New tax laws across the United States should encourage some Americans to evaluate their yearend tax strategies in order to further enhance their wealth. Don’t make the mistake of assuming that it’s time to jump right into 2019 without proper planning.
These strategies can be especially helpful since your previous tactics and plans might have aligned with tax laws that are no longer relevant and about to fade into the distance.
Having the support of an experienced estate planning professional is often recommended and this can be especially helpful to turn to such a person when you are in the midst of planning for your own future and looking for tools and ways to protect yourself going forward.
Regular interactions with a knowledgeable estate planning professional can ensure you stay on top of tax law changes at the state as well as the federal level. One of the most popular tax planning strategies that can be effective is giving away assets sooner rather than later.
The increased estate tax exemption is only temporary, which means that high net worth clients that are worried about estate taxes levied in the future should plan for a $15,000 or $30,000 for married annual couple exclusion gifts made to grandchildren and children and placed into flexible irrevocable trusts prior to December 31st.
This same gift can also be made immediately after January 1st. Make sure that you mark these dates on your calendar and ensure that you have maximized your opportunity for estate planning options early on and don’t let too much time pass before the holidays surge through. Consider other opportunities such as offsetting gains due to growth. If you sold a business or appreciated investments in 2018, this will lead to capital gains taxes. You can offset these by contributing to a charitable remainder trust or a private foundation prior to December 31st.