Estate Planning: Gift Planning Check-Up
Estate planning is a critical part of financial planning and is necessary for anyone who wants to ensure that their assets are distributed according to their wishes after death. However, it is not enough to create an estate plan and forget about it. Regular check-ups are necessary to ensure that your plan aligns with your current wishes and financial situation. One of the essential parts of estate planning is gift planning. This involves identifying the assets you want to give away during your lifetime or after your death and determining how and when you want to transfer them.
A gift planning check-up with an estate planning attorney involves:
A review of your estate plan.
The identification of your goals.
The review of your gifting strategy.
The consideration of tax implications.
The review of your beneficiaries.
Review Your Estate Plan
The first step in a gift planning check-up is to review your estate plan to ensure that it is up to date and reflects your current wishes. Include a will, trust, power of attorney, and healthcare directives in your estate plan. If you have made any significant changes in your life, such as a marriage, divorce, birth of a child, or purchase of new assets, estate plan updates may be needed to reflect these changes.
Identify Your Goals
During your gift planning check-up with your Georgia estate planning attorney, you must identify your goals and priorities. Do you want to support a particular charity, leave a legacy for your family, or minimize taxes? Identifying your goals will help you determine the best strategies for giving and ensure that your assets are distributed according to your wishes. It is also essential to consider your family's needs and what is best for them when identifying your goals.
Review Your Gifting Strategy
Your gifting strategy is a critical part of your estate plan, and it is important to review it regularly. It is a good time to start if you have not yet developed a gifting strategy, especially since, effective January 2023, the amount you can give annually has increased because of inflation. Some common gifting strategies include making annual gifts to family members or charitable organizations, creating a trust, or making gifts through your will. You should consider the advantages and disadvantages of each strategy and determine the one that best fits your needs and goals.
Consider Tax Implications
When making gifts, it is essential to consider the tax implications. You may need to pay gift taxes depending on the size and type of gifts you make. Additionally, your estate may be subject to estate taxes after your death. Speaking with a tax professional is important to help you determine the best strategies to minimize taxes and maximize the benefits of your gifts. There are several tax-efficient gifting strategies that you can employ, such as using the annual exclusion or setting up a charitable trust.
Review Your Beneficiaries
You must review your beneficiary designations to ensure they are up to date and reflect your current wishes. Beneficiary designations on life insurance, retirement accounts, and other assets take priority over the instructions in your will or trust, so it is crucial to review them regularly. Make sure that your beneficiaries are up to date and that they reflect your current wishes and goals.
A gift-planning check-up is an essential part of estate planning. Regularly reviewing your estate plan, identifying your goals, reviewing your gifting strategy, considering tax implications, and reviewing your beneficiaries helps ensure that those you love are cared for after your death and that your assets are distributed as you desire. Regularly conducting a gift planning check-up can ensure that your estate plan continues to align with your needs and goals and that you take advantage of any changes in tax laws and other regulations that may affect your estate plan. Now is the time if you have not yet conducted a gift planning check-up.
Contact a Georgia Estate Planning Attorney Today
If you need assistance creating or revising your estate planning documents, Jammie Taire and the Smith Taire Legal team can help. We educate our clients on their estate planning options and ensure their final wishes are legally binding. Call us at 678-253-8133 if you have questions about your estate planning or wish to meet with an experienced Georgia estate planning attorney.