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January 2026 - Private Tax Solutions

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by Donald Hayden
26 Jan 2026
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Financial Planning0

South Dakota Trust Taxes: Why Trusts Are a Tax Advantage in 2026

South Dakota has become one of the most attractive states for establishing trusts due to its highly favorable tax structure. Wealth advisers and high-net-worth individuals increasingly choose South Dakota trusts to reduce state tax exposure while maintaining long-term control over assets.

These trusts are often used by investors, private-equity professionals, and families seeking efficient wealth preservation strategies.

No State Income Tax on Trusts

One of the biggest advantages of South Dakota trust taxes is the absence of a state income tax on trust income. This allows earnings generated within the trust to grow without being reduced by state taxation.

As long as the trust is legally based in South Dakota, income can remain shielded from state taxes even if beneficiaries live elsewhere.

No Capital Gains, Estate, or Inheritance Taxes

South Dakota also imposes no state capital gains tax, estate tax, or inheritance tax on trust assets. This combination creates a powerful environment for preserving wealth and passing assets efficiently to future generations.

The lack of these taxes allows trusts to retain more value over time compared to similar structures in high-tax states.

Dynasty and Perpetual Trust Benefits

South Dakota allows dynasty trusts to exist indefinitely. This means families can create trusts designed to last for generations without being forced to distribute assets after a fixed period.

This long-term flexibility supports multigenerational wealth planning and helps families maintain control and consistency across decades.

Strong Asset Protection and Privacy

Trusts established in South Dakota benefit from strong asset protection laws. These protections help shield trust assets from certain creditor claims while maintaining a high level of privacy.

Trust information is not easily accessible to the public, making South Dakota an appealing choice for individuals who value confidentiality in their financial planning.

Conclusion

South Dakota trust taxes offer a compelling advantage for individuals and families focused on wealth preservation, tax efficiency, and long-term planning. With no state income tax on trusts, no capital gains or estate taxes, and flexible trust laws, South Dakota continues to stand out as a premier trust jurisdiction in 2026.

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by Donald Hayden
25 Jan 2026
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Financial Planning0

Create a Personal Finance Calendar to Stay on Track in 2026

A personal finance calendar helps you schedule key financial tasks and milestones throughout the year so you can stay on top of your money habits and long-term goals. Treating your financial planning as a year-long activity — instead of a one-time event — gives you structure and accountability, which can improve your financial health overall.

Start the Year by Reviewing Your Financial Health

January is an ideal time to assess your current financial situation. Begin by reviewing your cash flow, updating your budget, and creating or refreshing your emergency fund. Take stock of all income, expenses, debts, and savings goals to establish a strong foundation for the year ahead.

Plan for Tax and Retirement Deadlines

A personal finance calendar helps you remember important tax deadlines and savings opportunities. Filing your income tax return by the appropriate date and contributing to retirement accounts early in the year can improve your tax outcome and prevent last-minute stress.

Mid-Year Financial Check-Ins

By mid-year, revisit your financial goals and compare actual performance with your planning calendar. Adjust your budget if necessary, review your investment allocations, and make changes to stay aligned with your objectives. These check-ins can keep you from falling behind on savings and retirement contributions.

Prepare for Holidays and End-of-Year Events

Later in the year, your calendar can remind you to plan for holidays, gift budgets, and year-end financial tasks like tax-loss harvesting, charitable giving, or required minimum distributions from retirement accounts if applicable. Planning these events ahead of time helps you avoid overspending and unnecessary financial stress.

Conclusion

Creating and following a personal finance calendar gives you an organized way to manage budgeting, savings, taxes, and other money habits in 2026. Breaking your financial goals into monthly tasks — such as reviewing your budget, planning for deadlines, and tracking progress — helps ensure that you stay proactive and avoid last-minute financial surprises. Using a calendar lets you take control of your finances throughout the year and reach your financial goals with confidence.

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by Donald Hayden
19 Jan 2026
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Estate Planning0

Wealth Transfer Mistakes Billionaire Families Make in 2026

When it comes to passing down massive fortunes, even billionaire families are not immune to planning mistakes. With trillions expected to be transferred between generations in coming years, the risks of missteps in succession and wealth transfer are significant. These errors can lead to disputes, tax inefficiencies, and loss of business value if not handled thoughtfully.

Avoiding Money Conversations and Miscommunication

One common issue among ultra‑wealthy families is reluctance to openly discuss wealth and inheritance with the next generation. Without transparent conversations about values, expectations, and intentions, heirs may feel unprepared or unclear about their roles and responsibilities. Regular family discussions help align goals and reduce uncertainty during transitions.

Lack of a Formal Succession Plan

Many wealthy families make the mistake of having assets without a coherent succession strategy. Formal planning should include clear documentation of who will lead family businesses, manage investments, and make key decisions. Without it, leadership gaps, conflicts, and disruptions can undermine wealth continuity.

Confusing Control with Leadership

Some founders hold onto control too tightly, preventing heirs from gaining meaningful leadership experience. Empowering the next generation with responsibility gradually prepares them for real decision-making and reduces the shock of sudden authority shifts. This step fosters both leadership skills and confidence.

Underestimating Tax and Transfer Timing

Timing matters in wealth transfer, especially with complex assets like businesses or real estate. Transferring appreciated assets too early can create unexpected tax obligations for heirs. Waiting for a step-up in basis on inherited assets often provides more favorable tax outcomes and preserves more of the family’s fortune.

Succession Ambiguity and Execution Failures

Even well-designed plans can fail without real-world implementation and element clarity. Succession plans should not just exist on paper; they must be operationally understood by advisors, heirs, and family executives to prevent confusion or paralysis at critical moments. Practice scenarios and role preparation boost execution success.

Conclusion

Wealth transfer is one of the most critical events in a family’s financial life cycle. Avoiding common mistakes — such as failing to communicate, lacking formal planning, conflating control with leadership, ignoring tax implications, and neglecting practical execution — can significantly strengthen legacy continuity. Thoughtful planning, education, and preparation ensure that wealth serves future generations as intended.

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by Donald Hayden
12 Jan 2026
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Tax Planning0

New Tax Break for Charitable Giving: What to Know for 2026

Starting in 2026, U.S. taxpayers will see significant changes to how charitable contributions are treated for federal income tax purposes. These changes are designed to encourage charitable giving while adjusting deduction rules for both itemizers and non-itemizers.

New Deduction for Non-Itemizers

One of the most notable updates for 2026 is that individuals who do not itemize deductions on their tax returns will be able to claim a charitable deduction of up to $1,000 for single filers and $2,000 for couples filing jointly for cash contributions to qualified public charities. This above-the-line deduction is available in addition to the standard deduction and can lower taxable income even if you don’t itemize on Schedule A.

Itemizer Rules: Donation Floor and Limitations

For those who continue to itemize, charitable deduction rules are changing. Starting in 2026, only donations that exceed 0.5% of your adjusted gross income (AGI) will be deductible for federal tax purposes. Small donations will no longer qualify unless they push your total itemized deductions above this floor threshold.

Additionally, the tax benefit of itemized deductions, including charitable giving, will be capped at 35 % of the value for taxpayers in the highest federal tax bracket. This reduces how much tax savings high earners can claim compared to previous rules.

Strategic Timing of Donations

With these new rules, financial advisors suggest considering when you make charitable gifts to maximize tax benefits. Donors might accelerate larger gifts into 2025 to claim them under the older rules before the 0.5% floor and cap changes take effect. Likewise, smaller recurring donations may still benefit from the new above-the-line deduction once 2026 begins.

Qualified Charitable Distributions (QCDs)

For older taxpayers, using Qualified Charitable Distributions (QCDs) from an IRA can remain an effective strategy. QCDs allow individuals aged 70½ or older to donate directly from their IRA to charity in a tax-efficient way, potentially reducing taxable income without itemizing.

Conclusion

The new tax break for charitable giving in 2026 creates opportunities for many taxpayers to receive deductions for donations — especially non-itemizers who previously saw no benefit. Understanding the updated rules for both standard and itemized deductions can help donors maximize tax savings while supporting causes they care about. Planning ahead and coordinating donation timing with financial goals is key to making the most of these changes.

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by Donald Hayden
05 Jan 2026
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Estate PlanningFinancial Planning0

How to Build a Business That’s Built to Sell in 2026

Creating a business that’s built to sell is not only about planning an exit. It’s about building a company that can operate independently, generate consistent profits, and remain attractive to future buyers. A truly sellable business is one that continues to grow even when the owner steps back from daily operations.

Focus on Recurring Revenue and Scalable Models

One of the most important elements of a business built to sell is predictable income. Recurring revenue models such as subscriptions, retainers, or long-term contracts provide financial stability. Buyers favor businesses with reliable cash flow because they reduce risk and make future earnings easier to forecast.

Diversify Your Customer Base

A business that depends heavily on one or two major clients is considered risky. Diversifying your customer base protects revenue and shows that demand exists across a broader market. This stability increases buyer confidence and strengthens overall valuation.

Create Systems and Processes That Don’t Rely on the Owner

Sellable businesses run on systems, not personalities. Documented processes, automation, and clear workflows allow employees to perform tasks consistently. When operations don’t rely on the owner’s constant involvement, the business becomes easier to scale and easier to transfer to a new owner.

Build a Strong and Capable Management Team

A reliable management team is a major asset when selling a business. Buyers want to know that leadership is in place and capable of maintaining performance after ownership changes. Empowered managers and clearly defined roles reduce transition risk and improve long-term stability.

Maintain Clean and Transparent Financial Records

Clear financial reporting is essential for any business built to sell. Organized records help demonstrate profitability, cash flow, and growth trends. Transparency builds trust with potential buyers and simplifies due diligence during the sales process.

Establish a Clear Brand and Market Position

A recognizable brand and clear value proposition make a business more attractive in the marketplace. Strong customer loyalty and consistent messaging create differentiation. Businesses with a solid reputation often command higher valuations because buyers see long-term potential.

Conclusion

Building a business that’s built to sell in 2026 requires intentional planning and smart execution. Focus on recurring revenue, diversify customers, implement systems, strengthen leadership, and maintain clean financials. These strategies not only prepare your business for a future sale but also create a stronger, more efficient company today.

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