Can You Benefit from Stepping Up Your Year-End Gifting Strategy?

December 8, 2020

Gifting, whether to family, friends, or charities, always picks up around the holidays. December is also when people start thinking about next year’s tax bill, and ideas for minimizing it.

This year, many serious investors are wondering if the November Presidential election is just another reason for stepping up their gifting strategy. Why?

Because the current exemption amount for estate and gift taxes – the amount of your assets that you can gift during life or at death to avoid paying a 40% or more tax at death – is a generous $11.58 million for individuals ($23.16 million for married couples) thanks to the Tax Cuts and Jobs Act of 2017. That’s more than 3X higher than it was in 2009. It’s an opportunity for sure, but one that could go away sooner rather than later under a new administration.

Wondering if a potential change to the estate and gift tax under a new administration would impact you negatively?

Check out our new Resource: Are Changes Coming to the Estate and Gift Tax to find out if you should be looking more closely at planning opportunities over the coming months. And if you have specific questions, Let’s Talk.

Ed Jastrem

Ed Jastrem

Ed is Director of Financial Planning of Heritage Financial Services, where he creates and shapes best practices in financial planning for the firm. In this role, he mentors the wealth advisors and consults on unusual or highly complicated client cases.

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