of teachable moments we can and should share with our children. After all, they’re probably not learning these topics in school. Only 1 in 6 students will be required to take a personal finance course before earning a high school diploma, according to nonprofit Next Gen Personal Finance.

That’s why we’re equipping you with money tips and topics to discuss with the children in your life, plus independent study materials (ahem, videos and games) that will hold kids’ attention while teaching them money management. Keep reading to get to the head of the class.

Being in charge of the budget

Are your children constantly asking you for money? One Florida father found a way to nip that in the bud: He had his teen and preteen sign a contract stating what expenses he would pay for, then gave them a set amount of money to spend each month for clothing, cellphone bill and extras. “My son’s hard lesson came when his friend pushed him into a pool along with his cellphone. He learned why it’s important to build a reserve for unexpected expenses,” the father said. Giving your kids a paycheck allows them the chance to make financial decisions – and experience the consequences firsthand.

The economics of higher ed

We’ve all asked a kid, “What do you want to be when you grow up?” Instead ask what their interests are, and help them explore how they might be applied in a future career. This teaches them adaptability, something of value in a changing economic landscape.

As they get closer to making a decision about whether to attend college or trade school, help them think through the costs and benefits. Junior Achievement’s Access Your Future app can help them crunch the numbers. And if you have a child already attending college, know that timing is everything. Yale researchers have found that graduating from college in a bad economy has a lasting negative impact on wages – and many students are considering gap years and grad school because of this.

The roots of retirement

Raise your hand if you want to raise a child who will hit the ground running when it comes to saving for retirement. Personal finance experts say we should let our children know that retirement is the biggest expense they’ll ever save for, and it’s important to start early. To help them understand the value of compounding, help them open a savings account (or guardian-type brokerage account) where they can experience the power of this phenomenon for themselves.

Extra credit knowledge
When you’re young and don’t have much money, it’s easy to rely too much on credit and jeopardize your financial future. Help your child understand the importance of a good credit score, and explain how you keep yours up. Share stories about how you financed your first car or house, and explain in concrete terms how the interest rate affected the overall purchase price. Finally, consider adding your teen as an authorized user on your credit card and teaching them how to read a statement and pay the balance in full each month.

Homeschool resources

For teens:

• Search ngpf.org/arcade for web-based games like “Money Magic,” “Payback,” “Stax” and “Credit Clash”

For younger kids:

• Schoolhouse Rock! vintage videos like “Budget” and “Dollars and Sense”
• Cha-chingusa.org offers Money Smart Kids videos like “Do it Passionately” and “Saving for Success”

In giving your child the gift of financial literacy, you’re helping set them up for a brighter future. Through a purposeful approach, we can all do our part to raise the next generation of resourceful citizens.

Next steps

• Have family or friends share stories of how they thrived during a recession or found creative ways to stretch a budget.
• Consider helping your child get started with investing, keeping in mind their investments will change calculations for college aid.
• Introduce your family members – even the younger ones – to your advisor, who can act as a teacher’s aide for financial literacy.

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional.

Life-changing events change your taxes, too

Review how six major life events can impact your federal return.

Legislation and life – two things guaranteed to change your federal tax situation. Here are a few major milestones you’ll need to tell your tax pro and your advisor about as soon as possible. The former can find credits you qualify for and dig up deductions, while the latter can help you come up with flexible solutions, like lines of credit, to pay an unexpected tax bill from the IRS.

You say “I do”

For married couples, filing jointly tends to yield lower taxes and higher deductions, but not always. Make sure the name you use to file matches your Social Security card and update your W-4s.

… or, “I don’t anymore”

The end of a marriage means your filing status will change to single or head of household. If your divorce is finalized in 2024, then you’d file as married filing single or married filing jointly for 2023 even though you’ll be divorced come tax day. Dependents can only be claimed by one of you; if you have two children, each spouse could claim one, for example. If you have an odd number of children or can’t agree how to claim dependents, the IRS tends to favor the custodial parent. Plus, only the custodial parent can claim the child tax credit.

You welcome a bundle of joy

Kids – whether adopted, biological, step or foster children – come with a bundle of tax breaks for qualifying care costs, education and the child tax credit. Single parents can file as head of household, which offers better tax rates and a higher standard deduction. New parents may want to consider a 529 college-savings plan as well; savings grow tax-deferred and many states offer deductions or credits.

You upsize or downsize

A house purchase opens up potential deductions on paid points, mortgage interest and property taxes if you itemize. In some cases, there are credits or deductions for home improvements and energy-efficient upgrades. Selling? If you meet certain conditions, you may exclude the first $250,000 of gain from the sale of your home from your income and avoid paying taxes on it. The exclusion is increased to $500,000 for a married couple filing jointly.

You lose a loved one

The dearly departed still need someone to file a final tax return (perhaps also an estate tax return) on their behalf. Money left to heirs generally is income-tax-free at the federal level, with the exception of money withdrawn from an inherited IRA or 401(k) plan account (distributions from qualified accounts have their own rules).

Heirs may also have to pay taxes on gains earned after selling bequeathed stocks and other property. When you inherit property, you get the benefit of what’s called a “stepped-up basis,” which means if you sell the asset, you’ll be taxed only on the gain since the deceased’s date of death, not the gain from the original purchase price. Note: Surviving spouses may still be able to file jointly up to two years afterward, provided they haven’t remarried and meet the other requirements.

Your job changes

New gig? Rethink your W-4. Lose an old one? Unemployment benefits are taxable. Promoted? A raise may mean a higher tax bracket and a chance to adjust your withholdings, as well as dial up your contributions to tax-advantaged retirement accounts. Double-check that the higher income didn’t phase you out of Roth contributions or out of the ability to deduct contributions to a traditional IRA, which changes based on your modified adjusted gross income. Retiring? Distributions from qualified accounts are taxable, so talk to your finance professionals before you make any distribution decisions.

Sources: tldraccounting.com; turbotax.intuit.com; irs.gov; creditkarma.com; fool.com; debt.com; cnbc.com; thebalance.com; alllaw.com; 1040.com

While familiar with the tax provisions of the issues presented herein, Raymond James financial advisors are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation.

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional.

Will the sun set on generous estate and gift tax exemptions in 2026?

Now is a good time to review your estate and gifting plans.

High-net-worth individuals and families who benefit from the historically high federal estate and gift tax exemption may soon see it reduced by half. Favorable increases in the estate and gift tax exemption created by the Tax Cuts and Jobs Act of 2017 (TCJA) are scheduled to sunset at the end of 2025 along with other changes the law made, including an increase in the standard deduction and the charitable giving deduction, as well as reductions in individual income tax rates.

With so many tax provisions scheduled to revert back to pre-TCJA levels in under two years, consider moves you might need to make to minimize your tax burden and support your financial goals.

How the lifetime estate and gift tax exemption changed under the TCJA

The TCJA went into effect on January 1, 2018, and doubled the estate and gift tax exemption from $5 million to $10 million for individuals and $10 million to $20 million for joint filers. This exemption is indexed for inflation, so by 2023 it had risen to $12.92 million per person and $25.84 million per married couple.

The lifetime exemption amounts for estate and gift taxes are the same, which is why they’re discussed together. In addition to the estate and gift tax exemption amounts, you may make annual gifts up to $18,000 (per receiver) in 2024 without utilizing any of your gift tax exemption.

The estate tax exemption in 2024 is $13.61 million for individuals and $27.22 million for couples. But because the TCJA sunsets on December 31, 2025, the estate tax exemption in 2026 will fall back to $5 million for individuals and $10 million for couples, indexed for inflation, unless Congress acts to extend the provisions.

If Congress doesn't take any action, the exemption for federal estate tax will be reduced by half after 2025.

How the exemption changes work

For example: A married couple with $25.84 million in assets in 2023 gifted their child $17,000 that year. Because the gift amount didn’t exceed the gift tax exemption for 2023, they didn’t have to pay gift taxes on that gift. But they also made a second gift that year to their child of $25,823,000 – the remaining amount of their lifetime estate and gift tax exemption (as of 2023).

Did the couple have to pay taxes on that generous second gift? No. Even though the second gift is taxable, the IRS applies a credit against the gift tax based on the total estate and gift tax exemption. In other words, the IRS in effect says to such a couple, “You don’t need to pay now for that taxable gift; we’ll settle up with you on all your lifetime gifts and estate taxes when you die.”

Now imagine that this couple passes away in 2024. The TCJA is still in effect, and the couple’s estate ends up paying nothing in gift or estate taxes for either the first or second gift because those two gifts equal $25.84 million, which is less than the 2024 lifetime gift and estate tax exemption of $27.22 million. If at the time of their death the couple’s remaining assets are worth $1.5 million, their estate also wouldn’t need to pay taxes on $1.38 million of those assets because they are covered under the remainder of the $27.22 million exemption.

But suppose this couple instead dies in February of 2026, after the TCJA has ended, and Congress hasn’t acted to extend the provisions. Let’s assume that the indexed gift and estate tax exemption for 2026 is $10.4 million.

Does the expiration of the TCJA mean the couple now has to pay taxes on the amount of their second gift that is above $10.4 million? No. The IRS issued a rule in 2019, clarifying that it won’t “claw back” gifts made during the period when the TCJA was in effect. So the estate in 2026 can calculate its gift and estate tax exemption using the exemption under the TCJA.

The nuances of which particular year of the exemption would apply (whether 2023 or 2025) would be best to discuss with your financial advisor. But the larger point is this: If you act before 2026, you can take advantage of the TCJA to lock in its higher lifetime gift and estate tax exemption even if you expect to live long past December 31, 2025.

Gifts and other strategies

Outright gifts directly to your loved ones are not your only option for taking advantage of the high lifetime gift and estate tax exemption under the TCJA. Based on your circumstances and goals, you might consider several other strategies.

Gifts to an irrevocable trust

You could create an irrevocable trust with designated beneficiaries and distributions based on the terms you choose. Any gifts to this trust can take advantage of the TCJA lifetime gift and estate tax exemption.

Gift to a spousal lifetime access trust (SLAT)

If you’re concerned that giving large gifts directly to others or to a trust might leave you too short on funds to support yourself while you’re alive, you might want to consider a spousal lifetime access trust (SLAT). A SLAT is created by one spouse for the benefit of the other spouse. Any gifts the SLAT creator puts into the trust will be distributed to the beneficiary spouse, who can then use those distributions for joint expenses. You can also configure a SLAT so that its assets pass to your descendants upon the death of both you and the beneficiary spouse.

Gifts the donor sponsor gives to the SLAT are exempt from tax up to the donor spouse’s available exemption amount. In 2024, a donor could gift $13.61 million without paying a gift tax.

While the donor won’t be taxed on contributions below the exemption amount, the beneficiary may well owe tax on distributions from the SLAT, as these are treated as taxable income. And assets distributed to the beneficiary spouse can increase their estate. That increase could be subject to the estate tax or its exemption.

Establishing other types of trusts

There are many other types of trusts that might serve your particular needs. These include dynasty trusts, irrevocable life insurance trusts, and a qualified personal residence trust. Your financial advisor can most effectively evaluate what option or combination of options will achieve your goals.

If your gifts to your SLAT will use up your gift and estate exemption, but you also have a significant life insurance policy, an irrevocable life insurance trust may be a way to prevent the life insurance policy from counting as part of your estate. That way, your beneficiaries benefit from the life insurance payout without being subject to high estate taxes.

A good time to review your estate plan

Although there’s a chance that new tax legislation may take effect between now and 2026 that extends or builds upon the TCJA provisions, it’s still advisable for families to review their estate plan with their financial advisor as soon as possible. Waiting until the latter months of 2025 might limit the strategies available to you to take advantage of the TCJA estate tax exemption provision. Even if you’re confident that the TCJA sunset won’t affect your estate plan, it’s still important to check it regularly.

Raymond James does not provide tax or legal advice. Please discuss these matters with the appropriate professional.

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional.