Estate & Gift Tax Strategies
As the end of the year approaches, now is an ideal time to implement estate and gift tax strategies to lower your taxable wealth.
One option is that individuals are allowed to give up to $17,000 per person per year and not be subject to a gift tax.
“Drawing down your wealth is a great estate planning tool,” Mark said. “Gifting money to your heirs helps avoid estate taxes and you get the benefit of seeing your family enjoy your gift while you’re alive.”
The current estate tax threshold is $12 million, meaning the government can tax the value of your estate if you have assets totaling over $12 million, but you do not pay estate tax if your assets are less than $12 million. That is why many people take advantage of the gift tax exemption of gifts up to $17,000 per person per year.
Though there arguably is a philosophical problem with an estate tax since you pay taxes on your assets throughout your life and then you get taxed on them again when you die, it is still imperative that tax filing obligations are met.
“Estate planning has so many tax angles that if people are not properly set up with an estate plan, then they can create real problems for their family,” Mark said.
The IRS is receiving $80 billion in additional funding in the coming years with $43 billion specifically earmarked for enforcement, so now is the time to ensure your estate and tax strategies are properly aligned and in compliance with tax laws.
Listen below to the clip discussing estate and gift tax strategies from “The Mark Milton Show.”