tax planning webYou spend your whole life building your legacy but sadly, that is not always enough. Without careful tax planning, much of it could be lost to taxes or misdirected. While a will or living trust is essential for dividing your estate as you wish, an efficient tax plan ensures you pass on as much of your legacy as possible.

 

Understanding Estate Tax Laws
Through the years, estate tax laws have undergone
Significant changes. Currently, there is an estate tax exclusion of $5,490,000 ($10,980,000 for married couples). Moreover, the 2018 Tax Cuts and Jobs Act more than doubles this amount to $11,180,000 as of the 2018 tax year. In addition, the estates of married couples continue to benefit from
“portability.” This means that when one spouse dies, the unused portion of his or her exemption is passed on to the surviving spouse. Portability is not automatic, however, as the unused portion must be transferred by the executor to the surviving spouse and a special tax return filed within nine months. Taxes only become due after both spouses have died.

Optimizing Your Estate Plan
One way to maximize the amount you can pass on is through annual gifting while you are alive. An individual is allowed to give $15,000 each year to another individual, tax-free. If you give more than that, your basic lifetime exclusion will be reduced. As an example, if you give a child $50,000 this year, the $5.49 million exclusion will be reduced by $35,000 at the time of your death. It is important to note that gift taxes are paid by the giver, not the recipient.

An experienced estate tax planning attorney can help minimize potential inheritance, gift and estate taxes by:

- Identifying taxable assets
- Transforming your wishes into a will or living trust
- Keeping you apprised of federal and state tax law changes
- Establishing an annual gifting plan
- Creating family and charitable trusts
- Setting up IRA charitable rollovers
- Arranging 529 education savings plans
- Developing a Roth conversion plan

Helping you create a succession plan for your family business
It’s never pleasant to consider the end of your life, but planning for it will help ensure that the things you care about are cared for. It is one of the greatest gifts you can give your loved ones.

Upcoming Events in Center Valley
Business Planning Workshop
When: Wednesday July 25, 2018 @ 10 am
Where: 3477 Corporate Parkway, Suite 100 Center Valley, PA

IRA Trusts Workshop
When: Wednesday August 15th, 2018 @ 10 am
Where: 3477 Corporate Parkway, Suite 100 Center Valley, PA

There is no charge for these events but seating is limited so registration is necessary.
If you are unable to join us but are interested in more information, give us a call at 610-889-0288.
Register online at http://www.paolilaw.com Click on “Upcoming Seminars”

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