Smart gifting to grow family wealth and opening "Trump Accounts"

Hi Reader,

Welcome to our February update! Now that the holiday decorations are finally put away, we’re beginning to settle into the rhythm of the new year. For us, February is the perfect time to look past the day-to-day and shift our focus toward the big picture and ensuring your most important priorities are being looked after.

For many of you, family is one of those priorities. In this edition, we want to share how you can empower the next generation, whether that’s through strategic gifting today or setting up a smooth hand-off for tomorrow. Between the rollout of new savings tools like the "Trump Accounts" and the personal decisions involved in legacy planning, this month's newsletter is focused on practical ways to support your loved ones.

In this issue, you'll find updates on:

• Our Next Webinar: Join us for a deep dive into "A Guide on Family Gifting".
• Timely Update: What you need to know about electing a "Trump Account" on your 2025 tax return to jumpstart a child's savings.
• From the Blog: Maximizing your HSA after age 65 (yes, you can use it for some Medicare premiums!).
• In the Press: Our recent feature in MarketWatch regarding the hidden financial hurdles of relocating in retirement.

As a reminder, if there are other topics you’d like to see covered in a future newsletter this year, or if we can help you implement any of these topics in your financial plan, simply reply to this email and we’ll be in touch.

Regards,

The Arnold & Mote Team

February Webinar: Guide to Family Gifting

Whether it’s helping a child buy a home, funding a grandchild’s education, or just wanting to create more memorable experiences with your family, moving money to future generations is often the most rewarding part of a financial plan.

However, we see many households hesitate to gift to family because they’re worried about three things: the basic IRS rules around gifting (particularly gifts over $19,000), tax impacts of raising cash for a gift, or a fear of leaving themselves short in retirement by gifting too much, too soon.

In this webinar on family gifting strategies, we’ll start the session by clearing up the basics of gifting, including the 2026 gift tax limits and how to give to your loved ones without having to worry about a tax bill. From there, we'll focus on practical, smart ways to create a plan to share your success with the people you love most while keeping your own financial peace of mind.

In this webinar, we’ll cover:

• The Rules of Gifting: Understanding the $19,000 annual gift tax exclusion, lifetime exemptions, and how to avoid common reporting pitfalls.
• Tax-Efficient Strategies: Moving beyond cash to explore gifting appreciated securities, 529 contributions, medical and tuition payments, and potential tax benefits.
• Legacy Planning: An introduction to long-term tools, including trusts, and beneficiary designations.
• The Gifting Stress Test: How to calculate your "giving capacity" to ensure your generosity never outpaces your personal lifestyle needs.

Join us for the live broadcast at noon Central Time on Friday February 20th, streamed on our YouTube channel here:

Want a reminder before we go live? Click the button above and subscribe to our channel to be notified as the webinar begins:

If you can't attend live, a replay of the webinar will be accessible immediately after and available alongside recordings of all previous webinars on our YouTube channel.

If there are questions you'd like to have answered, simply reply to this email and let us know!

Timely Update - Why You May Want to Open a Trump Account Now

Trump investing accounts are an entirely new type of account designed for families to be able to save for their children. The accounts will not be activated until this summer. However, you can now create an account online at https://trumpaccounts.gov/ or, you can submit a Form 4547 with your 2025 tax return filing to get the process started now.

One potential advantage of opening an account now is that, depending on where you live, there may be incentives to being in the front of the line.

For example, a recent $6.25 billion gift from Michael and Susan Dell will contribute $250 to each of the first 25 million Trump accounts created for children under 10 years old, who live in ZIP codes with median incomes below $150,000.

While this Dell grant is available nationwide, other charities and local organizations may offer similar incentives. Additional benefits of having a Trump account may be available based on where you live.

Parents or guardians will need to open accounts for their children. Once the accounts are opened, other family members (grandparents, uncles, aunts, etc.), friends, and employers will then be able to contribute to the accounts, up to a combined total of $5,000 per year.

We will have much more content on these accounts over the next few months. So if you are wondering how these accounts compare to 529s, custodial Roth IRAs, or brokerage accounts - Stay tuned! There is a basic overview of these accounts available now at trumpaccounts.gov​

From the Arnold & Mote Blog

​HSA and Medicare Premiums – How to Best Use Your HSA After Age 65​

HSA contributions must stop upon Medicare enrollment. However, your account remains a powerful tool for your retirement years. Many retirees don't realize they can use existing HSA funds to pay for Medicare Part B and Part D premiums tax-free. Many retirees are also unaware of Medicare related expenses that can not be paid tax-free from an HSA.

In our latest blog post, we outline the essential rules for using your HSA in retirement and share strategies to maximize these tax-advantaged dollars once you’re on Medicare.

Arnold & Mote Featured in the Press

MarketWatch: What to Consider When Moving to a High Tax State in Retirement​

We were recently featured in MarketWatch, providing guidance for a retired couple considering a move from Florida to California. We discuss the often-overlooked details: state-specific income tax traps, the nuances of financing a home in a new market, and what changes need to be made to your financial plan.

Quick Tip: Before moving to a state like California, pay close attention to how they tax Social Security and pension income. The rules can vary drastically from your current home state.

See our other recent press mentions on our Press Page.

Looking for Something From a Prior Newsletter?

As a reminder, you can now find the last 12 months of our newsletters here:

Whether you’re new and want to browse newsletters you missed or are trying to follow up on a topic from a few months ago, we’re now publishing all newsletters at the link above. We'll also keep this link at the bottom of all future newsletters.

Quinn and the Arnold & Mote Wealth Management Team

(319) 393-4020

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