Tapping trusts to protect client assets; Envestnet to go private in PE deal; what’s on the horizon for Social Security COLA

TAX: Trusts that slash taxes for the owners and their heirs, while avoiding potential probate court cases, can form a crucial part of that security for many financial advisors and their clients. With the higher estate-tax exemptions under the Tax Cuts and Jobs Act of 2017 set to expire at the end of next year, experts who spoke with Financial Planning said there is an added incentive to set aside assets before the level of inherited assets that can be taxed reverts to lower levels.?

However, tapping into trusts requires knowledge of an increasing array of entity types with the typical industry acronym jargon and, often, collaboration with an estate attorney and a trust company.

Read: Trusts are useful but complicated. Here are some basics

TECHNOLOGY: Wealthtech platform titan Envestnet has agreed to be acquired by private equity firm Bain Capital in a planned $4.5 billion cash deal announced on July 11.

The transaction, backed by Reverence Capital, includes minority investors and heavyweight firms like BlackRock, Fidelity Investments, Franklin Templeton and State Street Global Advisors. Those same four firms also recently struck a separate deal with Envestnet in June that gives their advisors exclusive access to the wealthtech's unified managed account tools.

Read: Envestnet going private in planned $4.5B deal with PE firms, BlackRock, Fidelity and others

RETIREMENT PLANNING: The predicted Social Security cost of living adjustment (COLA) for 2025 is expected to be smaller than this year's? figure, according to one analyst.

Given the cooling inflation rate, the 2025 increase could be 2.7%, down from the 3.2% bump in 2024. That's based on the latest Consumer Price Index for Urban Wage Earners and Clerical Workers data through June, said Mary Johnson, retired Social Security and Medicare policy analyst previously with the Senior Citizens League.

Read: Social Security COLA expected to be lower in 2025, analyst predicts

Register now for ADVISE AI, the first-ever wealth management conference focused solely on AI.

Subscribe for the latest in wealth management and financial planning news here.