Tax Planning | Perspective & Spring Cleaning

Tax Planning Before a Spouse Passes: Don’t Miss This Window

There are financial planning strategies that work only while both spouses are alive. Once one passes, certain financial doors close, and missed opportunities can have a lasting impact.

But when life is busy, it’s easy to say, “We’ll get to that later.” That’s where a good advisor steps in and says, “We need to look at this now.”

One of the most overlooked opportunities? Roth conversions. Here’s why it matters:

Once a spouse passes, the survivor becomes a single filer—and may face higher taxes on the same income.
Married couples can convert more Roth dollars at lower rates than a single filer can.

We’ve seen it too many times in couples that didn’t see this change coming: same real estate, same RMDs, same cash flow–but higher taxes.

So, the real question becomes: What can we be doing now—together—before the window closes?

We encourage you to think of it like a conversation about estate planning. It might not be easy, but it’s an effective way to ensure that the surviving spouse is provided for as much as possible.

Remembering Perspective: The mainstream news options tend to be rather negative. If you are only consuming negativity, that view may start to influence your investment outlook. We can’t predict the future, no one can. You may benefit from a little long-term perspective below.

Spring Cleaning?: It’s that time of year when the sudden urge hits to get rid of the clutter. Many of the families we serve value simplicity. Perhaps you can identify with this like we do:

Sixty percent of people in a March survey by storage company Storable said clutter has kept them from having people over. Commerce Department data show that Americans now buy more than twice as much clothing and furniture as they did three decades ago.

If you’re finding yourself in this dilemma, you can sell it on Marketplace or take it to Goodwill but remember the value of your time. Consider using Pickup Please, Junk King, or any other local charity to quickly declutter.

A Reminder to Slow Down: In a world that often prioritizes speed, work, and growth at any cost, it can be good to be reminded of the importance of relationships, a caring conversation, margin, and depth. Some generations have more old letters than old phones. Either way, this pop star reminds us to slow down: Old Phone by Ed Sheeran.

*The views expressed represent the opinions of Compass Ion Advisors, LLC, as of the date noted and are subject to change. These views are not intended as a forecast, a guarantee of future results, an investment recommendation, or an offer to buy or sell any securities. The information provided is of a general nature and should not be construed as investment advice or to provide any investment, tax, financial, or legal advice or service to any person. The information contained has been compiled from sources deemed reliable, yet accuracy is not guaranteed.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website at https://adviserinfo.sec.gov/firm/summary/166418. Past performance is not a guarantee of future results.