ESTATE & GIFT TAX PLANNING

Estate and Gift Tax Planning: A Little Planning Can GO A LONG WAY

Planning for your estate can benefit both you and your family. Investing a little time in estate and gift tax planning can help you manage any tax implications, increase the financial security for you and your loved ones, and provide peace of mind. Pittman & Company, LLP provides the estate and gift planning services to meet your needs.

Estate and Gift Tax Planning — Consulting an Accountant in Urbandale, IA

Keep Up-To-Date with Your Estate Planning

Estate planning is not just a task for the wealthy. Tax implications kick in depending on the value of your estate and the federal and state laws in effect at the time of your death. The value of your home, personal property, business interests, collectibles, investments, retirement accounts, and possibly your life insurance can all enter into the equation. Estate planning is an ongoing project. Review your plan on a regular basis to ensure that they are up-to-date for current tax law and your personal situation.

Gift Tax Planning

Current tax law allows you to give away a certain amount each year to as many recipients as you choose with no gift tax consequences. Your spouse may join in this annual gifting even if he or she is not an owner in the transferred asset. This means that you could transfer double the exempt amount each year to each of your heirs. To double the annual exclusion yet again, you may want to include spouses of your children. The person receiving the gift does not need to be related to you and these annual gifts do not reduce your estate tax exclusion.

Unlimited Gifts

You can make unlimited gifts to pay for another individual's medical expenses or school tuition as long as your payments are made directly to the institution.

Property Transfer

If you have property that is not needed for your retirement, it could be a candidate for transferring during your lifetime. If it is a large income-producer, the future income will be taxed to the new owner and not to you, plus the property will be out of your estate.

Spousal Transfer

You can make unlimited transfers to your spouse either during your lifetime or through your estate. There are no taxes on spousal transfers, regardless of size.