If you can believe it, we are a couple months into 2019, and tax season is already upon us. This means it is the perfect time to reassess your estate planning strategies for the new year.
You must make plenty of new considerations concerning your estate plan this year. Here are some tips for estate planning in 2019.
Take advantage of the current law
The Tax Cuts and Jobs Act still benefits many estates, but some of these advantages are temporary. Currently, you can enjoy exemptions from estate and gift taxes. As of the beginning of 2019, the lifetime exemption is at $11.4 million. This allows you to pass on additional funds without dealing with the federal gift tax.
You can also enjoy an exemption from the generation-skipping transfer tax. The current exemption is currently at $22.8 million for married couples and $11.4 million for individuals. Be aware that these exclusions and exemptions will reset in January 1, 2026.
Make annual gifts
Do not forget gifts this year. You can give as much as $15,000 per person without getting hit with the gift tax. However, married couples able to split gifts can give up to $30,000 per person.
Review your will
If you already have a will, you are ahead of many others. However, you must remember to consistently analyze it to determine whether you want to make any changes. A new year can come with a variety of life alterations. You or your family may experience a marriage, divorce, the birth of a child, financial windfall, financial loss or a death. If any of these take place, or if it has been a few years since you reviewed your will, make sure you take another look at it this year.
Managing your estate and finances can be a challenge, especially with the laws constantly changing. If you listen to the right advice, you can pass on your estate effectively.