A well-laid plan can ensure security for generations to come. Even in Melbourne, Florida, individuals look to financial advisers and estate planning lawyers for guidance on estate taxes and planning. Recent changes to the tax code have affected the amount of money that can be left without meeting the estate tax threshold. For other high-asset individuals, the use of special trusts can help a person achieve family goals.
The tax code was recently amended to give a temporary higher tax exemption for gifts and inheritances. The individual threshold is now $11.2 million, and that number is doubled for couples. Since this exemption expires in 2025, individuals can utilize it now to protect their assets and pass wealth on to the future generations.
For some, their children are already well established, and they wish to pass the estate to grandchildren or great-grandchildren. The is called a generation-skipping transfer tax, which is 40 percent and is added on to any estate tax for estates that exceed the $11 million threshold. Some individuals choose to utilize the generation-skipping trust, which allows future generations to benefit from the wealth and its appreciated value without future tax liability. Estate planning lawyers can be a good resource for information about this type of trust.
Understanding the tax law can be difficult for estate planning individuals in Melbourne, Florida, especially when it changes. Tax changes may also affect an existing estate plan that was created before the new guidelines. Some individuals like to do a recurring review of their future goals, with the help of a skilled attorney.
Source: greenbaypressgazette.com, "Taxes and estate planning: New tax law exemptions", Andrew Farah, May 16, 2018