Those with more than $5 million dollars in net assets who are concerned about their heirs paying estate tax might want to kick the bucket within eight years. Or, if you don’t care about the amount of estate taxes your heirs will have to pay, no need to read on.
Those most concerned should be owners of businesses that they wish to remain in the family. Many small businesses can’t stay in family hands unless adequate lifetime planning has been accomplished. The good news is that the exemption from estate tax has basically been doubled, so a couple can plan to transfer up to $22 million to their heirs, tax-free. Like many aspects of the new Tax law, which have sunset provisions, they are only around for the short term. This one expires in eight years.
Those who expect or plan to live longer and capture as much of the $22 Million as they require, should utilize the annual gift tax exclusion by making gifts in these full sunshine years to vehicles such as irrevocable or generation-skipping trusts.
Act now to get to the same place without having to sunset yourself by 2025.
Do you need your tax returns evaluated for the new tax year? Czarnowski & Beer is currently offering a complimentary, no-obligation tax return evaluation. To take advantage of this limited time offer, visit our tax return offer page or contact us at firstname.lastname@example.org or call (212) 397-2970 and we will be happy to help you and answer your questions.
Please note, this offer is subject to change or expire without notice any time after May 30, 2018. Please confirm with Czarnowski & Beer if you are reading this blog post after this date. Thank you.