Heather Zack JD, LLM, MSFP, CAP®’s Post

While all gifts could technically be considered taxable to the donor, the annual gift tax exclusion (currently at $18,000) provides for a practical allowance that makes it unnecessary to track and report every small gift. https://bit.ly/3YdlZYG Furthermore, every individual also has a lifetime gift and estate tax exemption ($13.61M per recipient in 2024). Both the annual gift tax exclusion and the lifetime gift and estate tax exemption come with various nuances that determine what counts toward these exemptions. David Haughton, JD, CPWA®, Senior Corporate Counsel at Wealth.com, shares: -The Mechanics (And Misconceptions) Of Taxable Gifts -The Ins And Outs Of Gift Tax Reporting -Strategies To Structure Gifts So That They Are Not Countable And/Or Reportable #advicers

🚨The annual gift tax exclusion is expected to go up AGAIN in 2025 to $19,000 and the estate tax exemption is projected for an increase to almost $14 million per individual! These figures are NOT final, but they are the expert projections based on the Bureau of Labor and Statistics - historically, they are usually pretty solid. Crazy that the annual exclusion was $14k for 5 years, then $15k for 4 years, and now has gone up each year by $1k since to the now projected level of $19k. With sunset 🌇 looming, these are important figures to know and potentially leverage! The final figures should drop within the next month or so. #estateplanning

In Celebration of Financial Planning Month, we’re excited to feature posts by David Haughton, JD, CPWA®, our Senior Corporate Counsel. Throughout the month, he’ll be sharing key insights and actionable takeaways to help financial advisors better serve their clients. Today, he’s breaking down the Generation-Skipping Tax: 🎁 Estate tax applies during life or death on gifts to non-spouses and non-charities. 👶 Generation-Skipping Tax (GST) applies to anything given to someone more than one generation below you (typically grandchildren). 🚫 Both taxes come with a lifetime exemption of $13.61 million (as of 2024). 🗓️ There’s also an annual exclusion of $18,000 for each tax. 🍽️ You only tap into your lifetime exemption after exceeding your annual limits. 💸 However, the exemptions are mutually exclusive—with a 40% tax on amounts exceeding each exemption (gifts can be subject to both taxes simultaneously!). 🤯 This means gifts exceeding both exemptions could be taxed up to 80%! This underscores the importance of proactive planning, especially for high-net-worth estates that may exceed these exemptions. While most individuals won’t face this issue, it’s essential to understand the interplay between annual and lifetime exemptions when discussing gifting strategies. And remember, gifting strategies are complex with many nuances and exceptions, so always coordinate with a legal professional. #financialplanningmonth #estateplanning

This is an ATTACK AD🎙️ plain and simple. I’m tired of opponents who are against estate planning 🏈 Did you see a million of these ads yesterday during football!? Well, I did and wanted to make one about something that needs all our votes. The statistics are crazy as far as why people need to plan and why advisors should be involved in the process. VOTE for estate planning today 🇺🇸 #estateplanning

THANK YOU to ALL of you for being a part of this journey. TOGETHER we can change this world for the better. It's an honor and a privilege to be surrounded by these amazing industry leaders Natalie Colley, CFP® Ben Henry-Moreland, CFP®, EA Autumn Knutson, CFP® Danny Lohrfink Christopher L. Stroup, MBA, EA, CFP® Gennadiy Todd, CFP®. Financial Planning Brian Wallheimer Nathan Place Sabrina Ticer-Wurr thank you for all you do to support our industry. Boston Wealth Strategies I'm so excited for the future of our firm, team, clients, and families. Financial Planning Association (FPA) | FPA NexGen | Financial Planning Association of New England | The Ensemble Practice