14 Ways to Show Your Finances Some Love - Part 2
This week, we’re continuing our exploration of smart, tax-advantaged financial tips that benefit your family this year:
8 | Embrace The Annual Gift Exclusion
Spread financial goodwill by taking advantage of the annual gift exclusion, which allows you to gift up to $18,000 per person annually without incurring gift taxes. This thoughtful gesture not only avoids taxation but also strengthens relationships with family and friends. Whether it’s assisting with educational expenses, supporting travel dreams, or offering financial assistance, annual exclusion gifts embody generosity and nurture important connections.
9 | Maximize Your Lifetime Gift Tax Exemption
Secure your family’s financial future by utilizing your lifetime gift tax exemption, currently set at $13.61 million per individual. By making strategic gifts during your lifetime, such as funding education or helping with a down payment on a home, you can minimize estate taxes and provide significant support to your heirs. Given that this exemption is scheduled to sunset in 2025, proactive planning now can maximize benefits for your loved ones.
10 | Allocate Funds to the Generation Skipping Tax Exemption
Plan ahead by directing additional funds towards your generation-skipping transfer tax exemption, which allows for tax-efficient wealth transfer to grandchildren or future beneficiaries. This approach not only mitigates tax implications but also preserves your family’s wealth across generations.
11 | Accelerate Mortgage Payments
Boost your homeownership journey by making an extra mortgage payment on your primary residence. This strategy enhances your mortgage interest deductions on your tax return, lowering your taxable income while expediting your path to debt-free homeownership.
12 | Enhance Rental Property with Repairs
Increase the profitability of your rental property by investing in repairs and maintenance. These expenses can be deducted from your rental income, reducing your taxable rental earnings while improving living conditions for your tenants.
13 | Establish a Lifetime Asset Protection Trust
Protect your family’s financial legacy with a Lifetime Asset Protection Trust, shielding assets from potential future risks like lawsuits or divorce. This trust ensures that the wealth you leave behind continues to benefit your loved ones securely over time.
14 | Finalize Your Estate Plan
Ensure your wishes are honored and your loved ones are cared for by completing your estate plan. This includes drafting a Will, setting up a Revocable Trust, appointing Power of Attorney, and outlining Advance Medical Directives. A comprehensive estate plan provides peace of mind, enabling you to focus on enjoying life’s moments knowing your legacy is protected.
Make Informed Financial Decisions
While February may have passed, it’s never too late to make thoughtful financial decisions that prioritize your family’s well-being and future. Whether you’re considering tax-saving strategies or safeguarding your legacy, proactive planning today can yield lasting benefits tomorrow.
As advocates for comprehensive life and legacy planning, we’re here to support you in navigating these decisions with confidence and clarity. Let’s work together to build a secure future for you and your loved ones, ensuring your financial goals align with your personal values and aspirations.
Schedule a complimentary 15-minute call to learn how we can help you create a Life & Legacy Plan that will take care of everyone and everything you love.
This article is a service of Zarda Law, S.C. We do not just draft documents; we ensure you make informed decisions about life and death, for yourself and the people you love. That's why we offer a Legacy Planning Session, during which you will get financially organized and make all the best choices for the people you love. You can begin by scheduling a Legacy Planning Session and mention this article to find out how to get this $750 session at no charge.
