At the Fed meeting in Jackson Hole on August 22^nd, Jerome Powell’s dovish leaning remarks signaled that the balance of economic risk “may warrant” a policy stance adjustment.  After these remarks, the markets soared and immediately raised the odds on a 25 basis point cut in federal funds on September 17^th.  Markets are currently pricing in an 85% probability of a September rate cut and 54 bp of easing this year.

There is still plenty of scrutiny surrounding this dovish tilt amid lingering tariff-driven inflation concerns, labor market softening, rate-cut uncertainty and political pressure.  The potential tailwinds for the market driven by the Fed easing expectations are countered somewhat by the overhang at the index level, given the growth this year has been concentrated in a few names.

AI is still the biggest thematic tailwind for market sentiment, though more recent focus has been on the capex bubble, competition and monetization concerns.  Trade has moved somewhat to the back burner over the last month or so after a flurry of deal announcements, but tariff headline risk is not going away.  There has also been discussion about how retailers are expecting to start seeing more cost pressure from tariffs and how much of higher prices companies are going to pass on to the consumer.

Amid all this uncertainty, we continue to remain cautious especially considering the high valuations of the current markets and the fact that September is historically the worst month for the markets on an annual basis.  As always, please feel free to contact any of our team if you have any questions.

This material is provided for informational purposes only and is not intended to be investment advice or a recommendation to take any action. The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.

Source: Fact Set

• Nothing particularly incremental from a narrative perspective in the wake of the more dovish leaning remarks from Fed Chair Powell on Friday. However, still plenty of scrutiny surrounding this dovish tilt amid lingering tariff-driven inflation concerns, labor market softening, rate-cut timing uncertainty and political pressure. Market currently pricing in a ~85% probability of a September rate cut and 54 bp of easing this year. Rotations driven by Fed easing expectations a positive from a breadth perspective though also a potential overhang at the index level given concentration dynamics. Ahead of Nvidia earnings this week, AI still the biggest thematic tailwind for market sentiment, though more recent focus has been on capex bubble, competition and monetization concerns. While trade has moved somewhat to the back burner over the last month or so following a flurry of “deal” announcements, tariff headline risk not going away with Trump disclosing investigation into furniture (which came roughly a week after a 400+ product/$210B+ expansion of steel and aluminum tariffs). Also further discussion about how retailers expected to start seeing more cost pressure from tariffs and pass along higher prices to consumers. Positive corporate guidance and earnings revision trends, elevated buybacks, seasonal headwinds, elevated tech positioning, hawkish BoJ, China policy support, China stock market breakout, big M&A, private equity fundraising slowdown and biggest decline in government employment since WWII among some of the topics recently discussed by the Street and/or in the financial press.

 

When navigating the dissolution of a high-net-worth marriage, attorneys are often laser-focused on equitable division and legal compliance. But overlooking capital gains tax implications in asset division can lead to costly, unintended consequences for your clients.

High-value portfolios — including real estate, investment accounts, business interests, and collectibles — often come with significant unrealized capital gains. And while transfers between spouses during divorce are generally non-taxable under IRC Section 1041, what happens after is where the real impact lies.

Below is a strategic overview to help you better serve your clients by proactively addressing capital gains during divorce proceedings.

Capital Gains & Divorce: The Essentials

• IRC Section 1041 Transfers
  Transfer of property between spouses or incident to divorce are generally non-recognition events. This means no immediate tax is due at the time of transfer. However, the original cost basis and holding period carry over to the receiving spouse.
• Built-In Gains Trap
  If one spouse receives an asset with significant unrealized gains, and then sells it post-divorce, they may face a large capital gains tax burden — even if they received that asset “tax-free” during the split.
• Property Type Matters
  Primary residences, rental properties, stocks, private equity interests, and art/collectibles all carry different rules, exemptions, and tax treatments. For example:
  • Primary residence exclusion may be lost or limited post-divorce. If the primary residence has appreciation, it could result in additional tax if sold by a taxpayer now filing single or head of household.
  • Carried interests or restricted stock may have complex vesting or valuation implications.
• State Tax Differences
  If spouses reside in different states, state capital gains treatment can differ widely and should be factored into the settlement strategy.
• Rental Real Estate
  Can also carry accumulated depreciation which is taxed additionally at the sale of the property.

Attorney’s Capital Gains Consideration Checklist

Use this checklist to guide your client conversations and collaborate more effectively with financial and tax professionals:

 Asset Review

• Identify all assets with unrealized capital gains or losses.
• Determine cost basis and holding periods for each asset.
• Flag assets with illiquid or complex valuation (e.g., business ownership, private equity).

Equitable + Tax-Efficient Division

• Ensure division is not just equal in value, but fair in after-tax value.
• Run hypothetical sale scenarios to project potential capital gains tax burden for each spouse.

Real Estate Considerations

• Confirm if primary residence exclusion ($250k per spouse) still applies.
• Assess whether post-divorce use affects exclusion eligibility.
• If keeping the house, calculate future capital gains exposure.

Investment & Business Interests

• Clarify ownership of carried interest, restricted stock, or deferred comp.
• Address control, voting rights, and liquidation potential.
• Consider installment sale structures or Qualified Domestic Relations Orders (QDROs) where applicable.

 Client Preparation

• Recommend a joint session with a CPA or tax advisor before finalizing settlement.
• Encourage tax projections to inform decision-making, not just after-the-fact reporting.
• Emphasize post-divorce tax planning to avoid surprises at sale or filing time.

Download your checklist here.

Final Thought

Divorce is already emotionally and financially taxing. For high-net-worth clients, it can also trigger steep and unexpected tax bills if capital gains implications aren’t fully considered. As a trusted legal advisor, you can elevate your counsel by ensuring that asset division accounts for both legal equity and tax efficiency — ideally in collaboration with a qualified tax consultant.

If you’re an attorney seeking strategic tax insights for your client’s divorce proceedings, We are available for consults and white-glove collaboration. Let’s help your client land on both feet — legally and financially.

The “One Big Beautiful Bill Act” (OBBBA) was signed into law by President Donald Trump on July 4^th, 2025. The initial bill, first approved by the House on May 22^nd, passed through the Senate with minimal yet subtle changes, retaining the majority of its original blueprint. The final bill was approved by the House in a close 218-214 vote and encompasses nearly 900 pages.

In our last Tax Update, we shared a number of potential provisions that could impact the high-net-worth clients of GenCrest Capital Partners. Below are final results of those provisions, plus additional ones for tax planning awareness and consideration. At GenCrest Capital Partners, we recognize these potential impacts and are here with you every step of the way. Let’s navigate these changes together to help ensure financial success for you and future generations.

Key provisions:

• 2017 Tax Cuts and Jobs Act (TCJA): OBBBA made permanent (with some modifications) many aspects of the TCJA otherwise set to expire at the end of 2025. These include lower tax brackets, increased standard deductions, termination of personal exemptions, increased estate and tax exemption, and retention of the QBI deduction.

• Tax Brackets: The lowest bracket is retained at 10% with the highest bracket still at 37%. The income amounts for the 10%, 12%, and 22% brackets receive an additional year of inflation adjustment.

• Personal Exemptions: The deduction for personal exemptions is permanently terminated. However, the law includes a temporary deduction of $6,000, through the 2028 calendar year, for individuals 65 years old and older. This deduction is phased out for seniors with modified adjusted gross income over $75,000 ($150,000 for those filing a joint return).

• Standard Deduction: The OBBBA retains the increased standard deduction. Further, the inflation-adjusted standard deduction increased for 2025 to $31,500 (joint filers), $23,625 (head of household), and $15,750 (all other filers).

• SALT Cap: The maximum itemized deduction for state/local taxes (also including property and vehicle taxes) has been expanded from $10,000 to $40,000 and is now indexed for inflation. There is a reduction for taxpayers with modified adjusted gross income exceeding $500,000, but not to be reduced below $10,000 (or $5,000 for those that are married filing separately). The $40,000 limit is temporary and will revert to the original $10,000 cap beginning in tax year 2030 – regardless of income level.

• Charitable Contributions: Beginning in 2026, non-itemizers will receive a maximum of $1,000 deduction ($2,000 for joint returns) for qualified contributions. For itemizers, the deduction will only be allowed if total contributions are more than 0.5% of adjusted gross income for the taxable year.

• 1099 Reporting: Effective starting with tax year 2026, the threshold for reporting payments to certain persons engaged in a trade/business and payments for services (Form 1099 MISC or NEC) has been raised from $600 to $2,000, to be indexed for inflation. Form 1099-K, which reports third-party network transaction income from settlement organizations (i.e. Paypal, Venmo), was originally scheduled to reduce its reporting threshold to aggregate payments exceeding $600 per payee, regardless of the number of  transactions. With the passing of OBBBA, the reporting threshold has increased to aggregate payments exceeding $20,000 per payee on more than 200 separate transactions in a tax period.

• Qualified Business Income (QBI): The new law keeps the QBI deduction at 20%, makes the deduction permanent and adds a new minimum $400 deduction for taxpayers with at least $1,000 of QBI.

• Education Accounts: 529 education savings plan withdrawals have been expanded from $10,000 to $20,000 per year for eligible K-12 qualified expenses. The law has expanded the definition of qualified expenses to include certain non-tuition costs, including online educational materials and tutoring outside the house.

• Savings Program for Children: A new savings program has been created called “Money Accounts for Growth and Advancement” (MAGA), which can also be used for saving for a child’s education. Under the new law, up to $5,000 annually can be contributed to a MAGA account. For a child born between January 1, 2025, and January 1, 2029, the federal government will contribute a one-time amount of $1,000 to the account. Parents and relatives can both contribute to the savings account and the funds will grow tax- deferred until the child reaches age 18. Funds can be used for higher education, small business startup costs, or first-time homebuyer expenses, with withdrawals taxed at the long-term capital gains rate for qualified expenses. Non-qualified withdrawals are taxed as ordinary income with penalties. Any unused funds could be withdrawn for any reason after age 30.

• Child Tax Credit: The bill makes permanent the increased child credit (and income phase-out). Further, the law increases the credit to $2,200 starting with the 2025 tax year, with an inflation adjustment for subsequent years. A social security number of at least one spouse is required to be included on a joint return to claim the credit. The child(s) social security number is also now required.

• Clean Energy Credits: OBBBA accelerates the termination of many clean energy tax incentives including those for primary residences, commercial property, and new/used clean vehicles for personal and commercial use. Termination dates range from September 30, 2025, to December 31, 2027, with the residential clean energy credit, energy-efficient home improvement credit, and new/used clean vehicle credits terminated by year-end 2025.

• Estate Tax: The bill retains the estate and gift tax exemption significantly increased by the TCJA. Starting in 2025 (and adjusting for inflation going forward), the exemption is $15 million for individuals and $30 million for married filing jointly. The portability election for surviving spouse is still in effect.

• Capital Investment Expensing: OBBBA increases the maximum amount a taxpayer may expense under Section 179 to $2.5 million, reduced by the amount by which the cost of qualifying property exceeds $4 million. Bonus depreciation is permanently extended, with the allowance increased to 100% for property acquired and placed in service after January 19, 2025.

• Qualified Opportunity Zones (QOZs): The incentive program created during TCJA has been made permanent and is also expanded with the initial QOZ program set to expire after December 31, 2026. The initial – and also newly created second program set to take effect in January 2027 – offer a 10-year rolling investment and provide investors with tax benefits for investing their unrealized capital gains into eligible distressed communities. Benefits include a temporary deferral on taxes, a step-up in basis of 10% if the QOZ investment is held for 5 years, and for investments held for at least 10 years – taxpayers receive a permanent exclusion of taxable income on gains resulting from their original investment.

For additional OBBBA information, check out this handy guide created by the Tax Accounting Group, which outlines key tax law changes for both individuals and businesses.

Sources: Duane Morris, Economic Innovation Group, Jackson Lewis, JDSupra, Keiter, Kiplinger, Michigan Chamber of Commerce, Reuters, Tax Foundation, USA Today

Securities offered through registered representatives of The Strategic Financial Alliance, Inc. (SFA), member FINRA, SIPC. Advisory services offered through registered investment adviser representatives of Strategic Blueprint LLC. SFA and Strategic Blueprint are affiliated through common ownership but otherwise unaffiliated with GenCrest Capital Partners. SFA and Strategic Blueprint do not give tax or legal advice.

Our very own Ashley Madden is featured in this month’s O’Henry Magazine. Click the headline to read the full article.

 

Join our exclusive roundtable discussion series designed specifically for business owners like you.

President Donald Trump’s new tax bill was narrowly approved by the House on Thursday, May 22^nd, passing with a 215-214 vote. The tax bill, titled “One Big Beautiful Bill Act” and exceeding 1,000 pages in length, now heads to the Senate for consideration and potential revisions.

While there are many changes presented in the bill, we are providing a glimpse into the proposed legislative package that we feel may be most impactful for the high-net worth clients of GenCrest Capital Partners.

Key points:

• 2017 Tax Cuts and Jobs Act: Key provisions from this Act would be made permanent. These include lower marginal tax rates across most income brackets (with a top rate of 37%), an increased standard deduction and expanded child tax credit. 

 

• Standard Deduction: For 2025, there will be a $1,000 increase for single and head of household filers, $2,000 increase for joint filers, and $4,000 total potential increase for single seniors ($8,000 for senior joint filers).

 

• SALT Cap: For incomes $500,000 and lower, the “SALT” tax deduction (which includes state/local income taxes as well as property and vehicle taxes) increases from $10,000 to $40,000 followed by additional increase in deduction and income threshold for the next ten years.

 

• Child Tax Credit: A $500 boost from 2025-2028, bringing it from $2,000 to $2,500 per child. Then the child tax credit would return to $2,000, indexed for inflation.

 

• EV Tax Credit: Elimination of the federal tax credit for energy vehicle purchases ($7,500 for new vehicles, $4,000 for used vehicles).

 

• Qualified Business Income: Increase in deduction for small businesses (including partnerships and S corporations) from 20% to 23% of qualified business income.

 

• 1099-MISC Income: Raises the 1099-MISC threshold from $600 to $2,000 and repeals the 1099-K reporting requirements for “gig-economy” income.

 

• 529 Education savings accounts: Expands qualified 529 plan distributions to include K-12 expenses for additional flexibility.

 

• Estate Tax: Exemption rises to $15 million for single filers, $30 million for joint filers, and is then adjusted for inflation going forward.

 

We will continue to monitor the proposed bill’s progress and will provide future timely updates as they are available.

Sources: Trump’s big tax bill has passed the House. Here’s what’s inside it; US House narrowly passes Trump’s sweeping tax-cut bill, sends on to Senate; Trump’s ‘One Big, Beautiful Bill’ With Trillions in Tax Cuts: Passes House; Is the EV Tax Credit Going Away Under Trump? What You Need to Know

 

As we continue to experience heightened market volatility and shifting economic headlines, we want to take a moment to acknowledge the natural concerns that come with times like these.  The news of across-the-board tariffs, the trade war with China and now the 90-day pause, have caused much volatility.  It’s completely understandable to feel emotional and unsettled about the markets.  These markets can test even the most seasoned of investors.

Periods like this are not new to us- we’ve weathered similar storms before and come out stronger.  We have learned that when sentiment is this fearful, it is not the time to sell.  The market ups and down are normal.   In any given calendar year since 1980, the average drawdown (peak to trough decline) of the S&P 500 index historically has been -14%.  (We are currently around -11.63% for 2025). Yet despite this inter-year volatility, the index has tended to finish the year higher than it started.  Since 1980 the index has delivered a positive return 82% of the time.  Market dislocations often give rise to opportunity, especially to those with a well-diversified portfolio.

Your portfolio is designed with these moments in mind.  The flexibility and resilience built into your investment plan are key to withstanding short-term noise while staying focused on long-term goals.  We want to assure you that we remain vigilant, informed and proactive.  We are continually reviewing your allocation to ensure it reflects both today’s environment and tomorrow’s potential.  While no one can predict the next headline, we can prepare and position your strategy to thrive regardless of what tomorrow brings.

Please know how much we value the trust you have placed in us.  At GenCrest Capital Partners, your long-term success is our top priority, and we are deeply committed to navigating these market conditions with both clarity and conviction.

Should you have any questions or simply want to talk through these current conditions and how they may impact your plan, we are here.  Your peace of mind matters to us just as much as your portfolio’s performance.

Thank you again for your collective trust.  We are honored to be your partner and look forward to what lies ahead.

 

Todd R. Walker

Senior Portfolio Manager

GREENSBORO, N.C. (Feb.1, 2025) – Hutchinson Family Offices, a leading wealth management firm in the Piedmont Triad, has announced a rebranding and name change to GenCrest Capital Partners.

It is a major juncture in the company’s efforts to maintain its forward-thinking approach in its mission to deliver exceptional financial strategies tailored to each client’s needs.

“We are excited about this new chapter in our journey. Under this new banner, we are focused on innovation and expanding opportunities while always seeking to honor our clients’ legacy in the work we do,” said Sherry Campbell, CEO of GenCrest Capital Partners.

According to Campbell, “GenCrest” was selected because “Gen” is a “nod to generational wealth, underscoring our dedication to preserving and enhancing a family’s legacy” and “Crest” “symbolizes the pinnacle of achievement and success.”

Services offered by GenCrest Capital Partners include investment management, tax planning, exit planning, family office services, and divorce consulting.

“Our name may have changed, but our unwavering commitment to our clients remains,” said Amy Conley, president of GenCrest Capital Partners. “Our clients will continue to receive the same personalized care and thoughtful service they have come to expect.”

As has been the case since the company’s founding more than 30 years ago, GenCrest Capital Partners remains dedicated to helping safeguard and build upon the wealth and legacy that define a client and their family’s unique story and history.

About GenCrest Capital Partners: For more than 30 years, GenCrest Capital Partners has offered private wealth management and family office services that may offer order, simplicity, and financial confidence. The company’s diverse team of professionals brings a unique mix of specialties and experience to proactively serve our high-net-worth families. GenCrest Capital Partners is committed to their clients and their families, delivering honest guidance, objective advice, and excellent service.

 

 

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Sherry Campbell talks about the personal experiences that inspired her career in the financial services business.