As 2018 comes to a close, it's time to start looking into changes coming in 2019. If you're planning an estate, then you need to take some time to review your estate and any changes that might need to be made.
One important change that happens annually, in most cases, is a change to the estate tax. The estate tax is not lodged against every estate in America, but it could affect yours if it's above a certain value.
How much can your estate be worth without taxes in 2019?
Your estate can be up to $11.4 billion worth of assets and cash without being taxed by the estate tax. However, keep in mind that it may be taxed if it's even a few cents over that limit.
How can you lower the value of your estate?
One good way is through charity contributions. Another possible way is through giving gifts to your loved ones. There are limits, but by giving these gifts early, it's sometimes possible to avoid taxation on them.
Why is it important to review your estate annually?
An annual review is important since it gives you a chance to go over changes in the law and how they could affect your estate. While the majority of people won't have estates worth as much as the above limit, if yours is close, you'll want to start making plans for how you can distribute some of those assets to avoid having to pay the estate tax at all. Our website has more on what to do as this year comes to a close.