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Caring For Generations

Reap-Your-Taxes-While-Ye-May Estate Planning

On Behalf of | Sep 1, 2020 | charitable giving, retirement and estate planning, Tax Planning

Not very many things seem to be certain these days, but the old saw about death and taxes may be important to keep in mind for your end-of-year planning. In fact, Andy Ferguson, writing in, believes that between now and the end of 2020, “advisors have a rare opportunity to proactively engage our clients in tax and estate planning issues that will impact them and their families for decades to come.” Ferguson opines that whoever sits in the White House or in Congress after the coming election, there is a real possibility that current tax policy could be subject to significant change in 2021.

Ferguson goes on to make 5 specific recommendations:

  1. Realize long term capital gains now rather than waiting until next year.
  2. Make non-taxable gifts to beneficiaries of up to $15,000 per recipient.
  3. Make gifts (unlimited amounts) to healthcare or education institutions on behalf of those you care about.
  4. Establish trusts to benefit both beneficiaries and favorite charitable organizations. At Geyer Law, we agree that current low interest rates make charitable planning strategies such as GRATs and CLATs particularly attractive.
  5. Help a loved one with a formal loan (the allowable rate as of June 2020 was 0.18%!)

Guardian Tax Solutions’ September newsletter reminds readers that some parents have a new opportunity to receive $500 economic impact payments for their children. The Internal Revenue Service has announced it will reopen the registration period for beneficiaries with children who did not receive a $500 stimulus payment earlier this year.

While planner Andy Ferguson seems pretty sure of the outcome of the 2020 election, At Geyer Law, we make no such prediction. What we can do is carefully evaluate your unique situation, discuss your goals and develop a customized long range plan that secures your hard-earned assets and protects your loved ones’ well-being. At the same time, we can help you with year-end planning for 2020.

– by Ronnie of the Rebecca W. Geyer & Associates Blog Team