21 Jan 2026

New Ways to Use 529 Plans: Expanded Uses and Smart Strategies

529 college savings plans were once used mainly for traditional college tuition, books, and housing. Today, these accounts offer far more flexibility. Understanding the new ways to use 529 plans can help families maximize tax advantages while adapting to modern education and career paths.

Broader Qualified Educational Expenses

529 plan funds can now be used for more than four-year college programs. Eligible expenses include certificate programs, continuing education, and approved workforce training courses. This expansion supports students and professionals pursuing credentials, skill development, or career changes without losing tax benefits.

Higher K–12 Spending Limits

Families can now use a larger annual amount from 529 plans for qualified K–12 education expenses. This change makes it easier to cover private school tuition and related costs while maintaining the tax-free growth of the account.

Support for Career Training and Certifications

Modern careers often require certifications, licenses, or specialized training. 529 plan funds may be used for approved exam fees, credential programs, and professional development courses, making these plans valuable for lifelong learning—not just college.

Roth IRA Rollover Opportunity

Unused 529 plan funds no longer have to sit idle. Eligible balances can be rolled into a Roth IRA for the beneficiary, up to a lifetime limit. This option allows families to shift unused education savings into long-term retirement growth without tax penalties, provided certain requirements are met.

Changing the Beneficiary

If the original beneficiary doesn’t need all the funds, the account owner can change the beneficiary to another qualifying family member. This flexibility keeps the savings working for future education or financial goals across generations.

Conclusion

The new ways to use 529 plans make them more versatile than ever. With expanded K–12 uses, support for career training, and Roth IRA rollover options, these plans now serve both education and long-term financial planning needs. Families who understand these updates can better align their savings with real-world goals.

by Donald Hayden

19 Jan 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.

by Donald Hayden

12 Jan 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.

by Donald Hayden

05 Jan 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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