If you're reading this from your Stuart waterfront home or Jupiter Island estate, you've probably noticed that January 1st came and went with a seismic shift in the tax code. The TCJA sunset just happened, and the window for certain tax-smart wealth strategies slammed shut: but that doesn't mean you're out of options.
As a fee-only fiduciary advisor serving the Treasure Coast, I'm writing this because too many high-net-worth families are still working with commission-based brokers who either missed the deadline or: worse: didn't have the legal obligation to prioritize their clients' interests. At Davies Wealth Management, we operate under the Legal Fiduciary Standard, which means we're required by law to act in your best interest, not collect commissions on products. And right now, that distinction matters more than ever.
The good news? While we can't turn back the clock, there are five critical wealth moves every Stuart millionaire should be making right now to navigate this new tax landscape. Let's dive in.
Table of Contents
- What Just Happened: The 2026 TCJA Sunset Explained
- Move #1: Reassess Your Estate Plan Immediately
- Move #2: Optimize Roth Conversions While Rates Are Still Known
- Move #3: Accelerate Business Asset Purchases (What's Left of Bonus Depreciation)
- Move #4: Review Trust Structures and Gifting Strategies
- Move #5: Rebalance Tax-Location Strategy Across Accounts
- Fiduciary vs. Broker: Who Actually Warned You?
- Your Next Steps
What Just Happened: The 2026 TCJA Sunset Explained {#what-just-happened}
On January 1, 2026, the Tax Cuts and Jobs Act provisions expired, reverting the tax code to pre-2017 levels. Here's what changed overnight:
- Estate tax exemption dropped from $13.6M to roughly $7M per person
- Top income tax rate jumped from 37% to 39.6%
- Standard deduction nearly halved
- 20% qualified business income (QBI) deduction vanished for pass-through entities
- Bonus depreciation continues declining (now at 20% for 2026)
For families in Palm Beach Gardens, Jupiter, and our Stuart strategic hub, this means your 2026 tax bill could look dramatically different than 2025: unless you take action now.
Move #1: Reassess Your Estate Plan Immediately {#estate-plan}
The biggest gut-punch for Treasure Coast wealth holders? The estate tax exemption just got cut in half. If you're sitting on a $15M estate, you're now potentially facing estate taxes on $8M that was previously sheltered.
What to do now:
- Schedule an emergency review with your estate attorney and fiduciary advisor
- Consider spousal lifetime access trusts (SLATs) if you already maxed out gifting pre-sunset
- Review beneficiary designations: these bypass probate and can be powerful tax tools
- If you have Florida real estate holdings (common in Martin County), ensure proper titling
The families who planned ahead and made large gifts before December 31, 2025 are golden. If you missed that window, we need to get creative with what's left. Our wealth management approach specifically addresses post-sunset estate strategies for high-net-worth clients.
Move #2: Optimize Roth Conversions While Rates Are Still Known {#roth-conversions}
Here's a counterintuitive move: the worst time to do a Roth conversion is often when rates are highest. But there's a silver lining: at least we now know what the rates are for 2026.
With the top bracket at 39.6%, you want to:
- Calculate your "fill-up-the-bracket" conversion amount (convert just enough to stay below the next bracket threshold)
- Consider multi-year conversion strategies through 2028
- Factor in state taxes (thankfully, Florida has none, but if you have kids in high-tax states, this matters for inherited IRAs)
For Jupiter executives with substantial deferred comp or 401(k) balances, this is especially critical. We're seeing strategic Roth conversions paired with charitable contributions to offset the tax hit.
Move #3: Accelerate Business Asset Purchases (What's Left of Bonus Depreciation) {#business-assets}
If you're a business owner in Stuart: whether you run a marine services company, wealth management practice like ours, or a medical group: bonus depreciation is still on the table, just less generous.
2026 reality:
- Assets placed in service this year qualify for 20% bonus depreciation
- This drops to 0% after 2026
Smart play:
- Front-load capital expenditures into Q1-Q2 of 2026
- Consider cost segregation studies for real estate investments
- Evaluate Section 179 deductions for equipment purchases
Combined with the loss of the QBI deduction, pass-through owners are taking a double hit. If you haven't already, consider whether entity restructuring (S-corp to C-corp, etc.) makes sense in this new environment. Community resources like 1715tcf.com can connect you with local business networks facing similar transitions.
Move #4: Review Trust Structures and Gifting Strategies {#trust-structures}
The reduced estate exemption doesn't eliminate gifting strategies: it just makes them more precious. The annual gift exclusion remains at $18,000 per recipient (2024-2025 level), and you can still leverage:
- Grantor retained annuity trusts (GRATs) to freeze asset values
- Family limited partnerships for business succession
- 529 superfunding for grandchildren (front-load five years of gifts)
For Treasure Coast families with vacation properties or rental portfolios, consider qualified personal residence trusts (QPRTs) to remove your home's future appreciation from your estate.
One caveat: irrevocable trusts created before 2026 may need amendments. Don't assume your 2020 estate plan is still optimized.
Move #5: Rebalance Tax-Location Strategy Across Accounts {#tax-location}
With higher ordinary income rates and reduced deductions, the location of your investments matters as much as the investments themselves.
Tax-location hierarchy for 2026:
| Account Type | Best Holdings | Rationale |
|---|---|---|
| Taxable Brokerage | Municipal bonds, tax-managed index funds, long-term equities | Qualified dividends and long-term gains still favorable |
| Traditional IRA/401(k) | REITs, bonds, actively traded positions | Ordinary income rates apply either way at withdrawal |
| Roth IRA | Highest-growth assets (small-cap, international) | Tax-free growth and no RMDs |
| HSA | Total market index funds | Triple tax advantage if used for medical |
For Stuart families working with retirement planning specialists, this rebalancing often uncovers six-figure tax savings over a 20-year horizon.
Fiduciary vs. Broker: Who Actually Warned You? {#fiduciary-vs-broker}
Let's get real for a second. If your advisor didn't proactively reach out in Q4 2025 about the TCJA sunset, that's a red flag.
Here's the difference:
| Fee-Only Fiduciary (Like Us) | Commission-Based Broker |
|---|---|
| Legally required to act in your best interest | Only required to recommend "suitable" products |
| Flat fee or AUM-based compensation | Earns commissions on products sold |
| Proactive tax planning alerts | Reactive (you call them) |
| Holistic estate/tax integration | Product-focused conversations |
If your current advisor is at a wirehouse or insurance-based firm, there's a good chance they're not a fiduciary. That's not a value judgment: it's a structural reality. The incentives are different.
At Davies Wealth Management, our Stuart office serves as a strategic hub for Treasure Coast families precisely because we saw independent, fee-only advice disappearing in Martin County. We built this practice to fill that gap.
Your Next Steps {#next-steps}
The TCJA sunset already happened, but the next few months are critical for damage control and opportunity capture. Here's what I recommend:
- Run the numbers: Model your 2026 tax liability under the new rules
- Audit your estate plan: If it was drafted before 2026, it likely needs updates
- Review your advisory relationship: Are you getting fiduciary-level service or product sales?
- Schedule a strategic planning session: This isn't a "set it and forget it" year
The families who thrive in this new environment will be the ones who treat tax planning as an ongoing discipline, not a once-a-year chore. If you're a high-net-worth resident of Stuart, Jupiter, or Palm Beach Gardens and want to explore whether our fee-only approach is right for you, I encourage you to start here with our qualification questionnaire.
We're selective about who we work with: not because we're exclusive, but because the best outcomes come from long-term partnerships with families who value proactive, sophisticated planning.
The 2026 tax landscape just got a lot more complex. Don't navigate it alone.
Leave a Reply