When it comes to estateplanning, it ultimately comes down to what the laws themselves provide. Butfear not, not all questions of estate planning law come down to politics. Forexample, with no political posturing involved at all, the annual exclusionamount is set to rise for the first time since 2009.
The Wall Street Journal broke the good news as early as it could, in aQ&A entitled â€œExpect Gift Limit to Rise Next Year.â€ First, a caveat: itâ€™s not the presentlifetime exclusion of $5.12 million you can expect to see increase, as the juryis still very much out on that one. Rather, itâ€™s the annual gift tax exemptionpresently set at $13,000.
Currently, you can exclude$13,000 per person per year, before ever reducing your lifetime exemptionamount. Good news: that amount is set to adjust up to $14,000.
We await official numbers, butthey should arrive later in the year. If and when the annual gift exclusionincreases, this will bring a welcome bump in your wealth transferopportunities.
If nothing else, the attentiongiven to this uptick in the annual gift exclusion also may offer a wake-up callto the power of annual giving. Just think of what you can do for each of yourloved ones with an annual gift of $14,000.
Likely your loved ones could usethe extra assistance in these tight financial times, and you get the benefit ofseeing their stewardship (or lack thereof). In fact, depending on whether theyare wise or foolish with the gift, you can make adjustments to your estate planaccordingly.
At Idaho Estate Planning we are theexperts you need to know and trust. Work with us and we'll put together a planthat works for you and your loved ones. Remember, good planning is no accident.