Understanding the Annual Gift Tax Exclusion

With an eye toward reducing their potential federal estate tax, Malcolm and Helen began reviewing their estate plan. As they discussed options with their estate planning attorney, they learned about the annual gift tax exclusion. The Annual Gift Tax Exclusion According to current IRS guidelines, individuals may make gifts of up to $15,000 per person (as of 2018) every year without incurring any gift tax. This is Read More

What Does Portability Mean?

Portability technically means something that can be easily moved or carried. The term can be used in several contexts. For example, software portability means the software is easy to transfer to another computer. Portability of retirement and pension funds indicates that a worker may transfer retirement funds when taking a new job. In Florida, homeowners may move some or all of their homestead exemption benefit to a Read More

Will My Estate Have to Pay Federal Estate Taxes?

Not every state collects estate taxes. However, the federal estate tax potentially applies to everyone, though not everyone will have to pay federal estate taxes. The best time to worry about estate taxes is while you are working on your estate planning. You and your estate planning lawyer may be able to lower or eliminate your estate’s tax bill. What is the federal estate and gift tax exemption? The IRS sets a Read More

$11 Million Reasons to Review Your Estate Planning

It’s important to keep our estate plans current. Experiencing a major life event, like a birth or death, may affect some or all of your estate planning documents. When laws change, your plans may need some attention also. The tax reform that became law in December 2017 will probably affect your income tax strategies. Deductions you once counted on may have been eliminated, decreased, or increased. It also affects Read More

The Effect of Proposed Tax Reform on Your Estate

American taxpayers have made one message clear: it’s time for tax reform. Congress and President Trump’s rhetoric have raised hope that relief is on the way. But it also leaves taxpayers wondering what effect the proposed tax reform will have on estate planning. Tax Reform When most people think of tax reform, they think of lowering income taxes. In fact, President Trump campaigned on tax reform that would lower Read More

How to Legally Reduce Your Estate Taxes Through Gift-Giving

We often give presents to celebrate a special event or please a significant other. Sometimes gifts serve a specific purpose, like lowering your potential estate tax burden. Let’s look at some ways to legally reduce your taxes through gift-giving. First, it’s important to understand how estate taxes are calculated. Florida does not have an inheritance or estate tax. However, the federal government collects tax Read More