As the year comes to a close, many people are busy with holiday preparations, family gatherings, and reflecting on the year gone by. However, the end of the year is also the perfect time to take a step back and think about your Florida estate plan, especially if protecting your assets from taxes is on your mind. Year-end estate tax planning might not sound as exciting as holiday shopping or New Year’s celebrations, but it is an important task that could make a significant difference for you and your loved ones in 2025 and beyond.
If you are like most people, you have worked hard to build your assets. Whether that includes savings, investments, a business, or real estate, it is only natural to want to preserve as much as possible for your family. Unfortunately, without proactive estate tax planning, more of your hard-earned assets could end up going to taxes than to your intended beneficiaries. The good news is that with a little planning before December 31st, you can take steps to minimize those taxes and secure your legacy.
One of the easiest strategies to start with is gifting. Did you know that in 2024, you can gift up to $17,000 per person without incurring a gift tax? This is a great way to pass wealth to your loved ones while reducing the size of your taxable estate. If you have children, grandchildren, or other family members you want to support, consider giving them a financial boost this year. These gifts can make a real impact on their lives and help reduce your estate tax burden at the same time.
Charitable giving is another powerful tool for year-end planning. Not only can donating to a qualified charity provide you with a valuable tax deduction, but it also allows you to support causes that matter deeply to you. Think of it as a win-win: you get to make a difference in your community while lowering your overall tax obligations. If you are unsure where to donate or how to structure your gifts, an experienced Florida estate planning attorney can help you align your philanthropic goals with your tax strategy.
Trusts are another effective way to manage estate taxes. Certain types of trusts can protect your assets while ensuring they are distributed according to your wishes. For example, irrevocable trusts can remove assets from your taxable estate, potentially saving significant taxes down the road. If you already have a trust in place, now is a good time to review it. Laws change, and what worked a few years ago might not be the best solution for your current situation. A quick check-up with your Florida estate planning attorney can ensure everything is still aligned with your goals.
Of course, estate tax planning is not just about taking action, it is also about staying informed. Tax laws change frequently, and what works this year may not be as effective next year. For example, there are ongoing discussions about possible changes to the estate and gift tax exemptions. Currently, the federal exemption is historically high, but it is set to decrease in 2026 unless new legislation is passed. This makes it even more critical to take advantage of opportunities while they are still available.
Another factor to consider is the potential for state estate taxes. While Florida does not currently have a state-level estate tax, this is not true everywhere. If you own property or have assets in another state, you may need to account for those state-specific rules. These details can be tricky to navigate, but they are crucial for creating a comprehensive plan.
At Perlin Estate Planning & Probate, we believe that estate tax planning is about more than just numbers. It is about giving you peace of mind, knowing your family will be taken care of no matter what. Whether you are looking to optimize your gifting strategy, explore charitable contributions, or fine-tune your trust, we are here to guide you every step of the way.
As the calendar inches closer to the end of the year, now is the time to act. Proactive planning can save you and your family time, stress, and money in the future. If you are ready to make the most of 2024 and start 2025 on the right foot, contact us today. Let’s work together to protect your assets and secure your legacy.
We know this article may raise more questions than it answers. At Perlin Estate Planning & Probate our credentials enable us to provide a multi-disciplinary approach to our legal services. By building relationships with our clients, we are also able to understand each client’s needs and desires, and we support such goals through thoughtful, comprehensive planning techniques. We encourage you to contact us and schedule a meeting.