As we approach the end of 2023, corporations and legal professionals should lend their attention to estate planning matters – particularly given this year’s significant wealth generation spurred by a strong stock market and a “soft landing”. Notably, the gift tax, estate tax, and generations-skipping transfer tax are all levied on the fair market value of assets at moment of transfer. But, there are strategies that could make the season’s planning less daunting and more advantageous.
One such strategy revolves around gifts and other transfers, which may afford an opportunity to leverage exclusions and exemptions. Seizing this opportunity could freeze current prices of assets and subsequently pass on future appreciation to the next generation. Lauded law firm Seyfarth Shaw LLP has raised the spotlight on this significant aspect of estate planning.
The firm brings attention to the fact that the gift tax, estate tax, and generation-skipping transfer tax, all tied to the fair market value of assets at time of transfer, can be significantly influenced through proactive actions now. The legal experts at Seyfarth underline that transfers now might allow for leveraging exclusions and exemptions, freezing the current prices of assets, and a possibility to pass on future appreciation to the next generation.
Keeping up-to-date with estate planning, particularly during these financially robust times, is not just desirable, but could be financially rewarding. Head into the new year knowing you are making the most of the current financial landscape.
For a more comprehensive understanding of year-end estate planning, you may wish to visit the original article on this topic published by JDSupra.