Estate and gift taxes can have a rather large impact on your assets, which
ultimately have an impact on your estate plan. If you currently have an
estate plan, then you're one step ahead of the game. But laws are
always changing and it is vital that your estate plan regularly changes
The IRS recently announced updates to inflation which are effective immediately for 2015.
These adjustments include:
Estate tax exemption: Increase from $5.34 million to $5.43 million
Lifetime gift tax exemption: Increase from $5.34 million to $5.43 million
Generation-skipping transfer (GST) tax exemption: Increase from $5.34 million to $5.43 million
Annual gift tax exclusion: $14,000
The top gift tax rate for each category will remain at 40 percent. So what
does this mean for your estate plan? Keep reading to learn how you might
be affected in 2015.
Your Estate Plan & the New Year
One of the most valuable things that these adjustments could do for you
is give you the ability to make even larger lifetime gifts and avoid unnecessary
estate taxes by way of portability. Portability means that a deceased
spouse's unused estate and gift tax exemption can be used by the surviving spouse.
Essentially, you have the ability to leave your heirs with even more money.
Federal estate taxes can be high, but by applying portability, your assets
are protected from a hefty loss.
The gift tax annual exclusion amount will stay the same in 2015 - $14,000
for individual gifts and $28,000 for gifts made by married couples, should
they consent to split their rights.
Make the most of your assets by gifting securities or interests in privately-held
companies, rather than shelling out cash gifts. Doing so may even raise
the value of your assets and further benefit your heirs and beneficiaries.
Questions? Don't hesitate to call!
Understanding how these changes directly affect your estate plan can be
confusing, which is why our firm exists. When you partner with The Woodbury
Law Office, you have free reign to voice your concerns and we will work
together to find a solution you feel comfortable with.
Don't let this New Year get away from you.
Call our Sacramento estate planning attorney today to schedule your free consultation!