Navigating Wealth Transfers Amid Changing Tax Landscapes: Essential Strategies for Harsco Employees

Healthcare Provider Update: Healthcare Provider for Harsco Harsco Corporation, a global supplier of industrial services and engineered products, typically partners with prominent healthcare providers for employee health plans. Among the notable providers, Aetna often serves as a primary healthcare partner, offering comprehensive health insurance solutions, including medical, dental, and wellness programs tailored to the needs of Harsco employees. Potential Healthcare Cost Increases in 2026 As we look to 2026, healthcare costs are anticipated to surge significantly, driven by a confluence of factors. With many states facing imposed premium hikes of over 60%, particularly for Affordable Care Act (ACA) marketplace plans, employees of Harsco may experience drastic changes in their out-of-pocket healthcare expenses. The potential expiration of enhanced federal premium subsidies will amplify these increases, with more than 22 million enrollees projected to see monthly costs rise by an average of 75%. Coupled with escalating medical costs and aggressive rate adjustments from top insurers, navigating the healthcare landscape will require strategic planning to mitigate financial impacts. Click here to learn more

As the end of 2025 approaches, Harsco employees, among others in the financial elite, are facing pivotal decisions due to impending tax increases and potential political shifts. The current estate tax exemption under the 2017 Tax Cuts and Jobs Act allows individuals to transfer up to $13.61 million and couples up to $27.22 million tax-free. This generous provision is set to expire, prompting many to accelerate their wealth transfer plans.

With the possibility of a divided government or a shift to a Democratic presidency, experts predict that these favorable tax conditions will not be extended. This potential change means that, without proactive planning, individuals and families may face a significant tax burden on inheritances exceeding the future lower exemption limits.

For those at Harsco watching these developments, the strategic response has varied. Earlier in the year, some opted for a wait-and-see approach, influenced by promises from former President Donald Trump to extend tax cuts. However, as Vice President Kamala Harris gains traction in polls and suggests higher taxes for those earning over $400,000, the urgency for action has increased.

This urgency is echoed by Pam Lucina, a trust executive at Northern Trust, who notes a growing concern among clients about impending tax changes. This mirrors a broader trend where approximately $84 trillion is expected to shift to younger generations in coming decades. For Harsco employees and others, this impending fiscal shift is a call to accelerate wealth transfers to mitigate future tax liabilities.

Deciding when and how much to gift is a crucial challenge. The term 'donor's remorse' describes the regret of making large, irreversible gifts if anticipated tax changes do not occur. It's advised to consider various scenarios, balancing potential tax benefits against personal financial stability and lifestyle changes.

Advisors emphasize that decisions should not be solely tax-driven but also consider family dynamics and preparing heirs to manage significant wealth. For some, maximizing current tax laws aligns with their long-term planning. For others, caution is paramount, considering the psychological and financial impacts of substantial wealth transfers.

Mark Parthemer, a wealth strategy expert at Glenmede, highlights the importance of psychological security in making large gifts, particularly as concerns about financial independence grow with age. He stresses the need to prepare for significant gifts, especially for families with young children, to anticipate potential tax changes.

To minimize risks and ensure flexibility, thoughtful planning is crucial. This may involve gifting to a spouse before transferring wealth to the next generation or establishing trusts that distribute assets over time, preventing sudden wealth syndrome.

The administrative complexities and legal risks during fiscal crises, such as those experienced in 2010, underscore the necessity of timely and well-structured wealth transfer strategies. Current predictions suggest similar delays if decisions are postponed until after the election, with some lawyers already turning away new clients due to capacity constraints.

Moreover, there is a significant risk of triggering unintended tax consequences with hastily planned or poorly executed strategies. Parthemer warns that the IRS is scrutinizing, and sometimes challenging, such strategies, highlighting the need for careful planning and execution.

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While estate taxes are a primary concern, advisors also report an increase in inquiries about other tax proposals, such as higher capital gains taxes and taxation of unrealized gains. However, potential changes in estate tax pale in comparison to these issues, prompting a proactive evolution of wealth management strategies among the ultra-wealthy.

In summary, the political landscape significantly influences tax legislation, presenting a complex array of financial planning challenges for Harsco employees and their advisors. The decisions made now will have long-lasting impacts on wealth preservation and transfer strategies, underscoring the need for informed strategic action in response to an ever-changing tax environment.

With concerns about potential tax hikes, a recent  study by the Wealth Management Institute in 2023 revealed that nearly 60% of individuals aged 55 and older are intensifying their future planning,  driven not only by tax concerns but also by the desire to take advantage of current lifetime gift exemptions available until 2025. This trend underscores the importance of proactive estate planning well before anticipated tax reforms.

Navigating the uncertain waters of political and fiscal environments is akin to steering a ship through a storm. Like a seasoned captain adjusting sails before a storm to preserve the vessel and its crew, Harsco employees are adapting their estate plans in response to Kamala Harris's rising poll numbers, signaling potential tax increases. This proactive approach ensures their financial legacy reaches the next generation securely and effectively, avoiding the challenges of tax increases and ensuring a smooth transition of wealth with minimal burdens.