Just a quick reminder, minor changes are coming to the Gift Tax and Estate Tax rules. The annual gift tax exemption is going up from $14,000 per year to $15,000 per year. This means that you can gift up to $15,000 to anyone you want without incurring any gift tax liability.
For example, John and Jane have three children: John Jr, James, and Leslie. John and Jane can gift $15,000 to each of their three children for a total amount of $45,000 each year without incurring gift tax liability.
In addition to gift tax changes, the federal estate tax exemption is going up from $5.49 million to $5.6 million. In addition, when a married couple fully uses their portability election, a married couple has the ability to pass $11.2 million in assets to the next generation estate tax free. However, we are still monitoring the tax reform bill as it makes its way through the House and Senate which aims to completely repeal the estate tax in 2022.
Therefore, for the time being, there is still an estate tax. Also, don’t forget, your estate includes life insurance death benefit when calculating your taxable estate.
Make it a gift to your family by providing them with the protection that they deserve. Plan your estate today, so you can leave a lasting legacy tomorrow. Call us today at (615) 490-0477 to schedule your Legacy Planning Strategy Session!