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Estate planning can be a critical part of securing your client’s financial future and helping see that their loved ones are cared for after they’re gone. However, in today’s digital age, an increasingly important and often overlooked aspect of estate planning involves managing digital assets. From email accounts to cryptocurrencies, these assets can be complex to navigate without a proper plan in place.

Digital assets can include a wide range of accounts, files, and digital property, such as:
• Email Accounts
• Airline/Hotel Miles & Points
• Social Media Accounts
• Cloud Storage
• Cryptocurrencies, NFTs, and other assets stored on the Blockchain
• Digital Photos & Music
• Website Domains
• Blogs
• Digital Storefronts (Etsy, Ebay)
• Subscription Accounts (Netflix, Hulu, Amazon Prime)

Without a plan, accessing or transferring these assets can be challenging, as many terms of service agreements restrict access upon the owner’s death. Proper authorization can play a key role in avoiding unnecessary complications during estate administration.

Understanding the Revised Uniform Fiduciary Access to Digitial Assets Act (RUFADAA)

In more than 90% of U.S. states, the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) governs fiduciary access to digital assets. This legislation outlines a threetiered framework:

Tier 1 — Online Tools: Priority is given to any “Online Tool” provided by a digital platform. These tools allow users to specify how their accounts should be managed after death. Examples include Google Inactive Account Manager and Apple iOS 15.2+ Legacy Contact

Tier 2 — Estate Documents: If no online tool is used, digital asset owners can grant access to fiduciaries through estate documents such as wills, trusts, or powers of attorney. These instructions override conflicting terms of service agreements.

Tier 3 — Terms of Service: In the absence of user directives, the platform’s terms of service will dictate access. Unfortunately, most agreements restrict post-death access, making this a less favorable option.

The Role of a Wealth Management Team

At Dean Dorton Private Wealth, we believe comprehensive estate planning includes accounting for digital assets. Our advisors work collaboratively with clients and their legal teams to:

• Bring Awareness: We strive to educate clients about the importance of digital assets and the applicable rules and regulations.

• Create a Digital Asset Inventory: We recommend that clients maintain an up-todate inventory of digital assets that are stored securely with a password manager. This list ensures no asset is overlooked.

• Guide Implementation: Using the three-tiered approach, we help clients determine the best course of action to align with their wishes.

Best Practices

1. Include digital assets in wealth transfer and estate planning discussions.

2. Encourage clients to inventory their digital assets.

3. Review the use of online tools when updating beneficiary forms and other estate planning documents.

4. Consider adding language about digital assets to estate documents during routine updates.

Getting Started

1. Document Review:

a. Obtain a copy of estate planning documents and review for language addressing digital assets.

b. Assess beneficiary assignments and ensure alignment with overall goals.

c. If necessary, facilitate an introduction to a trusted estate planning attorney.

2. Digital Asset Inventory:

a. Work with clients to compile a list of potential digital assets they own.

3. Client Conversations:

a. Discuss the importance of digital assets and gauge client concerns.

b. Focus on long-term planning and the role of fiduciaries.

4. Follow-Up Actions:

a. Track action items in CRM systems.

b. Save documentation related to digital asset management for future reference.

c. Provide clients with summaries of the planning process for their records.

Move Forward with Confidence

At Dean Dorton Private Wealth, our approach helps ensure no detail is overlooked. By addressing digital assets alongside traditional estate planning, we help clients protect their legacy in an ever-evolving digital world. Contact us today to learn more about how we can support your wealth management and estate planning needs.

* This content is for informational purposes only and developed from sources believed to be providing accurate information. We make no representations as to its accuracy or completeness. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This should not be considered a solicitation for advisory services or the purchase or sale of any security.

Retirement can be a culmination of years of hard work and careful planning, and crafting a
personalized wealth plan can play a key role in enjoying the lifestyle you’ve always
dreamed of. For many, this includes evaluating whether to contribute to a traditional
Individual Retirement Account (IRA), a Roth IRA, or both. Our team at Dean Dorton Private
Wealth aims to equip you with thoughtful guidance, helping you reach your goals. From tax
minimization to estate planning, we’re here to support you along the way.

Common Questions About IRAs and Roth Conversions

You may be asking yourself:

• Is a traditional or Roth IRA beneficial to me, or maybe a combination of both?

• How much can I invest in an IRA?

• How do I know if it would benefit me to convert my traditional IRA into a Roth?

These questions are just the beginning, and there’s not a one-size-fits-all answer. IRAs and Roth conversions often intersect with broader aspects of financial planning, including:

• Multigenerational Planning: Passing your financial legacy benefits your loved ones.

• Efficient Tax Strategies: Prudent planning of tax liabilities today and in the future.

• Leaving a Legacy: Structuring accounts to help maximize their impact for future generations.

How Your Wealth Management Team Helps

IRAs and Roth conversions come with complexities that require careful analysis and
strategic decision-making. Our team of advisors collaborates with you to develop a
thoughtful approach based on your unique situation. Here’s how we can help:

Customized Analysis

We evaluate key factors such as your current and anticipated tax brackets, years until retirement, and asset allocation. This analysis helps guide whether a traditional IRA, Roth IRA, or both will help you reach your goals.

Strategic Roth Conversions

Converting a traditional IRA to a Roth IRA might be beneficial for some investors, but timing and contribution amounts are critical. We analyze the potential tax impact and recommend strategies to achieve your long-term objectives.

Tax-Efficient Investing

We work with your tax professional to decide whether a traditional or Roth IRA could be beneficial to you. For tax efficiency, we can strategically select the types of assets relative to the types of accounts you hold.

Compliance and Oversight

Adhering to rules surrounding Required Minimum Distributions (RMDs) is essential to avoid penalties. We guide you through these requirements and work with custodians to help ensure withdrawals are handled correctly.

Inheritance Planning

Inheriting an IRA can come with unique challenges, such as potentially triggering immediate tax liabilities. We help you navigate these challenges to preserve the value of your legacy.

A Thoughtful Approach to Wealth Planning

IRAs and Roth conversions are just one piece of a financial picture. At Dean Dorton Private Wealth, we focus on helping you make decisions with your long-term success in mind. By integrating retirement planning with broader wealth management services, including investment strategy, tax planning, and estate planning, we strive to provide clarity and confidence in your financial future.

Ready to Plan for Your Future?

If you’re considering how IRAs and Roth conversions could fit into your broader retirement plans, our team is here to help. Reach out to start a conversation about your goals and how we can support you in achieving them.

* This content is for informational purposes only and developed from sources believed to be providing accurate information. We make no representations as to its accuracy or completeness. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This should not be considered a solicitation for advisory services or the purchase or sale of any security.

The One Big Beautiful Bill Act (OBBBA) offers new benefits that can give individuals an upper hand while financially planning for their future. Here are six wealth planning advantages we feel worth exploring.

Roth Conversions

The historically low tax brackets put in place by President Trump during his first term (Tax Cuts and Jobs Act of 2017) will continue indefinitely with the passage of the OBBBA. If you are considering a Roth conversion, you may still benefit from low tax brackets.

529s

If you have a child or grandchild that you would like to help with future education expenses, the OBBBA expands the way funds invested in a 529 plan can be used. Traditionally, the funds had to be earmarked for qualified higher education expenses or K-12 tuition at private schools. Now the funds can also be used for various education costs, from standardized test fees to education therapies, and workforce training and credentials.

Tax Break for Retirees

While the OBBBA doesn’t eliminate tax on social security as was widely discussed, it does address the issue from a different angle. The OBBBA gives a “senior bonus,” a tax deduction that some Americans over the age of 65 will qualify for. This temporary tax deduction will vary in amount depending on the modified adjusted gross income earned by eligible taxpayers. For example, couples who file their taxes jointly and have less than $150,000 in adjusted gross income should receive a tax credit of $12,000. This temporary tax break is scheduled to sunset in 2028 and is phased out with higher incomes.

Considering Buying a New Vehicle in the Next Few Years?

You may want to consider buying an American-made vehicle. The OBBBA will allow a temporary tax deduction (on vehicle purchases from 2025 to 2028) for new vehicles that are assembled in the United States. The measure would allow car buyers to deduct up to $10,000 a year spent on interest on qualifying auto loans. Income limits apply. ATVs, trailers, and campers are not eligible.

Consider Opening a Custodial Roth IRA for your Children and Grandchildren who are Working

This can be a great option any time, but especially if your kids have jobs where they make overtime or tips. The OBBBA changes how/if that income is taxed. Your child may be able to put tax-free income from tips or overtime into a Roth IRA and take advantage of the beauty of that money compounding at an early age. The key is that your child must have earned income and cannot invest more than they earned in any given year.

Expecting a New Baby?

If you have a child between 2025 – 2028, the OBBBA introduces offers a new kind of account for them, dubbed a “Trump Account.” There are no income limitations. The child must have a Social Security number. The account is free to set up and will be seeded with $1,000 from the U.S. Treasury. The accounts are designed for long-term growth and generally difficult and expensive to access before the child turns 18. If invested in a fund tracking the S&P 500 and assuming historical average returns, that original $1,000 investment could grow significantly over time.

If you have questions or need guidance on any information in this article, contact a Dean Dorton Private Wealth Advisor.

This information is for educational purposes only and developed from sources believed to be providing accurate information. We make no representations as to its accuracy or completeness. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed are for general information and should not be considered a solicitation for the purchase or sale of any security.