HELPFUL IDEAS – YEAR END ESTATE PLANNING

Everyone makes a Christmas list this time of year. But the team at Doane and Doane has a different kind of list to share. One that provides ideas for year-end estate planning. We’ve talked about potential changes in the estate tax exemption and the need to act now before the limits change, but here are some other estate planning moves you may want to consider.

• Take advantage of the annual exclusion gifts. The limit for 2020 is 15,000.
• Pay medical bills for your family members. Remember the money must go directly to the medical provider.
• Pay your grandchild’s tuition. Again, the money must go directly to the institution.
• Consider a grantor retained annuity trust or “Grat.” Fund this trust with an asset whose value has been depressed by our current economic situation, but has strong potential to rebound.
• Use depressed value assets to make an outright gift to your children,
• Transfer your life insurance policy into an irrevocable trust, which removes the value of the policy from the taxable estate.
• Refinance high-interest rate loans and if you have intra-family loans, consider making new loans or refinancing existing ones to take advantage of a-f-r rates. This will slow the growth of assets in your estate if you loan the money and take back a note with these low-interest rates.

Basis always needs to be considered in any estate planning strategy, so work with an experienced estate planning attorney. Call Doane and Doane today or visit doaneanddoane.com for additional details.