While investments and savings are core to your financial plan, ensuring your estate plan is tax-optimized means keeping more of the wealth you are building. Currently, it’s a relatively favorable environment for estate taxes, but tax rates can, and likely will change, which means it’s important for you to be aware of the implications changes could have on your ability to optimize exemptions.
The most significant is the current estate tax exemption which has more than doubled to $12,060,000 and is up for renewal in 2026. If Congress does not extend the Tax Cuts and Jobs Act (TCJA), it could go back to $5,000,00 which means smaller estates are subject to taxes.
This is a good time to review three important tax exemptions that you may want to consider if you haven’t already.
Estate planning is never a “one and done” exercise. Laws, regulations, and, most importantly, personal circumstances change, and each could impact even the most well-crafted estate strategy. Reviewing your estate plan at least once every five years, as well as whenever you have a significant life event, is extremely important.
I am always available to sit down and go through your plan to help you adjust as needed. I’d also be happy to sit with you and your CPA to make sure your estate is designed to take advantage of the all-time high estate, gift tax, and generation-skipping transfer exemption amounts.
Give me a call or send me an email and we can set up a time to have this important discussion.
All the best.
Content in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.
3 Tax Exemptions You Don’t Want to Miss
July 21, 2022