Given the loss of deductions for investment fees, it’s important to look at how fees are calculated, Morris says. “I might look at [advisors] changing their compensation model. Ultimately, an advisor is helpful to minimize risks of poor decisions and to create objective decision-making,” he said.
“Fee deductibility should only be one consideration” when a client has a relationship with an investment manager, Stoner added.
Wealthy clients should also examine local tax breaks. One Pennsylvania credit, for instance, allows state residents to contribute to eligible scholarship and educational improvement organizations and receive a federal charitable contribution deduction and a credit against state taxes, according to McGrory.