Kevin Miller PC 405.443.5100


Estate planning during periods of market volatility

Estate planning during periods of market volatility

The stock market entered bear market territory earlier this year. The combination of higher interest rates and inflation, coupled with the covid pandemic, has caused the 20% market decline that qualifies the “bear market” conditions. When it comes to estate planning, this environment creates opportunities for some individuals and challenges for others.


Individuals can make a tax-free gift of up to $16,000 every year. With depressed stock values, a bear market is the perfect time to make gifts of low-value stock with high appreciating value.  
The income tax of a traditional IRA converted into a Roth IRA is calculated based on the value of the securities in the account, so it’s advantageous to make hese conversions when the market is down.
If you have an irrevocable trust, and you are able to substitute assets, it may be advantageous to swap out assets for those that are currently in your taxable estate.


Uncertainty is the primary challenge during a changing market. 
When a bear market occurs, people tend to get more risk-averse with their money. Emotionally, this makes sense.

Economic uncertainty is all part of the natural cycle of the economy. What goes up must come down eventually, but try to remember that it will go back up again, too. Estate planning, once complete, will make individuals feel more secure about their assets regardless of the current state of the stock markets. Learn more about estate planning during these times here.