Broker Check

The Gifting Season: Gifting and the Estate Tax

| December 14, 2016
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Estate Tax

You’ve spent a lifetime building assets. Estate planning is about protecting those assets, and protecting your spouse, children, or other heirs from inheriting a tax liability in the event of your death.

In 2016, a deceased's estate is not subject to estate tax at the federal level until its value is in excess of $5.45 million1, which leaves many of us thinking it is not applicable to our current financial situation. Consider though, any life insurance policies you or your employer might hold, pension funds or retirement funds. When added together, the value of all may tip the scales toward the estate tax becoming valid in your situation.

By including charitable gifts or donations in your financial plan that are distributed at the time of your death, the likelihood of a large tax liability reduces dramatically. Your FAS financial advisor can help you determine if you fit this scenario and suggest options for distributing your estate in the most effective manner.

1 IRS

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