Tax-favored gift exemptions that give back — in any administration

With a president-elect Joe Biden heading to the White House, estate and gift tax exemptions could be on the chopping block next year. Even if nothing happens, these exemptions are slated to be halved after 2025. The upshot: Wealthy clients wishing to make big gifts can save taxes by using the generous exemptions now. The gift tax is only assessed on the amount of the gift received, but the estate tax is based on the full inheritance so even the … Continued

Practical Estate Planning Tips That Are Often Overlooked

  So you have gone through all of the work to get your estate planning documents finalized, you have had your signing meeting with your attorney, and now it is time to celebrate that you are done, right? In most cases, the answer is not quite yet. There are few items that are often overlooked that are essential to truly finishing your estate plan. I have listed two of the most important items below: Check Your Beneficiary Designations – Immediately … Continued

Asset Selling to Reduce Estate Tax Exposure

  If you have an estate that may be subject to estate tax next year, particularly if the November election results in a greatly reduced federal estate tax exemption in 2021, now is the time to remove assets from your taxable estate if you can comfortably afford to do so. One of the most effective ways to do this is to sell assets in exchange for a very low interest promissory note.  We are currently experiencing historically low interest rates … Continued

Plan Now for Reduction in Estate, Gift and GST Tax Exemptions

  The federal government taxes the transfer of assets via three separate but interrelated taxes: the estate tax, which taxes the transfer of assets at death, the gift tax, which taxes gratuitous transfers during your lifetime, and the generation-skipping transfer (GST) tax, which is an additional tax assessed when assets are transferred to grandchildren or more remote generations. All three taxes are linked via the federal estate, gift and GST tax exemptions. Plan Now for Reduction in Estate, Gift and … Continued

citybizlist : Washington DC : 2020 Election: Prioritize Estate Planning

For some, now may be the best time to take advantage of estate planning for tax mitigation. With record high gift and estate tax exemption, near record low interest rates, and depreciated assets as a result of the pandemic, Americans are in a unique position to take advantage of the estate planning strategies. But there’s no guarantee how long it will last. Under the current law, an individual can give away USD 11.58 million (USD 23.16 million for married couples) … Continued