Wealth Strategies for 2026

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Another year has gone by, and it is already time to start planning for “next year.” Life happens and sometimes it can be challenging to stay on track with your financial goals. What can you do to grow and safeguard your wealth? Have you thought about the steps you can take in 2026 to improve your financial wellbeing?

Collaborating with your Private Bank advisor to build a long-term, comprehensive wealth strategy is a step in the right direction. Through the strategy process, you will receive proactive advice and personalized, holistic guidance, helping you avoid life’s major financial challenges.

As 2025 draws to a close, consider the following actions recommended by our Private Bank Wealth Strategy team to build and protect your wealth in 2026 and beyond.

Assess your wealth strategy

A new year presents a great opportunity to create a wealth strategy (or evaluate your current one), including taking a strategic look at asset positioning and asset diversification.

Like a roadmap, an updated wealth strategy can help you find the best way to get from Point A to Point B in reaching your wealth building or preservation goals. And if life gently, or not so gently, nudges you to take a detour, your wealth strategy can help you look at alternative scenarios and hopefully still get you where you need to go.

There are three major factors that influence any wealth strategy: the type of asset “vehicle,” cash flow, and taxes. Let’s start by examining the biggest potential headwind in our lifelong wealth journey—taxes.

Gift and estate tax updates for 2026

The gift tax annual exclusion amount is not expected to increase in 2026. Rather, the amount is expected to remain at $19,000 per person ($38,000 per married couple) in 2026. This is the maximum amount that you can give to anyone during the calendar year and not be required to file a gift tax return (perhaps better called a gift “disclosure” return) with the IRS.

However, if you make gifts during the calendar year over the annual exclusion amount, you will then need to use some of your lifetime exemption amount to avoid paying a gift tax. Under the tax law passed in July 2025, the One Big Beautiful Bill Act (OBBBA), the federal estate and gift tax lifetime exemption amounts for an individual increase from $13.99 million (in 2025) to an even $15 million (in 2026) and is thereafter indexed annually for inflation.

What can you do about an increased exemption amount? Here are a few actions to consider:

• Use the increased exemption now: Know that you can use your exemption for lifetime gifts to family as well as transfers upon your passing. Therefore, if you have a taxable estate today, evaluate with your advisor whether utilizing some or all of your exemption in 2025 or 2026 may be appropriate.
• Develop a calculated strategy for tax liability: In most cases, estate tax liability is an issue faced by those who inherit from an estate, rather than the deceased individual or their spouse. Estate taxes generally must be paid within nine months of date of death. Think about working with your advisor to prioritize how to address the tax liability you may not wish to place on your family, especially if there are business interests, real estate or other illiquid assets.
• Examine estate documents: Review your estate planning documents regularly with your advisor to ensure they are consistent with your present wishes. Many financial firms and health care institutions may refuse to accept outdated documents. In addition, perform a funding/asset titling audit periodically to assist in minimizing or preventing exposure to the expense, time consumption and public exposure of probate. Like maintenance on a home, if you allow a lot of time to pass without taking action, it could cost you a lot more later.

Income tax updates for 2026

The OBBBA made a lot of specific updates to income taxes; however, we will mention just a few highlights for 2026. Let’s start with tax rates. The OBBBA made “permanent” the income tax rates that were “temporarily” in place for 2018 – 2025 under the prior tax law, Tax Cuts and Jobs Act (TCJA). The lower tax rates that were in effect for the last eight years will not expire, so in 2026 people will have the same tax bracket structure that they have been accustomed to, the highest federal tax rate being 37%.

For capital gains taxes, everyone wins with a lower tax rate. Taxpayers in the highest 37% “ordinary income” bracket will pay taxes on capital gains at a 20% rate, while others in the lower tax brackets will pay capital gains taxes at a 0% or 15% rate depending on their situation.

State and local tax (SALT) deductions have been capped at $10,000 for 2018 – 2024 per the prior TCJA tax law. However, for 2025 - 2029, the SALT deduction cap has been raised to $40,000 per year, giving some relief to taxpayers living in or owning properties in higher-taxed states. The cap is indexed 1% annually. Limitations also apply for taxpayers with an adjusted gross income higher than $500,000.

Your Fifth Third Private Bank advisor can coordinate your team of internal and external experts to help ensure that you are heading into 2026 with a plan that helps minimize income taxes given the changes to the income tax laws. In addition, this tax planning should also be consistent with your overall wealth strategy and your lifetime financial goals and objectives.

Employ trust strategies

Certain trust strategies for minimizing estate taxes and maximizing wealth transfer have been in the news with increasing frequency. Every two years, it appears that these strategies could be on the chopping block under a new Congress. If you have an impending estate tax liability or are charitably inclined, speak with your trusted wealth advisor and attorney sooner rather than later to discuss several options that are likely available to meet your gifting objectives.

Evaluate your insurance coverage

With any insurance coverage, it is always better to be ahead of the game rather than a day too late. Now is an excellent time to assess your current insurance coverage including group policies and separately owned policies. Review your current life insurance policies with your advisor to ensure their structure, ownership and beneficiaries align with your financial goals and objectives.

Long-term care (LTC) policies are increasingly receiving more attention and newer policy designs and benefits are offering unique options for stabilizing and diversifying your assets as you approach retirement. A LTC policy provides security and comfort to you and your family during retirement years with added support, guidance and financial efficiency—regardless of your level of wealth.

Discuss your insurance policies and options with your Private Bank advisor to determine if you should initiate any coverage changes.

2025 Key Dates

Below you will find important dates for 2025.

December 1, 2025

• Recommended date to initiate gifts of qualified, appreciated stock or wire transfers.
• Recommended date to initiate a Qualified Charitable Distribution from an IRA (for those over 70 ½). The 2025 limit is $108,000.

December 31, 2025

• The last day to make charitable contributions that are tax deductible for 2025.

For more information, contact your Fifth Third Private Bank Advisor.