January 12, 2015

Every year it’s a good idea to check in and see what changes are coming about with regard to taxes as this may influence your tax planning strategies for the new year and beyond. This year there are four tax changes or rules you should know. 

Rule #1: Gift Tax Exclusions Stay the Same

Many people are aware already that they can pass $14,000 along to another individual each year (the exclusion doubles if the gift is from a married couple). Although the gift tax exclusion changes with inflation, the changes were small enough to keep the amount at previous levels.

Rule #2: Estate Tax Exemption Rising to $5.43 Million

This is an increase of $90,000 over previous years. Talk with your planner about how giving other gifts during your lifetime can influence this exclusion.

Rule #3: Married Couples Can Double Estate Tax Exemptions

In the past, complex trusts may have been required to ensure that two spouses got their maximum exclusion amount, but now a deceased spouse’s benefits can be available to a surviving spouse later in time if they weren’t used initially. This can really save couples when it comes to tax liability.

Rule #4: Bear in Mind That Some Gifts Are Exempt from Estate/Gift Tax

There are some gifts and bequests that don’t fall under taxation requirements, like the marital deduction or charitable donations. Talk with your planner in advance to be sure you’re getting the most out of your gifting.

For more 2015 tips and to schedule a meeting, send us a message at info@lawesq.net.